Exhibit 99.1
Contact:
The Foristall Company, Inc. Thomas F. Curtin Tel: (610)398-3022 Fax: (610)530-7781 email:foristal@aol.com | Company:
Michael J. Fitzpatrick Chief Financial Officer OceanFirst Financial Corp. Tel: (732)240-4500, ext. 7506 Fax: (732)349-5070 email:Mfitzpatrick@oceanfirst.com |
FOR IMMEDIATE RELEASE
OceanFirst Financial Corp.
ANNOUNCES QUARTERLY EARNINGS,
CONTINUATION OF QUARTERLY DIVIDEND AND
ACQUISITION OF CONSUMER DIRECT LENDING UNIT
TOMS RIVER, NEW JERSEY, July 22, 2004…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced diluted earnings per share of $.32 and $.67 for the quarter and six months ended June 30, 2004. The Company also announced that its Board of Directors had declared a regular quarterly cash dividend of $.20 per share—covering the three month period ended June 30, 2004—to be paid on August 13, 2004, to shareholders of record on July 30, 2004.
In making today’s announcement John R. Garbarino, Chairman, President and Chief Executive Officer said, “On behalf of the Board of Directors, I am pleased to announce our thirtieth consecutive quarterly cash dividend reflecting an attractive 3.50% yield on our common stock. We are also pleased to report healthy increases in loans receivable and deposits. During the second quarter loans receivable increased by $42.9 million, a 12.4% annualized rate, and deposits increased $52.4 million, an 18.5% annualized rate.”
The Company also announced that, on July 15, 2004, Columbia Equities, Ltd., the mortgage banking subsidiary of OceanFirst Bank, completed the acquisition of a consumer direct lending operation based in Kenilworth, New Jersey. The unit specializes in the origination of conventional and non-conforming mortgage loans through marketing agreements with high profile Internet based lead generators. The acquisition is expected to increase Columbia’s production capability by $200 million annually and be immediately accretive to earnings.
Robert Pardes, President of Columbia Equities, Ltd. said, “The unit has operated under the same management team since 1989 and has a long history of successfully employing internet and non-internet based consumer direct marketing strategies throughout the interest rate cycle. This production channel complements the existing retail and wholesale origination channels of Columbia. The modest acquisition cost represents an excellent value and opportunity considering the earnings history and potential of the unit.”
Mr. Garbarino added “This acquisition is part of a larger initiative to strengthen residential production and related revenues to 2003 levels at a time when most lenders are experiencing an extended period of decline in this business line following the refinance driven market of the last few years. We expect to add additional production capacity with the expected third quarter opening of a residential/commercial loan production office in Monmouth County. With the completion of these initiatives, the residential business line will be stabilized and positioned to grow along with the growth experienced in the commercial portfolio. The challenge remains for the Company to marshal resources and focus on growing our retail franchise.”
Results of Operations
Net interest income for the three and six months ended June 30, 2004 decreased to $13.5 million and $27.3 million, respectively, as compared to $14.9 million and $30.3 million, respectively, in the same prior year periods. For each period in 2004, average interest earning assets increased while the net interest margin declined as compared to the same prior year periods. The net interest margin decreased to 3.14% and 3.25%, respectively, for the three and six months ended June 30, 2004 from 3.59% and 3.66%, respectively, in the same prior year periods. The yield on interest-earning assets decreased to 5.16% and 5.26%, respectively, as compared to 5.86% and 6.01%, respectively, for the same prior year periods. High loan prepayment levels over the past year resulted in a significant decrease in the rate earned on mortgage-related assets. Additionally, the yield on the Company’s Federal Home Loan Bank of New York stock declined to 1.37% and 1.40%, respectively, for the three and six months ended June 30, 2004 as compared to 5.24% and 5.28%, respectively, for the same prior year periods, due to a reduction in the dividend payout.
The cost of interest-bearing liabilities decreased to 2.22% for the three and six months ended June 30, 2004, as compared to 2.52% and 2.61%, respectively, in the same prior year periods. Funding costs benefited from the Company’s focus on lower cost core deposit growth. Core deposits (including non-interest bearing deposits) represented 66.8% and 66.7%, respectively, of average deposits for the three and six months ended June 30, 2004 as compared to 63.5% and 62.2%, respectively, for the same prior year periods.
Other income increased to $4.5 million and $9.2 million for the three and six months ended June 30, 2004, respectively, from $3.8 million and $7.5 million, respectively, in the same prior year periods. For the three and six months ended June 30, 2004, the Company recorded gains of $2.0 million and $4.4 million, respectively, on the sale of loans and securities, as
compared to gains of $2.9 million and $5.4 million, respectively, in the same prior year periods. For the six months ended June 30, 2003, the gain on sales of loans and securities includes a gain of $323,000, on the sale of equity securities. Loan servicing income increased by $1.6 million and $2.8 million, respectively, for the three and six months ended June 30, 2004, as compared to the same prior year periods due to the recognition of impairments to the loan servicing asset of $1.2 million and $2.2 million, respectively, for the three and six months ended June 30, 2003.
Operating expenses amounted to $11.7 million and $23.1 million, respectively, for the three and six months ended June 30, 2004, as compared to $10.8 million and $21.4 million, respectively, for the corresponding prior year periods. The increases were due to the significant reduction in mortgage loan closings as refinance activity declined from year ago levels. Higher loan closings in the earlier periods increased deferred loan expense which were reflected as a reduction to compensation expense.
Financial Condition
Loans receivable net, increased by $34.0 million at June 30, 2004 as compared to December 31, 2003. Commercial loans outstanding increased $17.5 million, or 13.5% on an annualized basis.
Deposits increased $43.5 million to $1,187.7 million at June 30, 2004 from $1,144.2 million at December 31, 2003. Core deposits grew $19.0 million while time deposits increased $24.5 million.
Stockholders’ equity increased by $826,000 to $135.5 million at June 30, 2004 as compared to $134.7 million at December 31, 2003. For the six months ended June 30, 2004, 392,254 common shares were repurchased at a total cost of $9.5 million. Under the 10% repurchase program authorized by the Board of Directors in October 2003, 1,032,140 shares remain to be purchased as of June 30, 2004. The cost of share repurchases was offset by net income and proceeds from stock option exercises and related tax benefit.
Asset Quality
The Company’s non-performing assets totaled $3.6 million at June 30, 2004 as compared to $2.4 million at December 31, 2003 with the increase relating to one non-performing commercial loan with an outstanding balance of $1.1 million which the Company had previously classified as substandard at December 31, 2003. For the six months ended June 30, 2004 the Company realized a net loan loss recovery of $49,000.
OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered stock savings bank with $1.9 billion in assets and seventeen branches located in Ocean, Monmouth and Middlesex counties, New Jersey. The Bank is the largest and oldest community-based financial institution headquartered in Ocean County, New Jersey.
OceanFirst Financial Corp.’s press releases are available at no charge by visiting us on the worldwide web at http://www.oceanfirst.com.
Forward-Looking Statements
This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake – and specifically disclaims any obligation – to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except per share amounts)
June 30, 2004 | December 31, 2003 | June 30, 2003 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 48,809 | $ | 36,172 | $ | 42,009 | ||||||
Investment securities available for sale | 83,906 | 80,458 | 78,306 | |||||||||
Federal Home Loan Bank of New York stock, at cost | 23,760 | 19,220 | 19,050 | |||||||||
Mortgage-backed securities available for sale | 145,225 | 86,938 | 132,699 | |||||||||
Loans receivable, net | 1,423,250 | 1,389,220 | 1,334,586 | |||||||||
Mortgage loans held for sale | 58,948 | 33,207 | 79,681 | |||||||||
Interest and dividends receivable | 6,234 | 5,477 | 6,605 | |||||||||
Real estate owned, net | — | 252 | — | |||||||||
Premises and equipment, net | 16,186 | 16,473 | 17,153 | |||||||||
Servicing asset | 7,792 | 7,473 | 6,171 | |||||||||
Bank Owned Life Insurance | 34,593 | 33,948 | 33,198 | |||||||||
Other assets | 8,643 | 8,571 | 11,378 | |||||||||
Total assets | $ | 1,857,346 | $ | 1,717,409 | $ | 1,760,836 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Deposits | $ | 1,187,663 | $ | 1,144,205 | $ | 1,170,531 | ||||||
Securities sold under agreements to repurchase with retail customers | 41,169 | 36,723 | 53,143 | |||||||||
Securities sold under agreements to repurchase with the Federal Home Loan Bank | 114,000 | 70,000 | 115,000 | |||||||||
Federal Home Loan Bank advances | 361,200 | 314,400 | 266,000 | |||||||||
Advances by borrowers for taxes and insurance | 6,944 | 6,152 | 7,266 | |||||||||
Other liabilities | 10,882 | 11,267 | 14,107 | |||||||||
Total liabilities | 1,721,858 | 1,582,747 | 1,626,047 | |||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued | — | — | — | |||||||||
Common stock, $.01 par value, 55,000,000 shares authorized, 27,177,372 shares issued and 13,244,214, 13,350,999 and 13,614,900 shares outstanding at June 30, 2004, December 31, 2003, and June 30, 2003, respectively | 272 | 272 | 272 | |||||||||
Additional paid-in capital | 192,161 | 189,615 | 187,308 | |||||||||
Retained earnings | 153,250 | 150,804 | 146,430 | |||||||||
Accumulated other comprehensive loss | (2,464 | ) | (3,400 | ) | (4,142 | ) | ||||||
Less: Unallocated common stock held by Employee Stock Ownership Plan | (9,281 | ) | (9,911 | ) | (10,579 | ) | ||||||
Treasury stock, 13,933,158, 13,826,373 and 13,562,472 shares at June 30, 2004, December 31, 2003 and June 30, 2003, respectively | (198,450 | ) | (192,718 | ) | (184,500 | ) | ||||||
Total stockholders’ equity | 135,488 | 134,662 | 134,789 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,857,346 | $ | 1,717,409 | $ | 1,760,836 | ||||||
OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
| For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
| 2004 | 2003 | 2004 | 2003 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
Interest income: | |||||||||||||||
Loans | $ | 20,405 | $ | 22,153 | $ | 40,593 | $ | 44,899 | |||||||
Mortgage-backed securities | 1,194 | 1,386 | 2,050 | 2,822 | |||||||||||
Investment securities and other | 546 | 774 | 1,532 | 2,021 | |||||||||||
Total interest income | 22,145 | 24,313 | 44,175 | 49,742 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 3,490 | 4,438 | 6,976 | 9,672 | |||||||||||
Borrowed funds | 5,147 | 4,974 | 9,931 | 9,782 | |||||||||||
Total interest expense | 8,637 | 9,412 | 16,907 | 19,454 | |||||||||||
Net interest income | 13,508 | 14,901 | 27,268 | 30,288 | |||||||||||
Provision for loan losses | 50 | 250 | 100 | 625 | |||||||||||
Net interest income after provision for loan losses | 13,458 | 14,651 | 27,168 | 29,663 | |||||||||||
Other income: | |||||||||||||||
Loan servicing income (loss) | 83 | (1,497 | ) | 145 | (2,688 | ) | |||||||||
Fees and service charges | 2,084 | 2,041 | 4,020 | 3,866 | |||||||||||
Net gain on sales of loans and securities available for sale | 2,028 | 2,898 | 4,359 | 5,402 | |||||||||||
Net income (loss) from other real estate operations | (3 | ) | (2 | ) | — | 109 | |||||||||
Other | 321 | 387 | 658 | 818 | |||||||||||
Total other income | 4,513 | 3,827 | 9,182 | 7,507 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation and employee benefits | 6,494 | 5,028 | 13,183 | 10,120 | |||||||||||
Occupancy | 919 | 875 | 1,793 | 1,811 | |||||||||||
Equipment | 540 | 585 | 1,084 | 1,176 | |||||||||||
Marketing | 442 | 548 | 645 | 969 | |||||||||||
Federal deposit insurance | 120 | 140 | 240 | 233 | |||||||||||
Data processing | 735 | 817 | 1,470 | 1,532 | |||||||||||
General and administrative | 2,428 | 2,822 | 4,694 | 5,589 | |||||||||||
Total operating expenses | 11,678 | 10,815 | 23,109 | 21,430 | |||||||||||
Income before provision for income taxes | 6,293 | 7,663 | 13,241 | 15,740 | |||||||||||
Provision for income taxes | 2,272 | 2,716 | 4,741 | 5,544 | |||||||||||
Net income | $ | 4,021 | $ | 4,947 | $ | 8,500 | $ | 10,196 | |||||||
Basic earnings per share | $ | 0.33 | $ | 0.40 | $ | 0.70 | $ | 0.82 | |||||||
Diluted earnings per share | $ | 0.32 | $ | 0.38 | $ | 0.67 | $ | 0.78 | |||||||
Average basic shares outstanding | 12,158 | 12,420 | 12,161 | 12,431 | |||||||||||
Average diluted shares outstanding | 12,656 | 13,075 | 12,716 | 13,080 | |||||||||||
Cash earnings (1) | $ | 4,784 | $ | 5,749 | $ | 10,116 | $ | 11,758 | |||||||
Diluted cash earnings per share | $ | 0.38 | $ | 0.44 | $ | 0.80 | $ | 0.90 | |||||||
| (1) | Cash earnings are determined by adding (net of taxes) to reported earnings the non-cash expenses stemming from the amortization and appreciation of allocated shares in the company’s stock-related benefit plans and the amortization of intangible assets. |
OceanFirst Financial Corp.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share amounts)
| At June 30, 2004 | At December 31, 2003 | At June 30, 2003 | ||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||
Stockholders’ equity to total assets | 7.29 | % | 7.84 | % | 7.65 | % | ||||||
Common shares outstanding (in thousands) | 13,244 | 13,351 | 13,615 | |||||||||
Stockholders’ equity per common share | $ | 10.23 | $ | 10.09 | $ | 9.90 | ||||||
Tangible stockholders’ equity per common share | 10.12 | 9.98 | 9.79 | |||||||||
ASSET QUALITY | ||||||||||||
Allowance for loan losses | $ | 10,951 | $ | 10,802 | $ | 10,760 | ||||||
Nonperforming loans | 3,565 | 2,162 | 2,603 | |||||||||
Nonperforming assets | 3,565 | 2,414 | 2,603 | |||||||||
Allowance for loan losses as a percent of total loans receivable | 0.73 | % | 0.75 | % | 0.76 | % | ||||||
Allowance for loan losses as a percent of nonperforming loans | 307.18 | 499.63 | 413.37 | |||||||||
Nonperforming loans as a percent of total loans receivable | 0.24 | 0.15 | 0.18 | |||||||||
Nonperforming assets as a percent of total assets | 0.19 | 0.14 | 0.15 | |||||||||
| For the three months ended June 30 | For the six months ended June 30 | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
PERFORMANCE RATIOS (ANNUALIZED) | ||||||||||||
Return on average assets | 0.89 | % | 1.13 | % | 0.96 | % | 1.17 | % | ||||
Return on average stockholders’ equity | 11.85 | 14.69 | 12.63 | 15.14 | ||||||||
Interest rate spread | 2.94 | 3.34 | 3.04 | 3.40 | ||||||||
Interest rate margin | 3.14 | 3.59 | 3.25 | 3.66 | ||||||||
Operating expenses to average assets | 2.57 | 2.48 | 2.60 | 2.46 | ||||||||
Efficiency ratio | 64.80 | 57.75 | 63.40 | 56.70 | ||||||||
CASH EARNINGS
Although reported earnings and return on stockholders’ equity are traditional measures of performance, the Company believes that the change in stockholders’ equity or “cash earnings,” and related return measures are also a significant measure of a company’s performance. Cash earnings exclude the effects of various non-cash expenses, such as the employee stock plans amortization expense and related tax benefit, as well as the amortization of intangible assets. The following table reconciles the Company’s net income with cash earnings. The table is a pro forma calculation which is not in accordance with GAAP.
| For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
Net income | $ | 4,021 | $ | 4,947 | $ | 8,500 | $ | 10,196 | ||||||||
Add: Employee stock plans amortization Expense | 856 | 902 | 1,802 | 1,762 | ||||||||||||
Amortization of intangible assets | 26 | 26 | 52 | 52 | ||||||||||||
Less: Tax benefit(1) | (119 | ) | (126 | ) | (238 | ) | (252 | ) | ||||||||
Cash earnings | $ | 4,784 | $ | 5,749 | $ | 10,116 | $ | 11,758 | ||||||||
Basic cash earnings per share | $ | .39 | $ | 0.46 | $ | .83 | $ | 0.95 | ||||||||
Diluted cash earnings per share | $ | .38 | $ | 0.44 | $ | .80 | $ | 0.90 | ||||||||
| (1) | The Company does not receive any tax benefit for that portion of employee stock plan amortization expense relating to the ESOP fair market value adjustment. |
OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(in thousands)
LOANS RECEIVABLE
| At June 30, 2004 | At December 31, 2003 | |||||||
Real estate: | ||||||||
One- to four-family | $ | 1,114,700 | $ | 1,081,902 | ||||
Commercial real estate, multi- family and land | 214,955 | 205,066 | ||||||
Construction | 14,617 | 11,274 | ||||||
Consumer | 87,466 | 81,455 | ||||||
Commercial | 60,800 | 53,230 | ||||||
Total loans | 1,492,538 | 1,432,927 | ||||||
Loans in process | (3,170 | ) | (3,829 | ) | ||||
Deferred origination costs, net | 3,785 | 4,136 | ||||||
Unearned discount | (4 | ) | (5 | ) | ||||
Allowance for loan losses | (10,951 | ) | (10,802 | ) | ||||
Total loans, net | 1,482,198 | 1,422,427 | ||||||
Less: mortgage loans held for sale | 58,948 | 33,207 | ||||||
Loans receivable, net | $ | 1,423,250 | $ | 1,389,220 | ||||
Mortgage loans serviced for others | $ | 720,747 | $ | 723,303 | ||||
Loan pipeline | 254,817 | 194,124 | ||||||
| For the three months ended June 30 | For the six months ended June 30 | ||||||||||||
| 2004 | 2003 | 2004 | 2003 | ||||||||||
Loan originations | $ | 260,016 | $ | 322,131 | 429,253 | 598,993 | |||||||
Loans sold | 100,147 | 167,575 | 189,399 | 317,549 | |||||||||
Net charge-offs (recovery) | — | (57 | ) | (49 | ) | (62 | ) | ||||||
DEPOSITS
| At June 30, 2004 | At December 31, 2003 | |||||
Type of Account | ||||||
Non-interest bearing | $ | 111,929 | $ | 108,668 | ||
NOW | 255,537 | 249,254 | ||||
Money market deposit | 140,855 | 138,812 | ||||
Savings | 266,995 | 259,629 | ||||
Time deposits | 412,347 | 387,842 | ||||
| $ | 1,187,663 | $ | 1,144,205 | |||
OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
| FOR THE QUARTERS ENDED JUNE 30, | ||||||||||||||||||
| 2004 | 2003 | |||||||||||||||||
AVERAGE BALANCE | INTEREST | AVERAGE COST | AVERAGE BALANCE | INTEREST | AVERAGE COST | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||
Interest-earning deposits and short term investments | $ | 10,781 | $ | 28 | 1.04 | % | $ | 14,987 | $ | 43 | 1.15 | % | ||||||
Investment securities | 85,477 | 437 | 2.04 | 87,285 | 478 | 2.19 | ||||||||||||
FHLB stock | 23,659 | 81 | 1.37 | 19,314 | 253 | 5.24 | ||||||||||||
Mortgage-backed securities | 147,860 | 1,194 | 3.23 | 131,389 | 1,386 | 4.22 | ||||||||||||
Loans receivable, net (1) | 1,450,303 | 20,405 | 5.63 | 1,406,405 | 22,153 | 6.30 | ||||||||||||
Total interest-earning assets | 1,718,080 | 22,145 | 5.16 | 1,659,380 | 24,313 | 5.86 | ||||||||||||
Non-interest earning assets | 96,984 | 85,370 | ||||||||||||||||
Total assets | $ | 1,815,064 | $ | 1,744,750 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Transaction deposits | $ | 668,862 | 959 | 0.57 | $ | 640,137 | 1,267 | 0.79 | ||||||||||
Time deposits | 388,212 | 2,531 | 2.61 | 426,176 | 3,171 | 2.98 | ||||||||||||
Total | 1,057,074 | 3,490 | 1.32 | 1,066,313 | 4,438 | 1.66 | ||||||||||||
Borrowed funds | 500,461 | 5,147 | 4.11 | 428,576 | 4,974 | 4.64 | ||||||||||||
Total interest-bearing liabilities | 1,557,535 | 8,637 | 2.22 | 1,494,889 | 9,412 | 2.52 | ||||||||||||
Non-interest-bearing deposits | 111,841 | 101,328 | ||||||||||||||||
Non-interest bearing liabilities | 9,940 | 13,817 | ||||||||||||||||
Total liabilities | 1,679,316 | 1,610,034 | ||||||||||||||||
Stockholders’ equity | 135,748 | 134,716 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,815,064 | $ | 1,744,750 | ||||||||||||||
Net interest income | $ | 13,508 | $ | 14,901 | ||||||||||||||
Net interest rate spread (2) | 2.94 | % | 3.34 | % | ||||||||||||||
Net interest margin (3) | 3.14 | % | 3.59 | % | ||||||||||||||
| FOR THE SIX MONTHS ENDED JUNE 30, | ||||||||||||||||||
| 2004 | 2003 | |||||||||||||||||
AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | AVERAGE BALANCE | INTEREST | AVERAGE COST | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-earnings assets: | ||||||||||||||||||
Interest-earning deposits and short term investments | $ | 9,957 | $ | 50 | 1.00 | % | $ | 14,388 | $ | 83 | 1.15 | % | ||||||
Investment securities | 85,519 | 1,327 | 3.10 | 91,118 | 1,431 | 3.14 | ||||||||||||
FHLB stock | 22,186 | 155 | 1.40 | 19,212 | 507 | 5.28 | ||||||||||||
Mortgage-backed securities | 123,739 | 2,050 | 3.31 | 126,789 | 2,822 | 4.45 | ||||||||||||
Loans receivable, net (1) | 1,437,748 | 40,593 | 5.65 | 1,404,249 | 44,899 | 6.39 | ||||||||||||
Total interest-earning assets | 1,679,149 | 44,175 | 5.26 | 1,655,756 | 49,742 | 6.01 | ||||||||||||
Non-interest earning assets | 95,499 | 83,107 | ||||||||||||||||
Total assets | $ | 1,774,648 | $ | 1,738,863 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Transaction deposits | $ | 667,169 | 1,892 | 0.57 | $ | 635,271 | 2,838 | 0.89 | ||||||||||
Time deposits | 385,066 | 5,084 | 2.64 | 442,951 | 6,834 | 3.09 | ||||||||||||
Total | 1,052,235 | 6,976 | 1.33 | 1,078,222 | 9,672 | 1.79 | ||||||||||||
Borrowed funds | 472,969 | 9,931 | 4.20 | 414,729 | 9,782 | 4.72 | ||||||||||||
Total interest-bearing liabilities | 1,525,204 | 16,907 | 2.22 | 1,492,951 | 19,454 | 2.61 | ||||||||||||
Non-interest-bearing deposits | 102,659 | 94,737 | ||||||||||||||||
Non-interest bearing liabilities | 12,211 | 16,497 | ||||||||||||||||
Total liabilities | 1,640,074 | 1,604,185 | ||||||||||||||||
Stockholders’ equity | 134,574 | 134,678 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,774,648 | $ | 1,738,863 | ||||||||||||||
Net interest income | $ | 27,268 | $ | 30,288 | ||||||||||||||
Net interest rate spread (2) | 3.04 | % | 3.40 | % | ||||||||||||||
Net interest margin (3) | 3.25 | % | 3.66 | % | ||||||||||||||
| (1) | Amount is net of deferred loan fees, undisbursed loan funds, discounts and premiums and estimated loss allowances and includes loans held for sale and non-performing loans. |
| (2) | Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (3) | Net interest margin represents net interest income divided by average interest-earning assets. |
