x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the fiscal year ended December 31, 2007
|
|
OR
|
|
o
|
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
(Address
of principal executive offices)
|
47305-2419
(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
|
December
31,
|
|||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||||||||||||||
Amount
|
|
Percent
|
|
Amount
|
Percent | Amount | Percent | Amount |
Percent
|
Amount
|
Percent
|
||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
Real
Estate Loans:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
$
|
431,018
|
(1)
|
53.02
|
%
|
$
|
433,123
|
(2)
|
53.01
|
%
|
$
|
451,914
|
(3)
|
54.00
|
%
|
$
|
385,678
|
(4)
|
52.96
|
%
|
$
|
393,450
|
(5)
|
54.86
|
%
|
||||||
Multi-family
|
3,929
|
0.48
|
5,073
|
0.62
|
5,505
|
0.66
|
4,657
|
.64
|
5,353
|
.75
|
|||||||||||||||||||||
Commercial
|
82,116
|
10.10
|
73,912
|
9.05
|
77,270
|
9.23
|
68,067
|
9.35
|
65,430
|
9.12
|
|||||||||||||||||||||
Construction
and development
|
13,560
|
1.67
|
14,451
|
1.77
|
22,938
|
2.74
|
20,745
|
2.85
|
17,860
|
2.49
|
|||||||||||||||||||||
Total
real estate loans
|
$
|
530,623
|
65.28
|
$
|
526,559
|
64.45
|
557,627
|
66.63
|
479,147
|
65.80
|
482,093
|
67.22
|
|||||||||||||||||||
Other
Loans:
|
|||||||||||||||||||||||||||||||
Consumer
Loans:
|
|||||||||||||||||||||||||||||||
Automobile
|
$
|
22,917
|
2.82
|
$
|
31,336
|
3.84
|
39,802
|
4.76
|
39,475
|
5.42
|
40,497
|
5.65
|
|||||||||||||||||||
Home
equity
|
27,232
|
3.35
|
30,051
|
3.68
|
31,962
|
3.82
|
29,464
|
4.05
|
25,401
|
3.54
|
|||||||||||||||||||||
Home
improvement
|
45,156
|
5.55
|
38,546
|
4.72
|
31,933
|
3.82
|
23,289
|
3.20
|
20,924
|
2.92
|
|||||||||||||||||||||
Manufactured
housing
|
992
|
0.12
|
1,422
|
0.17
|
2,106
|
0.25
|
2,879
|
.40
|
4,108
|
.57
|
|||||||||||||||||||||
R.V.
|
77,805
|
9.57
|
71,321
|
8.73
|
64,222
|
7.67
|
58,643
|
8.05
|
58,222
|
8.12
|
|||||||||||||||||||||
Boat
|
47,816
|
5.88
|
46,311
|
5.67
|
40,631
|
4.85
|
38,382
|
5.27
|
38,096
|
5.31
|
|||||||||||||||||||||
Other
|
3,593
|
0.44
|
3,986
|
.48
|
4,305
|
.51
|
3,325
|
.46
|
3,443
|
.48
|
|||||||||||||||||||||
Total
consumer loans
|
225,511
|
27.74
|
222,973
|
27.29
|
214,961
|
25.68
|
195,457
|
26.84
|
190,691
|
26.59
|
|||||||||||||||||||||
Commercial
business loans
|
56,764
|
6.98
|
67,476
|
8.26
|
64,353
|
7.69
|
53,620
|
7.36
|
44,362
|
6.19
|
|||||||||||||||||||||
Total
other loans
|
282,275
|
34.72
|
290,449
|
35.55
|
279,314
|
33.37
|
249,077
|
34.20
|
235,053
|
32.78
|
|||||||||||||||||||||
Total
loans receivable, gross
|
812,898
|
(1)
|
100.00
|
%
|
817,008
|
(2)
|
100.00
|
%
|
836,941
|
(3)
|
100.00
|
%
|
728,224
|
(4)
|
100.00
|
%
|
717,146
|
(5)
|
100.00
|
%
|
|||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Undisbursed
portion of loans
|
3,984
|
5,520
|
7,724
|
9,237
|
8,160
|
||||||||||||||||||||||||||
Deferred
loan fees and costs
|
(3,519
|
)
|
(3,623
|
)
|
(3,453
|
)
|
(3,814
|
)
|
(3,749
|
)
|
|||||||||||||||||||||
Allowance
for losses
|
8,352
|
8,156
|
8,100
|
6,867
|
6,779
|
||||||||||||||||||||||||||
Total
loans receivable, net
|
$
|
804,081
|
$
|
806,955
|
$
|
824,570
|
$
|
715,934
|
$
|
705,956
|
December
31,
|
|||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||||||||||||||
|
|
Amount
|
Percent
|
Amount | Percent |
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||||||||||||
Fixed-Rate
Loans:
|
|||||||||||||||||||||||||||||||
Real
estate:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
$
|
254,235
|
(1)
|
31.28
|
%
|
$
|
271,405
|
(2)
|
33.22
|
%
|
$
|
305,911
|
(3)
|
36.55
|
%
|
$
|
262,716
|
(4)
|
38.08
|
%
|
$
|
281,497
|
(5)
|
39.25
|
%
|
||||||
Multi-family
|
3,610
|
0.44
|
4,488
|
0.55
|
4,587
|
0.55
|
3,427
|
.47
|
3,483
|
.49
|
|||||||||||||||||||||
Commercial
|
17,281
|
2.13
|
9,408
|
1.15
|
9,375
|
1.12
|
6,918
|
.95
|
6,960
|
.97
|
|||||||||||||||||||||
Construction
and development
|
10,197
|
1.25
|
8,310
|
1.02
|
12,690
|
1.52
|
15,191
|
2.09
|
13,946
|
1.94
|
|||||||||||||||||||||
Total
real estate loans
|
285,323
|
35.10
|
293,611
|
35.94
|
332,563
|
39.74
|
288,251
|
39.58
|
305,886
|
42.65
|
|||||||||||||||||||||
Consumer
|
198,068
|
24.37
|
192,715
|
23.59
|
182,784
|
21.84
|
165,895
|
22.78
|
165,182
|
23.03
|
|||||||||||||||||||||
Commercial
business
|
19,842
|
2.44
|
27,093
|
3.32
|
20,000
|
2.39
|
16,347
|
2.24
|
12,099
|
1.69
|
|||||||||||||||||||||
Total
fixed-rate loans
|
503,233
|
61.91
|
513,419
|
62.85
|
535,347
|
63.97
|
470,493
|
64.61
|
483,167
|
67.37
|
|||||||||||||||||||||
Adjustable-Rate
Loans:
|
|||||||||||||||||||||||||||||||
Real
estate:
|
|||||||||||||||||||||||||||||||
One-
to four-family
|
176,783
|
21.75
|
161,718
|
19.79
|
146,003
|
17.44
|
122,962
|
16.89
|
111,953
|
15.61
|
|||||||||||||||||||||
Multi-family
|
319
|
0.04
|
585
|
.07
|
918
|
0.11
|
1,230
|
.17
|
1,870
|
.26
|
|||||||||||||||||||||
Commercial
|
64,835
|
7.98
|
64,504
|
7.90
|
67,895
|
8.11
|
61,149
|
8.40
|
58,470
|
8.15
|
|||||||||||||||||||||
Construction
and development
|
3,363
|
0.41
|
6,141
|
.75
|
10,248
|
1.22
|
5,554
|
.76
|
3,914
|
.55
|
|||||||||||||||||||||
Total
real estate loans
|
245,300
|
30.18
|
232,948
|
28.51
|
225,064
|
26.88
|
190,895
|
26.21
|
176,207
|
24.57
|
|||||||||||||||||||||
Consumer
|
27,443
|
3.38
|
30,258
|
3.70
|
32,177
|
3.85
|
29,562
|
4.06
|
25,509
|
3.56
|
|||||||||||||||||||||
Commercial
business
|
36,922
|
4.53
|
40,383
|
4.94
|
44,353
|
5.30
|
37,273
|
5.12
|
32,263
|
4.50
|
|||||||||||||||||||||
Total
adjustable-rate loans
|
309,665
|
38.09
|
303,589
|
37.15
|
301,594
|
36.03
|
257,730
|
35.39
|
233,979
|
32.63
|
|||||||||||||||||||||
Total
loans
|
812,898
|
(1)
|
100.00
|
%
|
817,008
|
(2)
|
100.00
|
%
|
836,941
|
(3)
|
100.00
|
%
|
728,224
|
(4)
|
100.00
|
%
|
717,146
|
(5)
|
100.00
|
%
|
|||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Undisbursed
portion of loans
|
3,984
|
5,520
|
7,724
|
9,237
|
8,160
|
||||||||||||||||||||||||||
Deferred
loan fees and costs
|
(3,519
|
)
|
(3,623
|
)
|
(3,453
|
)
|
(3,814
|
)
|
(3,749
|
)
|
|||||||||||||||||||||
Allowance
for loan losses
|
8,352
|
8,156
|
8,100
|
6,867
|
6,779
|
||||||||||||||||||||||||||
Total
loans receivable, net
|
$
|
804,081
|
$
|
806,955
|
$
|
824,570
|
$
|
715,934
|
$
|
705,956
|
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,
|
|||||||||||||||||||||||||||||||||||||
2008(3)
|
$
|
168
|
6.36
|
%
|
$
|
7,780
|
7.07
|
%
|
$
|
14
|
9.50
|
%
|
$
|
3,715
|
7.73
|
%
|
$
|
24,219
|
7.97
|
%
|
$
|
35,896
|
7.74
|
%
|
|||||||||||||
2009
|
355
|
6.84
|
694
|
6.67
|
32
|
6.99
|
4,655
|
6.99
|
5,593
|
7.04
|
11,329
|
6.99
|
|||||||||||||||||||||||||
2010
|
549
|
6.44
|
4,588
|
7.45
|
48
|
6.83
|
9,165
|
6.91
|
5,085
|
7.85
|
19,435
|
7.27
|
|||||||||||||||||||||||||
2011
and 2012
|
6,511
|
6.16
|
4,065
|
7.86
|
704
|
9.05
|
22,944
|
7.72
|
4,073
|
8.22
|
38,297
|
7.55
|
|||||||||||||||||||||||||
2013
to 2014
|
13,365
|
5.78
|
10,433
|
7.49
|
114
|
8.90
|
17,439
|
7.57
|
1,642
|
8.20
|
42,993
|
7.02
|
|||||||||||||||||||||||||
2015
to 2029
|
161,235
|
5.94
|
57,391
|
7.21
|
1,900
|
6.26
|
167,047
|
7.71
|
16,071
|
7.13
|
403,644
|
6.90
|
|||||||||||||||||||||||||
2030
and following
|
247,190
|
5.92
|
1,094
|
4.62
|
10,748
|
6.40
|
546
|
5.97
|
81
|
7.88
|
259,659
|
5.94
|
|||||||||||||||||||||||||
Total
|
$
|
429,373
|
5.93
|
%
|
$
|
86,045
|
7.24
|
%
|
$
|
13,560
|
6.55
|
%
|
$
|
225,511
|
7.65
|
%
|
$
|
56,764
|
7.65
|
%
|
$
|
811,253
|
6.68
|
%
|
Year
Ended December 31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Originations
by type:
|
||||||||||
Adjustable
rate:
|
||||||||||
Real
estate - one- to four-family
|
$
|
28,275
|
$
|
40,838
|
$
|
37,682
|
||||
-
multi-family
|
—
|
96
|
—
|
|||||||
-
commercial
|
11,557
|
7,398
|
9,594
|
|||||||
-
construction or development
|
4,894
|
9,396
|
8,806
|
|||||||
Non-real
estate - consumer
|
56
|
148
|
34
|
|||||||
-
commercial business
|
2,026
|
4,507
|
5,213
|
|||||||
Total
adjustable-rate
|
46,808
|
62,383
|
61,329
|
|||||||
Fixed
rate:
|
||||||||||
Real
estate - one- to four-family
|
58,338
|
59,794
|
70,135
|
|||||||
-
commercial
|
2,171
|
351
|
4,207
|
|||||||
-
construction or development
|
11,687
|
9,623
|
14,148
|
|||||||
Non-real
estate - consumer
|
44,423
|
56,086
|
58,446
|
|||||||
-
commercial business
|
3,153
|
8,017
|
8,032
|
|||||||
Total
fixed-rate
|
119,772
|
133,871
|
154,968
|
|||||||
Total
loans originated
|
166,580
|
196,254
|
216,297
|
|||||||
Purchases:(1)
|
||||||||||
Real
estate - one- to four-family
|
16,058
|
5,447
|
59,269
|
|||||||
-
commercial
|
—
|
—
|
3,363
|
|||||||
-
construction or development
|
—
|
—
|
3,628
|
|||||||
Non-real
estate - consumer
|
—
|
1,242
|
8,371
|
|||||||
-
commercial business
|
—
|
—
|
7,610
|
|||||||
Total
loans purchased
|
16,058
|
6,689
|
82,241
|
|||||||
Sales
and Repayments:
|
||||||||||
Sales:
|
||||||||||
Real
estate - one- to four-family
|
24,113
|
50,853
|
13,471
|
|||||||
Total
loans sold
|
24,113
|
50,853
|
13,471
|
|||||||
Principal
repayments
|
162,159
|
174,743
|
173,920
|
|||||||
Total
reductions
|
186,272
|
225,596
|
187,391
|
|||||||
Increase
(decrease) in other items, net
|
(476
|
)
|
2,720
|
(2,430
|
)
|
|||||
Net
increase (decreases)
|
$
|
(4,110
|
)
|
$
|
(19,933
|
)
|
$
|
108,717
|
Loans
Delinquent For:
|
||||||||||
60-89
Days
|
||||||||||
Number
|
Amount
|
Percent
of
Loan
Category
|
||||||||
(Dollars
in thousands)
|
||||||||||
Real
Estate:
|
||||||||||
One-
to four-family
|
60
|
$
|
3,730
|
0.87
|
%
|
|||||
Multi-family
|
—
|
—
|
—
|
|||||||
Commercial
|
2
|
577
|
0.70
|
|||||||
Construction
and development
|
—
|
—
|
—
|
|||||||
Consumer
|
116
|
1,499
|
0.66
|
|||||||
Commercial
business
|
4
|
107
|
0.19
|
|||||||
Total
|
182
|
$
|
5,913
|
0.73
|
%
|
December
31,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Non-accruing
loans:
|
||||||||||||||||
One-
to four-family
|
$
|
2,997
|
$
|
2,762
|
$
|
2,967
|
$
|
1,326
|
$
|
1,316
|
||||||
Multi-family
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Commercial
real estate
|
2,656
|
356
|
569
|
370
|
232
|
|||||||||||
Construction
and development
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Consumer
|
1,294
|
983
|
628
|
498
|
653
|
|||||||||||
Commercial
business
|
2,002
|
1,468
|
1,257
|
1,791
|
1,039
|
|||||||||||
Total
|
8,949
|
5,569
|
5,421
|
3,985
|
3,270
|
|||||||||||
Accruing
loans delinquent 90 days or more:
|
||||||||||||||||
One-
to four-family
|
—
|
—
|
67
|
—
|
—
|
|||||||||||
Multi-family
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Commercial
real estate
|
1,421
|
—
|
1,858
|
—
|
—
|
|||||||||||
Construction
and development
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Consumer
|
—
|
—
|
35
|
119
|
10
|
|||||||||||
Commercial
business
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Total
|
1,421
|
—
|
1,960
|
119
|
10
|
|||||||||||
Total
nonperforming loans
|
10,370
|
5,569
|
7,381
|
4,104
|
3,280
|
|||||||||||
Restructured
loans
|
107
|
111
|
116
|
120
|
—
|
|||||||||||
Foreclosed
assets:
|
||||||||||||||||
One-
to four-family
|
927
|
947
|
912
|
285
|
557
|
|||||||||||
Multi-family
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Commercial
real estate
|
437
|
326
|
595
|
55
|
40
|
|||||||||||
Construction
and development
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Consumer
|
1,137
|
1,322
|
978
|
894
|
824
|
|||||||||||
Commercial
business
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Total
|
2,501
|
2,595
|
2,485
|
1,234
|
1,421
|
|||||||||||
Total
non-performing assets
|
$
|
12,978
|
$
|
8,275
|
$
|
9,982
|
$
|
5,458
|
$
|
4,676
|
||||||
Total
as a percentage of total assets
|
1.35
|
%
|
0.86
|
%
|
1.03
|
%
|
0.65
|
%
|
0.57
|
%
|
Year
Ended December 31,
|
|||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
(Dollars
in thousands)
|
|||||||||||||||
Balance
at beginning of period
|
$
|
8,156
|
$
|
8,100
|
$
|
6,867
|
$
|
6,779
|
$
|
6,286
|
|||||
Charge-offs:
|
|||||||||||||||
One-
to four-family
|
645
|
526
|
303
|
249
|
210
|
||||||||||
Multi-family
|
—
|
—
|
—
|
—
|
—
|
||||||||||
Commercial
real estate
|
44
|
102
|
6
|
34
|
173
|
||||||||||
Construction
and development
|
—
|
—
|
—
|
—
|
—
|
||||||||||
Consumer
|
1,731
|
1,288
|
1,276
|
1,093
|
948
|
||||||||||
Commercial
business
|
303
|
387
|
954
|
616
|
30
|
||||||||||
2,723
|
2,303
|
2,539
|
1,992
|
1,361
|
|||||||||||
Recoveries:
|
|||||||||||||||
One-
to four-family
|
121
|
81
|
22
|
21
|
27
|
||||||||||
Multi-family
|
—
|
—
|
—
|
—
|
—
|
||||||||||
Commercial
real estate
|
—
|
—
|
120
|
326
|
108
|
||||||||||
Construction
and development
|
—
|
—
|
—
|
—
|
—
|
||||||||||
Consumer
|
357
|
199
|
194
|
176
|
159
|
||||||||||
Commercial
business
|
201
|
11
|
15
|
—
|
110
|
||||||||||
679
|
291
|
351
|
523
|
404
|
|||||||||||
Net
charge-offs
|
2,044
|
2,012
|
2,188
|
1,469
|
957
|
||||||||||
Amount
acquired in branch acquisitions
|
—
|
—
|
1,646
|
—
|
—
|
||||||||||
Provisions
charged to operations
|
2,240
|
2,068
|
1,775
|
1,557
|
1,450
|
||||||||||
Balance
at end of period
|
$
|
8,352
|
$
|
8,156
|
$
|
8,100
|
$
|
6,867
|
$
|
6,779
|
|||||
Ratio
of net charge-offs during the period to
average loans outstanding during the period
|
0.25
|
%
|
0.24
|
%
|
0.29
|
%
|
0.21
|
%
|
0.14
|
%
|
|||||
Allowance
as a percentage of non-performing
loans
|
79.72
|
%
|
143.59
|
%
|
109.74
|
%
|
167.32
|
%
|
208.26
|
%
|
|||||
Allowance
as a percentage of total loans (end
of period)
|
1.03
|
%
|
1.00
|
%
|
0.98
|
%
|
0.95
|
%
|
0.95
|
%
|
December
31,
|
||||||||||||||||||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||||||||||||||||||||||||||||
(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
|
$
|
1,200
|
431,018
|
(1)
|
53.02
|
%
|
$
|
1,219
|
433,123
|
(2)
|
53.01
|
%
|
$
|
1,267
|
$
|
451,914
|
(3)
|
54.00
|
%
|
$
|
1,013
|
385,678
|
(4)
|
52.96
|
%
|
$
|
1,149
|
$
|
393,450
|
(5)
|
54.86
|
%
|
||||||||||||||
Multi-family
|
20
|
3,929
|
0.48
|
61
|
5,073
|
0.62
|
68
|
5,505
|
.66
|
62
|
4,657
|
.64
|
72
|
5,353
|
.75
|
|||||||||||||||||||||||||||||||
Commercial
real estate
|
2,159
|
82,116
|
10.10
|
2,000
|
73,912
|
9.05
|
2,039
|
77,270
|
9.23
|
1,479
|
68,067
|
9.35
|
990
|
65,430
|
9.12
|
|||||||||||||||||||||||||||||||
Construction or development
|
14
|
13,560
|
1.67
|
72
|
14,451
|
1.77
|
115
|
22,938
|
2.74
|
104
|
20,745
|
2.85
|
89
|
17,860
|
2.49
|
|||||||||||||||||||||||||||||||
Consumer
|
3,885
|
225,511
|
27.74
|
3,801
|
222,973
|
27.29
|
3,605
|
214,961
|
25.68
|
3,155
|
195,457
|
26.84
|
3,585
|
190,691
|
26.59
|
|||||||||||||||||||||||||||||||
Commercial
business
|
1,075
|
56,764
|
6.99
|
1,003
|
67,476
|
8.26
|
1,006
|
64,353
|
7.69
|
1,054
|
53,620
|
7.36
|
894
|
44,362
|
6.19
|
|||||||||||||||||||||||||||||||
Unallocated
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||||||||
Total
|
$
|
8,352
|
$
|
812,898
|
100.00
|
%
|
$
|
8,156
|
$
|
817,008
|
100.00
|
%
|
$
|
8,100
|
$
|
836,941
|
100.00
|
%
|
$
|
6,867
|
$
|
728,224
|
100.00
|
%
|
$
|
6,779
|
$
|
717,146
|
100.00
|
%
|
For
the Year Ended December 31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(In thousands)
|
||||||||||
Investments
in Pedcor low income
housing projects
|
$
|
3,246
|
$
|
3,461
|
$
|
4,606
|
||||
Equity
in losses, net of income tax effect
|
$
|
(66
|
)
|
$
|
(109
|
)
|
$
|
(104
|
)
|
|
Tax
credit
|
811
|
801
|
811
|
|||||||
Increase
in after-tax income from
Pedcor Investments
|
$
|
745
|
$
|
692
|
$
|
707
|
December
31,
|
|||||||||||||||||||
2007
|
2006
|
2005
|
|||||||||||||||||
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Investment
securities available-for-sale:
|
|||||||||||||||||||
Mutual
funds
|
$
|
16,382
|
$
|
15,914
|
$
|
16,206
|
$
|
15,817
|
$
|
15,218
|
$
|
14,847
|
|||||||
Government
sponsored entities
|
608
|
605
|
1,117
|
1,099
|
2,137
|
2,106
|
|||||||||||||
Mortgage-backed
securities
|
2,310
|
2,352
|
3,146
|
3,156
|
1,802
|
1,830
|
|||||||||||||
Collateralized
mortgage obligations
|
8,327
|
8,322
|
6,860
|
6,762
|
8,195
|
8,051
|
|||||||||||||
Corporate
obligations
|
16,655
|
16,399
|
14,332
|
14,236
|
13,059
|
12,954
|
|||||||||||||
Municipal
obligations
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
investment securities held for sale
|
44,282
|
43,592
|
41,661
|
41,070
|
40,411
|
39,788
|
|||||||||||||
Investment
in limited partnerships
|
3,246
|
N/A
|
3,461
|
N/A
|
4,606
|
N/A
|
|||||||||||||
Investment
in insurance company
|
590
|
N/A
|
590
|
N/A
|
590
|
N/A
|
|||||||||||||
Federal
Home Loan Bank stock
|
10,037
|
N/A
|
9,938
|
N/A
|
10,125
|
N/A
|
|||||||||||||
Total
investments
|
$ | 58,155 |
$
|
43,592
|
$ | 55,650 |
$
|
41,070
|
$
|
55,732
|
$
|
39,788
|
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)
|
|||||||||||||||||||
Corporate
obligations
|
$
|
4,006
|
$
|
2,495
|
$
|
—
|
$
|
10,154
|
$
|
16,655
|
$
|
16,399
|
|||||||
Government
sponsored entities
|
501
|
—
|
68
|
39
|
608
|
605
|
|||||||||||||
Mutual
funds
|
16,382
|
—
|
—
|
—
|
16,382
|
15,914
|
|||||||||||||
Mortgage-backed
securities:
|
|||||||||||||||||||
Freddie
Mac
|
—
|
—
|
70
|
1,345
|
1,415
|
1,428
|
|||||||||||||
Fannie
Mae
|
—
|
87
|
573
|
2,931
|
3,591
|
3,635
|
|||||||||||||
Ginnie
Mae
|
—
|
—
|
—
|
243
|
243
|
243
|
|||||||||||||
Other
|
—
|
300
|
—
|
5,088
|
5,388
|
5,368
|
|||||||||||||
$
|
20,889
|
$
|
2,882
|
$
|
711
|
$
|
19,800
|
$
|
44,282
|
$
|
43,592
|
||||||||
Weighted
average yield
|
4.37
|
%
|
4.32
|
%
|
5.08
|
%
|
6.02
|
%
|
5.56
|
%
|
December
31,
|
|||||||||||||||||||
2007
|
2006
|
2005
|
|||||||||||||||||
Amount
|
Percent
of
Total
|
Amount
|
Percent
of
Total
|
Amount
|
Percent
of
Total
|
||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Transactions
and Savings Deposits:
|
|||||||||||||||||||
Noninterest
bearing accounts
|
$
|
47,172
|
7.08
|
%
|
$
|
47,142
|
6.70
|
%
|
$
|
43,466
|
6.35
|
%
|
|||||||
Passbook
accounts
|
50,388
|
7.56
|
55,750
|
7.93
|
60,867
|
8.89
|
|||||||||||||
Interest-bearing
NOW and
|
|||||||||||||||||||
demand
accounts
|
117,863
|
17.69
|
107,963
|
15.35
|
68,710
|
10.04
|
|||||||||||||
Money
market accounts
|
22,664
|
3.40
|
27,788
|
3.95
|
43,762
|
6.39
|
|||||||||||||
Total
non-certificates
|
238,087
|
35.73
|
238,643
|
33.93
|
216,805
|
31.67
|
|||||||||||||
Certificates:
|
|||||||||||||||||||
0.00
- 1.99%
|
$
|
8,627
|
1.29
|
%
|
$
|
15,772
|
2.24
|
%
|
41,718
|
6.09
|
%
|
||||||||
2.00
- 3.99%
|
47,500
|
7.13
|
82,621
|
11.75
|
224,985
|
32.87
|
|||||||||||||
4.00
- 5.99%
|
372,145
|
55.84
|
366,284
|
52.07
|
199,625
|
29.16
|
|||||||||||||
6.00
- 7.99%
|
48
|
0.01
|
39
|
0.01
|
1,421
|
0.21
|
|||||||||||||
8.00
- 9.99%
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
10.00%
and over
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
certificates
|
428,320
|
64.27
|
464,716
|
66.07
|
467,749
|
68.33
|
|||||||||||||
Total
deposits
|
$
|
666,407
|
100.00
|
%
|
$
|
703,359
|
100.00
|
%
|
$
|
684,554
|
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, 2008
|
5,324
|
8,585
|
140,406
|
—
|
154,315
|
36.01
|
%
|
||||||||||||
June
30, 2008
|
3,301
|
7,257
|
56,840
|
—
|
67,398
|
15.74
|
%
|
||||||||||||
September
30, 2008
|
2
|
11,196
|
47,316
|
40
|
58,554
|
13.67
|
%
|
||||||||||||
December
31, 2008
|
—
|
7,123
|
75,134
|
—
|
82,257
|
19.20
|
%
|
||||||||||||
March
31, 2009
|
—
|
4,006
|
12,173
|
—
|
16,179
|
3.78
|
%
|
||||||||||||
June
30, 2009
|
—
|
2,661
|
5,259
|
—
|
7,920
|
1.85
|
%
|
||||||||||||
September
30, 2009
|
—
|
2,065
|
2,801
|
—
|
4,866
|
1.14
|
%
|
||||||||||||
December
31, 2009
|
—
|
2,198
|
1,121
|
8
|
3,327
|
0.78
|
%
|
||||||||||||
March
31, 2010
|
—
|
161
|
8,798
|
—
|
8,959
|
2.09
|
%
|
||||||||||||
June
30, 2010
|
—
|
69
|
7,108
|
—
|
7,177
|
1.68
|
%
|
||||||||||||
September
30, 2010
|
—
|
439
|
2,800
|
—
|
3,239
|
0.76
|
%
|
||||||||||||
December
31, 2010
|
—
|
745
|
450
|
—
|
1,195
|
0.28
|
%
|
||||||||||||
Thereafter
|
—
|
995
|
11,939
|
—
|
12,934
|
3.02
|
%
|
||||||||||||
Total
|
$
|
8,627
|
$
|
47,500
|
$
|
372,145
|
$
|
48
|
$
|
428,320
|
100.00
|
%
|
|||||||
Percent
of total
|
2.02
|
%
|
11.09
|
%
|
86.88
|
%
|
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
|
$
|
113,439
|
$
|
50,108
|
$
|
95,628
|
$
|
41,868
|
$
|
301,043
|
||||||
Certificates
of deposit of $100,000 or more
|
37,752
|
16,971
|
44,869
|
21,407
|
120,999
|
|||||||||||
Public
funds(1)
|
3,124
|
319
|
315
|
2,520
|
6,278
|
|||||||||||
Total
certificates of deposit
|
$
|
154,315
|
$
|
67,398
|
$
|
140,812
|
$
|
65,795
|
$
|
428,320
|
Year
Ended December 31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Maximum
Balance:
|
||||||||||
Federal
Home Loan Bank advances
|
$
|
191,675
|
$
|
193,345
|
$
|
186,008
|
||||
Notes payable
|
1,427
|
1,784
|
2,146
|
|||||||
Other
borrowings
|
4,311
|
—
|
—
|
|||||||
Average
Balance:
|
||||||||||
Federal
Home Loan Bank advances
|
$
|
157,309
|
$
|
168,001
|
$
|
151,184
|
||||
Notes payable
|
1,160
|
1,635
|
1,995
|
|||||||
Other
borrowings
|
155
|
—
|
—
|
December
31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(Dollars
in thousands)
|
||||||||||
Federal
Home Loan Bank advances
|
$
|
191,675
|
$
|
157,425
|
$
|
186,008
|
||||
Notes
payable
|
1,055
|
1,427
|
1,784
|
|||||||
Other
borrowings
|
3,908
|
—
|
—
|
|||||||
Total
borrowings
|
$
|
196,638
|
$
|
158,852
|
$
|
187,792
|
||||
Weighted
average interest rate of FHLB advances
|
4.88
|
%
|
4.67
|
%
|
3.86
|
%
|
||||
Weighted
average interest rate of notes payable(1)
|
—
|
—
|
—
|
|||||||
Weighted
average interest rate of other borrowings(2)
|
6.48
|
%
|
—
|
—
|
Item 5. |
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity
Securities
|
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
|
||||
Stock Price
|
Dividends per Share
|
|||||||||
2006
Quarters:
|
High
|
Low
|
||||||||
First
Quarter (ended 03/31/06)
|
$
|
22.14
|
$
|
19.91
|
$
|
.14
|
||||
Second
Quarter (ended 06/30/06)
|
$
|
21.03
|
$
|
19.05
|
$
|
.14
|
||||
Third
Quarter (ended 09/30/06)
|
$
|
21.63
|
$
|
19.75
|
$
|
.15
|
||||
Fourth
Quarter (ended 12/31/06)
|
$
|
22.85
|
$
|
20.33
|
$
|
.15
|
Total Number of
Shares Purchased
|
Average Price
Per Share
|
Total Number of
Shares Purchased
As Part of Publicly
Announced Plan
|
Maximum Number of
Shares that May Yet
Be Purchased
Under the Plan
|
||||||||||
216,098
|
(1)
|
||||||||||||
October
1, 2007 - October 31, 2007
|
—
|
—
|
—
|
216,098
|
|||||||||
November
1, 2007 - November 30, 2007
|
47,500
|
$
|
17.23
|
47,500
|
168,598
|
||||||||
December
1, 2007 - December 31, 2007
|
25,000
|
$
|
16.29
|
25,000
|
143,598
|
||||||||
72,500
|
$
|
16.91
|
72,500
|
At
or For the Year Ended December 31,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Selected
Financial Condition
Data
|
||||||||||||||||
Total
assets
|
$
|
962,517
|
$
|
960,842
|
$
|
971,829
|
$
|
839,387
|
$
|
823,791
|
||||||
Cash
and cash equivalents
|
23,648
|
24,915
|
22,365
|
19,743
|
23,068
|
|||||||||||
Loans,
net
|
802,436
|
805,625
|
822,547
|
713,022
|
703,981
|
|||||||||||
Investment
securities:
|
||||||||||||||||
Available-for
-sale, at fair value
|
43,592
|
41,070
|
39,788
|
39,409
|
33,472
|
|||||||||||
Total
deposits
|
666,407
|
703,359
|
684,554
|
600,407
|
579,362
|
|||||||||||
Total
borrowings
|
196,638
|
158,852
|
187,791
|
141,572
|
137,103
|
|||||||||||
Total
stockholders’ equity
|
87,014
|
87,264
|
88,794
|
87,860
|
97,520
|
|||||||||||
Selected
Operations Data
|
||||||||||||||||
Total
interest income
|
$
|
56,374
|
$
|
56,119
|
$
|
48,478
|
$
|
44,400
|
$
|
46,442
|
||||||
Total
interest expense
|
32,227
|
29,890
|
21,170
|
17,476
|
19,099
|
|||||||||||
Net interest income
|
24,147
|
26,229
|
27,308
|
26,924
|
27,343
|
|||||||||||
Provision
for loan losses
|
2,240
|
2,068
|
1,775
|
1,557
|
1,450
|
|||||||||||
Net
interest income after provision
for loan losses
|
21,907
|
24,161
|
25,533
|
25,367
|
25,893
|
|||||||||||
Service
fee income
|
4,831
|
4,370
|
4,026
|
3,193
|
2,927
|
|||||||||||
Gain(loss)
on sale of loans and investment securities
|
391
|
(669
|
)
|
228
|
727
|
1,364
|
||||||||||
Other
non-interest income
|
2,549
|
2,941
|
2,478
|
2,304
|
1,684
|
|||||||||||
Total
non-interest income
|
7,771
|
6,642
|
6,732
|
6,224
|
5,975
|
|||||||||||
Salaries
and employee benefits
|
14,759
|
14,617
|
13,792
|
16,167
|
13,097
|
|||||||||||
Other
expenses
|
10,397
|
10,402
|
9,620
|
8,149
|
7,369
|
|||||||||||
Total
non-interest expense
|
25,156
|
25,019
|
23,412
|
24,316
|
20,466
|
|||||||||||
Income
before taxes
|
4,522
|
5,784
|
8,853
|
7,275
|
11,402
|
|||||||||||
Income
tax expense
|
296
|
1,028
|
2,401
|
1,753
|
3,340
|
|||||||||||
Net
income
|
$
|
4,226
|
$
|
4,756
|
$
|
6,452
|
$
|
5,522
|
$
|
8,062
|
At
or For the Year Ended December 31,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
Selected
Financial Ratios and Other Financial
Data:
|
||||||||||||||||
Performance
Ratios:
|
||||||||||||||||
Return on average assets (ratio of
net income to average total assets)
|
0.44
|
%
|
0.49
|
%
|
0.73
|
%
|
0.67
|
%
|
1.01
|
%
|
||||||
Return
on average tangible equity (ratio of
net income to average tangible equity)
|
5.86
|
6.43
|
7.79
|
5.90
|
8.43
|
|||||||||||
Interest
rate spread information:
|
||||||||||||||||
Average
during the period
|
2.50
|
2.70
|
3.13
|
3.46
|
3.56
|
|||||||||||
Net
interest margin(1)
|
2.79
|
2.96
|
3.37
|
3.57
|
3.73
|
|||||||||||
Ratio
of operating expense to average
total assets
|
2.64
|
2.57
|
2.89
|
2.94
|
2.56
|
|||||||||||
Ratio
of average interest-earning assets
to average interest-bearing
liabilities
|
107.92
|
107.65
|
109.30
|
106.06
|
106.53
|
|||||||||||
Efficiency
ratio(2)
|
78.81
|
76.11
|
68.78
|
73.26
|
61.43
|
|||||||||||
Asset
Quality Ratios:(3)
|
||||||||||||||||
Non-performing
assets to total
assets
|
1.35
|
0.86
|
1.03
|
0.65
|
0.57
|
|||||||||||
Non-performing
loans to total
loans
|
1.29
|
0.70
|
0.90
|
0.57
|
0.46
|
|||||||||||
Allowance
for loan losses to non-performing loans
|
79.72
|
143.59
|
108.04
|
167.32
|
208.26
|
|||||||||||
Allowance for loan losses to loans receivable, net
|
1.03
|
1.00
|
0.98
|
0.95
|
0.95
|
|||||||||||
Capital
Ratios:
|
||||||||||||||||
Equity
to total assets(3)
|
9.04
|
9.08
|
9.14
|
10.47
|
11.87
|
|||||||||||
Average
equity to average assets
|
9.16
|
9.08
|
9.90
|
11.50
|
11.97
|
|||||||||||
Share
and Per Share Data:
|
||||||||||||||||
Average
common shares outstanding:
|
||||||||||||||||
Basic
|
4,103,940
|
4,196,059
|
4,328,965
|
4,625,437
|
4,904,007
|
|||||||||||
Diluted
|
4,151,173
|
4,274,039
|
4,439,686
|
4,772,036
|
5,084,514
|
|||||||||||
Per
share:
|
||||||||||||||||
Basic
earnings
|
$
|
1.03
|
$
|
1.13
|
$
|
1.49
|
$
|
1.19
|
$
|
1.64
|
||||||
Diluted
earnings
|
$
|
1.02
|
$
|
1.11
|
$
|
1.45
|
$
|
1.16
|
$
|
1.59
|
||||||
Dividends
|
$
|
0.60
|
$
|
0.58
|
$
|
0.49
|
$
|
0.47
|
$
|
0.42
|
||||||
Dividend
payout ratio(4)
|
58.25
|
%
|
52.25
|
%
|
36.55
|
%
|
40.52
|
%
|
26.42
|
%
|
||||||
Other
Data:
|
||||||||||||||||
Number
of full-service offices
|
21
|
21
|
20
|
18
|
17
|
· |
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 2007, that
percentage has increased to 47%.
|
· |
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 2007, we originated
$86.6
million of one- to four-family residential loans.
|
· |
Continuing
To Focus On Asset Quality.
Non-performing assets to total assets was 1.35% at December 31, 2007,
up
from 0.86% at December 31, 2006. We are confident that our underwriting
standards will provide for a quality loan portfolio.
|
· |
Continuing
Our Strong Capital Position.
As
a result of our consistent profitability, we have historically maintained
a strong capital position. At December 31, 2007, our ratio of
stockholders’ equity to total assets was 9.1%.
|
Year
ended December 31,
|
||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
||||||||||||||||||||||||||
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
|
$
|
2,982
|
$
|
115
|
3.86
|
%
|
$
|
1,918
|
$
|
67
|
3.49
|
%
|
$
|
1,774
|
$
|
34
|
1.92
|
%
|
||||||||||
Mortgage-backed
securities available-for-sale(1)
|
8,875
|
467
|
5.26
|
%
|
10,532
|
481
|
4.57
|
%
|
10,890
|
48,121
|
4.70
|
|||||||||||||||||
Investment
securities available-for-sale(1)
|
31,234
|
1,644
|
5.26
|
%
|
30,055
|
1,440
|
4.79
|
%
|
29,591
|
1,113
|
3.76
|
|||||||||||||||||
Loans(2)
|
811,991
|
53,686
|
6.61
|
%
|
834,321
|
56,673
|
6.43
|
%
|
759,307
|
42,425
|
6.11
|
|||||||||||||||||
Stock
in FHLB of Indianapolis
|
9,939
|
462
|
4.65
|
%
|
10,128
|
459
|
4.53
|
%
|
8,749
|
394
|
4.50
|
|||||||||||||||||
Total
interest-earning assets
|
865,021
|
56,374
|
6.52
|
%
|
886,954
|
56,120
|
6.33
|
%
|
810,311
|
48,478
|
5.98
|
|||||||||||||||||
Non-Interest
Earning Assets (net of allowance for loan losses and unrealized
gain/loss)
|
87,879
|
85,641
|
74,577
|
|||||||||||||||||||||||||
Total
assets
|
$
|
952,900
|
$
|
972,595
|
$
|
884,888
|
||||||||||||||||||||||
Interest-Bearing
Liabilities:
|
||||||||||||||||||||||||||||
Demand
and NOW accounts
|
$
|
126,034
|
2,841
|
2.25
|
%
|
$
|
101,627
|
1,662
|
1.64
|
%
|
$
|
62,545
|
150
|
0.24
|
||||||||||||||
Savings
deposits
|
54,975
|
281
|
0.51
|
%
|
60,253
|
301
|
0.50
|
%
|
61,301
|
260
|
0.42
|
|||||||||||||||||
Money
market accounts
|
24,588
|
621
|
2.53
|
%
|
34,920
|
690
|
1.98
|
%
|
49,439
|
809
|
1.64
|
|||||||||||||||||
Certificate
accounts
|
444,271
|
20,755
|
4.67
|
%
|
461,678
|
19,372
|
4.20
|
%
|
422,107
|
14,066
|
3.33
|
|||||||||||||||||
Total
deposits
|
649,868
|
24,498
|
3.77
|
%
|
658,478
|
22,025
|
3.34
|
%
|
595,392
|
15,285
|
2.57
|
|||||||||||||||||
Borrowings
|
151,636
|
7,729
|
5.10
|
%
|
165,465
|
7,866
|
4.75
|
%
|
145,979
|
5,885
|
4.03
|
|||||||||||||||||
Total
interest-bearing accounts
|
801,504
|
32,227
|
4.02
|
%
|
823,943
|
29,891
|
3.63
|
%
|
741,371
|
21,170
|
2.85
|
|||||||||||||||||
Non-Interest
Bearing Accounts
|
48,589
|
45,597
|
41,744
|
|||||||||||||||||||||||||
Other
Liabilities
|
15,478
|
14,759
|
14,206
|
|||||||||||||||||||||||||
Total
Liabilities
|
865,571
|
884,299
|
797,321
|
|||||||||||||||||||||||||
Stockholders’
Equity
|
87,329
|
88,296
|
87,567
|
|||||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$
|
952,900
|
$
|
972,595
|
$
|
884,888
|
||||||||||||||||||||||
Net
Earning Assets
|
$
|
63,517
|
$
|
63,011
|
$
|
68,940
|
||||||||||||||||||||||
Net
Interest Income
|
$
|
24,147
|
$
|
26,229
|
$
|
27,308
|
||||||||||||||||||||||
Net
Interest Rate Spread(3)
|
2.50
|
%
|
2.70
|
%
|
3.13
|
%
|
||||||||||||||||||||||
Net
Yield on Average Interest-Earning Assets(4)
|
2.79
|
%
|
2.96
|
%
|
3.37
|
%
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Average
Interest-Earning Assets to Average Interest-Bearing
Liabilities
|
107.92
|
%
|
107.65
|
%
|
109.30
|
%
|
Year
Ended December 31,
|
|||||||||||||||||||
2007
vs. 2006
|
2006
vs. 2005
|
||||||||||||||||||
Increase
(decrease)
Due
to
|
Total
Increase
|
Increase
(decrease)
Due
to
|
Total
Increase
|
||||||||||||||||
Volume
|
Rate
|
(decrease)
|
Volume
|
Rate
|
(decrease) | ||||||||||||||
|
(Dollars
in thousands)
|
||||||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Interest-bearing
deposits
|
$
|
40
|
$
|
8
|
$
|
48
|
$
|
3
|
$
|
30
|
$
|
33
|
|||||||
Investment
securities available-for-sale
|
(24
|
)
|
214
|
190
|
1
|
295
|
296
|
||||||||||||
Loans
receivable
|
(1,456
|
)
|
1,469
|
13
|
4,743
|
2,505
|
7,248
|
||||||||||||
Stock
in FHLB of Indianapolis
|
(9
|
)
|
12
|
3
|
62
|
3
|
65
|
||||||||||||
Total
interest-earning assets
|
$
|
(1,449
|
)
|
$
|
1,703
|
$
|
254
|
$
|
4,809
|
$
|
2,833
|
$
|
7,642
|
||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Savings
deposits
|
$
|
(27
|
)
|
$
|
7
|
$
|
(20
|
)
|
$
|
(5
|
)
|
$
|
46
|
$
|
41
|
||||
Money
market accounts
|
(233
|
)
|
164
|
(69
|
)
|
(254
|
)
|
190
|
(64
|
)
|
|||||||||
Demand
and NOW accounts
|
458
|
721
|
1,179
|
197
|
1,260
|
1,457
|
|||||||||||||
Certificate
accounts
|
(751
|
)
|
2,134
|
1,383
|
1,409
|
3,897
|
5,306
|
||||||||||||
Borrowings
|
(683
|
)
|
546
|
(137
|
)
|
846
|
1,135
|
1,981
|
|||||||||||
Total
interest-bearing liabilities
|
$
|
(1,236
|
)
|
$
|
3,572
|
$
|
2,336
|
$
|
2,193
|
$
|
6,528
|
$
|
8,721
|
||||||
Change
in net interest income
|
$
|
(2,082
|
)
|
$
|
(1,079
|
)
|
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
|
$
|
191,675
|
$
|
81,421
|
$
|
99,226
|
$
|
6,283
|
$
|
4,745
|
||||||
Notes
Payable
|
1,055
|
408
|
647
|
—
|
—
|
|||||||||||
Other
Borrowings
|
3,908
|
3,908
|
—
|
—
|
—
|
|||||||||||
Total
|
$
|
196,638
|
$
|
85,736
|
$
|
99,873
|
$
|
6,283
|
$
|
4,745
|
·
|
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.
|
Changes
In
Rates
|
$
Amount
|
$
Change
|
%
Change
|
NPV
as % of PV of Assets
|
|
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
|
Changes
In
Rates
|
$
Amount
|
$
Change
|
%
Change
|
NPV
as % of PV of Assets
|
|
NPV
Ratio
|
Change
|
||||
+300
bp
|
51,994
|
-46,416
|
-47%
|
5.99%
|
-452
bp
|
+200
bp
|
68,740
|
-29,670
|
-30%
|
7.71%
|
-280
bp
|
+100
bp
|
83,901
|
-14,509
|
-15%
|
9.18%
|
-133
bp
|
0
bp
|
98,410
|
10.51%
|
|||
-100
bp
|
107,859
|
9,449
|
10%
|
11.30%
|
78
bp
|
-200
bp
|
114,259
|
15,849
|
16%
|
11.76%
|
125
bp
|
-300
bp
|
121,737
|
23,327
|
24%
|
12.28%
|
177
bp
|
2007
|
2006
|
||||||
Assets
|
|||||||
Cash
and due from banks
|
$
|
21,003,114
|
$
|
23,235,328
|
|||
Interest-bearing
demand deposits
|
2,645,057
|
1,679,544
|
|||||
Cash
and cash equivalents
|
23,648,171
|
24,914,872
|
|||||
Interest-bearing
deposits
|
100,000
|
293,000
|
|||||
Investment
securities available for sale
|
43,592,485
|
41,070,091
|
|||||
Loans
held for sale
|
1,644,615
|
1,329,700
|
|||||
Loans,
net of allowance for loan losses of $8,352,000 and
$8,156,000
|
802,436,497
|
805,625,486
|
|||||
Premises
and equipment
|
16,168,434
|
15,431,475
|
|||||
Federal
Home Loan Bank stock
|
10,036,900
|
9,938,400
|
|||||
Investment
in limited partnerships
|
3,246,468
|
3,460,818
|
|||||
Deferred
income tax benefit
|
5,174,082
|
4,376,318
|
|||||
Cash
value of life insurance
|
30,350,760
|
29,120,760
|
|||||
Goodwill
|
14,187,725
|
13,786,468
|
|||||
Other
assets
|
11,930,875
|
11,495,044
|
|||||
Total
assets
|
$
|
962,517,012
|
$
|
960,842,432
|
|||
Liabilities
and Stockholders’ Equity
|
|||||||
Liabilities
|
|||||||
Deposits
|
|||||||
Noninterest-bearing
|
$
|
47,172,012
|
$
|
47,142,407
|
|||
Interest-bearing
|
619,235,341
|
656,216,247
|
|||||
Total
deposits
|
666,407,353
|
703,358,654
|
|||||
Federal
Home Loan Bank advances
|
191,675,155
|
157,425,176
|
|||||
Other
borrowings
|
3,907,394
|
—
|
|||||
Notes
payable
|
1,055,433
|
1,426,769
|
|||||
Other
liabilities
|
12,457,827
|
11,367,515
|
|||||
Total
liabilities
|
875,503,162
|
873,578,114
|
|||||
Stockholders’
Equity
|
|||||||
Preferred
stock, $.01 par value
|
|||||||
Authorized
and unissued - 5,000,000 shares
|
|||||||
Common
stock, $.01 par value
|
|||||||
Authorized
- 20,000,000 shares
|
|||||||
Issued
and outstanding - 4,226,638 and 4,366,636 shares
|
42,266
|
43,666
|
|||||
Additional
paid-in capital
|
32,567,085
|
33,101,586
|
|||||
Retained
earnings
|
56,725,785
|
56,698,546
|
|||||
Accumulated
other comprehensive loss
|
(414,380
|
)
|
(354,734
|
)
|
|||
Unearned
benefit plan shares
|
(1,906,906
|
)
|
(2,224,746
|
)
|
|||
Total
stockholders’ equity
|
87,013,850
|
87,264,318
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
962,517,012
|
$
|
960,842,432
|
2007
|
2006
|
2005
|
||||||||
Interest
and Dividend Income
|
||||||||||
Loans
receivable
|
$
|
53,686,297
|
$
|
53,672,382
|
$
|
46,424,599
|
||||
Investment
securities
|
2,110,916
|
1,920,823
|
1,625,288
|
|||||||
Federal
Home Loan Bank stock
|
461,949
|
459,255
|
393,628
|
|||||||
Deposits
with financial institutions
|
114,596
|
67,143
|
34,477
|
|||||||
Total
interest and dividend income
|
56,373,758
|
56,119,603
|
48,477,992
|
|||||||
Interest
Expense
|
||||||||||
Deposits
|
24,498,471
|
22,024,156
|
15,285,549
|
|||||||
Federal
Home Loan Bank advances
|
7,656,748
|
7,803,817
|
5,822,073
|
|||||||
Other
interest expense
|
71,833
|
62,424
|
62,424
|
|||||||
Total
interest expense
|
32,227,052
|
29,890,397
|
21,170,046
|
|||||||
Net
Interest Income
|
24,146,706
|
26,229,206
|
27,307,946
|
|||||||
Provision
for loan losses
|
2,240,000
|
2,068,000
|
1,775,000
|
|||||||
Net
Interest Income After Provision for Loan Losses
|
21,906,706
|
24,161,206
|
25,532,946
|
|||||||
Other
Income
|
||||||||||
Service
fee income
|
4,831,161
|
4,369,508
|
4,025,671
|
|||||||
Net
realized losses on sales of available-for-sale securities
|
—
|
—
|
(762
|
)
|
||||||
Commissions
|
1,000,687
|
682,432
|
981,817
|
|||||||
Equity
in income (loss) of limited partnerships
|
(99,654
|
)
|
(181,366
|
)
|
135,216
|
|||||
Net
gains (losses) on sales of loans
|
390,778
|
(669,389
|
)
|
228,174
|
||||||
Net
servicing fees
|
81,033
|
62,122
|
192,171
|
|||||||
Increase
in cash value of life insurance
|
1,230,000
|
1,075,403
|
955,000
|
|||||||
Other
income
|
336,554
|
1,303,778
|
215,025
|
|||||||
Total
other income
|
7,770,559
|
6,642,488
|
6,732,312
|
|||||||
Other
Expenses
|
||||||||||
Salaries
and employee benefits
|
14,758,489
|
14,617,254
|
13,792,355
|
|||||||
Net
occupancy expenses
|
1,549,331
|
1,507,067
|
1,415,377
|
|||||||
Equipment
expenses
|
1,318,932
|
1,221,991
|
1,228,134
|
|||||||
Data
processing fees
|
1,058,357
|
897,998
|
821,863
|
|||||||
Advertising
and promotion
|
887,237
|
966,224
|
801,377
|
|||||||
Automated
teller machine expense
|
723,128
|
699,435
|
654,467
|
|||||||
Professional
fees
|
764,007
|
992,984
|
1,018,485
|
|||||||
Other
expenses
|
4,095,942
|
4,116,326
|
3,680,043
|
|||||||
Total
other expenses
|
25,155,423
|
25,019,279
|
23,412,101
|
|||||||
Income
Before Income Tax
|
4,521,842
|
5,784,415
|
8,853,157
|
|||||||
Income
tax expense
|
295,700
|
1,027,900
|
2,400,975
|
|||||||
Net
Income
|
$
|
4,226,142
|
$
|
4,756,515
|
$
|
6,452,182
|
||||
Earnings
Per Share
|
||||||||||
Basic
|
$
|
1.03
|
$
|
1.13
|
$
|
1.49
|
||||
Diluted
|
1.02
|
1.11
|
1.45
|
Accumulated
|
|||||||||||||||||||
Other
|
Unearned
|
||||||||||||||||||
Comprehensive
|
Benefit
|
||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Income
|
Plan
|
|||||||||||||||
Stock
|
Capital
|
Earnings
|
(Loss)
|
Shares
|
Total
|
||||||||||||||
Balances,
January 1, 2005
|
$
|
47,084
|
$
|
34,385,254
|
$
|
56,826,053
|
$
|
(88,646
|
)
|
$
|
(3,309,602
|
)
|
$
|
87,860,143
|
|||||
Comprehensive
income
|
|||||||||||||||||||
Net
income
|
6,452,182
|
6,452,182
|
|||||||||||||||||
Other
comprehensive income, net of tax
- unrealized holding losses on securities
|
(286,055
|
)
|
(286,055
|
)
|
|||||||||||||||
Comprehensive
income
|
6,166,127
|
||||||||||||||||||
Cash
dividends ($.53 per share)
|
(2,308,856
|
)
|
(2,308,856
|
)
|
|||||||||||||||
Exercise
of stock options
|
534
|
758,557
|
759,091
|
||||||||||||||||
Stock
repurchased
|
(2,096
|
)
|
(1,815,843
|
)
|
(3,000,902
|
)
|
(4,818,841
|
)
|
|||||||||||
RRP
shares earned
|
256,500
|
256,500
|
|||||||||||||||||
Tax
benefit on stock options and RRP shares
|
155,000
|
155,000
|
|||||||||||||||||
ESOP
shares earned
|
406,616
|
317,840
|
724,456
|
||||||||||||||||
Balances,
December 31, 2005
|
45,522
|
33,889,584
|
57,968,477
|
(374,701
|
)
|
(2,735,262
|
)
|
88,793,620
|
|||||||||||
Comprehensive
income
|
|||||||||||||||||||
Net
income
|
4,756,515
|
4,756,515
|
|||||||||||||||||
Other
comprehensive income, net of tax
- unrealized holding gains on securities
|
19,967
|
19,967
|
|||||||||||||||||
Comprehensive
income
|
4,776,482
|
||||||||||||||||||
Cash
dividends ($.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
|
(As
Restated)
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Operating
Activities
|
||||||||||
Net
income
|
$
|
4,226,142
|
$
|
4,756,515
|
$
|
6,452,182
|
||||
Items
not requiring (providing) cash
|
||||||||||
Provision
for loan losses
|
2,240,000
|
2,068,000
|
1,775,000
|
|||||||
ESOP
shares earned
|
583,378
|
665,001
|
724,456
|
|||||||
RRP
shares earned
|
21,056
|
150,564
|
256,500
|
|||||||
Depreciation
and amortization
|
2,554,786
|
2,863,255
|
2,643,167
|
|||||||
Deferred
income tax
|
(758,000
|
)
|
(192,509
|
)
|
376,614
|
|||||
Loans
originated for sale
|
(24,427,954
|
)
|
(25,124,598
|
)
|
(12,445,397
|
)
|
||||
Proceeds
from sales of loans held for sale
|
24,262,686
|
26,303,525
|
13,564,331
|
|||||||
(Gains)
losses on sales of loans
|
(390,778
|
)
|
669,389
|
(228,174
|
)
|
|||||
Tax
benefit on stock options and RRP shares
|
(3,382
|
)
|
(45,400
|
)
|
(155,000
|
)
|
||||
Change
in
|
||||||||||
Interest
receivable
|
(70,746
|
)
|
275,770
|
(443,527
|
)
|
|||||
Other
assets
|
81,102
|
(1,216,116
|
)
|
(941,473
|
)
|
|||||
Interest
payable
|
638,031
|
205,881
|
396,568
|
|||||||
Other
liabilities
|
825,515
|
433,669
|
395,216
|
|||||||
Cash
value of life insurance
|
(1,230,000
|
)
|
(1,075,403
|
)
|
(955,000
|
)
|
||||
Other
adjustments
|
434,930
|
939,706
|
656,088
|
|||||||
Net
cash provided by operating activities
|
8,986,766
|
11,677,249
|
12,071,551
|
|||||||
Investing
Activities
|
||||||||||
Net
change in interest earning deposits
|
193,000
|
—
|
—
|
|||||||
Purchases
of securities available for sale
|
(7,810,905
|
)
|
(5,658,192
|
)
|
(10,263,230
|
)
|
||||
Proceeds
from maturities and paydowns of securities available for
sale
|
4,357,422
|
3,946,193
|
7,264,794
|
|||||||
Proceeds
from sales of securities available for sale
|
802,748
|
395,949
|
13,399,931
|
|||||||
Net
change in loans
|
(2,214,872
|
)
|
(6,082,431
|
)
|
(35,099,134
|
)
|
||||
Proceeds
from sales of loans transferred to held for sale
|
—
|
23,442,643
|
—
|
|||||||
Purchases
of premises and equipment
|
(2,146,757
|
)
|
(2,752,106
|
)
|
(2,431,451
|
)
|
||||
Proceeds
from real estate owned sales
|
1,314,027
|
1,126,224
|
538,342
|
|||||||
Cash
received (paid) in acquisition, net
|
(515,257
|
)
|
3,894,267
|
(9,349,563
|
)
|
|||||
Other
investing activities
|
100,671
|
1,350,350
|
(385,996
|
)
|
||||||
Net
cash provided by (used in) investing activities
|
(5,919,923
|
)
|
19,662,897
|
(36,326,307
|
)
|
|||||
Financing
Activities
|
||||||||||
Net
change in
|
||||||||||
Noninterest-bearing,
interest-bearing demand and savings deposits
|
(543,777
|
)
|
15,877,096
|
(21,457,623
|
)
|
|||||
Certificates
of deposits
|
(36,407,524
|
)
|
(9,399,360
|
)
|
29,713,925
|
|||||
Repayment
of note payable
|
(433,760
|
)
|
(419,506
|
)
|
(424,005
|
)
|
||||
Proceeds
from FHLB advances
|
466,550,000
|
514,450,000
|
425,300,000
|
|||||||
Repayment
of FHLB advances
|
(432,014,627
|
)
|
(542,731,831
|
)
|
(400,301,792
|
)
|
||||
Proceeds
from other short-term borrowings
|
3,907,394
|
—
|
—
|
|||||||
Net
change in advances by borrowers for taxes and insurance
|
(369,852
|
)
|
(3,925
|
)
|
259,064
|
|||||
Stock
repurchased
|
(2,793,272
|
)
|
(4,935,484
|
)
|
(4,818,841
|
)
|
||||
Proceeds
from stock options exercised
|
208,613
|
687,300
|
759,091
|
|||||||
Tax
benefit on stock options and RRP shares
|
3,382
|
45,400
|
155,000
|
|||||||
Cash
dividends
|
(2,440,121
|
)
|
(2,359,547
|
)
|
(2,308,856
|
)
|
||||
Net
cash provided by (used in) financing activities
|
(4,333,544
|
)
|
(28,789,857
|
)
|
26,875,963
|
|||||
Net
Change in Cash and Cash Equivalents
|
(1,266,701
|
)
|
2,550,289
|
2,621,207
|
||||||
Cash
and Cash Equivalents, Beginning of Year
|
24,914,872
|
22,364,583
|
19,743,376
|
|||||||
Cash
and Cash Equivalents, End of Year
|
$
|
23,648,171
|
$
|
24,914,872
|
$
|
22,364,583
|
||||
Additional
Cash Flows Information
|
||||||||||
Interest
paid
|
$
|
31,589,021
|
$
|
29,684,516
|
$
|
20,571,776
|
||||
Income
tax paid
|
445,000
|
1,225,000
|
2,502,366
|
|||||||
Transfers
from loans to foreclosed real estate
|
1,970,782
|
1,484,766
|
2,048,232
|
|||||||
Mortgage
servicing rights capitalized
|
241,131
|
437,194
|
134,710
|
2005
|
||||
Net
income, as reported
|
$
|
6,452
|
||
Less:
Stock-based employee compensation cost determined under the fair
value
method, net of income taxes
|
(164
|
)
|
||
Pro
forma net income
|
$
|
6,288
|
||
Earnings
per share
|
||||
Basic
- as reported
|
$
|
1.49
|
||
Basic
- pro forma
|
1.45
|
|||
Diluted
- as reported
|
1.45
|
|||
Diluted
- pro forma
|
1.42
|
As
Restated
|
As
Previously
Reported
|
Effect
of
Change
|
||||||||
Consolidated
Statement of Cash Flows
|
||||||||||
Proceeds
from sales of loans held for sale
|
$
|
26,303,525
|
$
|
49,746,168
|
$
|
(23,442,643
|
)
|
|||
Net
cash provided by operating activities
|
11,677,249
|
35,119,892
|
(23,442,643
|
)
|
||||||
Proceeds
of loans transferred to held for sale
|
23,442,643
|
—
|
23,442,643
|
|||||||
Net
cash used in investing activities
|
19,662,897
|
(3,779,746
|
)
|
23,442,643
|
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
|
Cash
and cash equivalents
|
$
|
10,924
|
||
Investments
|
12,887
|
|||
Loans
|
79,805
|
|||
Premises
and equipment
|
641
|
|||
Core
deposit intangible
|
1,011
|
|||
Goodwill
|
12,119
|
|||
Other
assets
|
682
|
|||
Total
assets acquired
|
118,069
|
|||
Deposits
|
75,890
|
|||
Federal
Home Loan Bank advances
|
21,658
|
|||
Other
liabilities
|
247
|
|||
Total
liabilities assumed
|
97,795
|
|||
Net
assets acquired
|
$
|
20,274
|
2007
|
|||||||||||||
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
|
2006
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||
Mortgage-backed
securities
|
$
|
3,146
|
$
|
30
|
$
|
(20
|
)
|
$
|
3,156
|
||||
Collateralized
mortgage obligations
|
6,860
|
1
|
(99
|
)
|
6,762
|
||||||||
Federal
agencies
|
1,001
|
—
|
(18
|
)
|
983
|
||||||||
Small
Business Administration
|
116
|
—
|
—
|
116
|
|||||||||
Corporate
obligations
|
14,332
|
20
|
(116
|
)
|
14,236
|
||||||||
Marketable
equity securities
|
16,206
|
—
|
(389
|
)
|
15,817
|
||||||||
Total
investment securities
|
$
|
41,661
|
$
|
51
|
$
|
(642
|
)
|
$
|
41,070
|
2007
|
|||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
|||||||||||||||||
Description
of
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
|
)
|
2006
|
|||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
|||||||||||||||||
Description
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||
Mortgage-backed
securities
|
$
|
967
|
$
|
(2
|
)
|
$
|
458
|
$
|
(18
|
)
|
$
|
1,425
|
$
|
(20
|
)
|
||||
Collateralized
mortgage obligations
|
907
|
(2
|
)
|
4,964
|
(97
|
)
|
5,871
|
(99
|
)
|
||||||||||
Federal
agencies
|
—
|
—
|
983
|
(18
|
)
|
983
|
(18
|
)
|
|||||||||||
Corporate
obligations
|
—
|
—
|
7,415
|
(116
|
)
|
7,415
|
(116
|
)
|
|||||||||||
Marketable
equity securities
|
—
|
—
|
14,816
|
(389
|
)
|
14,816
|
(389
|
)
|
|||||||||||
Total
temporarily impaired securities
|
$
|
1,874
|
$
|
(4
|
)
|
$
|
28,636
|
$
|
(638
|
)
|
$
|
30,510
|
$
|
(642
|
)
|
2007
|
|||||||
Amortized
Cost
|
Fair
Value
|
||||||
Within
one year
|
$
|
4,506
|
$
|
4,500
|
|||
One
to five years
|
2,495
|
2,474
|
|||||
Five
to ten years
|
—
|
—
|
|||||
After
ten years
|
10,154
|
9,923
|
|||||
17,155
|
16,897
|
||||||
Mortgage-backed
securities
|
2,310
|
2,352
|
|||||
Collateralized
mortgage obligations
|
8,327
|
8,322
|
|||||
Small
Business Administration
|
108
|
107
|
|||||
Marketable
equity securities
|
16,382
|
15,914
|
|||||
Totals
|
$
|
44,282
|
$
|
43,592
|
2007
|
2006
|
||||||
Real
estate loans
|
|||||||
One-to-four
family
|
$
|
429,373
|
$
|
431,793
|
|||
Multi-family
|
3,929
|
5,073
|
|||||
Commercial
|
82,116
|
73,912
|
|||||
Construction
and development
|
13,560
|
14,451
|
|||||
528,978
|
525,229
|
||||||
Consumer
loans
|
|||||||
Auto
|
22,917
|
31,336
|
|||||
Home
equity
|
27,232
|
30,051
|
|||||
Home
improvement
|
45,156
|
38,546
|
|||||
Mobile
home
|
992
|
1,422
|
|||||
Recreational
vehicles
|
77,805
|
71,321
|
|||||
Boats
|
47,816
|
46,311
|
|||||
Other
|
3,593
|
3,986
|
|||||
225,511
|
222,973
|
||||||
Commercial
business loans
|
56,764
|
67,476
|
|||||
Total
loans
|
811,253
|
815,678
|
|||||
Undisbursed
loans in process
|
(3,984
|
)
|
(5,520
|
)
|
|||
Unamortized
deferred loan costs, net
|
3,519
|
3,623
|
|||||
Allowance
for loan losses
|
(8,352
|
)
|
(8,156
|
)
|
|||
Net
loans
|
$
|
802,436
|
$
|
805,625
|
2007
|
2006
|
2005
|
||||||||
Allowance
for loan losses
|
||||||||||
Balances,
January 1
|
$
|
8,156
|
$
|
8,100
|
$
|
6,867
|
||||
Provision
for losses
|
2,240
|
2,068
|
1,775
|
|||||||
Allowance
acquired in acquisition
|
—
|
—
|
1,646
|
|||||||
Recoveries
on loans
|
679
|
291
|
351
|
|||||||
Loans
charged off
|
(2,723
|
)
|
(2,303
|
)
|
(2,539
|
)
|
||||
Balances,
December 31
|
$
|
8,352
|
$
|
8,156
|
$
|
8,100
|
2007
|
2006
|
||||||
Cost
|
|||||||
Land
|
$
|
5,624
|
$
|
5,578
|
|||
Buildings
and land improvements
|
13,609
|
12,371
|
|||||
Equipment
|
11,622
|
11,622
|
|||||
Total
cost
|
30,855
|
29,571
|
|||||
Accumulated
depreciation and amortization
|
(14,687
|
)
|
(14,140
|
)
|
|||
Net
|
$
|
16,168
|
$
|
15,431
|
2007
|
2006
|
||||||
Pedcor
Investments 1990-XI (19.79 percent ownership)
|
$
|
—
|
$
|
5
|
|||
Pedcor
Investments 1990-XIII (99.00 percent ownership)
|
625
|
626
|
|||||
Pedcor
Investments 1997-XXVIII (99.00 percent ownership)
|
2,309
|
2,474
|
|||||
Pedcor
Investments 1997-XXIX (99.00 percent ownership)
|
—
|
—
|
|||||
Pedcor
Investments 2001-LI (9.90 percent ownership)
|
312
|
356
|
|||||
$
|
3,246
|
$
|
3,461
|
2007
|
2006
|
||||||
Assets
|
|||||||
Cash
|
$
|
179
|
$
|
219
|
|||
Land
and property
|
29,243
|
30,092
|
|||||
Other
assets
|
1,642
|
930
|
|||||
Total
assets
|
$
|
31,064
|
$
|
31,241
|
|||
Liabilities
|
|||||||
Notes
payable
|
$
|
28,228
|
$
|
28,323
|
|||
Other
liabilities
|
847
|
1,081
|
|||||
Total
liabilities
|
29,075
|
29,404
|
|||||
Partners'
equity (deficit)
|
|||||||
General
partners
|
(2,885
|
)
|
(2,946
|
)
|
|||
Limited
partners
|
4,874
|
4,783
|
|||||
Total
partners’ equity
|
1,989
|
1,837
|
|||||
Total
liabilities and partners' equity
|
$
|
31,064
|
$
|
31,241
|
2007
|
2006
|
2005
|
||||||||
Combined
condensed statements of operations
|
||||||||||
Total
revenue
|
$
|
4,007
|
$
|
3,400
|
$
|
3,114
|
||||
Total
expenses
|
(4,647
|
)
|
(4,293
|
)
|
(3,832
|
)
|
||||
Net
loss
|
$
|
(640
|
)
|
$
|
(893
|
)
|
$
|
(718
|
)
|
2007
|
2006
|
||||||
Balance
as of January 1
|
$
|
13,787
|
$
|
12,927
|
|||
Goodwill
acquired during the year
|
401
|
860
|
|||||
Impairment
losses
|
|
—
|
—
|
||||
Goodwill
written off related to sales of branches
|
|
—
|
—
|
||||
Balance
as of December 31
|
$
|
14,188
|
$
|
13,787
|
2007
|
2006
|
||||||
Noninterest-bearing
demand
|
$
|
47,172
|
$
|
47,142
|
|||
Interest-bearing
demand
|
117,863
|
107,963
|
|||||
Savings
|
50,388
|
55,750
|
|||||
Money
market savings
|
22,664
|
27,788
|
|||||
Certificates
and other time deposits of $100,000 or more
|
127,277
|
149,452
|
|||||
Other
certificates
|
301,043
|
315,264
|
|||||
Total
deposits
|
$
|
666,407
|
$
|
703,359
|
2008
|
$
|
362,526
|
||
2009
|
32,291
|
|||
2010
|
20,569
|
|||
2011
|
5,973
|
|||
2012
|
6,889
|
|||
Thereafter
|
72
|
|||
|
$
|
428,320
|
Maturities
Years Ending December 31
|
||||
2008
|
$
|
81,421
|
||
2009
|
48,840
|
|||
2010
|
50,386
|
|||
2011
|
683
|
|||
2012
|
5,600
|
|||
Thereafter
|
4,745
|
|||
$
|
191,675
|
Maturities
Years Ending December 31
|
||||
2008
|
$
|
408
|
||
2009
|
421
|
|||
2010
|
226
|
|||
$
|
1,055
|
2007
|
2006
|
2005
|
||||||||
Loans
serviced for
|
||||||||||
Freddie
Mac
|
$
|
137,973
|
$
|
139,571
|
$
|
103,279
|
||||
Fannie
Mae
|
1,936
|
3,180
|
4,155
|
|||||||
Federal
Home Loan Bank
|
33,998
|
25,914
|
24,379
|
|||||||
Other
investors
|
4,757
|
7,708
|
9,096
|
|||||||
$
|
178,664
|
$
|
176,373
|
$
|
140,909
|
2007
|
2006
|
2005
|
||||||||
Mortgage
Servicing Rights
|
||||||||||
Balances,
January 1
|
$
|
1,261
|
$
|
1,175
|
$
|
1,375
|
||||
Servicing
rights capitalized
|
241
|
437
|
135
|
|||||||
Servicing
rights acquired
|
—
|
—
|
52
|
|||||||
Amortization
of servicing rights
|
(376
|
)
|
(351
|
)
|
(387
|
)
|
||||
|
1,126
|
1,261
|
1,175
|
|||||||
Valuation
allowance
|
—
|
—
|
—
|
|||||||
Balances,
December 31
|
$
|
1,126
|
$
|
1,261
|
$
|
1,175
|
2007
|
2006
|
2005
|
||||||||
Balance,
beginning of year
|
$
|
—
|
$
|
—
|
$
|
180
|
||||
Additions
|
—
|
—
|
43
|
|||||||
Reductions
|
—
|
—
|
(223
|
)
|
||||||
Balances,
end of year
|
$
|
—
|
$
|
—
|
$
|
—
|
2007
|
2006
|
2005
|
||||||||
Income
tax expense
|
||||||||||
Currently
payable
|
||||||||||
Federal
|
$
|
1,012
|
$
|
960
|
$
|
1,527
|
||||
State
|
42
|
260
|
497
|
|||||||
Deferred
|
||||||||||
Federal
|
(691
|
)
|
(279
|
)
|
231
|
|||||
State
|
(67
|
)
|
87
|
146
|
||||||
Total
income tax expense
|
$
|
296
|
$
|
1,028
|
$
|
2,401
|
||||
Reconciliation
of federal statutory to actual tax expense
|
||||||||||
Federal
statutory income tax at 34%
|
$
|
1,537
|
$
|
1,967
|
$
|
3,010
|
||||
Effect
of state income taxes
|
(17
|
)
|
229
|
424
|
||||||
Low
income housing credits
|
(811
|
)
|
(801
|
)
|
(811
|
)
|
||||
Tax-exempt
income
|
(525
|
)
|
(459
|
)
|
(384
|
)
|
||||
Other
|
112
|
92
|
162
|
|||||||
Actual
tax expense
|
$
|
296
|
$
|
1,028
|
$
|
2,401
|
||||
Effective
tax rate
|
6.50
|
%
|
17.8
|
%
|
27.1
|
%
|
2007
|
2006
|
||||||
Assets
|
|||||||
Unrealized
loss on securities available for sale
|
$
|
276
|
$
|
236
|
|||
Allowance
for loan losses
|
3,108
|
2,894
|
|||||
Deferred
compensation
|
2,858
|
2,724
|
|||||
Business
tax and AMT credit carryovers
|
1,936
|
1,577
|
|||||
Other
|
789
|
825
|
|||||
Total
assets
|
8,967
|
8,256
|
|||||
Liabilities
|
|||||||
Depreciation
and amortization
|
(951
|
)
|
(881
|
)
|
|||
FHLB
stock
|
(510
|
)
|
(510
|
)
|
|||
State
income tax
|
(199
|
)
|
(176
|
)
|
|||
Loan
fees
|
(387
|
)
|
(466
|
)
|
|||
Investments
in limited partnerships
|
(1,279
|
)
|
(1,324
|
)
|
|||
Mortgage
servicing rights
|
(467
|
)
|
(523
|
)
|
|||
Total
liabilities
|
(3,793
|
)
|
(3,880
|
)
|
|||
$
|
5,174
|
$
|
4,376
|
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
|
2005
|
||||||||||
Before-Tax
Amount |
Tax
Benefit
|
Net-of-Tax
Amount
|
||||||||
Unrealized
losses on securities
|
||||||||||
Unrealized
holding losses arising during the year
|
$
|
(475
|
)
|
$
|
188
|
$
|
(287
|
)
|
||
Less:
reclassification adjustment for losses realized in net
income
|
(1
|
)
|
—
|
(1
|
)
|
|||||
Net
unrealized losses
|
$
|
(474
|
)
|
$
|
188
|
$
|
(286
|
)
|
2007
|
2006
|
2005
|
||||||||
Loan
commitments
|
$
|
93,662
|
$
|
82,146
|
$
|
73,609
|
||||
Standby
letters of credit
|
4,160
|
6,492
|
7,157
|
Actual
|
Required
for Adequate
Capital
|
To
Be Well
Capitalized
|
|||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
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
|
%
|
28,339
|
3.0
|
%
|
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
|
|||||||||||
As
of December 31, 2006
|
|||||||||||||||||||
Total
risk-based capital (to risk-weighted assets)
|
$
|
76,615
|
10.5
|
%
|
$
|
58,410
|
8.0
|
%
|
$
|
73,012
|
10.0
|
%
|
|||||||
Tier
1 risk-based capital (to risk-weighted assets)
|
69,007
|
9.5
|
%
|
29,205
|
4.0
|
%
|
43,807
|
6.0
|
%
|
||||||||||
Core
capital (to adjusted total assets)
|
69,007
|
7.3
|
%
|
28,311
|
3.0
|
%
|
47,185
|
5.0
|
%
|
||||||||||
Core
capital (to adjusted tangible assets)
|
69,007
|
7.3
|
%
|
18,874
|
2.0
|
%
|
N/A
|
N/A
|
|||||||||||
Tangible
capital (to adjusted total assets)
|
69,007
|
7.3
|
%
|
14,156
|
1.5
|
%
|
N/A
|
N/A
|
2007
|
2006
|
2005
|
||||||||
Allocated
shares
|
207,274
|
186,637
|
159,761
|
|||||||
Suspense
shares
|
190,709
|
222,492
|
254,275
|
|||||||
Committed-to-be
released shares
|
31,783
|
31,783
|
31,783
|
2007
|
|||||||
Shares
|
Weighted-
Average
Grant-Date
Fair
Value
|
||||||
RRP,
beginning of year
|
14,751
|
$
|
25.66
|
||||
Granted
|
—
|
—
|
|||||
Vested
|
4,917
|
25.66
|
|||||
Forfeited
|
—
|
—
|
|||||
RRP,
end of year
|
9,834
|
$
|
25.66
|
2007
|
|||||||||||||
Options
|
Shares
|
Weighted-
Average
Exercise Price
|
Weighted-
Average
Remaining
Contractual Life
|
Aggregate
Intrinsic
Value
|
|||||||||
Outstanding,
beginning of year
|
401,025
|
$
|
16.85
|
||||||||||
Granted
|
—
|
—
|
|||||||||||
Exercised
|
(15,412
|
)
|
13.54
|
||||||||||
Forfeited/expired
|
—
|
—
|
|||||||||||
Outstanding,
end of year
|
385,613
|
$
|
16.98
|
6.8
years
|
$
|
—
|
|||||||
Options
exercisable at year end
|
385,613
|
2005
|
||||
Risk-free
interest rates
|
4.25
|
%
|
||
Dividend
yields
|
2.35
|
%
|
||
Volatility
factors of expected market price of common stock
|
9.30
|
%
|
||
Weighted-average
expected life of the options
|
8
years
|
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
|
2005
|
||||||||||
Income
|
Weighted-
Average
Shares
|
Per-Share
Amount
|
||||||||
Basic
Earnings Per Share
|
||||||||||
Income
available to common stockholders
|
$
|
6,452
|
4,328,965
|
$
|
1.49
|
|||||
Effect
of Dilutive Securities
|
||||||||||
Stock
options
|
110,721
|
|||||||||
Diluted
Earnings Per Share
|
||||||||||
Income
available to common stockholders and assumed conversions
|
$
|
6,452
|
4,439,686
|
$
|
1.45
|
2007
|
2006
|
||||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
||||||||||
Assets
|
|||||||||||||
Cash
and cash equivalents
|
$
|
23,648
|
$
|
23,648
|
$
|
24,915
|
$
|
24,915
|
|||||
Securities
available for sale
|
43,592
|
43,592
|
41,070
|
41,070
|
|||||||||
Loans
held for sale
|
1,645
|
1,662
|
1,330
|
1,338
|
|||||||||
Loans
|
802,436
|
808,387
|
805,625
|
799,030
|
|||||||||
Stock
in FHLB
|
10,037
|
10,037
|
9,938
|
9,938
|
|||||||||
Interest
receivable
|
3,693
|
3,693
|
3,622
|
3,622
|
|||||||||
Liabilities
|
|||||||||||||
Deposits
|
666,407
|
666,986
|
703,359
|
700,518
|
|||||||||
FHLB
advances
|
191,675
|
194,854
|
157,425
|
157,802
|
|||||||||
Other
borrowings
|
3,907
|
3,907
|
—
|
—
|
|||||||||
Notes
payable
|
1,055
|
994
|
1,427
|
1,268
|
|||||||||
Interest
payable
|
2,467
|
2,467
|
1,829
|
1,829
|
|||||||||
Advances
by borrowers for taxes and insurance
|
1,464
|
1,464
|
1,834
|
1,834
|
|||||||||
Off-balance
sheet commitments
|
—
|
—
|
—
|
—
|
2007
|
2006
|
||||||
Assets
|
|||||||
Cash
on deposit with Bank
|
$
|
25
|
$
|
1,631
|
|||
Cash
on deposit with others
|
26
|
118
|
|||||
Total
cash
|
51
|
1,749
|
|||||
Investment
in certificate of deposits
|
—
|
100
|
|||||
Investment
in common stock of Bank
|
86,507
|
84,099
|
|||||
Investment
in affiliate
|
800
|
1,016
|
|||||
Deferred
and current income tax
|
143
|
381
|
|||||
Other
assets
|
9
|
8
|
|||||
Total
assets
|
$
|
87,510
|
$
|
87,353
|
|||
Liabilities
-
other
|
$
|
496
|
$
|
89
|
|||
Stockholders'
Equity
|
87,014
|
87,264
|
|||||
Total
liabilities and stockholders' equity
|
$
|
87,510
|
$
|
87,353
|
2007
|
2006
|
2005
|
||||||||
Income
|
||||||||||
Interest
income from Bank
|
$
|
29
|
$
|
111
|
$
|
50
|
||||
Interest
income from loans
|
—
|
—
|
—
|
|||||||
Dividends
from Bank
|
2,200
|
—
|
12,500
|
|||||||
Other
income
|
56
|
317
|
20
|
|||||||
Total
income
|
2,285
|
428
|
12,570
|
|||||||
Expenses
|
383
|
368
|
345
|
|||||||
Income
before income tax and equity in undistributed income of the
Bank
|
1,902
|
60
|
12,225
|
|||||||
Income
tax benefit
|
(118
|
)
|
(8
|
)
|
(108
|
)
|
||||
Income
before equity in undistributed income of the Bank
|
2,020
|
68
|
12,333
|
|||||||
Equity
in undistributed income of the Bank
|
2,206
|
4,689
|
(5,881
|
)
|
||||||
Net
Income
|
$
|
4,226
|
$
|
4,757
|
$
|
6,452
|
2007
|
2006
|
2005
|
||||||||
Operating
Activities
|
||||||||||
Net
income
|
$
|
4,226
|
$
|
4,757
|
$
|
6,452
|
||||
Item
not requiring cash
|
||||||||||
ESOP
shares earned
|
583
|
665
|
724
|
|||||||
Deferred
income tax benefit
|
26
|
17
|
||||||||
Distributions
in excess of income (equity in undistributed income) of
Bank
|
(2,206
|
)
|
(4,689
|
)
|
5,881
|
|||||
Tax
benefit on stock options and RRP shares
|
(3
|
)
|
(45
|
)
|
(155
|
)
|
||||
Other
|
623
|
(300
|
)
|
390
|
||||||
Net
cash provided by operating activities
|
3,223
|
414
|
13,309
|
|||||||
Investing
Activities
|
||||||||||
Purchase
of certificate of deposit
|
—
|
—
|
(100
|
)
|
||||||
Maturity
of certificate of deposit
|
100
|
—
|
—
|
|||||||
Net
cash provided by (used in) investing activities
|
100
|
—
|
(100
|
)
|
||||||
Financing
Activities
|
||||||||||
Stock
repurchased
|
(2,793
|
)
|
(4,935
|
)
|
(4,819
|
)
|
||||
Cash
dividends
|
(2,440
|
)
|
(2,360
|
)
|
(2,309
|
)
|
||||
Proceeds
from stock options exercised
|
209
|
687
|
759
|
|||||||
Tax
benefit on stock options and RRP shares
|
3
|
45
|
155
|
|||||||
Net
cash used in financing activities
|
(5,021
|
)
|
(6,563
|
)
|
(6,214
|
)
|
||||
Net
Change in Cash
|
(1,698
|
)
|
(6,149
|
)
|
6,995
|
|||||
Cash,
Beginning of Year
|
1,749
|
7,898
|
903
|
|||||||
Cash,
End of Year
|
$
|
51
|
$
|
1,749
|
$
|
7,898
|
Quarter
Ended
|
Interest
Income
|
Interest
Expense
|
Net
Interest
Income
|
Provision
for
Loan
Losses
|
Net
Income
|
Basic
Earnings
Per
Common
Share
|
Diluted
Earnings
Per
Common
Share
|
|||||||||||||||
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
|
||||||||||
2006
|
||||||||||||||||||||||
March
|
$
|
13,589
|
$
|
6,557
|
$
|
7,032
|
$
|
393
|
$
|
1,562
|
$
|
.37
|
$
|
.36
|
||||||||
June
|
13,912
|
7,158
|
6,754
|
525
|
1,348
|
.32
|
.31
|
|||||||||||||||
September
|
14,335
|
7,991
|
6,344
|
525
|
1,144
|
.27
|
.27
|
|||||||||||||||
December
|
14,284
|
8,184
|
6,100
|
625
|
703
|
.17
|
.17
|
|||||||||||||||
Total
|
$
|
56,120
|
$
|
29,890
|
$
|
26,230
|
$
|
2,068
|
$
|
4,757
|
1.13
|
1.11
|
Date:
March 13, 2008
|
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
|
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
|
385,613
|
$
|
16.98
|
161
|
||||||
Equity
compensation plans
not approved
by
security holders
|
—
|
—
|
—
|
Annual
Report Section
|
Report
of Independent Registered Public Accounting Firm
|
Consolidated
Balance Sheets at December 31, 2007 and 2006
|
Consolidated
Statements of Income for the Years Ended December 31, 2007, 2006
and
2005
|
Consolidated
Statements of Stockholders’ Equity for the Years Ended December 31, 2007,
2006
and 2005
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2007, 2006
and
2005
|
Notes
to Consolidated Financial Statements, December 31, 2007, 2006 and
2005
|
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(i)
|
Articles
of Incorporation
|
*
|
||
3(ii)
|
Amended
Bylaws
|
++
|
||
4
|
Instruments
defining the rights of security holders, including
indentures:
Form
of MutualFirst
Financial, Inc. Common Stock Certificate
|
*
|
||
9
|
Voting
Trust Agreement
|
None
|
||
10
|
Material
contracts:
|
|||
Employment
Agreement with David W. Heeter
|
+++
|
|||
Employment
Agreement with Patrick C. Botts
|
+++
|
|||
Employment
Agreement with Timothy J. McArdle
|
**
|
|||
Form
of Supplemental Retirement Plan Income Agreements for R. Donn
Roberts,
Steven
Campbell, Patrick C. Botts, David W. Heeter, Timothy J. McArdle
and
Stephen C. Selby
|
**
|
|||
Form
of Director Shareholder Benefit Program, as amended, for Steven
L.
Banks
Form
of Executive Shareholder Benefit Program Agreement, as amended,
for
Steven L. Banks
|
++
++
++
|
|||
Form
of Director Shareholder Benefit Program Agreement, as amended,
for Jerry
D.
McVicker
|
||||
Form of Agreements for Executive Deferred Compensation Plan for R. Donn Roberts,
Patrick C. Botts, Steven Campbell, David W. Heeter, Timothy J. McArdle and
Stephen C. Selby
|
**
|
|||
Registrant’s
2001 Stock Option and Incentive Plan
|
***
|
|||
Registrant’s
2001 Recognition and Retention Plan
|
***
|
|||
Named
Executive Officer Salary and Bonus Arrangements for 2008
|
10.1
|
|||
Director
Fee Arrangements for 2008
|
10.2
|
|||
Director
Deferred Compensation Plan
|
##
|
|||
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.
|
MutualFirst
Financial, Inc.
|
||
Date:
March 13, 2008
|
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 13, 2008
|
Date:
March 13, 2008
|
|
/s/
R. Donn Roberts
|
/s/
Edward J. Dobrow
|
|
R.
Donn Roberts, Director
|
Edward
J. Dobrow, Director
|
|
Date:
March 13, 2008
|
Date:
March 13, 2008
|
|
/s/
Linn A. Crull
|
/s/
James D. Rosema
|
|
Linn
A. Crull, Director
|
James
D. Rosema, Director
|
|
Date:
March 13, 2008
|
Date:
March 13, 2008
|
|
/s/
William V. Hughes
|
/s/
Jerry D. McVicker
|
|
William
V. Hughes, Director
|
Jerry
D. McVicker, Director
|
|
Date: March
13, 2008
|
Date:
March 13, 2008
|
|
/s/
Patrick C. Botts
|
/s/
Jon R. Marler
|
|
Patrick
C. Botts, Director
|
Jon
R. Marler, Director
|
|
Date:
March 13, 2008
|
Date:
March 13, 2008
|
|
/s/
Timothy J. McArdle
|
||
Timothy
J. McArdle, Senior Vice President
|
||
Treasurer
and Controller
|
||
(Principal
Financial and Accounting Officer)
|
Number
|
Description
|
|
10.1
|
Named
Executive Officer Salary and Bonus Arrangements for
2008
|
|
10.2
|
Director
Fee Arrangements for 2008
|
|
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
|