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O A K FINANCIAL CORP
·
10-K
Feb 12, 3:35 PM ET
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O A K FINANCIAL CORP 10-K
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Contents
105
FORM 10-K
PART I
Item 1. Business.
Critical Accounting Policies
Year ended December 31,
Year Ended December 31,
Year ended December 31,
Year Ended December 31,
Year Ended December 31,
LIQUIDITY AND CAPITAL RESOURCES
Maturing
December 31, 2009
Three Months Ended
Principles of Consolidation: The consolidated financial statements include the accounts of OAK Financial Corporation and its subsidiaries. The income, expense, assets and liabilities of the subsidiaries are included in the respective accounts of the consolidated financial statements, after elimination of all material intercompany transactions and accounts.
Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both the straight-line and accelerated methods over the useful lives of the respective assets. Maintenance, repairs and minor alterations are charged to current operations as expenditures occur and major improvements are capitalized. These assets are reviewed for impairment.
Servicing: Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices of similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance.
Income Taxes: Income tax expense is the sum of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequence of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Corporation and its subsidiary file a consolidated federal income tax return on a calendar year basis.
Off Balance Sheet Instruments: In the ordinary course of business, the Bank enters into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, standby letters of credit, and forward contracts for the sale of mortgage loans held for sale. Unless otherwise required, these financial instruments are recorded when they are funded.
Restricted Investments: The Bank is a member of the Federal Home Loan Bank System and is required to invest in capital stock of the Federal Home Loan Bank of Indianapolis ("FHLB"). The amount of the required investment is determined and adjusted periodically by the FHLB. The investment is carried at cost plus the value assigned to stock dividends.
Recent Pronouncements: The Financial Accounting Standards Board issued new guidance in 2009 on the accounting for transfers of financial assets. The new guidance eliminates the concept of a qualifying special-purpose entity. Other changes from current accounting standards include new de-recognition criteria for a transfer to be accounted for as a sale, and a changes to the amount of recognized gain/loss on transfers accounted for as a sale when beneficial interests are received by the transferor. This new standard will be applied prospectively to new transfers of financial assets and will be effective for the first annual period beginning after November 15, 2009 and interim periods within that first annual period. Early application is prohibited. The Company is currently assessing the impact this new standard will have on its financial statements.
Gross Unrealized Gains
Fair
$649
$57
$29
Net realized gain on sales of
$5,786
$ 38
$ -
$ -
$5,786
$38
547
9
612
2
1,159
11
5,033
95
3,223
218
8,256
313
$11,366
$142
$3,835
$220
$15,201
$362
$ -
$ -
$ -
$ -
$ -
$ -
1,624
28
3,049
16
4,673
44
11,391
348
3,337
51
14,728
399
$13,015
$376
$6,386
$67
$19,401
$443
Average investment in impaired loans
$622
$1,544
$2,267
($113)
$1,544
$2,267
($113)
$388
$3,065
Total deferred tax assets
Available-for-sale securities
PART III
PART IV
Item 1A. Risk Factors.
Item 1B. Unresolved Staff Comments.
Item 2. Properties
Item 3. Legal Proceedings.
Item 4. Submission of Matters to Vote of Security Holders
Item 5. Market Price and Dividends for Registrant's Common Equity and Related Stockholder Matters.
Item 6. Selected Financial Data
Item 7.
Item 8. Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information
Item 10. Directors, Executive Officers, and Corporate Governance.
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.
Item 13. Certain Relationships and Related Transactions and Director Independence.
Item 14. Principal Accountant Fees and Services
Contents
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