XOTC:RBLG Roebling Financial Corporation, Inc. Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

View XOTC:RBLG Stock Quote Read full Analyst Report for RBLG

RBLG Fair Value Estimate
Premium

RBLG Consider Buying
Premium

RBLG Consider Selling
Premium

RBLG Fair Value Uncertainty
Premium

RBLG Economic Moat
Premium

RBLG Stewardship
Premium

• FORM 10-Q • EXHIBIT 31 - CERTIFICATION OF CEO AND CFO • EXHIBIT 32 - SECTION 1350 CERTIFICATION

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

X	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to __________________

Commission file number 0-50969

ROEBLING FINANCIAL CORP, INC.

(Exact name of Registrant as specified in its charter)

New Jersey

55-0873295

(State or other jurisdiction of incorporation or organization)

(I.R.S. employer identification no.)

Route 130 South and Delaware Avenue, Roebling, New Jersey

08554

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number (609) 499-9400

N/A

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the Registrant 1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and 2) has been subject to such filing requirements for the past 90 days: Yes X No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer o		Accelerated filer o
	Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ___ No X

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: August 8, 2012

Class

Outstanding

$.10 par value common stock

1,686,527 shares

ROEBLING FINANCIAL CORP, INC.

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2012

INDEX

		Page Number
PART I - FINANCIAL INFORMATION OF ROEBLING FINANCIAL CORP, INC.
Item 1.	Consolidated Financial Statements and Notes Thereto	1 - 16
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17 - 21
Item 3	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21 - 22

PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24

SIGNATURES		25

ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

(In thousands, except share and per share data)
	June 30,			September 30,
	2012			2011

Assets

Cash and due from banks	$	793		$	747
Interest-bearing deposits		6,477			3,081
Total cash and cash equivalents		7,270			3,828

Securities available for sale		40,181			42,818
Securities held to maturity		92			109
Loans receivable, net		109,130			108,616
Real estate owned		444			1,611
Accrued interest receivable		472			516
Federal Home Loan Bank of New York stock, at cost		670			545
Premises and equipment		3,177			3,159
Other assets		2,185			2,666
Total assets	$	163,621		$	163,868

Liabilities and Stockholders' Equity

Liabilities

Deposits	$	135,418		$	139,219
Borrowed funds		9,000			6,000
Advances from borrowers for taxes and insurance		630			525
Other liabilities		1,647			1,494
Total liabilities		146,695			147,238

Stockholders' equity

Serial preferred stock, $0.10 par value; 5,000,000 shares authorized;
none issued		-			-
Common stock; $0.10 par value; 20,000,000 shares authorized;
1,718,473 issued		172			172
Additional paid-in-capital		10,287			10,314
Treasury stock; 31,946 shares, at cost		(190	)		(190	)
Unallocated employee stock ownership plan shares		(175	)		(233	)
Unallocated restricted stock plan shares		(97	)		(87	)
Deferred compensation obligation		302			285
Stock purchased for deferred compensation plan		(302	)		(285	)
Retained earnings - substantially restricted		6,158			5,942
Accumulated other comprehensive income (loss):
Unrealized gain on securities available for sale, net of tax		861			810
Defined benefit plan, net of tax		(90	)		(98	)
Total stockholders' equity		16,926			16,630

Total liabilities and stockholders' equity	$	163,621		$	163,868

See notes to unaudited consolidated financial statements.

ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except per share data)
	For the Three Months Ended
	June 30,
	2012		2011

Interest income:
Loans receivable	$	1,282	$	1,398
Securities		259		314
Other interest-earning assets		7		7
Total interest income		1,548		1,719

Interest expense:
Deposits		277		377
Borrowed funds		43		50
Total interest expense		320		427

Net interest income before provision for loan losses		1,228		1,292
Provision for loan losses		0		85
Net interest income after provision for loan losses		1,228		1,207

Non-interest income:
Loan fees		19		20
Account servicing and other		105		93
Gain on sale of loans		8		0
Total non-interest income		132		113

Non-interest expense:
Compensation and benefits		598		581
Occupancy and equipment		113		120
Service bureau and data processing		147		132
Federal deposit insurance premiums		52		51
Real estate owned expense, net		13		53
Other expense		273		374
Total non-interest expense		1,196		1,311

Income before income tax (benefit)		164		9
Income tax (benefit)		60		(2	)
Net income		104		11

Other comprehensive income, net of tax:
Unrealized gain on securities available for sale, net of tax		49		163
Adjustment to minimum pension liability		3		3
Comprehensive income	$	156	$	177

Earnings per common share:
Basic	$	0.06	$	0.01
Diluted	$	0.06	$	0.01

Weighted average number of shares outstanding:
Basic		1,665		1,656
Diluted		1,665		1,656

See notes to unaudited consolidated financial statements.

ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except per share data)
	For the Nine Months Ended
	June 30,
	2012		2011

Interest income:
Loans receivable	$	3,939	$	4,224
Securities		824		965
Other interest-earning assets		22		29
Total interest income		4,785		5,218

Interest expense:
Deposits		921		1,185
Borrowed funds		138		156
Total interest expense		1,059		1,341

Net interest income before provision for loan losses		3,726		3,877
Provision for loan losses		0		135
Net interest income after provision for loan losses		3,726		3,742

Non-interest income:
Loan fees		58		64
Account servicing and other		302		288
Gain on sale of loans		27		11
Total non-interest income		387		363

Non-interest expense:
Compensation and benefits		1,754		1,738
Occupancy and equipment		346		369
Service bureau and data processing		450		392
Federal deposit insurance premiums		160		211
Real estate owned expense, net		341		81
Other expense		735		832
Total non-interest expense		3,786		3,623

Income before income tax		327		482
Income tax		111		165
Net income		216		317

Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities available for sale, net of tax		51		(133	)
Adjustment to minimum pension liability		8		10
Comprehensive income	$	275	$	194

Earnings per common share:
Basic	$	0.13	$	0.19
Diluted	$	0.13	$	0.19

Weighted average number of shares outstanding:
Basic		1,663		1,653
Diluted		1,663		1,653

See notes to unaudited consolidated financial statements.

ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

(In thousands)
																	Common					Accumulated
			Additional						Unallocated			Unallocated			Deferred		Stock for					Other
	Common		Paid-in			Treasury			ESOP			RSP			Compensation		Deferred			Retained		Comprehensive
	Stock		Capital			Stock			Shares			Shares			Obligation		Compensation			Earnings		Income		Total

Balance at September 30, 2011	$	172	$	10,314		$	(190	)	$	(233	)	$	(87	)	$	285	$	(285	)	$	5,942	$	712	$	16,630

Net income for the nine months
ended June 30, 2012		-		-			-			-			-			-		-			216		-		216

Amortization of ESOP shares		-		(34	)		-			58			-			-		-			-		-		24

Change in unrealized gain on
securities available for sale,
net of tax		-		-			-			-			-			-		-			-		51		51

Deferred compensation plan		-		-			-			-			-			17		-			-		-		17

Common stock acquired for
deferred compensation plan		-		-			-			-			-			-		(17	)		-		-		(17	)

Allocation of RSP shares		-		10			-			-			(10	)		-		-			-		-		0

Tax expense of stock benefit plans		-		(3	)		-			-			-			-		-			-		-		(3	)

Adjustment to mimimum pension
liability, net of tax		-		-			-			-			-			-		-			-		8		8

Balance at June 30, 2012	$	172	$	10,287		$	(190	)	$	(175	)	$	(97	)	$	302	$	(302	)	$	6,158	$	771	$	16,926

See notes to unaudited consolidated financial statements.

ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)
	For the Nine Months Ended
	June 30,
	2012			2011

Cash flows from operating activities:
Net income	$	216		$	317
Adjustments to reconcile net income to cash provided by
operating activities:
Depreciation		89			95
Amortization of premiums and discounts, net		42			33
Amortization of deferred loan fees and costs, net		9			19
Provision for loan losses		-			135
Provision for losses on real estate owned		297			65
Originations of loans held for sale, net of repayments		(3,764	)		(3,842	)
Gain on sale of loans		(27	)		(11	)
Proceeds from sale of loans held for sale		3,791			4,359
(Gain) loss on disposition of premises and equipment		(4	)		2
Decrease (increase) in other assets		442			(104	)
Decrease (increase) in accrued interest receivable		44			(21	)
Increase in other liabilities		163			148
Amortization/allocation of ESOP and RSP		25			39
Increase in deferred compensation stock obligation		17			33
Net cash provided by operating activities		1,340			1,267

Cash flows from investing activities:
Purchase of securities available for sale		(10,912	)		(14,028	)
Proceeds from payments and maturities of securities available for sale		13,591			12,542
Proceeds from payments and maturities of securities held to maturity		17			13
Proceeds from sale of loans		-			77
Loan disbursements, net payments		(536	)		745
Proceeds from sale of real estate owned		883			610
Purchase of Federal Home Loan Bank stock		(125	)		(58	)
Purchase of premises and equipment		(107	)		(42	)
Proceeds from sale of premises and equipment		4			-
Net cash provided by (used in) investing activities		2,815			(141	)

Cash flows from financing activities:
Net decrease in deposits		(3,801	)		(4,074	)
Net increase in short-term borrowed funds		4,000			2,750
Repayment of long-term borrowed funds		(1,000	)		(1,000	)
Increase in advance payments by borrowers for taxes
and insurance		105			95
Purchase of common shares for deferred compensation plan		(17	)		(33	)
Net cash used in financing activities		(713	)		(2,262	)

Net increase (decrease) in cash and cash equivalents		3,442			(1,136	)
Cash and cash equivalents at beginning of period		3,828			6,019
Cash and cash equivalents at end of period	$	7,270		$	4,883

Supplemental Disclosures of Cash Flow Information:
Cash paid for:
Interest on deposits and borrowed funds	$	1,059		$	1,342
Income taxes		1			130

Transfers to real estate owned		14			1,041

See notes to unaudited consolidated financial statements.

ROEBLING FINANCIAL CORP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Roebling Financial Corp, Inc. (the “Company”) have been prepared in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, such information presented reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of the Company’s management, necessary for a fair statement of results for the interim period.

The results of operations for the three and nine months ended June 30, 2012, are not necessarily indicative of the results to be expected for the year ending September 30, 2012, or any other future interim period. The unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the year ended September 30, 2011 included in the Company’s Annual Report on Form 10-K.

NOTE 2 – EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding, adjusted for unearned shares of the Employee Stock Ownership Plan (“ESOP”). Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding to include the effect of outstanding stock options and compensation grants, if dilutive, using the treasury stock method.

The following is a summary of the Company’s earnings per share calculations:

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2012		2011		2012		2011

Net income	$	103,999	$	10,554	$	215,602	$	316,643

Weighted average common shares
outstanding for computation of
basic EPS (1)		1,664,795		1,655,644		1,662,507		1,653,357

Common-equivalent shares due to
the dilutive effect of stock options
and RSP awards		-		-		-		-

Weighted-average common shares
for computation of diluted EPS		1,664,795		1,655,644		1,662,507		1,653,357

Earnings per common share:
Basic	$	0.06	$	0.01	$	0.13	$	0.19
Diluted	$	0.06		0.01	$	0.13	$	0.19

(1) Excludes unallocated ESOP shares

NOTE 3 – SECURITIES AVAILABLE FOR SALE

	June 30, 2012
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value

Investment Securities
U.S. Government and Agency Securities:
Due within one year	$	1,000,000	$	4,840	$	-	$	1,004,840
Due after one year through five years		6,000,000		109,070		-		6,109,070
Due after five years through ten years		10,853,837		138,438		-		10,992,275

Marketable Equity Securities		2,888		-		2,784		104

Residential Mortgage-backed Securities		20,890,022		1,184,613		-		22,074,635

	$	38,746,747	$	1,436,961	$	2,784	$	40,180,924

	September 30, 2011
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value

Investment Securities
U.S. Government and Agency Securities:
Due after one year through five years	$	8,000,000	$	120,410	$	-	$	8,120,410
Due after five years through ten years		10,997,704		58,196		930		11,054,970

Marketable Equity Securities		2,888		-		2,792		96

Residential Mortgage-backed Securities		22,467,391		1,175,179		450		23,642,120

	$	41,467,983	$	1,353,785	$	4,172	$	42,817,596

There were no sales of investment securities or mortgage-backed securities during the nine months ended June 30, 2012.

The following tables provide a summary of securities available for sale which were in an unrealized loss position at June 30, 2012 and September 30, 2011. Approximately $2,800 or 100% and $2,800 or 67% of the unrealized loss as of June 30, 2012 and September 30, 2011, respectively, was comprised of securities in a continuous loss position for twelve months or more. Unrealized losses on government and agency and mortgage-backed debt securities are caused primarily by changes in market interest rates. The Company does not intend to sell these securities and it is not likely that we would be required to sell them before recovery of the amortized cost basis.

	June 30, 2012
	Under One Year				One Year or More

			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Loss		Fair Value		Loss

Marketable Equity Securities	$	-	$	-	$	104	$	2,784

Total available for sale	$	-	$	-	$	104	$	2,784

	September 30, 2011
	Under One Year				One Year or More

			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Loss		Fair Value		Loss

U.S. Government and Agency Securities	$	999,070	$	930	$	-	$	-
Marketable Equity Securities		-		-		96		2,792
Residential Mortgage-backed Securities		1,026,552		450		-		-

Total available for sale	$	2,025,622	$	1,380	$	96	$	2,792

NOTE 4 – SECURITIES HELD TO MATURITY

	June 30,		September 30,
	2012		2011

Residential Mortgage-backed Securities:
Amortized cost	$	92,298	$	109,236
Gross unrealized gains		2,612		3,424
Gross unrealized losses		-		-

Estimated fair value	$	94,910	$	112,660

NOTE 5 – LOANS RECEIVABLE, NET

The Company has segmented its loans into three portfolio segments of residential, commercial purpose and consumer. It has further disaggregated these segments into additional classes of loans. The residential portfolio segment includes loans to consumers, secured by one-to-four family residential properties that are generally owner-occupied. This portfolio segment includes two classes, mortgage loans and home equity loans. Commercial purpose loans are one segment and one class of receivable. These are loans made to individuals and businesses for business purposes. They are generally collateralized by commercial real estate, residential properties (one-to-four or multifamily), land or business assets, and may be provided for permanent or construction financing. The consumer portfolio segment includes non-mortgage loans to individuals for consumer purposes. They are further categorized into three classes, including account loans, unsecured loans and other loans.

The following tables reflect the aging and accrual status of our loan portfolio by portfolio segment and class as of June 30, 2012 and September 30, 2011.

	Past Due					Total
	30-59	60-89	90+			Loans			90+ and
June 30, 2012	Days	Days	Days	Total	Current	Receivable		Non-accrual	Accruing
				(In thousands)
Residential:
Mortgage	$ -	$ 35	$ 495	$ 530	$ 58,211	$ 58,741	$	735	$ -
Home equity	43	81	207	331	26,343	26,674		239	-
Commercial purpose	-	-	1,037	1,037	23,468	24,505		846	191
Consumer:
Account loans	-	-	-	-	45	45		-	-
Unsecured	-	-	-	-	87	87		-	-
Other	-	-	-	-	43	43		-	-
	$ 43	$ 116	$ 1,739	$ 1,898	$ 108,197	$ 110,095	$	1,820	$ 191

	Past Due					Total
	30-59	60-89	90+			Loans			90+ and
September 30, 2011	Days	Days	Days	Total	Current	Receivable		Non-accrual	Accruing
				(In thousands)
Residential:
Mortgage	$ 36	$ -	$ 209	$ 245	$ 55,882	$ 56,127	$	209	$ -
Home equity	91	72	140	303	26,620	26,923		140	-
Commercial purpose	-	-	526	526	26,073	26,599		335	191
Consumer:
Account loans	-	-	-	-	47	47		-	-
Unsecured	-	-	-	-	79	79		-	-
Other	36	-	-	36	71	107		-	-
	$ 163	$ 72	$ 875	$ 1,110	$ 108,772	$ 109,882	$	684	$ 191

One of the primary methods we use as an indicator of the credit quality of our residential and commercial purpose portfolios is the regulatory classification system, along with impaired loan determinations. For the consumer portfolio segment, payment performance is our primary indicator of credit quality. The following tables reflect the credit quality indicators by portfolio segment and class, as of June 30, 2012 and September 30, 2011:


Credit Risk Profile by Classification:
	Residential Mortgage				Home Equity				Commercial Purpose
	June 30,		September 30,		June 30,		September 30,		June 30,		September 30,
(In thousands)	2012		2011		2012		2011		2012		2011

Pass	$	56,754	$	54,389	$	26,322	$	26,590	$	16,668	$	16,896
Special mention		1,252		1,493		113		193		3,932		4,374
Substandard		735		245		219		140		3,905		5,116
Doubtful		-		-		-		-		-		-
Loss		-		-		20		-		-		213
Total	$	58,741	$	56,127	$	26,674	$	26,923	$	24,505	$	26,599

Credit Risk Profile by Performance:
	Consumer
	Account Loans				Consumer Unsecured				Other Consumer
	June 30,		September 30,		June 30,		September 30,		June 30,		September 30,
(In thousands)	2012		2011		2012		2011		2012		2011

Performing	$	45	$	47	$	87	$	79	$	43	$	107
Non-performing		-		-		-		-		-		-
Total	$	45	$	47	$	87	$	79	$	43	$	107

Additional information about impaired loans, by portfolio segment and class, is as follows:

	As of June 30, 2012						As of September 30, 2011
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
(In thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance

With no related allowance:
Residential
Mortgage	$	-	$	-	$	-	$	-	$	-	$	-
Home equity		135		135		-		140		140		-
Commercial purpose		1,129		1,129		-		1,441		1,441		-
		1,264		1,264		-		1,581		1,581		-

With a related allowance:
Residential
Mortgage		-		-		-		-		-		-
Home equity		72		72		20		-		-		-
Commercial purpose		296		296		91		507		507		213
		368		368		111		507		507		213

Total:
Residential
Mortgage		-		-		-		-		-		-
Home equity		207		207		20		140		140		-
Commercial purpose		1,425		1,425		91		1,948		1,948		213
Total impaired	$	1,632	$	1,632	$	111	$	2,088	$	2,088	$	213

For the Three Months Ended

For the Nine Months Ended

June 30, 2012

June 30, 2011

June 30, 2012

June 30, 2011

Average

Interest

Average

Interest

Average

Interest

Average

Interest

Recorded

Income

Recorded

Income

Recorded

Income

Recorded

Income

(In thousands)

Investment

Recognized

Investment

Recognized

Investment