COLUMBIA BANCORP REPORTS FOURTH QUARTER 2008 FINANCIAL RESULTS
The Dalles, Oregon – January 30, 2009 – Columbia Bancorp (Nasdaq:CBBO), the bank holding company for Columbia River Bank, announced today that it recognized a non-cash goodwill impairment charge of $7.4 million, or $0.74 per share, during the fourth quarter of 2008. The charge did not affect Columbia’s liquidity, operations or regulatory capital ratios. Columbia also recognized a provision for loan losses of $9.0 million, or $0.90 per share, during the fourth quarter. These two charges, totaling $16.4 million, contributed to a net loss of $13.3 million, or $1.32 per share, for the fourth quarter of 2008. “During the fourth quarter, we reduced salaries and employee benefits by $1.1 million compared to third quarter, halted branch expansion plans and lowered or eliminated expenses for discretionary items not directly impacting the customer experience. We also increased retail deposits by $62.2 million which supplemented a strong liquidity position during the fourth quarter,” explained Terry Cochran, President and CEO of Columbia.
The goodwill impairment of $7.4 million represented the entire balance of goodwill, which was recorded as part of the acquisition of Valley Community Bancorp in November 1998. This charge was identified in connection with the preparation of Columbia’s financial statements for the fourth quarter of 2008 and was primarily due to the reduction in Columbia’s market capitalization since September 30, 2008.
“During the fourth quarter, our deposit gathering efforts netted approximately 1,100 new deposit relationships throughout all of our regions,” remarked Shane Correa, Executive Vice President and Chief Banking Officer. Reflecting on 2008, Correa continued “We saw declining non-interest bearing deposit balances for construction industry customers in 2008, but we were successful in recruiting new small business and individual customers using our personalized customer service approach combined with technology and core operation improvements made during the year.” As part of a fourth quarter 2008 strategy to rebalance its loan and deposit portfolios, Columbia reduced its gross loans by $60.2 million to $864.0 million as of December 31, 2008, compared to $924.2 million as of September 30, 2008. As of December 31, 2008, total deposit balances were unchanged at $1.0 billion compared to September 30, 2008; however, the composition improved with a 9% increase in retail deposits, allowing Columbia to strategically decrease higher cost wholesale/brokered deposits.
CREDIT QUALITY
Non-performing assets as of December 31, 2008 totaled $102.0 million compared to $68.9 million as of September 30, 2008 and $10.5 million as of December 31, 2007. The net change of $33.1 million since September 30, 2008 includes a $29.1 million net increase in non-accrual loans and a $4.0 million net increase in other real estate owned (“OREO”). Non-accrual loan activity included an increase of $39.9 million during the fourth quarter, offset by reductions of $10.8 million. The reductions included $4.6 million transferred to OREO, charge-offs of $2.6 million, pay downs of $1.8 million and $1.8 million of improved accounts that returned to accrual status.
Growth in non-accrual totals for the fourth quarter of 2008 was primarily due to residential lot and subdivision loans, which accounted for approximately 52% of the increase. This was centered in seven relationships totaling $20.7 million. The change also included a large agricultural relationship of $12.5 million that went into non-accrual status when the client’s alternate take-out funding failed to materialize as planned. The remaining non-accrual changes were spread throughout the portfolio, including smaller residential and agricultural relationships. Borrower payment performance on residential development projects continues to suffer due to the unstable economy and the resulting lack of demand for residential lots and new home construction. Columbia expects continued stress on credit quality until the economy begins to recover.
COLUMBIA BANCORP ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS
JANUARY 30, 2009
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In aggregate, 68% of the non-accrual totals ($63.1 million) were residential construction loans, 19% were agricultural loans ($17.3 million) and the remaining 13% is disbursed throughout the portfolio ($12.0 million). Columbia believes the largest portion of the risk profile within the non-accrual totals has already been recognized due to partial charge-offs of $23.0 million on these various accounts, and due to specific loan loss allowance allocations of $12.2 million that are already recognized in the allowance for loan losses.
| Non-Accrual Loans by Type: | | December 31, 2008 | | | September 30, 2008 | | | December 31, 2007 | |
| (dollars in thousands) | | Number of Loans | | | Dollar Amount | | | Number of Loans | | | Dollar Amount | | | Number of Loans | | | Dollar Amount | |
| Real estate secured loans: | | | | | | | | | | | | | | | | | | |
| Residential lots, sub-divisions, home construction | | | 54 | | | $ | 63,119 | | | | 49 | | | $ | 49,959 | | | | 3 | | | $ | 7,824 | |
| Residential | | | 9 | | | | 3,454 | | | | 6 | | | | 2,353 | | | | 1 | | | | 810 | |
| Commercial real estate | | | 6 | | | | 5,290 | | | | 3 | | | | 2,434 | | | | 2 | | | | 1,173 | |
Agricultural farmland (1) | | | 6 | | | | 15,094 | | | | 4 | | | | 3,116 | | | | - | | | | - | |
| Commercial and industrial | | | 12 | | | | 3,072 | | | | 11 | | | | 3,335 | | | | 1 | | | | 41 | |
| Agricultural production | | | 7 | | | | 2,173 | | | | 2 | | | | 1,994 | | | | 1 | | | | 17 | |
| Consumer | | | 7 | | | | 148 | | | | 3 | | | | 39 | | | | - | | | | - | |
| | | | 101 | | | $ | 92,350 | | | | 78 | | | $ | 63,230 | | | | 8 | | | $ | 9,865 | |
(1) Real estate-secured agricultural loans may be used for agricultural production purposes.
During the fourth quarter of 2008, OREO changes included the addition of properties valued at $4.6 million, the sale of a property valued at $250,000, and a $360,000 write down of an existing property based on a new valuation. As collection efforts finalize on several properties currently on non-accrual status, Columbia expects the level of OREO will rise over the next several months with a corresponding drop in non-accrual totals.
Net charge-offs during the fourth quarter of 2008 totaled $5.4 million, compared to $21.4 million for the third quarter of 2008 and $139,000 for the fourth quarter of 2007. The majority of fourth quarter 2008 gross charge-offs were comprised of write downs on five accounts. Four of the write downs totaled $3.3 million and related to residential real estate subdivisions, primarily because the loans became collateral-dependent during the quarter and collateral values had declined. The fifth write down of $1.7 million related to an agricultural credit where real estate and crop collateral values had declined. Columbia had recognized specific loan loss allocations for these five loans in prior quarters.
Provision for loan losses totaled $9.0 million for the fourth quarter of 2008, compared to $25.4 million for the third quarter of 2008 and $590,000 for the fourth quarter of 2007. Approximately $5.5 million of the fourth quarter provision resulted from certain risks associated with the agricultural credit on non-accrual status noted above. The remainder of the loss provision for the fourth quarter primarily related to deteriorating collateral values and credit quality factors associated with the residential construction section of the portfolio.
Allowance for credit losses (including liability for unfunded loan commitments) totaled $25.2 million, or 2.91% of gross loans, as of December 31, 2008, compared to 2.37% as of September 30, 2008 and 1.37% as of December 31, 2007. The allowance for credit losses ratio of 2.91% is among the highest in Columbia’s history, reflecting a strong position from which to manage the risk factors of the loan portfolio.
“While non-accrual totals continued to grow during the quarter, we are encouraged that we are beginning to experience pay downs and upgrades of older non-accrual accounts as clients either liquidate collateral, refinance elsewhere or return to performing status due to outside resources,” stated Cochran.
COLUMBIA BANCORP ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS
JANUARY 30, 2009
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NET INTEREST INCOME AND MARGIN
Net interest income before provision for loan losses totaled $6.9 million for the fourth quarter of 2008, compared to $10.2 million for the third quarter of 2008 and $13.2 million for the fourth quarter of 2007. Net interest margin was 2.60% for the fourth quarter of 2008, compared to 3.86% for the third quarter of 2008 and 5.48% for the fourth quarter of 2007. Net interest income for the fourth quarter of 2008 decreased primarily due to the following factors:
| | · | For the fourth quarter of 2008, interest reversed as loans were placed on non-accrual status totaled $1.4 million, resulting in a 54 basis point decline in net interest margin. Separately, interest that would have been earned on non-accrual loans during the fourth quarter of 2008 totaled approximately $2.39 million. |
| | · | Loan yields decreased due to reductions in the Prime interest rate following cuts in the Fed Funds rate of 200 basis points during the fourth quarter of 2008 (variable rate loans comprise approximately 83% of Columbia’s loan portfolio). |
CAPITAL
As of December 31, 2008, Columbia River Bank is considered adequately-capitalized for regulatory purposes. Of the three regulatory capital ratios, the Tier 1 risk-based capital and leverage ratios meet the quantitative well-capitalized definition. The following table presents the regulatory capital ratios for Columbia River Bank:
| | | Adequately | | | Well | | | | |
| | | Capitalized | | | Capitalized | | | December 31, 2008 | |
| | | | | | | | | | | | | |
| Total risk-based capital | | | 8.00 | % | | | 10.00 | % | | | 8.75 | % |
| | | | | | | | | | | | | |
| Tier 1 risk-based capital | | | 4.00 | % | | | 6.00 | % | | | 7.49 | % |
| | | | | | | | | | | | | |
| Leverage ratio | | | 4.00 | % | | | 5.00 | % | | | 6.29 | % |
For the near term, Columbia River Bank intends to remain adequately-capitalized by regulatory definition, and plans to prudently manage its capital in order to return to well-capitalized status as soon as possible. Actions to preserve and increase capital levels during 2008 included the following:
| | · | Suspension of board of director fees beginning in July 2008. |
| | · | Suspension of stockholder dividends beginning in the third quarter of 2008. |
| | · | Closure of mortgage banking business in September 2008, affecting 39 employees. |
| | · | Reduction in work force affecting 20 other employees in September 2008. |
| | · | Sale of credit card portfolio at a gain of $1.2 million in September 2008. |
| | · | Closure of Lake Oswego branch in October 2008. |
SUMMARY
“While we expect 2009 will be another difficult year for community banks, we will continue our efforts to rebalance loans and deposits, reduce expenses and resolve non-performing assets to increase earning assets. We are focused on three core strategies of maintaining strong liquidity, increasing capital levels and growing retail deposits,” stated Cochran. “I believe the core values of Columbia River Bank, developed over the last thirty years, coupled with our team of managers and employees will make a pivotal difference as we work to return to profitability.”
COLUMBIA BANCORP ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS
JANUARY 30, 2009
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ABOUT COLUMBIA BANCORP
Columbia Bancorp (www.columbiabancorp.com) is the bank holding company for Columbia River Bank, which operates 21 branches located in The Dalles (2), Hood River, Bend (3), Madras, Redmond (2), Pendleton, Hermiston, McMinnville, Canby, and Newberg, Oregon, and in Goldendale, White Salmon, Sunnyside, Yakima, Pasco, Richland, and Vancouver, Washington. To supplement its community banking services, Columbia River Bank also provides brokerage services through CRB Financial Services Team.
FORWARD LOOKING STATEMENTS
This press release contains various forward-looking statements about plans and anticipated results of operations and financial condition relating to Columbia Bancorp. These statements include statements about management’s present plans and intentions about our strategy, growth, and deployment of resources, and about management’s expectations for future financial performance. Readers can sometimes identify forward-looking statements by the use of prospective language and context, including words like “may”, “will”, “should”, “expect”, “anticipate”, “estimate”, “continue”, “plans”, “intends”, or other similar terminology. Because forward-looking statements are, in part, an attempt to project future events and explain management’s current plans, they are subject to various risks and uncertainties which could cause our actions and our financial and operational results to differ materially from those set forth in such statements. These risks and uncertainties include, without limitation, our ability maintain and grow our deposit base in the face of continuing uncertainty surrounding the financial institutions industry and our markets in particular; our ability to raise additional capital to address the risk of exacerbated or protracted economic declines; our ability to estimate accurately the collectability of our loans and mitigate the potential risks associated with acquisition and sale of any underlying collateral; economic and other factors which affect the collectability of our loans generally; our ability to address the risks associated with the geographic and industry-specific concentrations of our loan portfolio; the impact of banking laws and regulations, competition, and fluctuations in market interest rates on Columbia’s revenues and margins, management’s ability to generate growth from core operations in the face of the announced staffing reductions, and other risks and uncertainties that we have in the past, or that we may from time to time in the future, detail in our filings with the Securities and Exchange Commission ("SEC"). Information presented in this release is accurate as of the date on which the release was issued, and we cannot undertake to update our forward-looking statements or the factors that may cause us to deviate from them, except as required by law.
COLUMBIA BANCORP ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS
JANUARY 30, 2009
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| INCOME STATEMENT | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share data and ratios) | | | | | | | | | | | | | |
| | | Three Months Ended | | | % | | | Twelve Months Ended | | | % | |
| | | December 31, | | | Change | | | December 31, | | | Change | |
| | | 2008 | | | 2007 | | | | | | 2008 | | | 2007 | | | | |
| Interest income | | $ | 13,626 | | | $ | 19,694 | | | | -31 | % | | $ | 64,961 | | | $ | 79,524 | | | | -18 | % |
| Interest expense | | | 6,776 | | | | 6,525 | | | | 4 | % | | | 24,347 | | | | 26,508 | | | | -8 | % |
| Net interest income before | | | | | | | | | | | | | | | | | | | | | | | | |
| provision for loan losses | | | 6,850 | | | | 13,169 | | | | -48 | % | | | 40,614 | | | | 53,016 | | | | -23 | % |
| Provision for loan losses | | | 9,010 | | | | 590 | | | | 1427 | % | | | 43,110 | | | | 4,740 | | | | 809 | % |
| Net interest income (loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| after provision for loan losses | | | (2,160 | ) | | | 12,579 | | | | -117 | % | | | (2,496 | ) | | | 48,276 | | | | -105 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges and fees | | | 1,326 | | | | 1,158 | | | | 15 | % | | | 4,989 | | | | 4,404 | | | | 13 | % |
| Mortgage loan origination income | | | 74 | | | | 953 | | | | -92 | % | | | 3,004 | | | | 3,803 | | | | -21 | % |
| Financial services revenue | | | 232 | | | | 254 | | | | -9 | % | | | 1,073 | | | | 1,056 | | | | 2 | % |
| Credit card discounts and fees | | | 149 | | | | 154 | | | | -3 | % | | | 624 | | | | 561 | | | | 11 | % |
| Gain on sale of credit card portfolio | | | - | | | | - | | | | - | | | | 1,234 | | | | - | | | | - | |
| Loss on other real estate owned | | | (369 | ) | | | - | | | | - | | | | (2,296 | ) | | | (3 | ) | | NM | |
| Other non-interest income | | | 361 | | | | 342 | | | | 6 | % | | | 1,370 | | | | 1,019 | | | | 34 | % |
| Total non-interest income | | | 1,773 | | | | 2,861 | | | | -38 | % | | | 9,998 | | | | 10,840 | | | | -8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 4,444 | | | | 4,787 | | | | -7 | % | | | 20,792 | | | | 20,427 | | | | 2 | % |
| Occupancy expense | | | 1,454 | | | | 1,261 | | | | 15 | % | | | 5,453 | | | | 4,697 | | | | 16 | % |
| Goodwill impairment | | | 7,389 | | | | - | | | | - | | | | 7,389 | | | | - | | | | - | |
| Other non-interest expense | | | 3,513 | | | | 2,822 | | | | 24 | % | | | 13,227 | | | | 10,950 | | | | 21 | % |
| Total non-interest expense | | | 16,800 | | | | 8,870 | | | | 89 | % | | | 46,861 | | | | 36,074 | | | | 30 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before provision for income taxes | | | (17,187 | ) | | | 6,570 | | | | -362 | % | | | (39,359 | ) | | | 23,042 | | | | -271 | % |
| Provision for (benefit from) income taxes | | | (3,906 | ) | | | 2,424 | | | | -261 | % | | | (13,000 | ) | | | 8,560 | | | | -252 | % |
| Net income (loss) | | $ | (13,281 | ) | | $ | 4,146 | | | | -420 | % | | $ | (26,359 | ) | | $ | 14,482 | | | | -282 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings (loss) per common share | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | (1.32 | ) | | $ | 0.41 | | | | -422 | % | | $ | (2.63 | ) | | $ | 1.45 | | | | -281 | % |
| Diluted | | | (1.32 | ) | | | 0.41 | | | | -422 | % | | | (2.63 | ) | | | 1.42 | | | | -285 | % |
| Cumulative dividend per common share | | | - | | | | 0.10 | | | | -100 | % | | | 0.11 | | | | 0.40 | | | | -73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Book value per common share | | | | | | | | | | | | | | $ | 7.45 | | | $ | 10.18 | | | | -27 | % |
Tangible book value per common share (1) | | | | | | | | | | | | 7.45 | | | | 9.44 | | | | -21 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 10,028 | | | | 9,997 | | | | | | | | 10,021 | | | | 9,982 | | | | | |
| Diluted | | | 10,028 | | | | 10,139 | | | | | | | | 10,021 | | | | 10,174 | | | | | |
| Actual shares outstanding | | | 10,067 | | | | 10,044 | | | | | | | | 10,067 | | | | 10,044 | | | | | |
| | | Quarter Ended | | | | | | Year Ended | | | | |
| | | December 31, | | | December 31, | | | | | | December 31, | | | December 31, | | | | |
| RATIOS | | 2008 | | | 2007 | | | | | | 2008 | | | 2007 | | | | |
| Interest rate yield on interest-earning assets, | | | | | | | | | | | | | | | | | | |
| tax equivalent | | | 5.16 | % | | | 8.19 | % | | | | | | | 6.40 | % | | | 8.40 | % | | | | |
| Interest rate expense on interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| liabilities | | | 3.22 | % | | | 3.72 | % | | | | | | | 3.14 | % | | | 3.82 | % | | | | |
| Interest rate spread, tax equivalent | | | 1.94 | % | | | 4.47 | % | | | | | | | 3.27 | % | | | 4.58 | % | | | | |
| Net interest margin, tax equivalent | | | 2.60 | % | | | 5.48 | % | | | | | | | 4.01 | % | | | 5.61 | % | | | | |
Efficiency ratio (2) | | | 109.13 | % | | | 55.33 | % | | | | | | | 77.99 | % | | | 56.49 | % | | | | |
| Return on average assets | | | -4.64 | % | | | 1.61 | % | | | | | | | -2.42 | % | | | 1.43 | % | | | | |
| Return on average equity | | | -61.74 | % | | | 16.28 | % | | | | | | | -27.35 | % | | | 14.96 | % | | | | |
| Average equity / average assets | | | 7.52 | % | | | 9.90 | % | | | | | | | 8.86 | % | | | 9.55 | % | | | | |
(1) Total common equity, less goodwill and other intangible assets, divided by actual shares outstanding.
(2) Non-interest expense divided by net interest income and non-interest income, excluding goodwill impairment.
NM Not meaningful
COLUMBIA BANCORP ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS
JANUARY 30, 2009
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| BALANCE SHEET | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| (In thousands) | | | | | | | | Quarter over | | | | | | Year over | |
| | | December 31, | | | Septemer 30, | | | Quarter | | | December 31, | | | Year | |
| ASSETS | | 2008 | | | 2008 | | | % Change | | | 2007 | | | % Change | |
| Cash and cash equivalents | | $ | 182,479 | | | $ | 151,532 | | | | 20 | % | | $ | 92,224 | | | | 98 | % |
| Investment securities | | | 32,076 | | | | 24,952 | | | | 29 | % | | | 34,182 | | | | -6 | % |
| Loans: | | | | | | | | | | | | | | | | | | | | |
| Commercial loans | | | 127,598 | | | | 144,643 | | | | -12 | % | | | 129,018 | | | | -1 | % |
| Agricultural loans | | | 74,630 | | | | 82,150 | | | | -9 | % | | | 70,095 | | | | 6 | % |
| Real estate loans | | | 389,801 | | | | 402,756 | | | | -3 | % | | | 354,576 | | | | 10 | % |
| Real estate loans - construction | | | 253,683 | | | | 274,617 | | | | -8 | % | | | 294,398 | | | | -14 | % |
| Consumer loans | | | 14,414 | | | | 13,945 | | | | 3 | % | | | 11,630 | | | | 24 | % |
| Loans held for sale | | | - | | | | 1,750 | | | | -100 | % | | | 8,139 | | | | -100 | % |
| Other loans | | | 3,878 | | | | 4,320 | | | | -10 | % | | | 11,208 | | | | -65 | % |
| Total gross loans | | | 864,004 | | | | 924,181 | | | | -7 | % | | | 879,064 | | | | -2 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Unearned loan fees | | | (562 | ) | | | (855 | ) | | | 34 | % | | | (1,060 | ) | | | 47 | % |
| Allowance for loan losses | | | (24,492 | ) | | | (20,927 | ) | | | -17 | % | | | (11,174 | ) | | | -119 | % |
| Net loans | | | 838,950 | | | | 902,399 | | | | -7 | % | | | 866,830 | | | | -3 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Property and equipment, net | | | 23,628 | | | | 24,037 | | | | -2 | % | | | 21,500 | | | | 10 | % |
| Goodwill | | | - | | | | 7,389 | | | | -100 | % | | | 7,389 | | | | -100 | % |
| Other assets | | | 45,161 | | | | 39,717 | | | | 14 | % | | | 20,583 | | | | 119 | % |
| Total assets | | $ | 1,122,294 | | | $ | 1,150,026 | | | | -2 | % | | $ | 1,042,708 | | | | 8 | % |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 215,922 | | | $ | 215,852 | | | | - | | | $ | 224,092 | | | | -4 | % |
| Interest bearing demand deposits | | | 271,244 | | | | 293,427 | | | | -8 | % | | | 303,235 | | | | -11 | % |
| Savings accounts | | | 30,873 | | | | 34,420 | | | | -10 | % | | | 35,784 | | | | -14 | % |
| Time certificates | | | 486,157 | | | | 471,369 | | | | 3 | % | | | 359,782 | | | | 35 | % |
| Total deposits | | | 1,004,196 | | | | 1,015,068 | | | | -1 | % | | | 922,893 | | | | 9 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Borrowings | | | 36,613 | | | | 40,782 | | | | -10 | % | | | 10,402 | | | | 252 | % |
| Other liabilities | | | 6,436 | | | | 5,925 | | | | 9 | % | | | 7,175 | | | | -10 | % |
| Total liabilities | | | 1,047,245 | | | | 1,061,775 | | | | -1 | % | | | 940,470 | | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Shareholders' equity | | | 75,049 | | | | 88,251 | | | | -15 | % | | | 102,238 | | | | -27 | % |
| Total liabilities and shareholders' equity | | $ | 1,122,294 | | | $ | 1,150,026 | | | | -2 | % | | $ | 1,042,708 | | | | 8 | % |
COLUMBIA BANCORP ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS
JANUARY 30, 2009
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| ADDITIONAL FINANCIAL INFORMATION | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | | | | |
| (In thousands, except ratios) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING ASSETS | | December 31, 2008 | | | December 31, 2007 | | | | | | | | | | | | | |
| Delinquent loans on non-accrual status | | $ | 92,350 | | | $ | 9,865 | | | | | | | | | | | | | | | | | |
| Delinquent loans on accrual status | | | - | | | | - | | | | | | | | | | | | | | | | | |
| Restructured loans | | | 57 | | | | 84 | | | | | | | | | | | | | | | | | |
| Total non-performing loans | | | 92,407 | | | | 9,949 | | | | | | | | | | | | | | | | | |
| Other real estate owned | | | 9,622 | | | | 516 | | | | | | | | | | | | | | | | | |
| Repossessed other assets | | | - | | | | 5 | | | | | | | | | | | | | | | | | |
| Total non-performing assets | | $ | 102,029 | | | $ | 10,470 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total non-performing assets / total assets | | | 9.09 | % | | | 1.00 | % | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Year to Date | | | | | | | | | |
| ALLOWANCE FOR CREDIT LOSSES | | December 31, 2008 | | | December 31, 2007 | | | December 31, 2008 | | | December 31, 2007 | | | | | | | | | |
| Allowance for loan losses, beginning of period | | $ | 20,927 | | | $ | 10,723 | | | $ | 11,174 | | | $ | 10,143 | | | | | | | | | |
| Provision for loan losses | | | 9,010 | | | | 590 | | | | 43,110 | | | | 4,740 | | | | | | | | | |
| Recoveries | | | 93 | | | | 66 | | | | 333 | | | | 309 | | | | | | | | | |
| Charge offs | | | (5,538 | ) | | | (205 | ) | | | (29,906 | ) | | | (4,018 | ) | | | | | | | | |
| Adjustment for sale of credit card portfolio | | | - | | | | - | | | | (219 | ) | | | - | | | | | | | | | |
| Allowance for loan losses, end of period | | | 24,492 | | | | 11,174 | | | | 24,492 | | | | 11,174 | | | | | | | | | |
| Liability for unfunded loan commitments | | | 681 | | | | 848 | | | | 681 | | | | 848 | | | | | | | | | |
| Allowance for credit losses | | $ | 25,173 | | | $ | 12,022 | | | $ | 25,173 | | | $ | 12,022 | | | | | | | | | |
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| Allowance for loan losses / gross loans | | | | | | | | 2.83 | % | | | 1.27 | % | | | | | | | | |
| Allowance for credit losses / gross loans | | | | | | | | 2.91 | % | | | 1.37 | % | | | | | | | | |
| Non-performing loans / allowance for loan losses | | | | | | | | 377.29 | % | | | 89.03 | % | | | | | | | | |
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| | | Quarter Ended | | | Year to Date | | | | | | | | | |
| FINANCIAL PERFORMANCE | | December 31, 2008 | | | December 31, 2007 | | | December 31, 2008 | | | December 31, 2007 | | | | | | | | | |
| Average interest earning assets | | $ | 1,054,643 | | | $ | 957,067 | | | $ | 1,017,688 | | | $ | 950,014 | | | | | | | | | |
| Average gross loans | | | 897,690 | | | | 874,843 | | | | 914,846 | | | | 859,483 | | | | | | | | | |
| Average assets | | | 1,138,310 | | | | 1,020,923 | | | | 1,088,287 | | | | 1,013,438 | | | | | | | | | |
| Average interest bearing liabilities | | | 836,842 | | | | 695,275 | | | | 776,415 | | | | 693,503 | | | | | | | | | |
| Average interest bearing deposits | | | 799,761 | | | | 684,172 | | | | 736,837 | | | | 673,786 | | | | | | | | | |
| Average deposits | | | 1,008,503 | | | | 906,039 | | | | 945,235 | | | | 894,111 | | | | | | | | | |
| Average liabilities | | | 1,052,742 | | | | 919,899 | | | | 991,906 | | | | 916,649 | | | | | | | | | |
| Average equity | | | 85,568 | | | | 101,024 | | | | 96,381 | | | | 96,790 | | | | | | | | | |
