Exhibit 99.1
Company Contact:
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 AND ANNUAL
EARNINGS AND CASH DIVIDEND
TOMS RIVER, NEW JERSEY, January 21, 2010…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced that diluted earnings per share amounted to $.12 for the quarter ended December 31, 2009 as compared to $.30 for the corresponding prior year period. For the year ended December 31, 2009 diluted earnings per share amounted to $.98 as compared to $1.26 for the corresponding prior year period. The Company also announced that its Board of Directors declared a quarterly cash dividend on common stock of $.12 per share, equal to the quarterly earnings per share - covering the three month period ended December 31, 2009 - to be paid on February 12, 2010, to common stockholders of record on February 1, 2010.
Commenting on the year, Chairman John R. Garbarino remarked, “Our record of delivering solid core earnings for our shareholders was sustained in 2009. Our year was characterized by strong core deposit and commercial loan growth, an expanding net interest margin and strengthened capital position. During the fourth quarter we increased our tangible
common equity by $54.2 million with a follow on common stock offering and retired the U.S. Treasury Capital Purchase Program preferred stock investment in our Company.” In discussing the reduced quarterly cash dividend and prospects for 2010, he continued, “The declaration of our 52nd consecutive quarterly cash dividend is representative of our desire to preserve capital in these turbulent economic times. Although reduced from recent periods, it represents an attractive yield and prudent payout of our projected future earnings. Entering 2010, our fortified capital base prepares us for economic challenges that lie ahead and positions us to take advantage of additional growth opportunities in our marketplace.”
Results of Operations
Net interest income for the quarter and year ended December 31, 2009 increased to $16.9 million and $65.5 million, respectively, as compared to $14.9 million and $58.0 million, respectively, in the same prior year periods, reflecting a higher net interest margin and higher levels of interest-earning assets. The net interest margin increased to 3.76% and 3.63%, respectively, for the quarter and year ended December 31, 2009 from 3.35% and 3.24%, respectively, in the same prior year periods. The yield on interest-earning assets decreased to 5.19% and 5.31%, for the quarter and year ended December 31, 2009, respectively, as compared to 5.62% and 5.77%, respectively, in the same prior year periods. The cost of interest-bearing liabilities decreased to 1.63% and 1.89%, respectively, for the quarter and year ended December 31, 2009, as compared to 2.48% and 2.77%, respectively, in the same prior year periods. Average interest-earning assets increased by $24.5 million and $12.0 million for the quarter and year ended December 31, 2009 as compared to the same prior year periods. The increase was in mortgage-backed securities which rose $69.4 million and $44.7 million for the quarter and year
ended December 31, 2009, respectively, due to investment of the preferred stock proceeds from the Treasury’s Capital Purchase Program in January 2009 and the common stock offering in November 2009.
The provision for loan losses increased to $2.2 million and $5.7 million, respectively, for the quarter and year ended December 31, 2009 as compared to $600,000 and $1.8 million, respectively, for the corresponding prior year periods. The increased provision is due to higher levels of non-performing loans and charge-offs.
Other income increased to $3.7 million and $15.6 million, respectively, for the quarter and year ended December 31, 2009 as compared to $2.8 million and $12.8 million, respectively, in the same prior year periods. Loan servicing income (loss) decreased to a loss of $18,000 for the year ended December 31, 2009 from income of $385,000 for the corresponding prior year period due to an impairment to the loan servicing asset of $263,000 recognized in the first quarter of 2009. The net gain on sales of loans and securities was $772,000 and $3.9 million, respectively, for the quarter and year ended December 31, 2009 as compared to $455,000 and $799,000, respectively, for the corresponding prior year periods. The net gain for the year ended December 31, 2008 includes a net loss of $902,000 on investment securities transactions. For the quarter and year ended December 31, 2009 the net gain on the sale of loans includes a reversal of the provision for repurchased loans of $0 and $245,000, respectively, as compared to reversals of $37,000 and $248,000, respectively, for the corresponding prior year periods. The reserve for repurchased loans, which is included in other liabilities in the Company’s consolidated statements of financial condition, was $819,000 at December 31, 2009. There were two charge-offs totaling $79,000 through the reserve for repurchased loans for the year ended December 31, 2009, both occurring in prior quarters. Fees and service charges increased to $2.7 million for the
quarter ended December 31, 2009 as compared to $2.5 million for the corresponding prior year period. For the year ended December 31, 2009 fees and services charges decreased to $10.5 million as compared to $10.8 million for the corresponding prior year period primarily due to a decrease in trust revenue. Income from Bank Owned Life Insurance increased by $454,000 and $131,000, respectively, for the quarter and year ended December 31, 2009 as compared to the same prior year periods. The results for the quarter and year ended December 31, 2008 were adversely affected by a $568,000 impairment to certain investment securities held by the BOLI’s underlying investment fund. Excluding the impairment, income from Bank Owned Life Insurance decreased from the prior year due to a decline in the crediting rate in the lower interest rate environment. Other income for the year ended December 31, 2009 increased over the same prior year periods due to the recovery of $367,000 in borrower escrow funds for Columbia Home Loans, LLC (“Columbia”) the Company’s mortgage banking subsidiary which was shuttered in late 2007.
Operating expenses increased to $13.2 million and $50.5 million, respectively, for the quarter and year ended December 31, 2009, as compared to $12.2 million and $47.4 million respectively, for the corresponding prior year periods. Federal deposit insurance increased to $587,000 and $3.1 million, respectively, for the quarter and year ended December 31, 2009, as compared to $152,000 and $1.1 million, respectively, in the same prior year periods due to an increase in the assessment rate for FDIC deposit insurance effective January 1, 2009 and a special assessment of $869,000 for the year ended December 31, 2009. Occupancy expense for the year ended December 31, 2009 was adversely affected by a second quarter charge of $556,000 relating to all remaining lease obligations of Columbia. In light of the economic downturn and weak real estate market, the Company no longer expects to be able to sublet the
vacant office space. Operating expenses for the quarter and year ended December 31, 2009 includes $703,000 and $1.3 million, respectively, of costs related to the Company’s previously announced, but since terminated, merger with Central Jersey Bancorp. Operating expenses for the quarter and year ended December 31, 2009 also include costs relating to the opening of two new branches in the latter part of 2008.
Dividends on preferred stock and discount accretion totaled $1.6 million and $3.2 million, respectively, for the quarter and year ended December 31, 2009 as compared to no amounts in the corresponding prior year periods. The amount for the quarter and year ended December 31, 2009 includes $1.1 million relating to the accelerated write-off of unaccreted discount upon redemption of the Company’s outstanding preferred stock.
Financial Condition
Mortgage-backed securities available for sale increased to $172.9 million at December 31, 2009 as compared to $40.8 million at December 31, 2008 primarily due to the $38.3 million investment of preferred stock proceeds from the Treasury’s Capital Purchase Plan in January 2009 and the $54.2 million investment of proceeds from the common stock offering in November 2009. Loans receivable, net decreased by $19.1 million at December 31, 2009 as compared to December 31, 2008 due to a decline in one-to-four family mortgage loans from increased prepayments relating to refinancings and the Bank’s ongoing strategy to sell most newly originated longer-term fixed-rate loans. This decline was partly offset by growth in commercial real estate lending. At December 31, 2009, the Company was holding subprime loans with a gross principal balance of $2.6 million and a carrying value, net of reserves and lower of cost or market adjustment of $2.1 million. Deposits increased to $1,364.2 million at
December 31, 2009 from $1,274.1 million at December 31, 2008. The growth was concentrated in core deposits, defined as all deposits excluding time deposits, which increased $145.3 million. Time deposits decreased $55.2 million as the Bank continued to moderate its pricing for this product. Federal Home Loan Bank advances decreased to $333.0 million at December 31, 2009 from $359.9 million at December 31, 2008, primarily due to the increase in deposits and stockholders’ equity as funding sources. Stockholders’ equity increased to $183.5 million at December 31, 2009 as compared to $119.8 million at December 31, 2008 due the Company’s follow-on common stock offering in November 2009 which raised net proceeds of $54.2 million.
Asset Quality
The Company’s non-performing loans totaled $28.3 million at December 31, 2009, an increase from $16.0 million at December 31, 2008. The increase was concentrated in one-to-four family and consumer loans and is reflective of the unsettled economic environment. Part of the $10.4 million increase in non-performing one-to-four family mortgage loans can be attributed to one large loan for $3.5 million which is well secured. Non-performing commercial real estate loans decreased by $375,000 at December 31, 2009 as compared to December 31, 2008. Non-performing loans at December 31, 2009 include $926,000 of loans repurchased due to early payment default that were written down to market value on the date of repurchase and $2.3 million of loans previously held for sale that were also written down to market value as of March 31, 2007, the date when these loans were transferred from held for sale to held for investment. For the year ended December 31, 2009, the Company realized net loan charge-offs of $2.6 million. Of this amount, $949,000 are net charge-offs relating to loans originated by Columbia.
Additionally, $797,000 relates to a charge-off on a single commercial real estate loan for which the real estate collateral was devalued based on the limited use of the property.
Conference Call
As previously announced, the Company will host an earnings conference call on Friday, January 22, 2010 at 11:00 a.m. Eastern time. The direct dial number for the call is (800) 860-2442. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (877) 344-7529, Replay Conference Number 436747, from one hour after the end of the call until February 1, 2010. The conference call, as well as the replay, are also available (listen-only) by internet webcast atwww.oceanfirst.com in the Investor Relations section.
OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered stock savings bank with $2.0 billion in assets and twenty-three 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 by visiting us atwww.oceanfirst.com.
Annual Meeting
The Company also announced today that its Annual Meeting of Stockholders will be held on Thursday, May 6, 2010 at 10:00 a.m. Eastern time, at the Crystal Point Yacht Club located at 3900 River Road at the intersection of State Highway 70, Point Pleasant, New Jersey. The record date for shareholders entitled to vote at the Annual Meeting is March 9, 2010.
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)
| December 31, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 23,016 | $ | 18,475 | ||||
Investment securities available for sale | 37,267 | 34,364 | ||||||
Federal Home Loan Bank of New York stock, at cost | 19,434 | 20,910 | ||||||
Mortgage-backed securities available for sale | 172,938 | 40,801 | ||||||
Loans receivable, net | 1,629,284 | 1,648,378 | ||||||
Mortgage loans held for sale | 5,658 | 3,903 | ||||||
Interest and dividends receivable | 6,059 | 6,298 | ||||||
Real estate owned, net | 2,613 | 1,141 | ||||||
Premises and equipment, net | 22,088 | 21,336 | ||||||
Servicing asset | 6,515 | 7,229 | ||||||
Bank Owned Life Insurance | 39,970 | 39,135 | ||||||
Other assets | 24,502 | 15,976 | ||||||
Total assets | $ | 1,989,344 | $ | 1,857,946 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Deposits | $ | 1,364,199 | $ | 1,274,132 | ||||
Securities sold under agreements to repurchase with retail customers | 64,573 | 62,422 | ||||||
Federal Home Loan Bank advances | 333,000 | 359,900 | ||||||
Other borrowings | 27,500 | 27,500 | ||||||
Advances by borrowers for taxes and insurance | 7,453 | 7,581 | ||||||
Other liabilities | 9,083 | 6,628 | ||||||
Total liabilities | 1,805,808 | 1,738,163 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued at December 31, 2009 | — | — | ||||||
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772 and 27,177,372 shares issued and 18,821,956 and 12,364,573 shares outstanding at December 31, 2009 and 2008, respectively | 336 | 272 | ||||||
Additional paid-in capital | 260,130 | 204,298 | ||||||
Retained earnings | 163,063 | 160,267 | ||||||
Accumulated other comprehensive loss | (10,753 | ) | (14,462 | ) | ||||
Less: Unallocated common stock held by Employee Stock Ownership Plan | (4,776 | ) | (5,069 | ) | ||||
Treasury stock, 14,744,816 and 14,812,799 shares at December 31, 2009 and 2008, respectively | (224,464 | ) | (225,523 | ) | ||||
Common stock acquired by Deferred Compensation Plan | 986 | 981 | ||||||
Deferred Compensation Plan Liability | (986 | ) | (981 | ) | ||||
Total stockholders' equity | 183,536 | 119,783 | ||||||
Total liabilities and stockholders' equity | $ | 1,989,344 | $ | 1,857,946 | ||||
OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
| �� | For the three months ended December 31, | For the years ended December 31, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||||
| (Unaudited) | |||||||||||||||
Interest income: | |||||||||||||||
Loans | $ | 22,015 | $ | 23,734 | $ | 90,595 | $ | 96,660 | |||||||
Mortgage-backed securities | 1,054 | 500 | 3,512 | 2,210 | |||||||||||
Investment securities and other | 345 | 748 | 1,754 | 4,535 | |||||||||||
Total interest income | 23,414 | 24,982 | 95,861 | 103,405 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 3,896 | 5,929 | 18,032 | 26,756 | |||||||||||
Borrowed funds | 2,572 | 4,157 | 12,366 | 18,626 | |||||||||||
Total interest expense | 6,468 | 10,086 | 30,398 | 45,382 | |||||||||||
Net interest income | 16,946 | 14,896 | 65,463 | 58,023 | |||||||||||
Provision for loan losses | 2,200 | 600 | 5,700 | 1,775 | |||||||||||
Net interest income after provision for loan losses | 14,746 | 14,296 | 59,763 | 56,248 | |||||||||||
Other income: | |||||||||||||||
Loan servicing income (loss) | 84 | 92 | (18 | ) | 385 | ||||||||||
Fees and service charges | 2,702 | 2,545 | 10,506 | 10,838 | |||||||||||
Net gain on sales of loans and securities available for sale | 772 | 455 | 3,891 | 799 | |||||||||||
Net (loss) gain from other real estate operations | (74 | ) | (24 | ) | (2 | ) | 72 | ||||||||
Income (loss) from Bank Owned Life Insurance | 202 | (252 | ) | 836 | 705 | ||||||||||
Other | 8 | 10 | 376 | 24 | |||||||||||
Total other income | 3,694 | 2,826 | 15,589 | 12,823 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation and employee benefits | 6,233 | 6,363 | 24,014 | 24,270 | |||||||||||
Occupancy | 1,304 | 1,543 | 5,991 | 5,487 | |||||||||||
Equipment | 713 | 548 | 2,141 | 1,981 | |||||||||||
Marketing | 596 | 535 | 1,767 | 1,833 | |||||||||||
Federal deposit insurance | 587 | 152 | 3,099 | 1,104 | |||||||||||
Data processing | 883 | 801 | 3,388 | 3,176 | |||||||||||
Legal | 131 | 123 | 1,464 | 2,114 | |||||||||||
Check card processing | 288 | 283 | 1,079 | 1,058 | |||||||||||
Accounting and audit | 223 | 179 | 689 | 921 | |||||||||||
Merger related expenses | 703 | — | 1,285 | — | |||||||||||
General and administrative | 1,506 | 1,655 | 5,627 | 5,503 | |||||||||||
Total operating expenses | 13,167 | 12,182 | 50,544 | 47,447 | |||||||||||
Income before provision for income taxes | 5,273 | 4,940 | 24,808 | 21,624 | |||||||||||
Provision for income taxes | 1,706 | 1,440 | 9,155 | 6,860 | |||||||||||
Net income | 3,567 | 3,500 | 15,653 | 14,764 | |||||||||||
Dividends on preferred stock and discount accretion | 1,637 | — | 3,170 | — | |||||||||||
Net income available to common stockholders | $ | 1,930 | $ | 3,500 | $ | 12,483 | $ | 14,764 | |||||||
Basic earnings per share | $ | 0.12 | $ | 0.30 | $ | 0.98 | $ | 1.27 | |||||||
Diluted earnings per share | $ | 0.12 | $ | 0.30 | $ | 0.98 | $ | 1.26 | |||||||
Average basic shares outstanding | 15,769 | 11,687 | 12,737 | 11,667 | |||||||||||
Average diluted shares outstanding | 15,817 | 11,741 | 12,784 | 11,758 | |||||||||||
OceanFirst Financial Corp.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share amounts)
| At December 31, 2009 | At December 31, 2008 | |||||||
STOCKHOLDERS’ EQUITY | ||||||||
Stockholders’ equity to total assets | 9.23 | % | 6.45 | % | ||||
Common shares outstanding (in thousands) | 18,822 | 12,365 | ||||||
Stockholders’ equity per common share | $ | 9.75 | $ | 9.69 | ||||
Tangible stockholders’ equity per common share | 9.75 | 9.69 | ||||||
ASSET QUALITY | ||||||||
Non-performing loans: | ||||||||
Real estate – one-to-four family | $ | 19,142 | $ | 8,696 | ||||
Commercial real estate | 5,152 | 5,527 | ||||||
Construction | 368 | — | ||||||
Consumer | 3,031 | 1,435 | ||||||
Commercial | 627 | 385 | ||||||
Total non-performing loans | 28,320 | 16,043 | ||||||
REO, net | 2,613 | 1,141 | ||||||
Total non-performing assets | $ | 30,933 | $ | 17,184 | ||||
Allowance for loan losses | $ | 14,723 | $ | 11,665 | ||||
Allowance for loan losses as a percent of total loans receivable | 0.89 | % | 0.70 | % | ||||
Allowance for loan losses as a percent of non-performing loans | 51.99 | 72.71 | ||||||
Non-performing loans as a percent of total loans receivable | 1.72 | 0.97 | ||||||
Non-performing assets as a percent of total assets | 1.55 | 0.92 | ||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
PERFORMANCE RATIOS (ANNUALIZED) | |||||||||||||
Return on average assets | 0.75 | % | 0.75% | 0.82 | % | 0.78 | % | ||||||
Return on average stockholders’ equity | 7.17 | 11.39 | 9.35 | 11.98 | |||||||||
Interest rate spread | 3.56 | 3.14 | 3.42 | 3.00 | |||||||||
Interest rate margin | 3.76 | 3.35 | 3.63 | 3.24 | |||||||||
Operating expenses to average assets | 2.75 | 2.61 | 2.66 | 2.52 | |||||||||
Efficiency ratio | 63.79 | 68.74 | 62.36 | 66.97 | |||||||||
OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(in thousands)
| At December 31, 2009 | At December 31, 2008 | |||||||
LOANS RECEIVABLE |
| |||||||
Real estate: | ||||||||
One-to-four family | $ | 954,736 | $ | 1,039,375 | ||||
Commercial real estate, multi- family and land | 396,883 | 329,844 | ||||||
Construction | 9,241 | 10,561 | ||||||
Consumer | 217,290 | 222,797 | ||||||
Commercial | 70,214 | 59,760 | ||||||
Total loans | 1,648,364 | 1,662,337 | ||||||
Loans in process | (3,466 | ) | (3,586 | ) | ||||
Deferred origination costs, net | 4,767 | 5,195 | ||||||
Allowance for loan losses | (14,723 | ) | (11,665 | ) | ||||
Total loans, net | 1,634,942 | 1,652,281 | ||||||
Less: mortgage loans held for sale | 5,658 | 3,903 | ||||||
Loans receivable, net | $ | 1,629,284 | $ | 1,648,378 | ||||
Mortgage loans serviced for others | $ | 952,871 | $ | 977,410 | ||||
Loan pipeline | 90,320 | 69,751 | ||||||
| For the three months ended December 31, | For the years ended December 31, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
Loan originations | $ | 126,438 | $ | 90,947 | $ | 574,529 | $ | 383,043 | ||||
Loans sold | 40,209 | 23,529 | 232,765 | 102,022 | ||||||||
Net charge-offs | 1,157 | 153 | 2,642 | 578 | ||||||||
| At December 31, 2009 | At December 31, 2008 | |||||
DEPOSITS | ||||||
Type of Account | ||||||
Non-interest-bearing | $ | 107,721 | $ | 97,278 | ||
Interest-bearing checking | 615,347 | 517,334 | ||||
Money market deposit | 96,886 | 84,928 | ||||
Savings | 232,081 | 207,224 | ||||
Time deposits | 312,164 | 367,368 | ||||
| $ | 1,364,199 | $ | 1,274,132 | |||
OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
| FOR THE THREE MONTHS ENDED DECEMBER 31, | ||||||||||||||||||
| 2009 | 2008 | |||||||||||||||||
| AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Interest-earning deposits and short-term investments | $ | — | $ | — | — | % | $ | 6,818 | $ | 6 | 0.35 | % | ||||||
Investment securities (1) | 55,720 | 131 | 0.94 | 57,613 | 575 | 3.99 | ||||||||||||
FHLB stock | 14,419 | 214 | 5.94 | 19,784 | 167 | 3.38 | ||||||||||||
Mortgage-backed securities (1) | 111,340 | 1,054 | 3.79 | 41,966 | 500 | 4.77 | ||||||||||||
Loans receivable, net (2) | 1,621,475 | 22,015 | 5.43 | 1,652,278 | 23,734 | 5.75 | ||||||||||||
Total interest-earning assets | 1,802,954 | 23,414 | 5.19 | 1,778,459 | 24,982 | 5.62 | ||||||||||||
Non-interest-earning assets | 111,963 | 89,929 | ||||||||||||||||
Total assets | $ | 1,914,917 | $ | 1,868,388 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Transaction deposits | $ | 951,843 | 2,196 | 0.92 | $ | 825,646 | 3,151 | 1.53 | ||||||||||
Time deposits | 319,700 | 1,700 | 2.13 | 376,582 | 2,778 | 2.95 | ||||||||||||
Total | 1,271,543 | 3,896 | 1.23 | 1,202,228 | 5,929 | 1.97 | ||||||||||||
Borrowed funds | 317,636 | 2,572 | 3.24 | 425,687 | 4,157 | 3.91 | ||||||||||||
Total interest-bearing liabilities | 1,589,179 | 6,468 | 1.63 | 1,627,915 | 10,086 | 2.48 | ||||||||||||
Non-interest-bearing deposits | 111,825 | 101,436 | ||||||||||||||||
Non-interest-bearing liabilities | 14,791 | 16,146 | ||||||||||||||||
Total liabilities | 1,715,795 | 1,745,497 | ||||||||||||||||
Stockholders’ equity | 199,122 | 122,891 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,914,917 | $ | 1,868,388 | ||||||||||||||
Net interest income | $ | 16,946 | $ | 14,896 | ||||||||||||||
Net interest rate spread (3) | 3.56 | % | 3.14 | % | ||||||||||||||
Net interest margin (4) | 3.76 | % | 3.35 | % | ||||||||||||||
| FOR THE YEARS ENDED DECEMBER 31, | ||||||||||||||||||
| 2009 | 2008 | |||||||||||||||||
| AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Interest-earning deposits and short-term investments | $ | — | $ | — | — | % | $ | 10,496 | $ | 191 | 1.82 | % | ||||||
Investment securities (1) | 55,859 | 888 | 1.59 | 60,952 | 2,948 | 4.84 | ||||||||||||
FHLB stock | 16,435 | 866 | 5.27 | 20,156 | 1,396 | 6.93 | ||||||||||||
Mortgage-backed securities (1) | 91,660 | 3,512 | 3.83 | 46,970 | 2,210 | 4.71 | ||||||||||||
Loans receivable, net (2) | 1,639,992 | 90,595 | 5.52 | 1,653,413 | 96,660 | 5.85 | ||||||||||||
Total interest-earning assets | 1,803,946 | 95,861 | 5.31 | 1,791,987 | 103,405 | 5.77 | ||||||||||||
Non-interest-earning assets | 94,397 | 93,055 | ||||||||||||||||
Total assets | $ | 1,898,343 | $ | 1,885,042 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Transaction deposits | $ | 903,848 | 9,709 | 1.07 | $ | 785,906 | 12,793 | 1.63 | ||||||||||
Time deposits | 341,999 | 8,323 | 2.43 | 408,870 | 13,963 | 3.42 | ||||||||||||
Total | 1,245,847 | 18,032 | 1.45 | 1,194,776 | 26,756 | 2.24 | ||||||||||||
Borrowed funds | 359,668 | 12,366 | 3.44 | 442,204 | 18,626 | 4.21 | ||||||||||||
Total interest-bearing liabilities | 1,605,515 | 30,398 | 1.89 | 1,636,980 | 45,382 | 2.77 | ||||||||||||
Non-interest-bearing deposits | 110,740 | �� | 107,976 | |||||||||||||||
Non-interest-bearing liabilities | 14,691 | 16,876 | ||||||||||||||||
Total liabilities | 1,730,946 | 1,761,832 | ||||||||||||||||
Stockholders’ equity | 167,397 | 123,210 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,898,343 | $ | 1,885,042 | ||||||||||||||
Net interest income | $ | 65,463 | $ | 58,023 | ||||||||||||||
Net interest rate spread (3) | 3.42 | % | 3.00 | % | ||||||||||||||
Net interest margin (4) | 3.63 | % | 3.24 | % | ||||||||||||||
| (1) | Amounts are recorded at average amortized cost. |
| (2) | 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. |
| (3) | Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (4) | Net interest margin represents net interest income divided by average interest-earning assets. |
