Contact: Kenneth J. Mahon
Exec. VP and Chief Financial Officer
718-782-6200 extension 8265
Stephanie Prince
Director of Corporate Marketing
718-782-6200 extension 8250
DIME COMMUNITY BANCSHARES REPORTS FOURTH QUARTER AND ANNUAL 2004 EARNINGS
Brooklyn, NY - January 25, 2005 - Dime Community Bancshares, Inc. (NASDAQ: DCOM, the "Company"), the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"), today reported net income of $10.2 million, or 29 cents per diluted share, for the quarter ended December 31, 2004, compared to $9.9 million, or 26 cents per diluted share, for the quarter ended December 31, 2003, which includes the restructuring charge detailed below, and $11.2 million, or 31 cents per diluted share, for the quarter ended September 30, 2004.
During the fourth quarter ended December 31, 2003, a balance sheet restructuring negatively impacted net income by $3.4 million. The Company sold $57.6 million of investment securities and utilized the proceeds to prepay $82.0 million of wholesale borrowings. This balance sheet restructuring reduced diluted earnings per share by $0.09 during the quarter ended December 31, 2003.
Earnings excluding income from prepayment fees on loans, gains or losses on the sale of securities, and prepayment expenses on borrowings were $9.6 million or 27 cents per diluted share for the quarter ended December 31, 2004, compared to $10.4 million, or 28 cents per diluted share, for the quarter ended December 31, 2003 and $9.9 million, or 28 cents per diluted share, for the quarter ended September 30, 2004.
For the year ended December 31, 2004, net income was $46.2 million, or $1.28 per diluted share, compared to $51.3 million, or $1.37 per diluted share, including the $0.09 restructuring charge detailed above, for the year ended December 31, 2003. Earnings excluding income from prepayment fees on loans, gains or losses on the sale of securities, and prepayment expenses on borrowings were $40.0 million, or $1.10 per diluted share for the 2004 year, as compared to $45.3 million, or $1.21 per diluted share, for the year ended December 31, 2003.
Fourth Quarter Highlights
| § | Real estate loan originations totaled $108.0 million, with an average rate of 5.55%. |
| § | The annualized loan amortization rate declined to 11%. |
| § | Loan portfolio growth was 3.3% annualized. |
| § | Loan sales to Fannie Mae totaled $23.6 million. |
| § | Total assets declined by 4.4% annualized as higher cost deposits were allowed to run off. |
| § | The cost of deposits declined by 3 basis points sequentially to 1.63%. |
| § | Net interest margin was 2.93%, one basis point higher sequentially. |
| § | The Bank remained among the industry leaders in credit quality with non-performing assets representing only 4 basis points of total assets at period end. |
| § | Non-interest expenses declined 6% year-over-year, despite one-time data processing conversion costs. |
| § | The Company repurchased 307,504 shares into treasury during the quarter. |
“As expected, the fourth quarter was characterized by stable deposit costs, lower prepayment fee income and a slowdown in loan originations,” said Vincent F. Palagiano, Chairman and Chief Executive Officer. “Asset quality and non-interest expenses remained in line with recent trends. These factors resulted in the stabilization of the net interest margin this quarter, and the continued generation of Dime’s traditional industry-high financial returns.”
FINANCIAL RESULTS
For the quarter ended December 31, 2004, the Company’s pre-tax income was $16.4 million, compared to $14.5 million in the same quarter of the previous year. The balance sheet restructuring recorded during the quarter ended December 31, 2003 reduced pre-tax net income by $6.1 million. Excluding the restructuring items, pre-tax income declined $4.2 million during the quarter ended December 31, 2004 compared to the quarter ended December 31, 2003. This decrease was primarily due to a decline of $1.0 million in net interest income, and a decrease of $3.9 million in non-interest income, resulting from a decline of $3.7 million in prepayment fees.
On a linked quarter basis, the Company’s pre-tax income declined $1.6 million from $18.0 million in the September 2004 quarter, to $16.4 million in the December 2004 quarter. This was attributable primarily to prepayment fee income that totaled $1.1 million during the December 2004 quarter as compared to $2.4 million recorded in the September 2004 quarter.
Net interest margin widened slightly to 2.93% during the December 2004 quarter from 2.92% in the September 2004 quarter. The net interest margin stabilized during the quarter in part due to an increase of 3 basis points in the yield on real estate loans (the largest component of interest earning assets). During the quarter ended December 31, 2004, the average yield on newly originated real estate loans was 5.55%, up from 5.23% during the quarter ended September 30, 2004.
A modest decline in the average cost of deposits also contributed to the stabilization of the net interest margin during the December 2004 quarter. Similar to the previous quarter a portion of higher cost, promotional deposits were allowed to run off during the December 2004 quarter, which resulted in a 3 basis point decline in the average cost of deposits. During the last two quarters of 2004, the average cost of deposits has declined by a total of 13 basis points.
Average deposits per branch approximated $111 million at December 31, 2004. The loan-to-deposit ratio was 113%, compared with 107% at December 31, 2003 and 113% at September 30, 2004. Core deposits comprised 57% of total deposits at December 31, 2004, compared to 61% at December 31, 2003, and 59% at September 30, 2004.
Non-interest income, excluding gains or losses on the sale of assets, totaled $3.3 million during the quarter ended December 31, 2004, compared to $7.4 million in the quarter ended December 31, 2003 and $4.9 million in the quarter ended September 30, 2004. The decline resulted primarily from decreases in prepayment fee income which totaled $1.1 million in the quarter ended December 31, 2004, $4.8 million in the quarter ended December 31, 2003 and $2.4 million in the quarter ended September 30, 2004.
The Company recorded a net gain of $357,000 on the sale of $23.6 million in loans to Fannie Mae during the quarter ended December 31, 2004.
There were no gains or losses recorded on the sales of securities during the quarter ended December 31, 2004. The Company recorded a loss of $2.0 million on the sale of $57.6 million of investment securities during the quarter ended December 31, 2003. The Company recorded a loss of $139,000 on the sale of $109.1 million of securities during the quarter ended September 30, 2004.
Non-interest expenses were $11.0 million during the quarter ended December 31, 2004, a decrease of 6% from the prior year quarter and a 5% increase linked-quarter. Non-interest expense increased $510,000 sequentially, largely due to one-time data processing costs resulting from the Company’s data system conversion completed in November 2004.
The effective tax rate was 37.5% for the quarter ended December 31, 2004. The effective tax rate for the full year 2004 was 37.3%.
Mr. Palagiano concluded, “Management continues to tightly control the rate of growth of the Company during this period of continuing low interest rates and a flattening yield curve. We believe that this strategy is the most prudent in this difficult environment and that coupled with the continued generation of high relative returns on assets and equity, as well as continued accumulation of capital, will best position the Company for future growth.”
REAL ESTATE LENDING AND CREDIT QUALITY
Real estate loan originations totaled $108.0 million during the quarter ended December 31, 2004. The average rate on these originations was 5.55%, up from 5.23% during the quarter ended September 30, 2004. Real estate loan prepayment and amortization during the December 2004 quarter approximated 11% of the loan portfolio on an annualized basis, compared to 40% during the December 2003 quarter and 21% during the September 2004 quarter.
Real estate loan originations for the full year 2004 totaled $1.01 billion as compared to $1.10 billion during 2003. Portfolio growth for the year was 14% compared to 1% in 2003. For the full year 2004, real estate loan prepayment and amortization equaled 24% compared to 45% in 2003.
At December 31, 2004, the multifamily and mixed use loan commitment pipeline approximated $96.6 million, at an average rate of 5.40%, of which $20.5 million is intended for sale to Fannie Mae.
The Company maintained its long record of outstanding credit quality during the most recent quarter. Non-performing loans were $1.5 million at December 31, 2004, representing 0.04% of total assets. Non-performing assets have remained below 5 basis points of total assets for the previous eight quarters.
SHARE REPURCHASE PROGRAM
During the December 2004 quarter, the Company repurchased 307,504 shares of its common stock into treasury. As of December 31, 2004, the Company had an additional 1.4 million shares remaining eligible for repurchase under its tenth stock repurchase program, approved in May 2004.
OUTLOOK
With mortgage refinance activity having subsided, Management projects a significant decrease in prepayment fee income and lower loan origination volumes in 2005 as compared to 2004. Additionally, the prospect of a flatter yield curve continues to challenge asset/liability management and planning. Because the Company maintains strong capital levels and returns on assets and equity, Management has currently taken a more prudent approach in this difficult environment to limit growth of earning assets until short term rates move closer to historical norms, thereby minimizing the levels of interest rate risk on the Company’s balance sheet. As interest rates move closer to historical ranges and away from their historic lows, the Company would expect to resume asset growth during 2005.
For the first quarter of 2005, we are currently estimating that earnings per share will be in a range of $0.27-$0.29. This forecast includes a lower level of prepayment fee income, slightly higher deposit rates, as well as continued tight expense control.
CONFERENCE CALL
Management will conduct a conference call at 10:00 A.M. Eastern Time, on Wednesday, January 26, 2005, to discuss the Company’s operating performance for the quarterly period ended December 31, 2004.
The conference call will also be available via the Internet by accessing the following Web address: www.dsbwdirect.com or www.vcall.com. Web users should go to the site at least fifteen minutes prior to the call to register, download and install any necessary audio software. The webcast will be available until February 26, 2005.
ABOUT DIME COMMUNITY BANCSHARES
Dime Community Bancshares, Inc., a unitary thrift holding company, is the parent company of The Dime Savings Bank of Williamsburgh, Brooklyn, New York, founded in 1864. With $3.38 billion in assets as of December 31, 2004, the Bank has twenty branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and Bank can be found on the Bank's Internet website atwww.dimedirect.com.
Statements made herein that are forward looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those related to overall business conditions and market interest rates, particularly in the markets in which the Company operates, fiscal and monetary policy, changes in regulations affecting financial institutions and other risks and uncertainties discussed in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to publicly announce future events or developments which may affect the forward-looking statements herein.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
| | December 31, | | |
| | 2004 | | December 31, |
ASSETS: | (Unaudited) | | 2003 |
| | | | |
| Cash and due from banks | $26,581 | | $24,073 |
| Investment securities held to maturity | 585 | | 710 |
| Investment securities available for sale | 54,840 | | 37,107 |
| Mortgage-backed securities held to maturity | 465 | | 770 |
| Mortgage-backed securities available for sale | 519,420 | | 461,967 |
| Federal funds sold and other short-term assets | 103,291 | | 95,286 |
Real estate Loans: | | | |
| One-to-four family and cooperative apartment | 138,125 | | 138,039 |
| Multi-family and underlying cooperative | 1,916,118 | | 1,737,306 |
| Commercial real estate | 424,060 | | 309,810 |
| Construction and land acquisition | 15,558 | | 2,880 |
| Unearned discounts and net deferred loan fees | (463) | | (1,517) |
| | | | |
| Total real estate loans | 2,493,398 | | 2,186,518 |
| | | | |
| Other loans | 2,916 | | 4,072 |
| Allowance for loan losses | (15,543) | | (15,018) |
| | | | |
Total loans, net | 2,480,771 | | 2,175,572 |
| | | | |
| Loans held for sale | 5,491 | | 2,050 |
| Premises and fixed assets, net | 16,652 | | 16,400 |
| Federal Home Loan Bank of New York capital stock | 25,325 | | 26,700 |
| Goodwill | 55,638 | | 55,638 |
| Other assets | 88,207 | | 75,388 |
| | | | |
TOTAL ASSETS | $3,377,266 | | $2,971,661 |
| | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY: | | | |
Deposits: | | | |
| Checking and NOW | $138,402 | | $129,349 |
| Savings | 362,656 | | 366,592 |
| Money Market | 749,040 | | 745,387 |
| | | | |
| Sub-total | 1,250,098 | | 1,241,328 |
| | | | |
| Certificates of deposit | 959,951 | | 800,350 |
| | | | |
Total Due to depositors | 2,210,049 | | 2,041,678 |
| | | | |
| Escrow and other deposits | 48,284 | | 39,941 |
| Securities sold under agreements to repurchase | 205,584 | | 12,675 |
| Federal Home Loan Bank of New York advances | 506,500 | | 534,000 |
| Subordinated Notes Sold | 25,000 | | 25,000 |
| Trust Preferred Notes Payable | 72,165 | | - |
| Other liabilities | 27,963 | | 34,448 |
| | | | |
TOTAL LIABILITIES | 3,095,545 | | 2,687,742 |
STOCKHOLDERS' EQUITY: | | | |
| Common stock ($0.01 par, 125,000,000 shares authorized, | | | |
| 50,111,988 shares and 49,160,657 shares issued at | | | |
| December 31, 2004 and December 31, 2003, respectively, | | | |
| and 37,165,740 shares and 38,115,111 shares outstanding | | | |
| at December 31, 2004 and December 31, 2003, respectively) | 501 | | 492 |
| Additional paid-in capital | 198,183 | | 185,991 |
| Retained earnings | 258,237 | | 231,771 |
| Unallocated common stock of Employee Stock Ownership Plan | (4,749) | | (5,202) |
| Unearned common stock of Recognition and Retention Plan | (2,612) | | (2,617) |
| Common stock held by the Benefit Maintenance Plan | (7,348) | | (5,584) |
| Treasury stock (12,946,248 shares and 11,045,546 shares | | | |
| at December 31, 2004 and December 31, 2003, respectively) | (157,263) | | (120,086) |
| Accumulated other comprehensive (loss) income, net | (3,228) | | (846) |
| | | | |
TOTAL STOCKHOLDERS' EQUITY | 281,721 | | 283,919 |
| | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3,377,266 | | $2,971,661 |
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share amounts)
| | For the Three Months Ended | | For the Year Ended |
| | December 31, | | September 30, | | December 31, | | December 31, | December 31, |
| | 2004 | | 2004 | | 2003 | | 2004 | 2003 |
| | | | | | | | | |
Interest income: | | | | | | | | |
| Loans secured by real estate | $35,193 | | $35,462 | | $34,612 | | $138,720 | $145,704 |
| Other loans | 47 | | 65 | | 66 | | 235 | 273 |
| Mortgage-backed securities | 4,792 | | 5,440 | | 4,292 | | 21,091 | 17,984 |
| Investment securities | 643 | | 416 | | 367 | | 1,745 | 2,361 |
| Other | 778 | | 323 | | 251 | | 1,830 | 2,793 |
Total interest income | 41,453 | | 41,706 | | 39,588 | | 163,621 | 169,115 |
Interest expense: | | | | | | | | |
| Deposits and escrow | 9,139 | | 9,488 | | 8,331 | | 37,873 | 38,221 |
| Borrowed funds | 8,512 | | 8,165 | | 10,558 | | 29,903 | 32,842 |
Total interest expense | 17,651 | | 17,653 | | 18,889 | | 67,776 | 71,063 |
Net interest income | 23,802 | | 24,053 | | 20,699 | | 95,845 | 98,052 |
Provision for loan losses | 100 | | 60 | | 80 | | 280 | 288 |
Net interest income after | | | | | | | | |
provision for loan losses | 23,702 | | 23,993 | | 20,619 | | 95,565 | 97,764 |
| | | | | | | | | |
Non-interest income: | | | | | | | | |
| Service charges and other fees | 1,375 | | 1,619 | | 1,757 | | 6,296 | 6,518 |
| Net (loss) gain on sales and | | | | | | | | |
| redemptions of assets | 357 | | (427) | | (1,803) | | 713 | (303) |
| Prepayment fee income | 1,067 | | 2,352 | | 4,806 | | 9,797 | 15,432 |
| Other | 867 | | 954 | | 837 | | 3,707 | 3,475 |
Total non-interest income | 3,666 | | 4,498 | | 5,597 | | 20,513 | 25,122 |
Non-interest expense: | | | | | | | | |
| Compensation and benefits | 5,883 | | 5,675 | | 7,187 | | 23,453 | 22,913 |
| Occupancy and equipment | 1,293 | | 1,404 | | 1,272 | | 5,213 | 5,054 |
| Core deposit intangible amortization | 206 | | 206 | | 206 | | 825 | 825 |
| Other | 3,618 | | 3,205 | | 3,010 | | 12,916 | 12,017 |
Total non-interest expense | 11,000 | | 10,490 | | 11,675 | | 42,407 | 40,809 |
| | | | | | | | | |
Income before taxes | 16,368 | | 18,001 | | 14,541 | | 73,671 | 82,077 |
Income tax expense | 6,138 | | 6,755 | | 4,671 | | 27,449 | 30,801 |
| | | | | | | | | |
Net Income | $10,230 | | $11,246 | | $9,870 | | $46,222 | $51,276 |
| | | | | | | | | |
Earnings per Share: | | | | | | | | |
Basic | $0.29 | | $0.32 | | $0.27 | | $1.31 | $1.43 |
Diluted | $0.29 | | $0.31 | | $0.26 | | $1.28 | $1.37 |
| | | | | | | | | |
Average common shares | | | | | | | | |
outstanding for Diluted EPS | 35,861,646 | | 35,998,094 | | 37,300,295 | | 36,212,000 | 37,350,257 |
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(In thousands except per share amounts)
| | For the Three Months Ended | | For the Year Ended |
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, |
| | 2004 | | 2004 | | 2003 | | 2004 | | 2003 |
| | | | | | | | | | |
Performance and Other Selected Ratios: | | | | | | | | | |
| Return on Average Assets | 1.20% | | 1.30% | | 1.31% | | 1.38% | | 1.67% |
| Return on Average Stockholders' Equity | 14.56% | | 16.41% | | 14.04% | | 16.76% | | 18.76% |
| Return on Average Tangible Stockholders' Equity | 17.94% | | 20.15% | | 17.51% | | 20.76% | | 23.75% |
| Net Interest Spread (1) | 2.71% | | 2.72% | | 3.20% | | 2.77% | | 3.25% |
| Net Interest Margin (1) | 2.93% | | 2.92% | | 3.45% | | 3.00% | | 3.52% |
| Non-interest Expense to Average Assets | 1.29% | | 1.22% | | 1.55% | | 1.27% | | 1.33% |
| Efficiency Ratio | 40.57% | | 36.20% | | 41.55% | | 36.67% | | 33.05% |
| Effective Tax Rate | 37.50% | | 37.53% | | 32.12% | | 37.26% | | 37.53% |
| Tangible Equity to Tangible Assets at period end | 6.88% | | 7.82% | | 6.76% | | 6.88% | | 7.82% |
| | | | | | | | | | |
Per Share Data: | | | | | | | | | |
| Reported EPS (Diluted) | $0.29 | | $0.31 | | $0.26 | | $1.28 | | $1.37 |
| Stated Book Value | 7.58 | | 7.51 | | 7.45 | | 7.58 | | 7.45 |
| Tangible Book Value | 6.16 | | 6.09 | | 5.98 | | 6.16 | | 5.98 |
| | | | | | | | | | |
Average Balance Data: | | | | | | | | | |
| Average Assets | $ 3,417,550 | | $ 3,448,112 | | $ 3,014,236 | | $ 3,352,192 | | $ 3,064,211 |
| Average Interest Earning Assets | 3,250,859 | | 3,292,610 | | 2,879,123 | | 3,192,612 | | 2,915,464 |
| Average Stockholders' Equity | 281,073 | | 274,176 | | 281,153 | | 275,793 | | 273,255 |
| Average Tangible Stockholders' Equity | 228,126 | | 223,288 | | 225,471 | | 222,625 | | 215,897 |
| Average Loans | 2,493,365 | | 2,525,371 | | 2,206,003 | | 2,397,187 | | 2,193,356 |
| Average Deposits | 2,226,096 | | 2,276,974 | | 2,026,947 | | 2,249,390 | | 2,045,739 |
| | | | | | | | | | |
Asset Quality Summary: | | | | | | | | | |
| Net charge-offs (recoveries) | $ 59 | | $ 6 | | ($ 17) | | $ 132 | | $ 28 |
| Nonperforming Loans | 1,459 | | 851 | | 525 | | 1,459 | | 525 |
| Nonperforming Loans/ Total Loans | 0.06% | | 0.03% | | 0.02% | | 0.06% | | 0.02% |
| Nonperforming Assets/Total Assets | 0.04% | | 0.02% | | 0.02% | | 0.04% | | 0.02% |
| Allowance for Loan Loss/Total Loans | 0.62% | | 0.61% | | 0.68% | | 0.62% | | 0.68% |
| Allowance for Loan Loss/Nonperforming Loans | 1065.32% | | 1807.52% | | 2860.57% | | 1065.32% | | 2860.57% |
| | | | | | | | | | |
Regulatory Capital Ratios (Bank Only): | | | | | | | | | |
| Tangible Capital Ratio | 7.88% | | 7.86% | | 7.97% | | 7.88% | | 7.97% |
| Leverage Capital Ratio | 7.88% | | 7.86% | | 7.97% | | 7.88% | | 7.97% |
| Risk -Based Capital Ratio | 12.83% | | 14.84% | | 15.03% | | 12.83% | | 15.03% |
| | | | | | | | | | |
Non-GAAP Disclosures - Cash Earnings Reconciliation and Ratios (2): | | | | | | |
| Net Income | $10,230 | | $11,246 | | $9,870 | | $46,222 | | $51,276 |
Additions to Net Income: | | | | | | | | | |
| Core Deposit Intangible Amortization | 206 | | 206 | | 206 | | 825 | | 825 |
| Non-cash stock benefit plan expense | 453 | | 651 | | 717 | | 2,583 | | 2,541 |
| Cash Earnings | $10,889 | | $12,103 | | $10,793 | | $49,630 | | $54,642 |
| | | | | | | | | | |
| Cash EPS (Diluted) | 0.30 | | 0.34 | | 0.29 | | 1.37 | | 1.46 |
| Cash Return on Average Assets | 1.27% | | 1.40% | | 1.43% | | 1.48% | | 1.78% |
| Cash Return on Average Tangible Stockholders' Equity | 19.09% | | 21.68% | | 19.15% | | 22.29% | | 25.31% |
(1) Ratios exclude prepayment expenses on borrowings of $4,144,000 recorded during the three months ended December 31, 2003. Including these items, the net interest spread was 2.55% and the net interest margin was 2.88% during the three months ended December 31, 2003, and the net interest spread was 3.08% and the net interest margin was 3.36% during the twelve months ended December 31, 2003. There was no prepayment expense recorded on borrowings during the three months or twelve months ended December 31, 2004
(2) Cash earnings and related data are "Non-GAAP Disclosures." These disclosures present information which management considers useful to the readers of this report since they present a measure of the tangible equity generated from operations during each period presented. Tangible equity generation is a significant financial measure since banks are subject to regulatory requirements involving the maintenance of minimum tangible capital levels.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
ANALYSIS OF NET INTEREST INCOME
| | For the Three Months Ended |
| | December 31, 2004 | | September 30, 2004 | | December 31, 2003 |
| | | | Average | | | | Average | | | | Average |
| | Average | | Yield/ | | Average | | Yield/ | | Average | | Yield/ |
| | Balance | Interest | Cost | | Balance | Interest | Cost | | Balance | Interest | Cost |
| | (Dollars In Thousands) |
| Assets: | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | |
| Real Estate Loans | $2,490,166 | $35,193 | 5.65% | | $2,522,106 | $35,462 | 5.62% | | $2,202,588 | $34,612 | 6.29% |
| Other loans | 3,199 | 47 | 5.88 | | 3,265 | 65 | 7.96 | | 3,415 | 66 | 7.73 |
| Mortgage-backed securities | 550,525 | 4,792 | 3.48 | | 630,131 | 5,440 | 3.45 | | 497,909 | 4,292 | 3.45 |
| Investment securities | 56,173 | 643 | 4.58 | | 50,458 | 416 | 3.30 | | 41,910 | 367 | 3.50 |
| Other short-term investments | 150,796 | 778 | 2.06 | | 86,650 | 323 | 1.49 | | 133,301 | 251 | 0.75 |
| Total interest earning assets | 3,250,859 | $41,453 | 5.10% | | 3,292,610 | $41,706 | 5.07% | | 2,879,123 | $39,588 | 5.50% |
| Non-interest earning assets | 166,691 | | | | 155,502 | | | | 135,113 | | |
| Total assets | $3,417,550 | | | | $3,448,112 | | | | $3,014,236 | | |
| | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | |
| NOW, Super Now accounts | $44,092 | $99 | 0.89% | | $44,003 | $117 | 1.05% | | $35,685 | $90 | 1.00% |
| Money Market accounts | 791,133 | 2,893 | 1.45 | | 827,387 | 2,985 | 1.43 | | 739,699 | 2,498 | 1.34 |
| Savings accounts | 363,969 | 440 | 0.48 | | 368,391 | 505 | 0.54 | | 367,908 | 498 | 0.54 |
| Certificates of deposit | 933,990 | 5,707 | 2.43 | | 942,465 | 5,881 | 2.48 | | 793,605 | 5,245 | 2.62 |
| Borrowed Funds | 809,282 | 8,512 | 4.18 | | 797,944 | 8,165 | 4.06 | | 607,445 | 10,558 | 6.90 |
| Total interest-bearing liabilities | 2,942,466 | $17,651 | 2.39% | | 2,980,190 | $17,653 | 2.35% | | 2,544,342 | $18,889 | 2.95% |
| Checking accounts | 92,912 | | | | 94,728 | | | | 90,050 | | |
| Other non-interest-bearing liabilities | 101,099 | | | | 99,018 | | | | 98,691 | | |
| Total liabilities | 3,136,477 | | | | 3,173,936 | | | | 2,733,083 | | |
| Stockholders' equity | 281,073 | | | | 274,176 | | | | 281,153 | | |
| Total liabilities and stockholders' equity | $3,417,550 | | | | $3,448,112 | | | | $3,014,236 | | |
| Net interest income | | $23,802 | | | | $24,053 | | | | $20,699 | |
| Net interest spread (1) | | | 2.71% | | | | 2.72% | | | | 2.55% |
| Net interest-earning assets | $308,393 | | | | $312,420 | | | | $334,781 | | |
| Net interest margin (1) | | | 2.93% | | | | 2.92% | | | | 2.88% |
| Ratio of interest-earning assets | | | | | | | | | | | |
| to interest-bearing liabilities | | | 110.48% | | | | 110.48% | | | | 113.16% |
(1) Ratios include prepayment expenses on borrowings of $4,144,000 recorded during the three months ended December 31, 2003. Excluding this item, the net interest spread was 3.20% and the net interest margin was 3.45% during the three months ended December 31, 2003.
