þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
52-1726127 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
200 Westgate Circle, Suite 200, Annapolis, Maryland | 21401 |
(Address of principal executive offices) | (Zip Code) |
Title of | each class | Name of |
Common Stock, par value $.01 per share |
Section | Page No. | |
PART I | 1 | |
Item 1 | Business | 1 |
Item 1A | Risk Factors | |
Item 1B | Unresolved Staff Comments | |
Item 2 | Properties | |
Item 3 | Legal Proceedings | |
Item 4 | Submission of Matters to a Vote of Security Holders | |
Item 4.1 | Executive Officers of the Registrant That Are Not Directors | |
36 | ||
PART II | 37 | |
Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6 | Selected Financial Data | |
Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 44 |
Item 7A | Quantitative and Qualitative Disclosures About Market Risk | |
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 | |
PART III | ||
Item 10 | Directors and Executive Officers of the Registrant and Corporate Governance | |
Item 11 | Executive Compensation | |
Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13 | Certain Relationships and Related Transactions, and Director Independence | |
Item 14 | Principal | |
PART IV | ||
Item 15 | Exhibits, | |
SIGNATURES |
· | Statements contained in “Item 1A. Risk Factors;” |
· | Statements concerning liquidity and business plans; |
· | Statements concerning allowance for loan losses, liquidity, capital adequacy requirements, unrealized losses, guarantees, the Bank being well-capitalized, and impact of accounting pronouncements; |
· | Competitive strengths; and |
· | Statements as to trends or Bancorp’s or management’s beliefs, expectations and opinions. |
· | Changes in general economic and political conditions and by governmental monetary and fiscal policies; |
· | Changes in the economic conditions of the geographic areas in which Bancorp conducts business; |
· | Changes in interest rates; |
· | A downturn in the real estate markets in which Bancorp conducts business; |
· | Environmental liabilities with respect to properties Bancorp has title; |
· | Changes in federal and state regulation; |
· | Bancorp’s ability to estimate loan losses; |
· | Competition; |
· | Breaches in security or interruptions in Bancorp’s information systems; |
· | Bancorp’s ability to timely develop and implement technology; |
· | Bancorp’s ability to retain its management team; |
· | Bancorp’s ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; and |
· | Terrorist attacks and threats or actual war. |
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||
(dollars in thousands) | ||||||||||||||
Residential mortgage | $249,448 | 26.15% | $219,988 | 23.71% | $215,767 | 27.30% | $187,498 | 30.83% | $142,342 | 28.87% | ||||
Construction, land acquisition and | ||||||||||||||
development | 339,122 | 35.55% | 390,376 | 42.07% | 343,101 | 43.42% | 240,757 | 39.58% | 191,196 | 38.77% | ||||
Land | 90,747 | 9.51% | 77,319 | 8.33% | 33,419 | 4.23% | 25,820 | 4.25% | 20,109 | 4.08% | ||||
Lines of credit | 40,733 | 4.27% | 35,491 | 3.82% | 29,096 | 3.68% | 19,581 | 3.22% | 12,472 | 2.53% | ||||
Commercial real estate | 193,299 | 20.26% | 163,449 | 17.61% | 127,768 | 16.17% | 106,823 | 17.56% | 90,862 | 18.43% | ||||
Commercial non-real estate | 3,348 | 0.35% | 3,412 | 0.37% | 3,859 | 0.49% | 3,813 | 0.63% | 3,445 | 0.70% | ||||
Home equity | 32,758 | 3.44% | 32,974 | 3.55% | 28,101 | 3.56% | 18,391 | 3.02% | 11,197 | 2.27% | ||||
Consumer | 1,537 | 0.16% | 1,768 | 0.19% | 2,489 | 0.31% | 2,364 | 0.39% | 3,979 | 0.81% | ||||
Loans held for sale | 2,970 | 0.31% | 3,216 | 0.35% | 6,654 | 0.84% | 3,175 | 0.52% | 17,481 | 3.54% | ||||
Total gross loans | 953,962 | 100.00% | 927,993 | 100.00% | 790,254 | 100.00% | 608,222 | 100.00% | 493,083 | 100.00% | ||||
Deferred loan origination fees and costs, net | (4,712) | (4,916) | (4,157) | �� | (3,344) | (2,674) | ||||||||
Loans in process | (104,747) | (136,239) | (123,195) | (94,020) | (67,593) | |||||||||
Allowance for loan losses | (9,026) | (7,505) | (5,935) | (4,832) | (3,991) | |||||||||
Total loans net | $835,477 | $779,333 | $656,967 | $506,026 | $418,825 |
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 355,909 | 36.55 | % | $ | 320,303 | 32.45 | % | $ | 249,448 | 26.15 | % | $ | 219,988 | 23.71 | % | $ | 215,767 | 27.30 | % | ||||||||||||||||||||
Construction, land acquisition and | ||||||||||||||||||||||||||||||||||||||||
development | 242,359 | 24.89 | % | 297,823 | 30.18 | % | 339,122 | 35.55 | % | 390,376 | 42.07 | % | 343,101 | 43.42 | % | |||||||||||||||||||||||||
Land | 82,642 | 8.49 | % | 93,717 | 9.50 | % | 90,747 | 9.51 | % | 77,319 | 8.33 | % | 33,419 | 4.23 | % | |||||||||||||||||||||||||
Lines of credit | 34,872 | 3.58 | % | 29,713 | 3.01 | % | 40,733 | 4.27 | % | 35,491 | 3.82 | % | 29,096 | 3.68 | % | |||||||||||||||||||||||||
Commercial real estate | 214,209 | 22.00 | % | 205,755 | 20.85 | % | 193,299 | 20.26 | % | 163,449 | 17.61 | % | 127,768 | 16.17 | % | |||||||||||||||||||||||||
Commercial non-real estate | 3,084 | 0.32 | % | 3,416 | 0.34 | % | 3,348 | 0.35 | % | 3,412 | 0.37 | % | 3,859 | 0.49 | % | |||||||||||||||||||||||||
Home equity | 39,040 | 4.01 | % | 32,748 | 3.32 | % | 32,758 | 3.44 | % | 32,974 | 3.55 | % | 28,101 | 3.56 | % | |||||||||||||||||||||||||
Consumer | 1,083 | 0.11 | % | 2,355 | 0.24 | % | 1,537 | 0.16 | % | 1,768 | 0.19 | % | 2,489 | 0.31 | % | |||||||||||||||||||||||||
Loans held for sale | 453 | 0.05 | % | 1,101 | 0.11 | % | 2,970 | 0.31 | % | 3,216 | 0.35 | % | 6,654 | 0.84 | % | |||||||||||||||||||||||||
Total gross loans | 973,651 | 100.00 | % | 986,931 | 100.00 | % | 953,962 | 100.00 | % | 927,993 | 100.00 | % | 790,254 | 100.00 | % | |||||||||||||||||||||||||
Deferred loan origination fees and costs, net | (4,439 | ) | (4,898 | ) | (4,712 | ) | (4,916 | ) | (4,157 | ) | ||||||||||||||||||||||||||||||
Loans in process | (57,940 | ) | (78,238 | ) | (104,747 | ) | (136,239 | ) | (123,195 | ) | ||||||||||||||||||||||||||||||
Allowance for loan losses | (14,813 | ) | (10,781 | ) | (9,026 | ) | (7,505 | ) | (5,935 | ) | ||||||||||||||||||||||||||||||
Total loans net | $ | 896,459 | $ | 893,014 | $ | 835,477 | $ | 779,333 | $ | 656,967 |
For the Years ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(dollars in thousands) | ||||||||||
Held for Sale: | ||||||||||
Beginning balance | $ | 3,216 | $ | 6,654 | $ | 3,175 | ||||
Originations | 31,322 | 73,766 | 74,352 | |||||||
Net sales | (31,568 | ) | (77,204 | ) | (70,873 | ) | ||||
Ending balance | $ | 2,970 | $ | 3,216 | $ | 6,654 | ||||
Held for investment: | ||||||||||
Beginning balance | $ | 924,777 | $ | 783,600 | $ | 605,047 | ||||
Originations and purchases | 260,715 | 252,525 | 262,278 | |||||||
Repayments/payoffs | (234,500 | ) | (111,348 | ) | (83,725 | ) | ||||
Ending balance | $ | 950,922 | $ | 924,777 | $ | 783,600 |
For the Years ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(dollars in thousands) | ||||||||||||
Held for Sale: | ||||||||||||
Beginning balance | $ | 1,101 | $ | 2,970 | $ | 3,216 | ||||||
Originations | 13,145 | 18,320 | 31,322 | |||||||||
Net sales | (13,793 | ) | (20,189 | ) | (31,568 | ) | ||||||
Ending balance | $ | 453 | $ | 1,101 | $ | 2,970 | ||||||
Held for investment: | ||||||||||||
Beginning balance | $ | 985,830 | $ | 950,992 | $ | 924,777 | ||||||
Originations and purchases | 210,984 | 239,336 | 260,715 | |||||||||
Repayments/payoffs | (223,616 | ) | (204,498 | ) | (234,500 | ) | ||||||
Ending balance | $ | 973,198 | $ | 985,830 | $ | 950,992 |
Percentage of Portfolio | |||
Less than 5.00% | |||
5.01 | |||
6.01 | |||
7.01 | |||
Over 8.00% | |||
Due | Due after | ||||||||||||
Within | 1 through | Due after | |||||||||||
one year | 5 years | 5 years | Total | ||||||||||
(dollars in thousands) | |||||||||||||
One to four family residential | $ | 39,120 | $ | 60,843 | $ | 207,229 | $ | 307,192 | |||||
Multifamily | - | 3,041 | 2,358 | 5,399 | |||||||||
Commercial and industrial real estate | 7,577 | 59,874 | 128,265 | 195,716 | |||||||||
Construction and land acquisition | |||||||||||||
and development loans | 283,871 | 55,251 | - | 339,122 | |||||||||
Land | 32,108 | 56,451 | 8,080 | 96,639 | |||||||||
Commercial, non-real estate | 4,705 | 1,654 | 1,998 | 8,357 | |||||||||
Consumer | 219 | 1,039 | 279 | 1,537 | |||||||||
Total | $ | 367,600 | $ | 238,153 | $ | 348,209 | $ | 953,962 |
Due | Due after | |||||||||||||||
Within one | 1 through | Due after | ||||||||||||||
year or less | 5 years | 5 years | Total | |||||||||||||
(dollars in thousands) | ||||||||||||||||
One to four family residential | $ | 42,063 | $ | 53,471 | $ | 317,851 | $ | 413,385 | ||||||||
Multifamily | 1,450 | 2,180 | 7,513 | 11,143 | ||||||||||||
Commercial and industrial real estate | 19,181 | 72,667 | 118,752 | 210,600 | ||||||||||||
Construction and land acquisition | ||||||||||||||||
and development loans | 192,864 | 49,495 | - | 242,359 | ||||||||||||
Land | 46,140 | 31,795 | 9,311 | 87,246 | ||||||||||||
Commercial, non-real estate | 4,088 | 1,538 | 2,209 | 7,835 | ||||||||||||
Consumer | 180 | 730 | 173 | 1,083 | ||||||||||||
Total | $ | 305,966 | $ | 211,876 | $ | 455,809 | $ | 973,651 |
Fixed | Floating | Total | ||||||||
(dollars in thousands) | ||||||||||
One to four family residential | $ | 131,387 | $ | 136,686 | $ | 268,073 | ||||
Multifamily | 2,425 | 2,974 | 5,399 | |||||||
Commercial and industrial real estate | 75,961 | 112,178 | 188,139 | |||||||
Construction and land acquisition | ||||||||||
and development loans | 12,320 | 42,930 | 55,250 | |||||||
Land | 39,217 | 25,313 | 64,530 | |||||||
Commercial, non-real estate | 1,845 | 1,807 | 3,652 | |||||||
Consumer | 1,319 | - | 1,319 | |||||||
Total | $ | 264,474 | $ | 321,888 | $ | 586,362 |
Fixed | Floating | Total | ||||||||||
(dollars in thousands) | ||||||||||||
One to four family residential | $ | 195,217 | $ | 176,105 | $ | 371,322 | ||||||
Multifamily | 1,634 | 8,059 | 9,693 | |||||||||
Commercial and industrial real estate | 87,218 | 104,201 | 191,419 | |||||||||
Construction and land acquisition | ||||||||||||
and development loans | 24,445 | 25,050 | 49,495 | |||||||||
Land | 25,309 | 15,797 | 41,106 | |||||||||
Commercial, non-real estate | 1,833 | 1,914 | 3,747 | |||||||||
Consumer | 866 | 37 | 903 | |||||||||
Total | $ | 336,522 | $ | 331,163 | $ | 667,685 |
· | Loans that are 90 days or more in arrears (non-accrual loans); or |
· | Loans that are deemed impaired when, based on current information and events, it is probable that a borrower will be unable to collect all amounts due according to the contractual terms of the loan agreement (as per SFAS 114). |
At December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
(dollars in thousands) | ||||||||||||||||
Loans accounted for on a non-accrual basis: | ||||||||||||||||
Mortgage loans: | ||||||||||||||||
One-to-four family real estate | $ | 3,487 | $ | 1,693 | $ | 915 | $ | 378 | $ | 1,366 | ||||||
Home equity lines of credit | - | - | - | 50 | - | |||||||||||
Commercial | 98 | - | - | - | 253 | |||||||||||
Land | 2,342 | - | 24 | 24 | 139 | |||||||||||
Non-mortgage loans: | ||||||||||||||||
Consumer | - | - | - | 17 | - | |||||||||||
Commercial loans | - | - | - | - | - | |||||||||||
Total non-accrual loans | $ | 5,927 | $ | 1,693 | $ | 939 | $ | 469 | $ | 1,758 | ||||||
Accruing loans greater than 90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
Foreclosed real-estate | $ | 970 | $ | - | $ | - | $ | - | $ | 224 | ||||||
Total non-performing assets | $ | 6,897 | $ | 1,693 | $ | 939 | $ | 469 | $ | 1,982 | ||||||
Total non-accrual loans to net loans | 0.7 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.4 | % | ||||||
Allowance for loan losses to total non-performing loans, | ||||||||||||||||
including loans contractually past due 90 days or more | 152.3 | % | 443.3 | % | 632.1 | % | 1030.5 | % | 227.0 | % | ||||||
Total non-accrual and accruing loans greater than | ||||||||||||||||
90 days past due to total assets | 0.7 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.4 | % | ||||||
Total non-performing assets to total assets | 0.8 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.4 | % |
At December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Loans accounted for on a non-accrual basis: | ||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||
One-to-four family real estate | $ | 35,829 | $ | 4,992 | $ | 3,487 | $ | 1,693 | $ | 915 | ||||||||||
Home equity lines of credit | 189 | - | - | - | - | |||||||||||||||
Commercial | 3,047 | 336 | 98 | - | - | |||||||||||||||
Land | 15,721 | 2,372 | 2,342 | - | 24 | |||||||||||||||
Non-mortgage loans: | ||||||||||||||||||||
Consumer | 9 | - | - | - | - | |||||||||||||||
Commercial loans | - | - | - | - | - | |||||||||||||||
Total non-accrual loans | $ | 54,795 | $ | 7,700 | $ | 5,927 | $ | 1,693 | $ | 939 | ||||||||||
Accruing loans greater than 90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Foreclosed real-estate | $ | 6,317 | $ | 2,993 | $ | 970 | $ | - | $ | - | ||||||||||
Total non-performing assets | $ | 61,112 | $ | 10,693 | $ | 6,897 | $ | 1,693 | $ | 939 | ||||||||||
Total non-accrual loans to net loans | 6.1 | % | 0.9 | % | 0.7 | % | 0.2 | % | 0.1 | % | ||||||||||
Allowance for loan losses to total non-performing loans, | ||||||||||||||||||||
including loans contractually past due 90 days or more | 27.0 | % | 140.0 | % | 152.3 | % | 443.3 | % | 632.1 | % | ||||||||||
Total non-accrual and accruing loans greater than | ||||||||||||||||||||
90 days past due to total assets | 5.5 | % | 0.8 | % | 0.7 | % | 0.2 | % | 0.1 | % | ||||||||||
Total non-performing assets to total assets | 6.2 | % | 1.1 | % | 0.8 | % | 0.2 | % | 0.1 | % |
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||
Percentage of | Percentage of | Percentage of | Percentage of | Percentage of | |||||||||||||||
Loans in each | Loans in each | Loans in each | Loans in each | Loans in each | |||||||||||||||
Allowance | Category to | Allowance | Category to | Allowance | Category to | Allowance | Category to | Allowance | Category to | ||||||||||
Amount | Total Loans | Amount | Total Loans | Amount | Total Loans | Amount | Total Loans | Amount | Total Loans | ||||||||||
(dollars in thousands) | |||||||||||||||||||
Residential, one to four family | $2,202 | 32.41% | $1,706 | 29.74% | $2,000 | 30.20% | $1,938 | 36.20% | $1,542 | 36.58% | |||||||||
Multifamily | 33 | 0.57% | 67 | 0.49% | 20 | 0.34% | 21 | 0.14% | 21 | 0.27% | |||||||||
Commercial and industrial real estate | 2,512 | 20.45% | 1,965 | 17.73% | 1,009 | 16.17% | 1.154 | 18.48% | 881 | 19.33% | |||||||||
Construction and land acquisition and | |||||||||||||||||||
development loans | 2,253 | 35.44% | 2,684 | 42.07% | 2,577 | 43.42% | 1,173 | 39.58% | 1,202 | 38.77% | |||||||||
Land | 1,731 | 10.10% | 882 | 8.78% | 251 | 8.54% | 476 | 4.25% | 300 | 4.08% | |||||||||
Business, commercial | 288 | 0.87% | 193 | 1.00% | 70 | 1.18% | 59 | 1.16% | 33 | 0.79% | |||||||||
Other | 7 | 0.16% | 8 | 0.19% | 8 | 0.15% | 11 | 0.19% | 12 | 0.18% | |||||||||
Total | $9,026 | 100.00% | $7,505 | 100.00% | $5,935 | 100.00% | $4,832 | 100.00% | $3,991 | 100.00% |
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||||
Percentage of Loans | Percentage of Loans | Percentage of Loans | Percentage of Loans | Percentage of Loans | ||||||||||||||||||||||||||||||||||||
in each | in each | in each | in each | in each | ||||||||||||||||||||||||||||||||||||
Allowance | Category to | Allowance | Category to | Allowance | Category to | Allowance | Category to | Allowance | Category to | |||||||||||||||||||||||||||||||
Amount | Total Loans | Amount | Total Loans | Amount | Total Loans | Amount | Total Loans | Amount | Total Loans | |||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
One to four family residential | $ | 5,765 | 42.46 | % | $ | 3,378 | 40.73 | % | $ | 2,202 | 32.41 | % | $ | 1,706 | 29.74 | % | $ | 2,000 | 30.20 | % | ||||||||||||||||||||
Multifamily | 42 | 1.14 | % | 35 | 0.76 | % | 33 | 0.57 | % | 67 | 0.49 | % | 20 | 0.34 | % | |||||||||||||||||||||||||
Commercial and industrial real estate | 3,080 | 21.63 | % | 3,332 | 22.41 | % | 2,512 | 20.45 | % | 1,965 | 17.73 | % | 1,009 | 16.17 | % | |||||||||||||||||||||||||
Construction and land acquisition and | ||||||||||||||||||||||||||||||||||||||||
development loans | 2,559 | 24.89 | % | 1,849 | 24.29 | % | 2,253 | 35.44 | % | 2,684 | 42.07 | % | 2,577 | 43.42 | % | |||||||||||||||||||||||||
Land | 3,286 | 8.96 | % | 2,027 | 10.72 | % | 1,731 | 10.10 | % | 882 | 8.78 | % | 251 | 8.54 | % | |||||||||||||||||||||||||
Commercial, non-real estate | 77 | 0.80 | % | 150 | 0.83 | % | 288 | 0.87 | % | 193 | 1.00 | % | 70 | 1.18 | % | |||||||||||||||||||||||||
Other | 4 | 0.12 | % | 10 | 0.26 | % | 7 | 0.16 | % | 8 | 0.19 | % | 8 | 0.15 | % | |||||||||||||||||||||||||
Total | $ | 14,813 | 100.00 | % | $ | 10,781 | 100.00 | % | $ | 9,026 | 100.00 | % | $ | 7,505 | 100.00 | % | $ | 5,935 | 100.00 | % |
At or for the Year Ended | ||||||||||||||||
December 31 | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
(dollars in thousands) | ||||||||||||||||
Average loans outstanding, net | $ | 819,038 | $ | 738,028 | $ | 600,030 | $ | 466,512 | $ | 384,537 | ||||||
Total gross loans outstanding at end of period | $ | 953,962 | $ | 927,993 | $ | 790,254 | $ | 608,222 | $ | 493,083 | ||||||
Total net loans outstanding at end of period | $ | 835,477 | $ | 779,333 | $ | 656,967 | $ | 506,026 | $ | 418,825 | ||||||
Allowance balance at beginning of period | $ | 7,505 | $ | 5,935 | $ | 4,832 | $ | 3,991 | $ | 3,353 | ||||||
Provision for loan losses | 1,561 | 1,570 | 1,200 | 900 | 670 | |||||||||||
Actual charge-offs | ||||||||||||||||
1-4 family residential real estate | - | - | 97 | 25 | - | |||||||||||
Other | 40 | - | - | 34 | 32 | |||||||||||
Total charge-offs | 40 | - | 97 | 59 | 32 | |||||||||||
Recoveries | ||||||||||||||||
Total recoveries | - | - | - | - | - | |||||||||||
Net charge offs | - | - | 97 | 59 | 32 | |||||||||||
Allowance balance at end of period | $ | 9,026 | $ | 7,505 | $ | 5,935 | $ | 4,832 | $ | 3,991 | ||||||
Net charge offs as a percent of average loans | 0.00 | % | 0.00 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||
Allowance for loan losses to total gross loans at end of period | 0.95 | % | 0.81 | % | 0.75 | % | 0.79 | % | 0.81 | % | ||||||
Allowance for loan losses to net loans at end of period | 1.08 | % | 0.96 | % | 0.90 | % | 0.95 | % | 0.95 | % |
At or for the Year Ended | ||||||||||||||||||||
December 31 | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Average loans outstanding, net | $ | 893,030 | $ | 858,305 | $ | 819,038 | $ | 738,028 | $ | 600,030 | ||||||||||
Total gross loans outstanding at end of period | $ | 973,651 | $ | 986,931 | $ | 953,962 | $ | 927,993 | $ | 790,254 | ||||||||||
Total net loans outstanding at end of period | $ | 896,459 | $ | 893,014 | $ | 835,477 | $ | 779,333 | $ | 656,967 | ||||||||||
Allowance balance at beginning of period | $ | 10,781 | $ | 9,026 | $ | 7,505 | $ | 5,935 | $ | 4,832 | ||||||||||
Provision for loan losses | 7,481 | 2,462 | 1,561 | 1,570 | 1,200 | |||||||||||||||
Actual charge-offs | ||||||||||||||||||||
1-4 family residential real estate | 2,571 | 270 | - | - | 97 | |||||||||||||||
Other | 878 | 449 | 40 | - | - | |||||||||||||||
Total charge-offs | 3,449 | 719 | 40 | - | 97 | |||||||||||||||
Recoveries | ||||||||||||||||||||
Total recoveries | - | 12 | - | - | - | |||||||||||||||
Net charge offs | 3,449 | 707 | 40 | - | 97 | |||||||||||||||
Allowance balance at end of period | $ | 14,813 | $ | 10,781 | $ | 9,026 | $ | 7,505 | $ | 5,935 | ||||||||||
Net charge offs as a percent of average loans | 0.39 | % | 0.08 | % | 0.00 | % | 0.00 | % | 0.02 | % | ||||||||||
Allowance for loan losses to total gross loans at end of period | 1.52 | % | 1.09 | % | 0.95 | % | 0.81 | % | 0.75 | % | ||||||||||
Allowance for loan losses to net loans at end of period | 1.65 | % | 1.21 | % | 1.08 | % | 0.96 | % | 0.90 | % |
At December 31, | ||||
2008 | 2007 | 2006 | ||
(dollars in thousands) | ||||
FHLB notes | $- | $1,000 | $5,000 | |
Mortgage-backed securities | 1,345 | 1,383 | 2,271 | |
Total Investment Securities Held to Maturity | $1,345 | $2,383 | $7,271 |
At December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(dollars in thousands) | ||||||||||
FHLB Notes | $ | 5,000 | $ | 5,000 | $ | 5,000 | ||||
Mortgage-backed securities | 2,271 | 3,290 | 4,955 | |||||||
Total Investment Securities Held to Maturity | $ | 7,271 | $ | 8,290 | $ | 9,955 |
More than One to | More than Five to | ||||||||||||||
One Year or Less | Five Years | Ten Years | More than Ten Years | Total Investment Securities | |||||||||||
Carrying | Average | Carrying | Average | Carrying | Average | Carrying | Average | Carrying | Average | Fair | |||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Value | |||||
(dollars in thousands) | |||||||||||||||
FHLB Notes | 4,000 | 2.58% | - | - | $1,000 | 5.05% | - | - | $5,000 | 3.07% | $4,925 | ||||
Mortgage-backed securities | 796 | 4.50% | - | - | - | - | 1,475 | 5.47% | 2,271 | 5.13% | 2,192 | ||||
Total | $4,796 | 2.90% | $- | - | $1,000 | 5.05% | $1,475 | 5.47% | $7,271 | 3.62% | $7,117 |
More than One to | More than Five to | More than | |||||||||||||
One Year or Less | Five Years | Ten Years | Ten Years | Total Investment Securities | |||||||||||
Carrying | Average | Carrying | Average | Carrying | Average | Carrying | Average | Carrying | Average | Fair | |||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Value | |||||
(dollars in thousands) | |||||||||||||||
Mortgage-backed securities | $- | - | $- | - | $- | - | $1,345 | 5.58% | $1,345 | 5.58% | $1,329 |
2006 | 2005 | 2004 | ||||||||
(dollars in thousands) | ||||||||||
NOW accounts | $ | 9,314 | $ | 7,683 | $ | 4,872 | ||||
Money market accounts | 89,120 | 99,911 | 131,014 | |||||||
Passbooks | 18,526 | 17,505 | 18,198 | |||||||
Certificates of deposit | 490,865 | 445,592 | 356,447 | |||||||
Non-interest bearing accounts | 18,699 | 24,202 | 16,882 | |||||||
Total deposits | $ | 626,524 | $ | 594,893 | $ | 527,413 |
2008 | 2007 | 2006 | ||||||||||
(dollars in thousands) | ||||||||||||
NOW accounts | $ | 12,813 | $ | 11,152 | $ | 9,314 | ||||||
Money market accounts | 44,012 | 87,688 | 89,120 | |||||||||
Passbooks | 53,319 | 14,891 | 18,526 | |||||||||
Certificates of deposit | 554,747 | 523,698 | 490,865 | |||||||||
Non-interest bearing accounts | 18,975 | 15,344 | 18,699 | |||||||||
Total deposits | $ | 683,866 | $ | 652,773 | $ | 626,524 |
Jumbo Certificates | ||||
of Deposit | ||||
Time Remaining Until Maturity | (dollars in thousands) | |||
Less than three months | $ | 46,891 | ||
3 months to 6 months | 57,719 | |||
6 months to 12 months | 84,943 | |||
Greater than 12 months | 42,106 | |||
Total | $ | 231,659 |
Years ended December 31, | ||||||||||
2006 | 2005 | 2004 | ||||||||
(dollars in thousands) | ||||||||||
Short term borrowings and notes payable | ||||||||||
Average balance outstanding during the period | $ | 8,250 | $ | 25,833 | $ | 15,567 | ||||
Maximum amount outstanding at any month-end during | ||||||||||
the period | 26,000 | 41,000 | 41,000 | |||||||
Weighted Average interest rate during the period | 5.31 | % | 3.30 | % | 1.67 | % | ||||
Total short term borrowings at period end | 18,000 | 26,000 | - | |||||||
Weighted average interest rate at period end | 5.41 | % | 3.33 | % | 0.00 | % |
Years ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(dollars in thousands) | ||||||||||||
Short term borrowings | ||||||||||||
Average balance outstanding during the period | $ | 1,667 | $ | 10,417 | $ | 8,250 | ||||||
Maximum amount outstanding at any month-end during | ||||||||||||
the period | 10,000 | 25,000 | 26,000 | |||||||||
Weighted average interest rate during the period | 3.74 | % | 4.68 | % | 5.31 | % | ||||||
Total short term borrowings at period end | - | 15,000 | 18,000 | |||||||||
Weighted average interest rate at period end | - | 4.40 | % | 5.41 | % |
Actual | Required For Capital Adequacy Purposes | Required To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||
(dollars in thousands) | |||||||||||||||||||
December 31, 2006 | |||||||||||||||||||
Tangible (1) | $ | 99,445 | 11.0 | % | $ | 13,513 | 1.50 | % | N/A | N/A | |||||||||
Tier I capital (2) | 99,445 | 13.1 | % | N/A | N/A | $ | 45,582 | 6.00 | % | ||||||||||
Core (1) | 99,445 | 11.0 | % | 36,034 | 4.00 | % | 45,043 | 5.00 | % | ||||||||||
Total (2) | 108,452 | 14.3 | % | 60,776 | 8.00 | % | 75,971 | 10.00 | % | ||||||||||
December 31, 2005 | |||||||||||||||||||
Tangible (1) | $ | 86,354 | 10.3 | % | $ | 12,619 | 1.50 | % | N/A | N/A | |||||||||
Tier I capital (2) | 86,354 | 12.2 | % | N/A | N/A | $ | 42,395 | 6.00 | % | ||||||||||
Core (1) | 86,354 | 10.3 | % | 33,651 | 4.00 | % | 42,064 | 5.00 | % | ||||||||||
Total (2) | 93,851 | 13.3 | % | 56,527 | 8.00 | % | 70,659 | 10.00 | % |
Actual | Required For Capital Adequacy Purposes | Required To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
December 31, 2008 | ||||||||||||||||||||||||
Tangible (1) | $ | 132,890 | 13.5 | % | $ | 14,743 | 1.50 | % | N/A | N/A | ||||||||||||||
Tier I capital (2) | 132,890 | 16.9 | % | N/A | N/A | $ | 47,047 | 6.00 | % | |||||||||||||||
Core (1) | 132,890 | 13.5 | % | 39,314 | 4.00 | % | 49,142 | 5.00 | % | |||||||||||||||
Total (2) | 142,199 | 18.1 | % | 62,730 | 8.00 | % | 78,412 | 10.00 | % | |||||||||||||||
December 31, 2007 | ||||||||||||||||||||||||
Tangible (1) | $ | 107,734 | 11.3 | % | $ | 14,321 | 1.50 | % | N/A | N/A | ||||||||||||||
Tier I capital (2) | 107,734 | 13.7 | % | N/A | N/A | $ | 47,144 | 6.00 | % | |||||||||||||||
Core (1) | 107,734 | 11.3 | % | 38,190 | 4.00 | % | 47,737 | 5.00 | % | |||||||||||||||
Total (2) | 117,205 | 14.9 | % | 62,859 | 8.00 | % | 78,573 | 10.00 | % |
____________ |
· | “well capitalized” (at least 5% leverage capital, 6% Tier I risk-based capital and 10% total risk-based capital); |
· | “adequately capitalized” (at least 4% leverage capital, 4% Tier I risk-based capital and 8% total risk-based capital); |
· | “undercapitalized” (less than 4% leverage capital, 4% Tier I risk-based capital or 8% total risk-based capital); |
· | “significantly undercapitalized” (less than 3% leverage capital, 3% Tier I risk-based capital or 6% total risk-based capital); and |
· | “critically undercapitalized” (less than 2% tangible capital). |
· |
· | a reasonable method for customers to “opt out” of disclosures to nonaffiliated third parties. |
· | the purchase price of each single-family dwelling in the development does not exceed $500,000; |
· | the savings association is in compliance with its fully phased-in capital requirements; |
· | the loans comply with applicable loan-to-value requirements; and |
· | the aggregate amount of loans made under this authority does not exceed 150% of unimpaired capital and surplus. |
· |
· | the total amount of all of capital distributions, including the proposed capital distribution, for the applicable calendar year exceeds its net income for that year to date plus retained net income for the preceding two years; |
· |
· | the |
· | would not be well capitalized under the prompt corrective action regulations of the OTS following the distribution; |
· | the proposed capital distribution would reduce the amount of or retire any part of the savings association's common or preferred stock or retire any part of debt instruments like notes or debentures included in capital, other than regular payments required under a debt instrument approved by the OTS; or |
· | the savings association is a subsidiary of a savings and loan holding company. |
· | an increase in loan delinquencies, problem assets and foreclosures; |
· | a decline in demand for our products and services; |
· | a decrease in low cost or non-interest-bearing deposits; and |
· | a decline in the value of the collateral for our loans, which in turn may reduce customers’ borrowing capacities, and reduce the value of assets and collateral supporting our existing loans. |
· | the ability of our mortgagors to make mortgage payments, |
· | the ability of our borrowers to attract and retain buyers or tenants, which may in turn be affected by local conditions such as an oversupply of space or a reduction in demand for rental space in the area, the attractiveness of properties to buyers and tenants, and competition from other available space, or by the ability of the owner to pay leasing commissions, provide adequate maintenance and insurance, pay tenant improvements costs and make other tenant concessions, |
· | interest rate levels and the availability of credit to refinance loans at or prior to maturity, and |
· | increased operating costs, including energy costs, real estate taxes and costs of compliance with environmental controls and regulations. |
· | a decrease in deposits; |
· | an increase in loan delinquencies; |
· | an increase in problem assets and foreclosures; |
· | a decrease in the demand for our products and services; and |
· | a decrease in the value of collateral for loans, especially real estate, and reduction in |
2008 | 2007 | ||||||||||||||||||||||||
Stock Price Range | Per Share | Stock Price Range | Per Share | ||||||||||||||||||||||
Quarter | Low | High | Dividend | Quarter | Low | High | Dividend | ||||||||||||||||||
1st | $ | 7.80 | $ | 12.00 | $ | .060 | 1st | $ | 16.78 | $ | 22.55 | $ | .060 | ||||||||||||
2nd | 6.52 | 9.45 | .060 | 2nd | 16.24 | 20.23 | .060 | ||||||||||||||||||
3rd | 5.50 | 6.99 | .060 | 3rd | 12.25 | 17.00 | .060 | ||||||||||||||||||
4th | 3.70 | 6.54 | .060 | 4th | 8.21 | 13.28 | .060 |
Severn Bancorp, Inc. |
Period Ending | Period Ending | |||||||||||
Index | 12/31/01 | 12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 |
Severn Bancorp, Inc. | 100.00 | 180.88 | 364.92 | 559.00 | 456.67 | 502.73 | 100.00 | 152.76 | 124.80 | 137.39 | 77.56 | 35.49 |
NASDAQ Composite Index | 100.00 | 68.76 | 103.67 | 113.16 | 115.57 | 127.58 | 100.00 | 108.59 | 110.08 | 120.56 | 132.39 | 78.72 |
SNL $500M-$1B Thrift Index | 100.00 | 140.09 | 199.47 | 220.65 | 209.70 | 256.94 | 100.00 | 110.61 | 105.12 | 128.81 | 101.83 | 75.51 |
2006 Closing | 2005 Closing | |||||||
Stock Price Range | Per Share | Stock Price Range | Per Share | |||||
Quarter | Low | High | Dividend | Quarter | Low | High | Dividend | |
1st | $16.72 | $19.97 | $.060 | 1st | $17.28 | $21.02 | $.055 | |
2nd | 17.86 | 20.13 | .060 | 2nd | 15.79 | 17.87 | .055 | |
3rd | 18.48 | 19.97 | .060 | 3rd | 15.83 | 17.87 | .055 | |
4th | 18.55 | 19.80 | .060 | 4th | 16.20 | 17.56 | .055 |
At December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
(dollars in thousands, except per share information) | ||||||||||||||||
Balance Sheet Data | ||||||||||||||||
Total assets | $ | 911,916 | $ | 849,774 | $ | 703,616 | $ | 540,471 | $ | 458,415 | ||||||
Total loans, net | 835,477 | 779,333 | 656,967 | 506,026 | 418,825 | |||||||||||
Investment securities held to maturity | 7,271 | 8,290 | 9,955 | 12,721 | 9,661 | |||||||||||
Non-performing loans | 5,927 | 1,693 | 939 | 469 | 1,758 | |||||||||||
Total non-performing assets | 6,897 | 1,693 | 939 | 469 | 1,982 | |||||||||||
Deposits | 626,524 | 594,893 | 527,413 | 419,726 | 377,925 | |||||||||||
Short-term borrowings | 18,000 | 26,000 | - | 6,000 | - | |||||||||||
Long-term debt | 155,000 | 132,000 | 89,000 | 59,000 | 34,000 | |||||||||||
Total liabilities | 825,474 | 777,062 | 639,462 | 487,501 | 415,233 | |||||||||||
Stockholders’ equity | 86,442 | 72,712 | 60,154 | 48,970 | 39,181 | |||||||||||
Book value per common share * | $ | 9.45 | $ | 7.95 | $ | 6.57 | $ | 5.35 | $ | 4.30 | ||||||
Common shares outstanding * | 9,150,850 | 9,150,002 | 9,150,002 | 9,150,002 | 9,113,702 | |||||||||||
Other Data: | ||||||||||||||||
Number of: | ||||||||||||||||
Full service retail banking facilities | 3 | 3 | 3 | 2 | 2 | |||||||||||
Full-time equivalent employees | 121 | 111 | 105 | 81 | 69 | |||||||||||
* Retroactively adjusted to reflect 10% stock dividend declared February 21, 2006 effective for shares outstanding on March 28, 2006 and a two-for-one stock split declared November 17, 2004 effective for shares outstanding December 15, 2004. |
At December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(dollars in thousands, except per share information) | ||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Total assets | $ | 987,651 | $ | 962,234 | $ | 911,916 | $ | 849,774 | $ | 703,616 | ||||||||||
Total loans, net | 896,459 | 893,014 | 835,477 | 779,333 | 656,967 | |||||||||||||||
Investment securities held to maturity | 1,345 | 2,383 | 7,271 | 8,290 | 9,955 | |||||||||||||||
Non-performing loans | 54,795 | 7,700 | 5,927 | 1,693 | 939 | |||||||||||||||
Total non-performing assets | 61,112 | 10,693 | 6,897 | 1,693 | 939 | |||||||||||||||
Deposits | 683,866 | 652,773 | 626,524 | 594,893 | 527,413 | |||||||||||||||
Short-term borrowings | - | 15,000 | 18,000 | 26,000 | - | |||||||||||||||
Long-term debt | 153,000 | 175,000 | 155,000 | 132,000 | 89,000 | |||||||||||||||
Total liabilities | 863,984 | 866,958 | 825,474 | 777,062 | 639,462 | |||||||||||||||
Stockholders’ equity | 123,667 | 95,276 | 86,442 | 72,712 | 60,154 | |||||||||||||||
Book value per common share * | $ | 9.64 | $ | 9.46 | $ | 8.59 | $ | 7.23 | $ | 5.97 | ||||||||||
Common shares outstanding * | 10,066,679 | 10,066,679 | 10,065,935 | 10,065,002 | 10,065,002 | |||||||||||||||
Other Data: | ||||||||||||||||||||
Number of: | ||||||||||||||||||||
Full service retail banking facilities | 4 | 4 | 3 | 3 | 3 | |||||||||||||||
Full-time equivalent employees | 106 | 118 | 121 | 111 | 105 | |||||||||||||||
* Retroactively adjusted to reflect a 10% stock dividend declared February 20, 2007 and a 10% stock dividend declared February 21, 2006. |
For the Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(dollars in thousands, except per share information) | ||||||||||||||||||||
Interest income | $ | 62,472 | $ | 71,814 | $ | 70,175 | $ | 57,135 | $ | 44,829 | ||||||||||
Interest expense | 33,503 | 38,176 | 32,060 | 21,955 | 14,631 | |||||||||||||||
Net interest income | 28,969 | 33,638 | 38,115 | 35,180 | 30,198 | |||||||||||||||
Provision for loan losses | 7,481 | 2,462 | 1,561 | 1,570 | 1,200 | |||||||||||||||
Net interest income after provision for loan losses | 21,488 | 31,176 | 36,554 | 33,610 | 28,998 | |||||||||||||||
Non-interest income | 2,791 | 4,336 | 3,867 | 2,748 | 3,402 | |||||||||||||||
Non-interest expense | 17,293 | 16,492 | 14,065 | 12,878 | 11,211 | |||||||||||||||
Income before income tax provision | 6,986 | 19,020 | 26,356 | 23,480 | 21,189 | |||||||||||||||
Provision for income taxes | 2,873 | 7,909 | 10,608 | 8,926 | 8,258 | |||||||||||||||
Net income | $ | 4,113 | $ | 11,111 | $ | 15,748 | $ | 14,554 | $ | 12,931 | ||||||||||
Per Share Data: | ||||||||||||||||||||
Basic earnings per share * | $ | 0.39 | $ | 1.10 | $ | 1.56 | $ | 1.45 | $ | 1.29 | ||||||||||
Diluted earnings per share * | $ | 0.39 | $ | 1.10 | $ | 1.56 | $ | 1.45 | $ | 1.29 | ||||||||||
Cash dividends declared per share* | $ | .24 | $ | .24 | $ | .22 | $ | .20 | $ | .17 | ||||||||||
Weighted number of shares outstanding basic * | 10,066,679 | 10,066,283 | 10,065,289 | 10,065,002 | 10,065,002 | |||||||||||||||
Weighted number of shares outstanding diluted * | 10,066,679 | 10,066,283 | 10,069,056 | 10,065,002 | 10,065,002 | |||||||||||||||
* Retroactively adjusted to reflect a 10% stock dividend declared February 20, 2007 and a 10% stock dividend declared February 21, 2006. |
For the Year Ended December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
(dollars in thousands, except per share information) | ||||||||||||||||
Interest and dividend income | $ | 70,175 | $ | 57,135 | $ | 44,829 | $ | 37,087 | $ | 33,402 | ||||||
Interest expense | 32,060 | 21,955 | 14,631 | 12,341 | 13,799 | |||||||||||
Net interest income | 38,115 | 35,180 | 30,198 | 24,746 | 19,603 | |||||||||||
Provision for loan losses | 1,561 | 1,570 | 1,200 | 900 | 670 | |||||||||||
Net interest income after provision for loan losses | 36,554 | 33,610 | 28,998 | 23,846 | 18,933 | |||||||||||
Non-interest income | 3,867 | 2,748 | 3,402 | 4,674 | 4,133 | |||||||||||
Non-interest expense | 14,065 | 12,878 | 11,211 | 9,616 | 8,447 | |||||||||||
Income before income tax provision | 26,356 | 23,480 | 21,189 | 18,904 | 14,619 | |||||||||||
Provision for income taxes | 10,608 | 8,926 | 8,258 | 7,575 | 5,671 | |||||||||||
Net income | $ | 15,748 | $ | 14,554 | $ | 12,931 | $ | 11,329 | $ | 8,948 | ||||||
Per Share Data: | ||||||||||||||||
Basic earnings per share * | $ | 1.72 | $ | 1.59 | $ | 1.42 | $ | 1.22 | $ | 0.96 | ||||||
Diluted earnings per share * | $ | 1.72 | $ | 1.59 | $ | 1.42 | $ | 1.22 | $ | 0.96 | ||||||
Weighted number of shares outstanding basic * | 9,150,263 | 9,150,002 | 9,150,002 | 9,122,445 | 9,002,814 | |||||||||||
Weighted number of shares outstanding diluted * | 9,153,687 | 9,150,002 | 9,150,002 | 9,146,064 | 9,027,091 | |||||||||||
* Retroactively adjusted to reflect 10% stock dividend declared February 21, 2006 effective for shares outstanding on March 28, 2006 and a two-for-one stock split declared November 17, 2004 effective for shares outstanding December 15, 2004. |
For the Year Ended December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
Performance Ratios: | ||||||||||||||||
Return on average assets | 1.77 | % | 1.84 | % | 2.02 | % | 2.23 | % | 2.14 | % | ||||||
Return on average equity | 19.59 | % | 21.85 | % | 23.56 | % | 25.22 | % | 25.58 | % | ||||||
Dividend payout ratio | 13.95 | % | 13.84 | % | 13.38 | % | 12.30 | % | 11.46 | % | ||||||
Net interest margin | 4.50 | % | 4.58 | % | 4.81 | % | 4.99 | % | 4.86 | % | ||||||
Interest rate spread | 4.20 | % | 4.32 | % | 4.60 | % | 4.77 | % | 4.59 | % | ||||||
Non-interest expense to average assets | 1.58 | % | 1.63 | % | 1.75 | % | 1.89 | % | 2.02 | % | ||||||
Efficiency ratio | 33.50 | % | 33.95 | % | 33.37 | % | 32.69 | % | 35.59 | % | ||||||
Asset Quality Ratios: | ||||||||||||||||
Average equity to average assets | 9.02 | % | 8.42 | % | 8.57 | % | 8.84 | % | 8.38 | % | ||||||
Nonperforming assets to total assets | ||||||||||||||||
at end of period | 0.76 | % | 0.20 | % | 0.13 | % | 0.09 | % | 0.43 | % | ||||||
Nonperforming loans to total gross | ||||||||||||||||
loans at end of period | 0.62 | % | 0.18 | % | 0.12 | % | 0.08 | % | 0.36 | % | ||||||
Allowance for loan losses to | ||||||||||||||||
net loans at end of period | 1.08 | % | 0.96 | % | 0.90 | % | 0.95 | % | 0.95 | % | ||||||
Allowance for loan losses to | ||||||||||||||||
nonperforming loans at end of period | 152.29 | % | 443.30 | % | 632.10 | % | 1030.49 | % | 227.02 | % | ||||||
For the Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets | 0.43 | % | 1.19 | % | 1.77 | % | 1.84 | % | 2.02 | % | ||||||||||
Return on average equity | 4.03 | % | 12.09 | % | 19.59 | % | 21.85 | % | 23.56 | % | ||||||||||
Dividend payout ratio | 61.54 | % | 21.82 | % | 13.95 | % | 13.84 | % | 13.38 | % | ||||||||||
Net interest margin | 3.16 | % | 3.81 | % | 4.50 | % | 4.58 | % | 4.81 | % | ||||||||||
Interest rate spread | 2.81 | % | 3.45 | % | 4.20 | % | 4.32 | % | 4.60 | % | ||||||||||
Non-interest expense to average assets | 1.79 | % | 1.76 | % | 1.58 | % | 1.63 | % | 1.75 | % | ||||||||||
Efficiency ratio | 54.45 | % | 43.43 | % | 33.50 | % | 33.95 | % | 33.37 | % | ||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Average equity to average assets | 10.55 | % | 9.82 | % | 9.02 | % | 8.42 | % | 8.57 | % | ||||||||||
Nonperforming assets to total assets | ||||||||||||||||||||
at end of period | 6.19 | % | 1.11 | % | 0.76 | % | 0.20 | % | 0.13 | % | ||||||||||
Nonperforming loans to total gross | ||||||||||||||||||||
loans at end of period | 5.63 | % | 0.78 | % | 0.62 | % | 0.18 | % | 0.12 | % | ||||||||||
Allowance for loan losses to | ||||||||||||||||||||
net loans at end of period | 1.65 | % | 1.21 | % | 1.08 | % | 0.96 | % | 0.90 | % | ||||||||||
Allowance for loan losses to | ||||||||||||||||||||
nonperforming loans at end of period | 27.03 | % | 140.01 | % | 152.29 | % | 443.30 | % | 632.10 | % |
Years Ended December 31, | |||||||||||||
2006 | 2005 | 2004 | |||||||||||
Average | Average | Average | |||||||||||
Volume | Interest | Yield/Cost | Volume | Interest | Yield/Cost | Volume | Interest | Yield/Cost | |||||
(dollars in thousands) | |||||||||||||
ASSETS | |||||||||||||
Loans (1) | $819,038 | $68,610 | 8.38% | $738,028 | $56,120 | 7.60% | $600,030 | $44,091 | 7.35% | ||||
Investments (2) | 5,000 | 154 | 3.08% | 5,000 | 154 | 3.08% | 5,250 | 165 | 3.15% | ||||
Mortgage-backed securities | 2,823 | 112 | 3.97% | 4,065 | 173 | 4.26% | 5,686 | 254 | 4.46% | ||||
Other interest-earning assets (3) | 19,886 | 1,299 | 6.53% | 15,923 | 688 | 4.32% | 12,656 | 319 | 2.52% | ||||
Total interest-earning assets | 846,747 | 70,175 | 8.29% | 763,016 | 57,135 | 7.49% | 623,622 | 44,829 | 7.19% | ||||
Non-interest earning assets | 44,385 | 28,027 | 16,552 | ||||||||||
Total Assets | $891,132 | $791,043 | $640,174 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Savings and checking deposits | $138,242 | $2,728 | 1.97% | $155,513 | $2,455 | 1.58% | $192,946 | $2,670 | 1.38% | ||||
Certificates of deposits | 483,524 | 20,977 | 4.34% | 408,026 | 13,819 | 3.39% | 284,636 | 8,622 | 3.03% | ||||
Borrowings | 162,417 | 8,355 | 5.14% | 134,833 | 5,681 | 4.21% | 96,250 | 3,339 | 3.47% | ||||
Total interest-bearing liabilities | 784,183 | 32,060 | 4.09% | 698,372 | 21,955 | 3.14% | 573,832 | 14,631 | 2.55% | ||||
Non-interest bearing liabilities | 26,556 | 26,059 | 11,451 | ||||||||||
Stockholders' equity | 80,393 | 66,612 | 54,891 | ||||||||||
Total liabilities and stockholders' equity | $891,132 | $791,043 | $640,174 | ||||||||||
Net interest income and Interest rate spread | $38,115 | 4.20% | $35,180 | 4.35% | $30,198 | 4.64% | |||||||
Net interest margin | 4.50% | 4.61% | 4.84% | ||||||||||
Average interest-earning assets to | |||||||||||||
average interest-bearing liabilities | 107.98% | 109.26% | 108.68% | ||||||||||
(1) Non-accrual loans are included in the average balances and in the computation of yields. | |||||||||||||
(2) Bancorp does not have any tax-exempt securities. | |||||||||||||
(3) Other interest earning assets includes interest bearing deposits in other banks, federal funds, and FHLB stock investments. |
Year Ended December 31, | |||||||||||||
2008 | 2007 | 2006 | |||||||||||
Average | Average | Average | |||||||||||
Volume | Interest | Yield/Cost | Volume | Interest | Yield/Cost | Volume | Interest | Yield/Cost | |||||
(dollars in thousands) | |||||||||||||
ASSETS | |||||||||||||
Loans (1) | $893,030 | $61,703 | 6.91% | $858,305 | $70,275 | 8.19% | $819,038 | $68,610 | 8.38% | ||||
Investments (2) | - | - | - | 3,333 | 121 | 3.63% | 5,000 | 154 | 3.08% | ||||
Mortgage-backed securities | 1,363 | 74 | 5.43% | 1,957 | 96 | 4.91% | 2,823 | 112 | 3.97% | ||||
Other interest-earning assets (3) | 23,063 | 695 | 3.01% | 20,357 | 1,322 | 6.49% | 19,886 | 1,299 | 6.53% | ||||
Total interest-earning assets | 917,456 | 62,472 | 6.81% | 883,952 | 71,814 | 8.12% | 846,747 | 70,175 | 8.29% | ||||
Non-interest earning assets | 49,959 | 51,317 | 44,385 | ||||||||||
Total Assets | $967,415 | $935,269 | $891,132 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Savings and checking deposits | $119,159 | $2,018 | 1.69% | $132,604 | $3,272 | 2.47% | $138,242 | $2,728 | 1.97% | ||||
Certificates of deposits | 552,689 | 23,932 | 4.33% | 514,523 | 26,075 | 5.07% | 483,524 | 20,977 | 4.34% | ||||
Borrowings | 166,250 | 7,553 | 4.54% | 170,417 | 8,829 | 5.18% | 162,417 | 8,355 | 5.14% | ||||
Total interest-bearing liabilities | 838,098 | 33,503 | 4.00% | 817,544 | 38,176 | 4.67% | 784,183 | 32,060 | 4.09% | ||||
Non-interest bearing liabilities | 27,234 | 25,836 | 26,556 | ||||||||||
Stockholders' equity | 102,083 | 91,889 | 80,393 | ||||||||||
Total liabilities and stockholders' equity | $967,415 | $935,269 | $891,132 | ||||||||||
Net interest income and Interest rate spread | $28,969 | 2.81% | $33,638 | 3.45% | $38,115 | 4.20% | |||||||
Net interest margin | 3.16% | 3.81% | 4.50% | ||||||||||
Average interest-earning assets to | |||||||||||||
average interest-bearing liabilities | 109.47% | 108.12% | 107.98% | ||||||||||
(1) Non-accrual loans are included in the average balances and in the computation of yields. | |||||||||||||
(2) Bancorp does not have any tax-exempt securities. | |||||||||||||
(3) Other interest earning assets include interest bearing deposits in other banks, federal funds, and FHLB stock investments. |
Year ended December 31, 2008 | Year ended December 31, 2007 | |||||||||||||||||||||||
vs. | vs. | |||||||||||||||||||||||
Year ended December 31, 2007 | Year ended December 31, 2006 | |||||||||||||||||||||||
Total | Changes Due to | Total | Changes Due to | |||||||||||||||||||||
Change | Volume (1) | Rate (1) | Change | Volume (1) | Rate (1) | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Loans | $ | (8,572 | ) | $ | 2,843 | $ | (11,415 | ) | $ | 1,665 | $ | 3,289 | $ | (1,624 | ) | |||||||||
Investments | (121 | ) | (121 | ) | - | (33 | ) | (51 | ) | 18 | ||||||||||||||
Mortgage-backed securities | (22 | ) | (29 | ) | 7 | (16 | ) | (34 | ) | 18 | ||||||||||||||
Other interest-earning assets | (627 | ) | 176 | (803 | ) | 23 | 31 | (8 | ) | |||||||||||||||
Total interest income | $ | (9,342 | ) | $ | 2,869 | $ | (12,211 | ) | $ | 1,639 | $ | 3,235 | $ | (1,596 | ) | |||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Savings and checking deposits | $ | (1,254 | ) | $ | (332 | ) | $ | (922 | ) | $ | 544 | $ | (111 | ) | $ | 655 | ||||||||
Certificates of deposits | (2,143 | ) | 1,934 | (4,077 | ) | 5,098 | 1,345 | 3,753 | ||||||||||||||||
Borrowings | (1,276 | ) | (216 | ) | (1,060 | ) | 474 | 412 | 62 | |||||||||||||||
Total interest expense | $ | (4,673 | ) | $ | 1,386 | $ | (6,059 | ) | $ | 6,116 | $ | 1,646 | $ | 4,470 | ||||||||||
Net change in net interest income | $ | (4,669 | ) | $ | 1,483 | $ | (6,152 | ) | $ | (4,477 | ) | $ | 1,589 | $ | (6,066 | ) | ||||||||
(1) Changes in interest income/expense not arising from volume or rate variances are allocated proportionately to rate and volume. |
Year ended December 31, 2006 | Year ended December 31, 2005 | ||||||||||||||||||
vs. | vs. | ||||||||||||||||||
Year ended December 31, 2005 | Year ended December 31, 2004 | ||||||||||||||||||
Total | Changes Due to | Total | Changes Due to | ||||||||||||||||
Change | Volume (1) | Rate (1) | Change | Volume (1) | Rate (1) | ||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Interest-earning assets | |||||||||||||||||||
Loans | $ | 12,490 | $ | 6,160 | $ | 6,330 | $ | 12,029 | $ | 10,140 | $ | 1,889 | |||||||
Investments | - | - | - | (11 | ) | (8 | ) | (3 | ) | ||||||||||
Mortgage-backed securities | (61 | ) | (53 | ) | (8 | ) | (81 | ) | (72 | ) | (9 | ) | |||||||
Other interest-earning assets | 611 | 171 | 440 | 369 | 82 | 287 | |||||||||||||
Total interest income | $ | 13,040 | $ | 6,278 | $ | 6,762 | $ | 12,306 | $ | 10,142 | $ | 2,164 | |||||||
Interest-bearing liabilities | |||||||||||||||||||
Savings and checking deposits | $ | 273 | $ | (272 | ) | $ | 545 | $ | (215 | ) | $ | (518 | ) | $ | 303 | ||||
Certificates of deposits | 7,158 | 2,557 | 4,601 | 5,197 | 3,738 | 1,459 | |||||||||||||
Borrowings | 2,674 | 1,162 | 1,512 | 2,342 | 1,338 | 1,004 | |||||||||||||
Total interest expense | $ | 10,105 | $ | 3,447 | $ | 6,658 | $ | 7,324 | $ | 4,558 | $ | 2,766 | |||||||
Net change in interest income | $ | 2,935 | $ | 2,831 | $ | 104 | $ | 4,982 | $ | 5,584 | $ | (602 | ) | ||||||
(1) Changes in interest income/expense not arising from volume or rate variances are allocated proportionately to rate and volume. | |||||||||||||||||||
· | the sale to certain accredited investors of Bancorp's Series A Preferred Stock and Subordinated Notes for gross proceeds of $7.0 million; and |
· | the sale to the Treasury Department under the TARP Capital Purchase Program of Bancorp's Series B Preferred Stock and Common Stock Warrants for gross proceeds of approximately $23.4 million. |
Rate | Amount | Maturity | ||
2.940% to 4.996% | $ 28,000 | 2009 | ||
5.000% | 10,000 | 2010 | ||
-% | - | 2011 | ||
-% | - | 2012 | ||
-% | - | 2013 | ||
1.693% to 4.340% | 115,000 | Thereafter | ||
$153,000 |
Payments due by period (dollars in thousands) | ||||||||||||||||
Total | 2007 | 2008-2009 | 2010-2011 | 2012 + | ||||||||||||
Long term debt | $ | 155,000 | $ | 15,000 | $ | 35,000 | $ | 10,000 | $ | 95,000 | ||||||
Subordinated debentures | 20,619 | - | - | - | 20,619 | |||||||||||
Operating lease obligations | 214 | 60 | 120 | 34 | - | |||||||||||
Certificates of Deposit | 490,865 | 409,469 | 50,842 | 30,509 | 45 | |||||||||||
Total | $ | 666,698 | $ | 424,529 | $ | 85,962 | $ | 40,543 | $ | 115,664 |
Payments due by period (dollars in thousands) | ||||||||||||||||||||
Less than | More than | |||||||||||||||||||
Total | 1 year | 1 to 3 years | 3 to 5 years | 5 years | ||||||||||||||||
Long term debt | $ | 153,000 | $ | 28,000 | $ | 10,000 | $ | - | $ | 115,000 | ||||||||||
Subordinated debentures | 24,119 | - | - | - | 24,119 | |||||||||||||||
Operating lease obligations | 131 | 94 | 37 | - | - | |||||||||||||||
Certificates of Deposit | 554,747 | 441,274 | 83,056 | 30,417 | - | |||||||||||||||
Total | $ | 731,997 | $ | 469,368 | $ | 93,093 | $ | 30,417 | $ | 139,119 |
Net Portfolio Value | NPV as % of PV of Assets | ||||
Change In Rates | $ Amount | $ Change | % Change | NPV Ratio | Change |
(dollars are in thousands) | |||||
+300 bp | 108,903 | (17,518) | (14%) | 12.22% | (148bp) |
+200 bp | 115,804 | (10,617) | (8%) | 12.83% | (87bp) |
+100 bp | 121,130 | (5,292) | (4%) | 13.27% | (42bp) |
0 bp | 126,421 | 13.69% | |||
-100 bp | 130,260 | 3,838 | 3% | 13.96% | 27bp |
-200 bp | 132,417 | 5,995 | 5% | 14.05% | 36bp |
-300 bp | - | - | -% | -% | -bp |
Net Portfolio Value | NPV as % of PV of Assets | |||||||||||||||||||||
Change In Rates | $ Amount | $ Change | % Change | NPV Ratio | Change | |||||||||||||||||
(dollars are in thousands) | ||||||||||||||||||||||
+300 | bp | 123,807 | (14,085 | ) | (10 | %) | 12.58 | % | (95 | bp) | ||||||||||||
+200 | bp | 131,939 | (5,952 | ) | (4 | %) | 13.23 | % | (31 | bp) | ||||||||||||
+100 | bp | 136,762 | (1,130 | ) | (1 | %) | 13.56 | % | 2 | bp | ||||||||||||
+50 | bp | 171,124 | 33,232 | 24 | % | 16.88 | % | 334 | bp | |||||||||||||
0 | bp | 137,892 | 13.53 | % | ||||||||||||||||||
-50 | bp | 178,397 | 40,505 | 29 | % | 17.44 | % | 390 | bp | |||||||||||||
-100 | bp | 140,961 | 3,069 | 2 | % | 13.75 | % | 22 | bp |
/s/ Alan J. Hyatt | /s/ Thomas G. Bevivino | |
Alan J. Hyatt | Thomas G. Bevivino | |
President and Chief Executive Officer | Principal Financial Officer |
Number of | Number of | |||||
securities to be | securities | |||||
issued upon | Weighted-average | remaining available | ||||
exercise of | exercise price of | for future issuance | ||||
outstanding | outstanding | Under equity | ||||
options, warrants | options, warrants | compensation | ||||
Plan Category | and rights | and rights | plans | |||
Equity compensation plan approved by security holders | 112,400 | $17.43 | 45,100 | |||
Equity compensation plans not approved by security holders | - | - | - | |||
Total | 112,400 | $17.43 | 45,100 |
Number of | Number of | |||||
securities to be | securities | |||||
issued upon | Weighted-average | remaining available | ||||
exercise of | exercise price of | for future issuance | ||||
outstanding | outstanding | under equity | ||||
options, warrants | options, warrants | compensation | ||||
Plan Category | and rights | and rights | plans | |||
Equity compensation | ||||||
plan approved by | ||||||
security holders | 114,950 | $15.87 | 506,050 | |||
Equity compensation | ||||||
plans not approved by | ||||||
security holders | - | - | - | |||
Total | 114,950 | $15.87 | 506,050 |
·Consolidated statements of financial condition at December 31, 2008 and December 31, 2007 |
·Consolidated statements of income for the years ended December 31, 2008, 2007, and 2006 |
·Consolidated statements of cash flows for the years ended December 31, 2008, 2007, and 2006 |
·Consolidated statements of stockholders’ equity for the years ended December 31, 2008, 2007 and 2006. |
32 | Certification of CEO and CFO pursuant to Section 906 of Sarbanes-Oxley Act of 2002 |
61 | |