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 GROWTH IN DEPOSITS, LOANS,
REVENUE AND EARNINGS PER SHARE
TOMS RIVER, NEW JERSEY, July 22, 2010…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced that diluted earnings per share increased to $.27 for the quarter ended June 30, 2010 as compared to $.24 in the prior linked quarter and $.26 for the corresponding prior year period. Other growth highlights for the quarter ended June 30, 2010 include:
| • | Deposits increased $158.9 million during the quarter of which $156.6 million was growth in core deposits, defined as all deposits excluding time deposits. |
| • | Loans receivable, net increased $27.3 million during the quarter of which $26.2 million was growth in commercial loans. |
| • | Total revenue (net interest income and total other income) increased to $23.3 million for the quarter ended June 30, 2010 as compared to $21.9 million for the prior linked quarter and $20.3 million for the corresponding prior year quarter. |
The Company also announced that its Board of Directors declared the quarterly cash dividend on common stock of $.12 per share - covering the three month period ended June 30, 2010 - to be paid on August 13, 2010, to common shareholders of record on August 2, 2010.
CEO John R. Garbarino reflected on the growth: “We are gratified with the across the board growth over both the linked and prior year periods. Our Company continues to maintain its strengthened capital position with Tangible Common Equity Capital of 8.78%. We are also pleased to declare our fifty-fourth consecutive quarterly common stock cash dividend, representing a current attractive yield for our shareholders.”
Results of Operations
Net interest income for the three and six months ended June 30, 2010 increased to $19.7 million and $38.7 million, respectively, as compared to $16.2 million and $31.8 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 3.78% and 3.77%, respectively, for the three and six months ended June 30, 2010 from 3.56% and 3.52%, respectively, in the same prior year periods. The yield on interest-earning assets decreased to 4.96%, for both the three and six months ended June 30, 2010, as compared to 5.33% and 5.37%, respectively, in the same prior year periods. The cost of interest-bearing liabilities decreased to 1.31% and 1.33%, respectively, for the three and six months ended June 30, 2010, as compared to 2.00% and 2.08%, respectively, in the same prior year periods. Average interest-earning assets increased by $266.9 million and $242.0 million, respectively, for the three and six months ended June 30, 2010 as compared to the same prior year periods. The increase was in average mortgage-backed securities which increased $266.8 million and $249.0 million, respectively, for the three and six months ended June 30, 2010.
The provision for loan losses increased to $2.2 million and $4.4 million, respectively, for the three and six months ended June 30, 2010 as compared to $1.2 million and $2.0 million, respectively, for the corresponding prior year periods. The increased provision is primarily due to higher levels of non-performing loans and net charge-offs and partially due to higher loan balances.
Other income decreased to $3.6 million and $6.6 million, respectively, for the three and six months ended June 30, 2010 as compared to $4.2 million and $7.3 million, respectively, in the same prior year periods. Loan servicing income (loss) increased to income of $159,000 for the six months ended June 30, 2010 from a loss of $221,000 in the same prior year period due to an impairment to the loan servicing asset of $263,000 recognized in the first quarter of 2009. Fees and service charges increased to $2.8 million and $5.4 million, respectively, for the three and six months ended June 30, 2010 as compared to $2.6 million and $5.1 million for the corresponding prior year periods. The increase was due to higher fees from merchant services, checking accounts and trust services partly offset by reduced fees from investment services. The net gain on sales of loans decreased to $502,000 and $1.0 million, respectively, for the three and six months ended June 30, 2010 as compared to $1.4 million and $2.0 million, respectively, for the corresponding prior year periods due to a decline in the volume of loans sold. The net loss from other real estate operations was $364,000 for the six months ended June 30, 2010 as compared to a gain of $5,000 in the same prior year period due to current period write-downs in the value of properties previously acquired.
Operating expenses increased to $13.3 million and $26.0 million, respectively, for the three and six months ended June 30, 2010, as compared to $13.2 million and $25.0 million, respectively, for the corresponding prior year periods. Compensation and employee benefits
costs increased due to higher incentive compensation and stock plan expense. The increase was also due to the reduction in mortgage loan closings from prior year levels. Higher loan closings in the prior year increased deferred loan expense which is reflected as a reduction to compensation expense. Occupancy expense decreased by $486,000 and $497,000, respectively, from the prior periods due to a $556,000 charge in the second quarter of 2009 relating to all remaining lease obligations of Columbia Home Loans, LLC (“Columbia”), the Company’s mortgage banking subsidiary which was shuttered in the fourth quarter of 2007. Federal deposit insurance expense decreased by $719,000 and $587,000, respectively, from the prior periods due to a special assessment of $869,000 in the second quarter of 2009.
Dividends on preferred stock and discount accretion totaled $538,000 and $1.0 million, respectively, for the three and six months ended June 30, 2009 as compared to no amounts in the current year periods. The preferred stock was redeemed on December 30, 2009.
Financial Condition
Mortgage-backed securities available for sale increased to $360.0 million at June 30, 2010 as compared to $213.6 million at December 31, 2009. The increase is due to purchases of $162.8 million in mortgage-backed securities, all of which were issued by U.S. government sponsored enterprises. Loans receivable, net increased by $38.2 million at June 30, 2010 as compared to December 31, 2009 primarily due to increased commercial and commercial real estate lending. At June 30, 2010, the Company was holding subprime loans with a gross principal balance of $1.9 million and a carrying value, net of write-offs and lower of cost or market adjustment of $1.5 million. Deposits increased to $1,540.0 million at June 30, 2010 from $1,364.2 million at December 31, 2009. The growth was concentrated in core deposits, which increased $181.8 million. Time deposits decreased $6.1 million as the Bank continued to
moderate its pricing for this product. Federal Home Loan Bank advances increased to $370.0 million at June 30, 2010 from $333.0 million at December 31, 2009. The increases in core deposits and Federal Home Loan Bank advances were primarily used to fund the increase in mortgage-backed securities. Stockholders’ equity increased to $194.8 million at June 30, 2010 as compared to $183.5 million at December 31, 2009 due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock.
Asset Quality
The Company’s non-performing loans totaled $29.2 million at June 30, 2010, an increase from $28.3 million at December 31, 2009. The increase was concentrated in one-to-four family and consumer loans partly offset by a decrease in non-performing commercial real estate loans. The overall increase is reflective of the weak economic environment. Non-performing loans at June 30, 2010 include $650,000 of loans repurchased due to early payment default that were written down to market value on the date of repurchase and $2.4 million of loans previously held for sale that were also written down to market value. For the six months ended June 30, 2010, the Company realized net loan charge-offs of $2.0 million. Of this amount, $1.1 million are net charge-offs relating to loans originated by Columbia.
The reserve for repurchased loans, which is included in other liabilities in the Company’s consolidated statements of financial condition, was $809,000 at June 30, 2010, as compared to $819,000 at December 31, 2009. There was no provision for repurchased loans and one charge-off of $10,000 during the six months ended June 30, 2010. At June 30, 2010, there is one outstanding loan repurchase request on a loan with a principal balance of $250,000 which the Company is evaluating. There are also seven claims from one loan investor relating to loans
with principal balances totaling $2.8 million that the Company believes are covered by a settlement agreement and release between Columbia and the loan investor executed in August 2007. The Company intends to vigorously contest these claims and believes there are valid defenses, including the settlement and release agreement.
Conference Call
As previously announced, the Company will host an earnings conference call on Friday, July 23, 2010 at 11:00 a.m. Eastern time. The direct dial number for the call is (877) 317-6789. 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 442062, from one hour after the end of the call until August 2, 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 $2.2 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.
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, 2010 | December 31, 2009 | June 30, 2009 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 30,952 | $ | 23,016 | $ | 22,423 | ||||||
Investment securities available for sale | 38,958 | 37,267 | 31,890 | |||||||||
Federal Home Loan Bank of New York stock, at cost | 21,404 | 19,434 | 16,188 | |||||||||
Mortgage-backed securities available for sale | 359,974 | 213,622 | 89,436 | |||||||||
Loans receivable, net | 1,667,472 | 1,629,284 | 1,643,704 | |||||||||
Mortgage loans held for sale | 2,945 | 5,658 | 13,475 | |||||||||
Interest and dividends receivable | 6,949 | 6,059 | 6,411 | |||||||||
Real estate owned, net | 2,607 | 2,613 | 1,348 | |||||||||
Premises and equipment, net | 21,721 | 22,088 | 21,216 | |||||||||
Servicing asset | 5,795 | 6,515 | 6,817 | |||||||||
Bank Owned Life Insurance | 40,374 | 39,970 | 39,566 | |||||||||
Other assets | 20,531 | 24,502 | 17,111 | |||||||||
Total assets | $ | 2,219,682 | $ | 2,030,028 | $ | 1,909,585 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Deposits | $ | 1,539,972 | $ | 1,364,199 | $ | 1,364,570 | ||||||
Securities sold under agreements to repurchase with retail customers | 72,433 | 64,573 | 77,246 | |||||||||
Federal Home Loan Bank advances | 370,000 | 333,000 | 258,000 | |||||||||
Other borrowings | 27,500 | 27,500 | 27,500 | |||||||||
Due to brokers | — | 40,684 | — | |||||||||
Advances by borrowers for taxes and insurance | 8,267 | 7,453 | 8,716 | |||||||||
Other liabilities | 6,682 | 9,083 | 11,644 | |||||||||
Total liabilities | 2,024,854 | 1,846,492 | 1,747,676 | |||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued at June 30, 2010 and December 31, 2009, 38,263 shares issued at June 30, 2009 | — | — | 37,285 | |||||||||
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772, 33,566,772 and 27,177,372 shares issued and 18,822,556, 18,821,956 and 12,371,768 shares outstanding at June 30, 2010, December 31, 2009 and June 30, 2009, respectively | 336 | 336 | 272 | |||||||||
Additional paid-in capital | 260,138 | 260,130 | 205,949 | |||||||||
Retained earnings | 168,038 | 163,063 | 162,088 | |||||||||
Accumulated other comprehensive loss | (4,597 | ) | (10,753 | ) | (13,356 | ) | ||||||
Less: Unallocated common stock held by Employee Stock Ownership Plan | (4,630 | ) | (4,776 | ) | (4,923 | ) | ||||||
Treasury stock, 14,744,216, 14,744,816 and 14,805,604 shares at June 30, 2010, December 31, 2009 and June 30, 2009, respectively | (224,457 | ) | (224,464 | ) | (225,406 | ) | ||||||
Common stock acquired by Deferred Compensation Plan | 947 | 986 | 970 | |||||||||
Deferred Compensation Plan Liability | (947 | ) | (986 | ) | (970 | ) | ||||||
Total stockholders’ equity | 194,828 | 183,536 | 161,909 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,219,682 | $ | 2,030,028 | $ | 1,909,585 | ||||||
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, | ||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
Interest income: | |||||||||||||||
Loans | $ | 22,226 | $ | 22,791 | $ | 44,209 | $ | 45,963 | |||||||
Mortgage-backed securities | 3,185 | 873 | 5,947 | 1,641 | |||||||||||
Investment securities and other | 396 | 552 | 726 | 1,002 | |||||||||||
Total interest income | 25,807 | 24,216 | 50,882 | 48,606 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 3,480 | 4,777 | 6,911 | 9,873 | |||||||||||
Borrowed funds | 2,630 | 3,285 | 5,305 | 6,918 | |||||||||||
Total interest expense | 6,110 | 8,062 | 12,216 | 16,791 | |||||||||||
Net interest income | 19,697 | 16,154 | 38,666 | 31,815 | |||||||||||
Provision for loan losses | 2,200 | 1,200 | 4,400 | 2,000 | |||||||||||
Net interest income after provision for loan losses | 17,497 | 14,954 | 34,266 | 29,815 | |||||||||||
Other income: | |||||||||||||||
Loan servicing income (loss) | 113 | 9 | 159 | (221 | ) | ||||||||||
Fees and service charges | 2,801 | 2,585 | 5,358 | 5,103 | |||||||||||
Net gain on sales of loans and securities available for sale | 502 | 1,352 | 1,005 | 2,025 | |||||||||||
Net (loss) gain from other real estate operations | (28 | ) | 6 | (364 | ) | 5 | |||||||||
Income from Bank Owned Life Insurance | 208 | 201 | 404 | 431 | |||||||||||
Other | 2 | 2 | 4 | 6 | |||||||||||
Total other income | 3,598 | 4,155 | 6,566 | 7,349 | |||||||||||
Operating expenses: | |||||||||||||||
Compensation | 7,051 | 5,738 | 13,581 | 11,565 | |||||||||||
Occupancy | 1,328 | 1,814 | 2,792 | 3,289 | |||||||||||
Equipment | 537 | 501 | 1,012 | 950 | |||||||||||
Marketing | 523 | 380 | 827 | 704 | |||||||||||
Federal deposit insurance | 686 | 1,405 | 1,320 | 1,907 | |||||||||||
Data processing | 833 | 858 | 1,662 | 1,693 | |||||||||||
Legal | 267 | 520 | 563 | 1,097 | |||||||||||
Check card processing | 309 | 254 | 626 | 505 | |||||||||||
Accounting and audit | 179 | 171 | 322 | 331 | |||||||||||
General and administrative | 1,547 | 1,599 | 3,256 | 2,982 | |||||||||||
Total operating expenses | 13,260 | 13,240 | 25,961 | 25,023 | |||||||||||
Income before provision for income taxes | 7,835 | 5,869 | 14,871 | 12,141 | |||||||||||
Provision for income taxes | 2,884 | 2,270 | 5,515 | 4,589 | |||||||||||
Net income | 4,951 | 3,599 | 9,356 | 7,552 | |||||||||||
Dividends on preferred stock and warrant accretion | — | 538 | — | 996 | |||||||||||
Net income available to common stockholders | $ | 4,951 | $ | 3,061 | $ | 9,356 | $ | 6,556 | |||||||
Basic earnings per share | $ | 0.27 | $ | 0.26 | $ | 0.52 | $ | 0.56 | |||||||
Diluted earnings per share | $ | 0.27 | $ | 0.26 | $ | 0.51 | $ | 0.56 | |||||||
Average basic shares outstanding | 18,135 | 11,710 | 18,133 | 11,703 | |||||||||||
Average diluted shares outstanding | 18,183 | 11,757 | 18,182 | 11,750 | |||||||||||
See accompanying Notes to Unaudited Consolidated Financial Statements.
OceanFirst Financial Corp.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share amounts)
| At June 30, 2010 | At December 31, 2009 | At June 30, 2009 | ||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||
Stockholders’ equity to total assets | 8.78 | % | 9.04 | % | 8.48 | % | ||||||
Common shares outstanding (in thousands) | 18,823 | 18,822 | 12,372 | |||||||||
Stockholders’ equity per common share | $ | 10.35 | $ | 9.75 | $ | 10.09 | ||||||
Tangible stockholders’ equity per common share | 10.35 | 9.75 | 10.09 | |||||||||
ASSET QUALITY | ||||||||||||
Non-performing loans: | ||||||||||||
Real estate – one-to-four family | $ | 21,246 | $ | 19,142 | $ | 12,290 | ||||||
Commercial real estate | 2,831 | 5,152 | 5,361 | |||||||||
Construction | 368 | 368 | 67 | |||||||||
Consumer | 3,789 | 3,031 | 2,517 | |||||||||
Commercial | 979 | 627 | 702 | |||||||||
Total non-performing loans | 29,213 | 28,320 | 20,937 | |||||||||
REO, net | 2,607 | 2,613 | 1,348 | |||||||||
Total non-performing assets | $ | 31,820 | $ | 30,933 | $ | 22,285 | ||||||
Delinquent loans 30 to 89 days | $ | 18,424 | $ | 15,528 | $ | 19,616 | ||||||
Allowance for loan losses | $ | 17,146 | $ | 14,723 | $ | 12,758 | ||||||
Allowance for loan losses as a percent of total loans receivable | 1.02 | % | 0.89 | % | 0.77 | % | ||||||
Allowance for loan losses as a percent of non-performing loans | 58.69 | 51.99 | 60.94 | |||||||||
Non-performing loans as a percent of total loans receivable | 1.73 | 1.72 | 1.26 | |||||||||
Non-performing assets as a percent of total Assets | 1.43 | 1.52 | 1.17 | |||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
PERFORMANCE RATIOS (ANNUALIZED) | ||||||||||||
Return on average assets | 0.90 | % | 0.76 | % | 0.87 | % | 0.80 | % | ||||
Return on average stockholders’ equity | 10.54 | 9.15 | 10.08 | 9.79 | ||||||||
Interest rate spread | 3.65 | 3.33 | 3.63 | 3.29 | ||||||||
Interest rate margin | 3.78 | 3.56 | 3.77 | 3.52 | ||||||||
Operating expenses to average assets | 2.42 | 2.78 | 2.40 | 2.64 | ||||||||
Efficiency ratio | 56.92 | 65.19 | 57.40 | 63.89 | ||||||||
OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(in thousands)
LOANS RECEIVABLE
| At June 30, 2010 | December 31, 2009 | |||||||
Real estate: | ||||||||
One-to-four family | $ | 957,208 | $ | 954,736 | ||||
Commercial real estate, multi-family and land | 425,877 | 396,883 | ||||||
Construction | 10,527 | 9,241 | ||||||
Consumer | 214,178 | 217,290 | ||||||
Commercial | 77,876 | 70,214 | ||||||
Total loans | 1,685,666 | 1,648,364 | ||||||
Loans in process | (2,996 | ) | (3,466 | ) | ||||
Deferred origination costs, net | 4,893 | 4,767 | ||||||
Allowance for loan losses | (17,146 | ) | (14,723 | ) | ||||
Total loans, net | 1,670,417 | 1,634,942 | ||||||
Less: mortgage loans held for sale | 2,945 | 5,658 | ||||||
Loans receivable, net | $ | 1,667,472 | $ | 1,629,284 | ||||
Mortgage loans serviced for others | $ | 925,265 | $ | 952,871 | ||||
Loan pipeline | 116,288 | 90,320 | ||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
Loan originations | $ | 110,694 | $ | 198,437 | $ | 218,362 | $ | 325,686 | ||||
Loans sold | 20,870 | 82,670 | 50,153 | 131,108 | ||||||||
Net charge-offs | 686 | 461 | 1,977 | 907 | ||||||||
DEPOSITS
| At June 30, 2010 | At December 31, 2009 | |||||
Type of Account | ||||||
Non-interest bearing | $ | 136,517 | $ | 107,721 | ||
Interest-bearing checking | 748,776 | 615,347 | ||||
Money market deposit | 105,354 | 96,886 | ||||
Savings | 243,228 | 232,081 | ||||
Time deposits | 306,097 | 312,164 | ||||
| $ | 1,539,972 | $ | 1,364,199 | |||
OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
| FOR THE THREE MONTHS ENDED JUNE 30, | ||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||
| AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Investment securities (1) | $ | 55,975 | $ | 141 | 1.01 | % | $ | 55,822 | $ | 288 | 2.06 | % | ||||||
FHLB stock | 24,189 | 255 | 4.22 | 17,117 | 264 | 6.17 | ||||||||||||
Mortgage-backed securities (1) | 360,030 | 3,185 | 3.54 | 93,215 | 873 | 3.75 | ||||||||||||
Loans receivable, net (2) | 1,643,066 | 22,226 | 5.41 | 1,650,217 | 22,791 | 5.52 | ||||||||||||
Total interest-earning assets | 2,083,260 | 25,807 | 4.96 | 1,816,371 | 24,216 | 5.33 | ||||||||||||
Non-interest-earning assets | 110,944 | 85,951 | ||||||||||||||||
Total assets | $ | 2,194,204 | $ | 1,902,322 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Transaction deposits | $ | 1,031,378 | 2,063 | .80 | $ | 885,946 | 2,504 | 1.13 | ||||||||||
Time deposits | 305,179 | 1,417 | 1.86 | 353,608 | 2,273 | 2.57 | ||||||||||||
Total | 1,336,557 | 3,480 | 1.04 | 1,239,554 | 4,777 | 1.54 | ||||||||||||
Borrowed funds | 530,071 | 2,630 | 1.98 | 375,891 | 3,285 | 3.50 | ||||||||||||
Total interest-bearing liabilities | 1,866,628 | 6,110 | 1.31 | 1,615,445 | 8,062 | 2.00 | ||||||||||||
Non-interest-bearing deposits | 126,745 | 111,895 | ||||||||||||||||
Non-interest-bearing liabilities | 12,900 | 17,668 | ||||||||||||||||
Total liabilities | 2,006,273 | 1,745,008 | ||||||||||||||||
Stockholders’ equity | 187,931 | 157,314 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,194,204 | $ | 1,902,322 | ||||||||||||||
Net interest income | $ | 19,697 | $ | 16,154 | ||||||||||||||
Net interest rate spread (3) | 3.65 | % | 3.33 | % | ||||||||||||||
Net interest margin (4) | 3.78 | % | 3.56 | % | ||||||||||||||
| FOR THE SIX MONTHS ENDED JUNE 30, | ||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||
| AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | AVERAGE BALANCE | INTEREST | AVERAGE YIELD/ COST | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Investment securities (1) | $ | 55,973 | $ | 268 | .96 | % | $ | 55,978 | $ | 589 | 2.10 | % | ||||||
FHLB stock | 24,236 | 458 | 3.78 | 18,104 | 413 | 4.56 | ||||||||||||
Mortgage-backed securities (1) | 333,924 | 5,947 | 3.56 | 84,899 | 1,641 | 3.87 | ||||||||||||
Loans receivable, net (2) | 1,638,013 | 44,209 | 5.40 | 1,651,158 | 45,963 | 5.57 | ||||||||||||
Total interest-earning assets | 2,052,146 | 50,882 | 4.96 | 1,810,139 | 48,606 | 5.37 | ||||||||||||
Non-interest-earning assets | 109,330 | 85,903 | ||||||||||||||||
Total assets | $ | 2,161,476 | $ | 1,896,042 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Transaction deposits | $ | 998,499 | 4,046 | .81 | $ | 865,581 | 5,157 | 1.19 | ||||||||||
Time deposits | 305,702 | 2,865 | 1.87 | 356,854 | 4,716 | 2.64 | ||||||||||||
Total | 1,304,201 | 6,911 | 1.06 | 1,222,435 | 9,873 | 1.62 | ||||||||||||
Borrowed funds | 533,795 | 5,305 | 1.99 | 393,447 | 6,918 | 3.52 | ||||||||||||
Total interest-bearing liabilities | 1,837,996 | 12,216 | 1.33 | 1,615,882 | 16,791 | 2.08 | ||||||||||||
Non-interest-bearing deposits | 120,131 | 108,629 | ||||||||||||||||
Non-interest-bearing liabilities | 17,694 | 17,308 | ||||||||||||||||
Total liabilities | 1,975,821 | 1,741,819 | ||||||||||||||||
Stockholders’ equity | 185,655 | 154,223 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,161,476 | $ | 1,896,042 | ||||||||||||||
Net interest income | $ | 38,666 | $ | 31,815 | ||||||||||||||
Net interest rate spread (3) | 3.63 | % | 3.29 | % | ||||||||||||||
Net interest margin (4) | 3.77 | % | 3.52 | % | ||||||||||||||
| (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. |
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