Delaware
|
31-1557791
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
Number)
|
|
151
North Market Street
|
||
Wooster,
Ohio
|
44691
|
|
(Address
of principal
|
(Zip
Code)
|
|
executive
office)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer ý
|
Page
|
||
|
||
|
December
31,
|
March
31,
|
|||||
ASSETS
|
2006
|
2006
|
|||||
|
(Unaudited)
|
||||||
Cash
and due from banks
|
$
|
2,389
|
$
|
2,952
|
|||
Federal
funds sold
|
10,000
|
-
|
|||||
Interest-bearing
deposits in other financial institutions
|
8,501
|
11,171
|
|||||
Cash
and cash equivalents
|
20,890
|
14,123
|
|||||
Investment
securities available for sale - at market
|
58,127
|
67,505
|
|||||
Investment
securities held to maturity - at amortized cost, approximate market
value
|
|||||||
of
$622 and $5,796 as of December 31, 2006 and March 31, 2006, respectively
|
602
|
5,802
|
|||||
Mortgage-backed
securities available for sale - at market
|
62,483
|
53,932
|
|||||
Mortgage-backed
securities held to maturity - at cost, approximate market value of
|
|||||||
$1,302
and $1,805 as of December 31, 2006 and March 31, 2006,
respectively
|
1,293
|
1,799
|
|||||
Loans
receivable - net
|
240,751
|
235,312
|
|||||
Office
premises and equipment - net
|
8,263
|
8,557
|
|||||
Real
estate acquired through foreclosure
|
-
|
156
|
|||||
Federal
Home Loan Bank stock - at cost
|
4,829
|
4,623
|
|||||
Cash
surrender value of life insurance
|
5,978
|
5,811
|
|||||
Accrued
interest receivable on loans
|
1,184
|
1,075
|
|||||
Accrued
interest receivable on mortgage-backed securities
|
288
|
250
|
|||||
Accrued
interest receivable on investments and interest-bearing deposits
|
464
|
700
|
|||||
Prepaid
expenses and other assets
|
1,152
|
1,526
|
|||||
Goodwill
and other intangible assets
|
2,428
|
2,508
|
|||||
Prepaid
federal income taxes
|
228
|
-
|
|||||
Total
assets
|
$
|
408,960
|
$
|
403,679
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Deposits
|
$
|
335,425
|
$
|
332,570
|
|||
Advances
from the Federal Home Loan Bank
|
34,500
|
32,750
|
|||||
Advances
by borrowers for taxes and insurance
|
1,000
|
521
|
|||||
Accrued
interest payable
|
354
|
263
|
|||||
Accounts
payable on mortgage loans serviced for others
|
291
|
225
|
|||||
Other
liabilities
|
1,082
|
1,118
|
|||||
Accrued
federal income taxes
|
-
|
51
|
|||||
Deferred
federal income taxes
|
1,026
|
665
|
|||||
Total
liabilities
|
373,678
|
368,163
|
|||||
Commitments
|
-
|
-
|
|||||
Stockholders’
equity
|
|||||||
Preferred
stock (500,000 shares of $.10 par value authorized; none issued)
|
-
|
-
|
|||||
Common
stock (9,000,000 shares of $.10 par value authorized; 3,978,731
and 3,934,874
|
|||||||
shares
issued at December 31, 2006 and March 31, 2006, respectively)
|
398
|
393
|
|||||
Additional
paid-in capital
|
36,249
|
35,604
|
|||||
Retained
earnings - substantially restricted
|
11,844
|
11,394
|
|||||
Less
required contributions for shares acquired by Employee Stock Ownership
Plan
|
(1,178
|
)
|
(1,239
|
)
|
|||
Less
729,622 and 595,322 shares of treasury stock at December 31, 2006
and
|
|||||||
March
31, 2006, respectively - at cost
|
(11,618
|
)
|
(9,625
|
)
|
|||
Accumulated
other comprehensive loss - unrealized losses on securities
designated
|
|||||||
as
available for sale, net of tax effects
|
(413
|
)
|
(1,011
|
)
|
|||
Total
stockholders’ equity
|
35,282
|
35,516
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
408,960
|
$
|
403,679
|
|
Nine
months
|
Three
months
|
|||||||||||
|
ended
|
ended
|
|||||||||||
|
December
31,
|
December
31,
|
|||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
|
(Unaudited)
|
||||||||||||
Interest
income
|
|||||||||||||
Loans
|
$
|
11,924
|
$
|
10,351
|
$
|
4,048
|
$
|
3,626
|
|||||
Mortgage-backed
securities
|
2,327
|
1,462
|
846
|
483
|
|||||||||
Investment
securities
|
2,082
|
2,296
|
627
|
763
|
|||||||||
Interest-bearing
deposits and other
|
360
|
351
|
158
|
109
|
|||||||||
Total
interest income
|
16,693
|
14,460
|
5,679
|
4,981
|
|||||||||
Interest
expense
|
|||||||||||||
Deposits
|
7,194
|
5,201
|
2,545
|
1,855
|
|||||||||
Borrowings
|
1,038
|
764
|
410
|
262
|
|||||||||
Total
interest expense
|
8,232
|
5,965
|
2,955
|
2,117
|
|||||||||
Net
interest income
|
8,461
|
8,495
|
2,724
|
2,864
|
|||||||||
Provision
for losses on loans
|
70
|
-
|
10
|
-
|
|||||||||
Net
interest income after provision for losses on loans
|
8,391
|
8,495
|
2,714
|
2,864
|
|||||||||
Other
income
|
|||||||||||||
Gain
(loss) on sale of loans
|
-
|
68
|
-
|
(1
|
)
|
||||||||
Proceeds
due from bank-owned life insurance policy
|
-
|
63
|
-
|
63
|
|||||||||
Increase
in cash surrender value of life insurance
|
167
|
184
|
57
|
59
|
|||||||||
Service
fees, charges and other operating
|
1,123
|
1,006
|
376
|
346
|
|||||||||
Total
other income
|
1,290
|
1,321
|
433
|
467
|
|||||||||
General,
administrative and other expense
|
|||||||||||||
Employee
compensation and benefits
|
4,179
|
5,070
|
1,332
|
1,957
|
|||||||||
Occupancy
and equipment
|
1,438
|
1,410
|
503
|
509
|
|||||||||
Federal
deposit insurance premiums
|
31
|
33
|
11
|
11
|
|||||||||
Franchise
taxes
|
177
|
394
|
(21
|
)
|
133
|
||||||||
Other
operating
|
1,555
|
1,550
|
530
|
576
|
|||||||||
Total
general, administrative and other expense
|
7,380
|
8,457
|
2,355
|
3,186
|
|||||||||
Earnings
before income taxes (credits)
|
2,301
|
1,359
|
792
|
145
|
|||||||||
Federal
incomes taxes (credits)
|
|||||||||||||
Current
|
608
|
82
|
310
|
(147
|
)
|
||||||||
Deferred
|
53
|
199
|
(81
|
)
|
121
|
||||||||
Total
federal income taxes (credits)
|
661
|
281
|
229
|
(26
|
)
|
||||||||
NET
EARNINGS
|
$
|
1,640
|
$
|
1,078
|
$
|
563
|
$
|
171
|
|||||
EARNINGS
PER SHARE
|
|||||||||||||
Basic
|
$
|
0.51
|
$
|
0.32
|
$
|
0.18
|
$
|
0.05
|
|||||
Diluted
|
$
|
0.51
|
$
|
0.32
|
$
|
0.18
|
$
|
0.05
|
|||||
DIVIDENDS
PER SHARE
|
$
|
0.36
|
$
|
0.36
|
$
|
0.12
|
$
|
0.12
|
Nine
months
|
Three
months
|
||||||||||||
ended
|
ended
|
||||||||||||
December
31,
|
December
31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Unaudited)
|
|||||||||||||
Net
earnings
|
$
|
1,640
|
$
|
1,078
|
$
|
563
|
$
|
171
|
|||||
Other
comprehensive income (loss):
|
|||||||||||||
Unrealized
holding gains (losses) on securities, net of related
|
|||||||||||||
taxes
(benefits) of $308, $(22), $83 and $(233) during the
|
|||||||||||||
respective
periods
|
598
|
(42
|
)
|
162
|
(452
|
)
|
|||||||
Comprehensive
income (loss)
|
$
|
2,238
|
$
|
1,036
|
$
|
725
|
$
|
(281
|
)
|
||||
Accumulated
comprehensive loss
|
$
|
(413
|
)
|
$
|
(834
|
)
|
$
|
(413
|
)
|
$
|
(834
|
)
|
|
2006
|
2005
|
|||||
|
(Unaudited)
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
earnings for the period
|
$
|
1,640
|
$
|
1,078
|
|||
Adjustments
to reconcile net earnings to net cash provided by
|
|||||||
operating
activities:
|
|||||||
Amortization
of discounts and premiums on loans,
|
|||||||
investments
and mortgage-backed securities - net
|
(66
|
)
|
384
|
||||
Amortization
of deferred loan origination fees
|
(39
|
)
|
(110
|
)
|
|||
Depreciation
and amortization
|
528
|
504
|
|||||
Amortization
of expense related to ESOP
|
109
|
153
|
|||||
Gain
on sale of loans
|
-
|
(17
|
)
|
||||
Proceeds
due from bank-owned life insurance policy
|
-
|
(63
|
)
|
||||
Proceeds
from sale of loans in the secondary market
|
-
|
5,763
|
|||||
Loans
originated for sale in the secondary market
|
-
|
(5,749
|
)
|
||||
Provision
for losses on loans
|
70
|
-
|
|||||
Federal
Home Loan Bank stock dividends
|
(206
|
)
|
(173
|
)
|
|||
Increase
(decrease) in cash due to changes in:
|
|||||||
Accrued
interest receivable on loans
|
(109
|
)
|
(420
|
)
|
|||
Accrued
interest receivable on mortgage-backed securities
|
(38
|
)
|
152
|
||||
Accrued
interest receivable on investments and interest-bearing
deposits
|
236
|
199
|
|||||
Prepaid
expenses and other assets
|
374
|
274
|
|||||
Amortization
of expense related to intangibles
|
80
|
80
|
|||||
Accrued
interest payable
|
91
|
(38
|
)
|
||||
Accounts
payable on mortgage loans serviced for others
|
66
|
136
|
|||||
Other
liabilities
|
(36
|
)
|
(21
|
)
|
|||
Federal
income taxes
|
|||||||
Current
|
(279
|
)
|
170
|
||||
Deferred
|
53
|
199
|
|||||
Net
cash provided by operating activities
|
2,474
|
2,501
|
|||||
Cash
flows provided by (used in) investing activities:
|
|||||||
Purchase
of investment securities designated as available for sale
|
(1,101
|
)
|
(7,344
|
)
|
|||
Purchase
of investment securities designated as held to maturity
|
-
|
(50
|
)
|
||||
Proceeds
from maturity of investment securities designated as held to
maturity
|
2,708
|
1,168
|
|||||
Proceeds
from sale of investment securities designated as held to maturity
|
2,512
|
-
|
|||||
Proceeds
from maturity of investment securities designated as available for
sale
|
11,091
|
4,135
|
|||||
Purchase
of mortgage-backed securities designated as available for sale
|
(15,584
|
)
|
(16,215
|
)
|
|||
Principal
repayments on mortgage-backed securities designated as held to
maturity
|
500
|
698
|
|||||
Principal
repayments and sales of mortgage-backed securities designated as
available
for sale
|
7,380
|
21,900
|
|||||
Loan
principal repayments
|
38,643
|
24,082
|
|||||
Loan
disbursements
|
(44,114
|
)
|
(40,228
|
)
|
|||
Purchase
of office premises and equipment - net
|
(234
|
)
|
(246
|
)
|
|||
Proceeds
from sale of real estate acquired through foreclosure
|
156
|
163
|
|||||
Increase
in cash surrender value of life insurance
|
(167
|
)
|
(184
|
)
|
|||
Net
cash provided by (used in) investing activities
|
1,790
|
(12,121
|
)
|
||||
Net
cash provided by (used in) operating and investing
activities
|
|||||||
(balance
carried forward)
|
4,264
|
(9,620
|
)
|
2006
|
2005
|
||||||
(Unaudited)
|
|||||||
Net
cash provided by (used in) operating and investing
activities
|
|||||||
(balance
brought forward)
|
$
|
4,264
|
$
|
(9,620
|
)
|
||
Cash
flows provided by (used in) financing activities:
|
|||||||
Net
increase in deposit accounts
|
2,855
|
8,282
|
|||||
Proceeds
from Federal Home Loan Bank advances
|
78,400
|
37,150
|
|||||
Repayments
of Federal Home Loan Bank advances
|
(76,650
|
)
|
(46,650
|
)
|
|||
Advances
by borrowers for taxes and insurance
|
479
|
292
|
|||||
Dividends
paid on common stock
|
(1,190
|
)
|
(1,216
|
)
|
|||
Proceeds
from exercise of stock options
|
602
|
367
|
|||||
Tax
benefits from exercise of stock options
|
-
|
27
|
|||||
Purchase
of treasury shares
|
(1,993
|
)
|
(5,025
|
)
|
|||
Net
cash provided by (used in) financing activities
|
2,503
|
(6,773
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
6,767
|
(16,393
|
)
|
||||
Cash
and cash equivalents at beginning of period
|
14,123
|
29,942
|
|||||
Cash
and cash equivalents at end of period
|
$
|
20,890
|
$
|
13,549
|
|||
Supplemental
disclosure of cash flow information:
|
|||||||
Cash
paid during the period for:
|
|||||||
Federal
income taxes
|
$
|
830
|
$
|
325
|
|||
Interest
on deposits and borrowings
|
$
|
8,141
|
$
|
6,003
|
|||
Supplemental
disclosure of noncash investing activities:
|
|||||||
Transfers
from loans to real estate acquired through foreclosure
|
$
|
-
|
$
|
184
|
|||
Unrealized
gains (losses) on securities designated as available for
sale,
|
|||||||
net
of related tax effects
|
$
|
598
|
$
|
(42
|
)
|
||
Recognition
of mortgage servicing rights in accordance
|
|||||||
with
SFAS No. 140
|
$
|
-
|
$
|
51
|
|||
Dividends
payable
|
$
|
390
|
$
|
401
|
1.
|
Basis
of Presentation
|
2.
|
Principles
of Consolidation
|
3.
|
Earnings
Per Share
|
For
the nine months ended
|
For
the three months ended
|
|||||||||||||
December
31,
|
December
31,
|
|||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||
Weighted-average
common shares
|
||||||||||||||
outstanding
(basic)
|
3,209,885
|
3,320,492
|
3,239,078
|
3,231,757
|
||||||||||
Dilutive
effect of assumed exercise
|
||||||||||||||
of
stock options
|
7,315
|
17,747
|
5,010
|
9,778
|
||||||||||
Weighted-average
common shares
|
||||||||||||||
outstanding
(diluted)
|
3,217,200
|
3,338,239
|
3,244,088
|
3,241,535
|
4.
|
Stock
Option Plan
|
4.
|
Stock
Option Plan
(continued)
|
Nine
months ended
|
Year
ended
|
|||||||||||||||||||
December
31,
|
March
31,
|
|||||||||||||||||||
2006
|
2006
|
2005
|
||||||||||||||||||
Weighted-
|
Weighted-
|
Weighted-
|
||||||||||||||||||
average
|
average
|
average
|
||||||||||||||||||
exercise
|
exercise
|
exercise
|
||||||||||||||||||
Shares
|
price
|
Shares
|
price
|
Shares
|
price
|
|||||||||||||||
Outstanding
at beginning of period
|
179,148
|
$
|
13.92
|
214,204
|
$
|
13.84
|
214,204
|
$
|
13.84
|
|||||||||||
Granted
|
-
|
-
|
-
|
-
|
163,265
|
13.95
|
||||||||||||||
Exercised
|
(60,924
|
)
|
13.85
|
(27,556
|
)
|
13.32
|
-
|
-
|
||||||||||||
Forfeited
|
(4,000
|
)
|
13.95
|
(7,500
|
)
|
13.95
|
(163,265
|
)
|
13.95
|
|||||||||||
Outstanding
at end of period
|
114,224
|
$
|
13.95
|
179,148
|
$
|
13.92
|
214,204
|
$
|
13.84
|
|||||||||||
Options
exercisable at period-end
|
114,224
|
$
|
13.95
|
179,148
|
$
|
13.92
|
214,204
|
$
|
13.84
|
|||||||||||
Fair
value of options granted
|
$
|
-
|
$
|
-
|
$
|
4.07
|
Number
outstanding
|
114,224
|
|
Exercise
price on all remaining options outstanding
|
13.95
|
|
Weighted-average
remaining contractual life
|
7.25
years
|
5.
|
Recent
Accounting Developments
|
·
|
Separately
recognize financial assets as servicing assets or servicing liabilities,
each time it undertakes an obligation to service a financial asset
by
entering into certain kinds of servicing contracts;
|
·
|
Initially
measure all separately recognized servicing assets and liabilities
at fair
value, if practicable; and
|
·
|
Separately
present servicing assets and liabilities subsequently measured at
fair
value in the statement of financial condition and additional disclosures
for all separately recognized servicing assets and servicing
liabilities.
|
5.
|
Recent
Accounting Developments
(continued)
|
5.
|
Recent
Accounting Developments
(continued)
|
ITEM
2
|
||
CONDITION
AND RESULTS OF OPERATIONS
|
For
the nine months ended December 31,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Loans
receivable, net1
|
$
|
236,917
|
$
|
11,924
|
6.71
|
%
|
$
|
219,668
|
$
|
10,351
|
6.28
|
%
|
|||||||
Mortgage-backed
|
|||||||||||||||||||
securities2
|
62,637
|
2,327
|
4.95
|
54,229
|
1,462
|
3.59
|
|||||||||||||
Investment
securities
|
66,724
|
2,082
|
4.16
|
76,906
|
2,296
|
3.98
|
|||||||||||||
Interest-bearing
deposits3
|
11,705
|
360
|
4.10
|
15,001
|
351
|
3.12
|
|||||||||||||
Total
interest-
|
|||||||||||||||||||
earning
assets
|
377,983
|
16,693
|
5.89
|
365,804
|
14,460
|
5.27
|
|||||||||||||
Non-interest-earning
assets
|
22,781
|
25,103
|
|||||||||||||||||
Total
assets
|
$
|
400,764
|
$
|
390,907
|
|||||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Deposits
|
$
|
331,637
|
7,194
|
2.89
|
$
|
324,300
|
5,201
|
2.14
|
|||||||||||
Borrowings
|
30,247
|
1,038
|
4.58
|
27,340
|
764
|
3.73
|
|||||||||||||
Total
interest-
|
|||||||||||||||||||
bearing
liabilities
|
361,884
|
8,232
|
3.03
|
351,640
|
5,965
|
2.26
|
|||||||||||||
Non-interest
bearing
|
|||||||||||||||||||
liabilities
|
3,221
|
1,662
|
|||||||||||||||||
Total
liabilities
|
365,105
|
353,302
|
|||||||||||||||||
Stockholders’
equity
|
35,659
|
37,605
|
|||||||||||||||||
Total
liabilities and
|
|||||||||||||||||||
stockholders’
equity
|
$
|
400,764
|
$
|
390,907
|
|||||||||||||||
Net
interest income
|
$
|
8,461
|
$
|
8,495
|
|||||||||||||||
Interest
rate spread4
|
2.86
|
%
|
3.01
|
%
|
|||||||||||||||
Net
yield on interest-
|
|||||||||||||||||||
earning
assets5
|
2.98
|
%
|
3.10
|
%
|
|||||||||||||||
Ratio
of average interest-
|
|||||||||||||||||||
earning
assets to average
|
|||||||||||||||||||
interest-bearing
liabilities
|
104.45
|
%
|
104.03
|
%
|
1
|
Includes
non-accrual loan balances.
|
2
|
Includes
mortgage-backed securities designated as available for
sale.
|
3
|
Includes
federal funds sold and interest-bearing deposits in other financial
institutions.
|
4
|
Interest
rate spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
|
5
|
Net
yield on interest-earning assets represents net interest income as
a
percentage of average interest-earning
assets.
|
ITEM
2
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL
|
|
CONDITION
AND RESULTS OF OPERATIONS
|
For
the three months ended December 31,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Loans
receivable, net1
|
$
|
238,683
|
$
|
4,048
|
6.78
|
%
|
$
|
227,198
|
$
|
3,626
|
6.38
|
%
|
|||||||
Mortgage-backed
|
|||||||||||||||||||
securities2
|
66,485
|
846
|
5.09
|
50,747
|
483
|
3.81
|
|||||||||||||
Investment
securities
|
61,419
|
627
|
4.08
|
75,893
|
763
|
4.02
|
|||||||||||||
Interest-bearing
deposits3
|
14,261
|
158
|
4.43
|
12,333
|
109
|
3.54
|
|||||||||||||
Total
interest-
|
|||||||||||||||||||
earning
assets
|
380,848
|
5,679
|
5.96
|
366,171
|
4,981
|
5.44
|
|||||||||||||
Non-interest-earning
assets
|
22,782
|
24,973
|
|||||||||||||||||
Total
assets
|
$
|
403,630
|
$
|
391,144
|
|||||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Deposits
|
$
|
329,691
|
2,545
|
3.09
|
$
|
326,088
|
1,855
|
2.28
|
|||||||||||
Borrowings
|
34,586
|
410
|
4.74
|
27,551
|
262
|
3.80
|
|||||||||||||
Total
interest-
|
|||||||||||||||||||
bearing
liabilities
|
364,277
|
2,955
|
3.24
|
353,639
|
2,117
|
2.39
|
|||||||||||||
Non-interest
bearing
|
|||||||||||||||||||
Liabilities
|
3,838
|
1,603
|
|||||||||||||||||
Total
liabilities
|
368,115
|
355,242
|
|||||||||||||||||
Stockholders’
equity
|
35,515
|
35,902
|
|||||||||||||||||
Total
liabilities and
|
|||||||||||||||||||
stockholders’
equity
|
$
|
403,630
|
$
|
391,144
|
|||||||||||||||
Net
interest income
|
$
|
2,724
|
$
|
2,864
|
|||||||||||||||
Interest
rate spread4
|
2.72
|
%
|
3.05
|
%
|
|||||||||||||||
Net
yield on interest-
|
|||||||||||||||||||
earning
assets5
|
2.86
|
%
|
3.13
|
%
|
|||||||||||||||
Ratio
of average interest-
|
|||||||||||||||||||
earning
assets to average
|
|||||||||||||||||||
interest-bearing
liabilities
|
104.55
|
%
|
103.54
|
%
|
1
|
Includes
non-accrual loan balances.
|
2
|
Includes
mortgage-backed securities designated as available for
sale.
|
3
|
Includes
federal funds sold and interest-bearing deposits in other financial
institutions.
|
4
|
Interest
rate spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
|
5
|
Net
yield on interest-earning assets represents net interest income as
a
percentage of average interest-earning
assets.
|
|
December
31, 2006
|
March
31, 2006
|
|||||||||||
|
(Dollars
in thousands)
|
||||||||||||
Mortgage
loans:
|
|||||||||||||
One-
to four-family residential(1)
|
$
|
145,107
|
59.33
|
%
|
$
|
149,134
|
62.40
|
%
|
|||||
Residential
construction loans
|
3,306
|
1.35
|
4,675
|
1.96
|
|||||||||
Multi-family
residential
|
7,652
|
3.13
|
7,930
|
3.32
|
|||||||||
Non-residential
real estate/land(2)
|
58,911
|
24.09
|
50,778
|
21.25
|
|||||||||
Total
mortgage loans
|
214,976
|
87.90
|
212,517
|
88.93
|
|||||||||
Other
loans:
|
|||||||||||||
Consumer
loans(3)
|
5,435
|
2.22
|
4,901
|
2.05
|
|||||||||
Commercial
business loans
|
24,153
|
9.88
|
21,550
|
9.02
|
|||||||||
Total
other loans
|
29,588
|
12.10
|
26,451
|
11.07
|
|||||||||
Total
loans before net items
|
244,564
|
100.00
|
%
|
238,968
|
100.00
|
%
|
|||||||
Less:
|
|||||||||||||
Loans
in process
|
1,892
|
1,729
|
|||||||||||
Deferred
loan origination fees
|
431
|
443
|
|||||||||||
Allowance
for loan losses
|
1,490
|
1,484
|
|||||||||||
Total
loans receivable, net
|
$
|
240,751
|
$
|
235,312
|
|||||||||
Mortgage-backed
securities, net(4)
|
$
|
63,776
|
$
|
55,731
|
(1)
|
Includes
equity loans collateralized by second mortgages in the aggregate
amount of
$19.9 million and $20.9 million as of December 31, 2006 and March
31,
2006, respectively. Such loans have been underwritten on substantially
the
same basis as the Company’s first mortgage
loans.
|
(2)
|
Includes
land loans of $197,000 and $674,000 as of December 31, 2006 and March
31,
2006, respectively.
|
(3)
|
Includes
second mortgage loans of $449,000 and $783,000 as of December 31,
2006 and
March 31, 2006, respectively.
|
(4) | Includes mortgage-backed securities designated as available for sale. |
December
31,
|
March
31,
|
||||||
2006
|
2006
|
||||||
(Dollars
in thousands)
|
|||||||
Past
due loans 30-89 days:
|
|||||||
Mortgage
loans:
|
|||||||
One-
to four-family residential
|
$
|
374
|
$
|
553
|
|||
Nonresidential
|
-
|
-
|
|||||
Land
|
-
|
-
|
|||||
Non-mortgage
loans:
|
|||||||
Commercial
business loans
|
59
|
72
|
|||||
Consumer
loans
|
8
|
1
|
|||||
$
|
441
|
$
|
626
|
||||
Non-performing
loans:
|
|||||||
Mortgage
loans:
|
|||||||
One-
to four-family residential
|
815
|
725
|
|||||
All
other mortgage loans
|
-
|
-
|
|||||
Non-mortgage
loans:
|
|||||||
Commercial
business loans
|
-
|
47
|
|||||
Consumer
|
-
|
-
|
|||||
Total
non-performing loans
|
815
|
772
|
|||||
Total
real estate acquired through foreclosure
|
-
|
156
|
|||||
Total
non-performing assets
|
$
|
815
|
$
|
928
|
|||
Total
non-performing loans to net
|
|||||||
loans
receivable
|
0.34
|
%
|
0.33
|
%
|
|||
Total
non-performing loans to total assets
|
0.20
|
%
|
0.19
|
%
|
|||
Total
non-performing assets to total assets
|
0.20
|
%
|
0.23
|
%
|
For
the nine months ended
|
For
the year ended
|
||||||
|
December
31, 2006
|
March
31, 2006
|
|||||
|
(Dollars
in thousands)
|
||||||
Loans
receivable, net
|
$
|
240,751
|
$
|
235,312
|
|||
Average
loans receivable, net
|
$
|
236,917
|
$
|
222,944
|
|||
Allowance
balance (at beginning of period)
|
$
|
1,484
|
$
|
1,374
|
|||
Charge-offs:
|
|||||||
Mortgage
loans:
|
|||||||
One-
to four-family
|
(46
|
)
|
(73
|
)
|
|||
Residential
construction
|
-
|
-
|
|||||
Multi-family
residential
|
-
|
-
|
|||||
Non-residential
real estate and land
|
(15
|
)
|
-
|
||||
Other
loans:
|
|||||||
Consumer
|
(21
|
)
|
(75
|
)
|
|||
Commercial
|
-
|
(10
|
)
|
||||
Gross
charge-offs
|
(82
|
)
|
(158
|
)
|
|||
Recoveries:
|
|||||||
Mortgage
loans:
|
|||||||
One-
to four-family
|
1
|
14
|
|||||
Residential
construction
|
-
|
-
|
|||||
Multi-family
residential
|
-
|
-
|
|||||
Non-residential
real estate and land
|
-
|
-
|
|||||
Other
loans:
|
|||||||
Consumer
|
17
|
35
|
|||||
Commercial
|
-
|
8
|
|||||
Gross
recoveries
|
18
|
57
|
|||||
Net
charge-offs
|
(64
|
)
|
(101
|
)
|
|||
Provision
charged to operations
|
70
|
211
|
|||||
Allowance
for loans losses balance (at end
|
|||||||
of
period)
|
$
|
1,490
|
$
|
1,484
|
|||
Allowance
for loan losses as a percent of loans
|
|||||||
receivable,
net at end of period
|
0.62
|
%
|
0.63
|
%
|
|||
Net
loans charged off as a percent of average
|
|||||||
loans
receivable, net
|
0.03
|
%
|
0.05
|
%
|
|||
Ratio
of allowance for loan losses to non-
|
|||||||
performing
loans at end of period
|
182.82
|
%
|
192.23
|
%
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
CONTROLS
AND PROCEDURES
|
(a)
|
Evaluation
of disclosure controls and
procedures.
|
(b)
|
Changes
in internal controls.
|
Legal
Proceedings
|
Risk
Factors
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
(a)
|
Not
applicable
|
(b)
|
Not
applicable
|
(c)
|
The
following table sets forth certain information regarding repurchases
by
the Company for the quarter ended December 31,
2006.
|
Total
# of
|
Maximum
# of shares
|
||||
Total
|
Average
|
shares
purchased
|
which
may still be
|
||
#
of shares
|
price
paid
|
as
part of the
|
purchased
as part
|
||
Period
|
purchased
|
per
share
|
announced
plan
|
of
the announced plan
|
|
October
1-31, 2006
|
-
|
$
-
|
-
|
84,602
|
|
November
1-30, 2006
|
40,000
|
$14.76
|
40,000
|
44,602
|
|
December
1-31, 2006
|
38,800
|
$14.61
|
38,800
|
5,802
|
Defaults
Upon Senior Securities
|
Submission
of Matters to a Vote of Security
Holders
|
Other
Information
|
Exhibits
|
EX-31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, 18 U.S.C. Section 1350
|
EX-31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, 18 U.S.C. Section 1350
|
EX-32
|
Written
Statement of Chief Executive Officer and Chief Financial Officer
furnished
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C.
Section 1350
|
Date:
|
February
8, 2007
|
By:
|
/s/
Phillip E. Becker
|
|
Phillip
E. Becker
|
||||
President
and Chief Executive Officer
|
||||
Date:
|
February
8, 2007
|
By:
|
/s/
H. Stewart Fitz Gibbon III
|
|
H.
Stewart Fitz Gibbon III
|
||||
Executive
Vice President and
|
||||
Chief
Financial Officer
|