OREO balances totaled $5.0 million at December 31, 2012, compared to $5.6 million at September 30, 2012 and $6.7 million at December 31, 2011. The Company sold 6 properties totaling $764,000 in the fourth quarter, had net negative valuation adjustments of $191,000 and added 3 properties totaling $270,000. A total of 6 properties remained in the OREO portfolio at quarter end, consisting of $4.9 million in land and land development and $79,000 in residential real estate.
Investment Portfolio, Deposit, Borrowings and Equity Summary
Investments available for sale decreased by $10.1 million during the quarter, as the Company sold several longer-dated securities for gains and experienced more rapid prepayment speeds on its mortgage-backed securities. The $61.1 million increase from December 31, 2011 primarily reflects the investment of funds raised in the Company's 2012 capital offerings.
Deposits totaled $748.9 million at December 31, 2012, compared to $722.1 million at September 30, 2012 and $729.4 million at the end of 2011. The increase from the third quarter reflects increases in demand deposit account balances, which offset continued reductions in CDs. While demand deposits grew by $50.1 million during the fourth quarter, approximately $30.1 million of this growth resulted from temporary shifts in the Company's money market demand deposits and other customer investment funds used to pay taxes and dividends at year end. After adjusting for this temporary growth, demand deposits were still up approximately $20 million, or 6.6% during the quarter. Overall, low-cost transaction deposits now represent 75.8% of the deposit portfolio, up from 70.7% at December 31, 2011. During the fourth quarter, the Company redeemed $13.8 million in brokered CDs, which will save about $125,000 in future annual interest expense. The table below provides information on both current composition and trends in the deposit portfolio.
|(Dollars in thousands)||12/31/2012||% of total||9/30/2012||% of total||12/31/2011||% of total|
|Non-interest bearing demand accounts||$ 254,979||34%||$ 214,524||29.7%||$ 190,074||26.1%|
|Interest bearing demand accounts||99,623||13.3%||89,941||12.5%||—||—|
|Money market accounts||213,155||28.5%||216,767||30%||201,237||27.6%|
|Savings & IRA accounts||75,788||10.1%||74,315||10.3%||73,493||10.1%|
|Certificates of deposit (CDs)||43,535||5.8%||47,509||6.6%||59,199||8.1%|
|CDARS CDs to local customers||426||0.1%||601||0.1%||4,717||0.6%|
|Total Deposits||$ 748,934||100.0%||$ 722,084||100.0%||$ 729,373||100.0%|
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV