Exhibit 99.1
FOR IMMEDIATE RELEASE | | For more information, contact: |
| | Lyne Andrich | 303.312.3458 |
| | Sue Hermann | 303.312.3488 |
CoBiz Inc. Reports 46% Increase in Quarterly Net Income
Also posts 40% increase in quarterly EPS
DENVER — Oct. 21, 2004 — CoBiz Inc. (Nasdaq: COBZ), a $1.65 billion financial services company, today reported a 45.6% increase in net income, increasing to $4.80 million for the third quarter of 2004 from $3.30 million for the third quarter of 2003. Earnings per share (diluted) for the same periods grew to $0.21 from $0.15, a 40.0% increase. For the first nine months of 2004, net income increased by 34.1%, growing to $12.31 million from $9.18 million for the first nine months of 2003. Earnings per share for the same period increased to $0.55 from $0.43, an increase of 27.9%.
“Our strong results this quarter reflect the continuing strength and focus of our company,” said Steven Bangert, chairman and CEO, CoBiz Inc. “Our banks continue to post solid growth numbers, and we’ve seen more significant contributions from our fee-based businesses. Colorado Business Bank had a very strong quarter, and Arizona Business Bank continues to post exceptional growth numbers. During the last three years, we have focused capital and management resources on building out the platforms for our investment banking, insurance and investment advisory businesses. All of these business lines have made a positive contribution to our year-to-date earnings.
“We continue to have a great deal of success in recruiting and retaining talented financial professionals and top-tier customers. As we celebrate our 10th anniversary and prepare to open four more banks in the coming months, I believe this company is positioned for even greater accomplishments.”
Bangert cited improving economies in Colorado and Arizona as one reason for his optimism. Colorado’s economic situation is slowly improving, adding new jobs at an annualized rate of 0.8% from August 2003 to August 2004. “Through March of this year, Colorado had experienced almost three years of negative job growth,” said Bangert. “The current growth, although lagging behind the national average, is a sign that the state is turning around.”
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Arizona increased jobs at a rate of 2.4% from August 2003 to August 2004, making it one of three states tied as second-fastest for job growth in the nation. The growth was centered in metropolitan Phoenix, where the unemployment rate dipped to 3.9% in August, compared to a national rate of 5.4%. The number of housing permits issued in metropolitan Phoenix set a new record in July at 35,104 for the first seven months of the year. If the current pace of building permits continues, the 2004 total could exceed 56,000 compared to the current record of 47,720 set in 2003.
Commercial Banking
The company’s banking franchise – Colorado Business Bank and Arizona Business Bank – grew loans at an annualized rate of 27.3%, or $70.19 million, during the third quarter of 2004. The growth was led by an annualized increase of 30.5%, or $27.54 million, in the bank’s commercial loan portfolio during the same period. The bank grew deposits and customer repurchase agreements at an annualized rate of 29.8%, or $87.63 million, during the third quarter of 2004. Non-interest-bearing deposits increased by 24.0%, or $20.60 million during the same period.
“We’ve long been recognized for the consistent growth in our loan portfolio, but I’m particularly proud of how we’ve grown our core deposits,” said Jonathan C. Lorenz, vice chair and CEO, Colorado Business Bank and Arizona Business Bank. “Our ability to attract significant depository relationships – including non-interest-bearing deposits – is a clear testament to the strength of our franchise. We’ve always been committed to establishing banking relationships with – not just conducting transactions for – our customers, and it shows in our success in gathering deposits.”
According to Lorenz, the company is also dedicated to maintaining a strong credit culture. “We continue to post exceptional asset quality numbers, ending the third quarter of 2004 with nonperforming assets as a percentage of total assets at 9 basis points.” The bank wrote off $302,000 in net loans during the third quarter of 2004, for a total of $503,000 year to date. The amount written off year to date represents less than 5 basis points of the bank’s total loan portfolio at the end of the third quarter. According to Lorenz, the write offs are reflective of the bank’s disciplined management of its asset quality and are nominal in comparison with current industry levels.
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The company’s net interest margin decreased 5 basis points to 4.14% in the third quarter of 2004 from 4.19% in the second quarter of 2004. The third quarter margin was affected by the re-pricing of adjustable-rate mortgage-backed securities and the full-quarter impact of the junior subordinated debentures that were issued toward the end of the second quarter. However, with the three 25 basis point increases in Prime, the margin expanded throughout the third quarter and ended the month of September higher than the quarter’s average. CoBiz will continue to experience margin expansion if short-term rates increase as is currently predicted.
“In September, we announced that Jeff Wentzel, a 26-year career veteran of Wells Fargo, will be opening a bank in the Chandler area – our seventh in Arizona – early next year,” said Lorenz. “This represents just one of the four new banks – three in Arizona and one in Colorado – we’re currently working to open. Colorado Business Bank-Northwest and Arizona Business Bank-Camelback will be open by the end of this year. We expect Arizona Business Bank-East Valley and Arizona Business Bank-Chandler to be open in the first quarter of 2005.
“All of these new banks have been operating out of our existing locations in Colorado and Arizona, actively booking loans and deposits as they prepare to open their own locations. We’ve been very pleased with the success our new presidents have had in bringing their former customers and co-workers along with them. We look forward to continued success in gaining market share and attracting talented professionals to our organization.”
Fee-Based Business Lines
“Our fee-based business lines are doing well, helping to grow non-interest income for the first nine months of 2004 by $6.77 million, or 65%, over the first nine months of 2003,” said Bangert. “We’re very excited about our prospects for the rest of 2004 and into 2005.”
Investment Banking
The company’s investment banking firm, Green Manning & Bunch (GMB), had a strong third quarter, closing seven transactions and generating $2.8 million in revenue. For the year, GMB has closed nine transactions and generated revenues of $3.9 million. This reflects a $0.05 per share improvement over GMB’s performance in the third quarter of 2003 – a contribution of $0.03 per share in the third quarter of 2004 compared to a loss of $0.02 per share in the third quarter of 2003.
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“Obviously, we’re very pleased with GMB’s performance this quarter,” said Bangert. “Clearly, our belief in – and patience with – GMB is paying off. Their current pipeline is strong, and they are well positioned to have a strong fourth quarter and solid 2005.
“We’ve also been pleased with the early success of GMB Business Advisors, GMB’s new division focusing on lower-middle market companies. GMB Business Advisors accounted for two of the deals closed in the third quarter and are part of GMB’s plan for continued growth.”
Insurance
Our insurance segment – composed of Financial Designs Ltd. (FDL), a provider of executive and employee benefits and wealth transfer services, and CoBiz Insurance, a property and casualty insurance firm – had a soft third quarter. The companies lost a combined $83,000 but still remain accretive for the year.
“We’ve found insurance revenues to be seasonal primarily due to increased wealth transfer activities occurring toward year end,” said Bangert. “With that in mind, we weren’t disappointed with the performance of our insurance segment this quarter, and we anticipate stronger results in the fourth quarter.”
Investment Advisory and Trust
Alexander Capital Management Group (ACMG) and CoBiz Private Asset Management make up the company’s investment advisory and trust segment. The companies had combined assets under management of $471.32 million at the end of the third quarter of 2004, representing an annualized increase of 19.1% over the previous nine months.
“Although this segment is not a significant contributor to earnings, it has made real progress, being profitable every quarter since the fourth quarter of 2003,” said Bangert. “Our existing customer base has been receptive to the products offered by ACMG and CoBiz Private Asset Management, as well as the level of personal service they provide. We look forward to continued growth from this segment.”
Conclusion
“The third quarter of 2004 was a strong one for our company, as we celebrated our 10th anniversary,” said Bangert. “We started with two bank locations and $100 million in assets back in 1994, and in a decade we’ve grown to 18 bank locations, five fee-based businesses and $1.65 billion in assets. I’m tremendously proud of our company’s success, which is directly attributable to the quality of our employees. I look forward to seeing what we can accomplish together in the next 10 years.”
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In conjunction with this earnings release, you are invited to take part in a conference call to be broadcast live on Friday, Oct. 22, 2004 at 11 a.m. Eastern Time with Steven Bangert, chairman and CEO, CoBiz Inc. The call can be accessed over the Internet at http://www.firstcallevents.com/service/ajwz410105690gf12.html or by telephone at 1.800.223.9488 (1.785.832.2422 for international callers).
CoBiz Inc. (www.cobizinc.com) is a $1.65 billion financial holding company headquartered in Denver. The company operates Colorado Business Bank and Arizona Business Bank, full-service commercial banking institutions that offer a broad range of sophisticated banking services — including credit, treasury management, investment and deposit products — to a targeted customer base of professionals and small to mid-sized businesses. CoBiz also offers trust and fiduciary services through CoBiz Private Asset Management; property and casualty insurance brokerage and risk management consulting services through CoBiz Insurance; investment banking services through Green Manning & Bunch; the management of stock and bond portfolios for individuals and institutions through Alexander Capital Management Group; and employee and executive benefits consulting and wealth transfer services through Financial Designs.
This report contains forward-looking statements that describe CoBiz’s future plans, strategies and expectations. All forward-looking statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from the results, performance or achievements contemplated by the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements speak only as of the date they are made. Such risks and uncertainties include, among other things:
• Risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent 10-Q.
• Competitive pressures among depository and other financial institutions nationally and in our market areas may increase significantly.
• Adverse changes in the economy or business conditions, either nationally or in our market areas, could increase credit-related losses and expenses and/or limit growth.
• Increases in defaults by borrowers and other delinquencies could result in increases in our provision for losses on loans and leases and related expenses.
• Our inability to manage growth effectively, including the successful expansion of our customer support, administrative infrastructure and internal management systems, could adversely affect our results of operations and prospects.
• Fluctuations in interest rates and market prices could reduce our net interest margin and asset valuations and increase our expenses.
• The consequences of continued bank acquisitions and mergers in our market areas, resulting in fewer but much larger and financially stronger competitors, could increase competition for financial services to our detriment.
• Our continued growth will depend in part on our ability to enter new markets successfully and capitalize on other growth opportunities.
• Changes in legislative or regulatory requirements applicable to us and our subsidiaries could increase costs, limit certain operations and adversely affect results of operations.
• Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations may increase our tax expense or adversely affect our customers’ businesses.
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this report. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
# # #
CoBiz Inc
September 30, 2004
(unaudited)
(Dollars in thousands, except per share amounts)
| | Quarter Ended | | Nine Months Ended | |
| | Sep-04 | | Sep-03 | | Sep-04 | | Sep-03 | |
| | | | | | | | | |
INCOME STATEMENT DATA | | | | | | | | | |
Interest Income | | $ | 19,993 | | $ | 16,348 | | $ | 55,481 | | $ | 48,025 | |
Interest Expense | | 4,572 | | 3,382 | | 12,055 | | 10,707 | |
NET INTEREST INCOME BEFORE PROVISION | | 15,421 | | 12,966 | | 43,426 | | 37,318 | |
Provision for loan and lease losses | | 1,130 | | 570 | | 2,440 | | 1,640 | |
NET INTEREST INCOME AFTER PROVISION LOAN AND LEASE LOSSES | | 14,291 | | 12,396 | | 40,986 | | 35,678 | |
Noninterest Income | | 7,115 | | 3,877 | | 17,137 | | 10,372 | |
Noninterest Expense | | 13,943 | | 11,064 | | 38,663 | | 31,568 | |
INCOME BEFORE INCOME TAXES | | 7,463 | | 5,209 | | 19,460 | | 14,482 | |
Provision for income taxes | | 2,657 | | 1,909 | | 7,147 | | 5,302 | |
NET INCOME | | $ | 4,806 | | $ | 3,300 | | $ | 12,313 | | $ | 9,180 | |
| | | | | | | | | |
EARNINGS PER COMMON SHARE | | | | | | | | | |
BASIC | | $ | 0.22 | | $ | 0.16 | | $ | 0.57 | | $ | 0.45 | |
DILUTED | | $ | 0.21 | | $ | 0.15 | | $ | 0.55 | | $ | 0.43 | |
WEIGHTED AVERAGE SHARES OUTSTANDING | | | | | | | | | |
BASIC | | 21,843 | | 20,596 | | 21,670 | | 20,322 | |
DILUTED | | 22,708 | | 21,291 | | 22,584 | | 21,017 | |
| | | | | | | | | |
COMMON SHARES OUTSTANDING AT PERIOD END | | | | | | 21,858 | | 20,667 | |
BOOK VALUE PER SHARE - COMMON | | | | | | $ | 5.37 | | $ | 4.46 | |
TANGIBLE BOOK VALUE PER SHARE - COMMON | | | | | | $ | 3.56 | | $ | 3.60 | |
| | | | | | | | | |
PERIOD END BALANCES | | | | | | | | | |
Total Assets | | | | | | 1,650,374 | | 1,309,515 | |
Loans & Leases (Net) | | | | | | 1,079,714 | | 876,654 | |
Goodwill and Intangible Assets | | | | | | 39,575 | | 17,799 | |
Deposits | | | | | | 1,111,848 | | 953,408 | |
Junior Subordinated Debentures | | | | | | 71,644 | | 39,630 | |
Common Shareholder’s Equity | | | | | | 117,387 | | 92,129 | |
Tangible Shareholder’s Equity | | | | | | 77,812 | | 74,330 | |
Interest-Earning Assets | | | | | | 1,537,171 | | 1,226,391 | |
Interest-Bearing Liabilities | | | | | | 1,161,901 | | 917,922 | |
| | | | | | | | | |
BALANCE SHEET AVERAGES | | | | | | | | | |
Average Assets | | | | | | 1,508,481 | | 1,191,122 | |
Average Loans & Leases (Net) | | | | | | 991,652 | | 825,349 | |
Average Deposits | | | | | | 1,003,858 | | 887,766 | |
Average Junior Subordinated Debentures | | | | | | 55,953 | | 20,961 | |
Average Common Shareholder’s Equity | | | | | | 108,588 | | 88,463 | |
Average Interest-Earning Assets | | | | | | 1,401,336 | | 1,126,401 | |
Average Interest-Bearing Liabilities | | | | | | 1,069,391 | | 846,352 | |
| | Quarter Ended | | Nine months ended | |
| | Sep-04 | | Sep-03 | | Sep-04 | | Sep-03 | |
| | | | | | | | | |
NON-PERFORMING ASSETS | | | | | | | | | |
Non-Performing loans & leases | | | | | | | | | |
Loans & Leases 90 days or more past due & still accruing interest | | | | | | $ | — | | $ | 47 | |
Nonaccrual loans & leases | | | | | | 1,363 | | 1,883 | |
Total Non-Performing loans & leases | | | | | | $ | 1,363 | | $ | 1,930 | |
Repossessed Assets | | | | | | 40 | | 8 | |
Total Non-Performing assets | | | | | | $ | 1,403 | | $ | 1,938 | |
| | | | | | | | | |
CHANGES IN ALLOWANCE FOR LOAN & LEASE LOSSES | | | | | | | | | |
Beginning balance | | | | | | 12,403 | | 10,388 | |
Provision for loan & lease losses | | | | | | 2,440 | | 1,640 | |
Loans & leases (Charged-off) / Recovered | | | | | | (503 | ) | (427 | ) |
Ending balance | | | | | | $ | 14,340 | | $ | 11,601 | |
| | | | | | | | | |
PROFITABILITY MEASURES | | | | | | | | | |
Net Interest Margin | | 4.14 | % | 4.34 | % | 4.16 | % | 4.45 | % |
Efficiency Ratio | | 62.10 | % | 65.79 | % | 64.23 | % | 66.31 | % |
Return on Average Assets | | 1.19 | % | 1.03 | % | 1.09 | % | 1.03 | % |
Return on Average Common Shareholder’s Equity | | 17.00 | % | 14.01 | % | 15.15 | % | 13.87 | % |
Noninterest Income as a Percentage of Operating Revenues | | 31.57 | % | 23.02 | % | 28.30 | % | 21.75 | % |
| | | | | | | | | |
ASSET QUALITY MEASURES | | | | | | | | | |
Nonperforming Assets to Total Assets | | | | | | 0.09 | % | 0.15 | % |
Nonperforming Loans & Leases to Total Loans & Leases | | | | | | 0.12 | % | 0.22 | % |
Allowance for Loan & Lease Losses to Total Loans & Leases | | | | | | 1.31 | % | 1.31 | % |
Allowance for Loan & Lease Losses to Nonperforming Loans & Leases | | | | | | 1052.09 | % | 601.09 | % |
CoBiz Inc.
September 30, 2004
(unaudited)
(Dollars in thousands)
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
Net interest income | | | | | | | | | | | | | | | |
Quarter ended September 30, 2004 | | $ | 12,702 | | $ | 3,527 | | $ | 3 | | $ | 1 | | $ | 1 | | $ | (813 | ) | $ | 15,421 | |
Quarter ended June 30, 2004 | | 12,043 | | 3,087 | | 1 | | 1 | | — | | (563 | ) | 14,569 | |
Annualized quarterly growth | | 21.8 | % | 56.7 | % | 795.7 | % | .0 | % | 100.0 | % | (176.7 | )% | 23.3 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2003 | | $ | 10,881 | | $ | 2,637 | | $ | 1 | | $ | — | | $ | 1 | | $ | (554 | ) | $ | 12,966 | |
Annual growth | | 16.7 | % | 33.8 | % | 200.0 | % | 100.0 | % | .0 | % | (46.8 | )% | 18.9 | % |
| | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | |
Quarter ended September 30, 2004 | | $ | 1,123 | | $ | 340 | | $ | 2,805 | | $ | 922 | | $ | 1,936 | | $ | (11 | ) | $ | 7,115 | |
Quarter ended June 30, 2004 | | 938 | | 276 | | 582 | | 916 | | 2,592 | | (24 | ) | 5,280 | |
Annualized quarterly growth | | 78.5 | % | 92.2 | % | 1,519.5 | % | 2.6 | % | (100.7 | )% | 217.7 | % | 138.3 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2003 | | $ | 782 | | $ | 193 | | $ | 109 | | $ | 729 | | $ | 1,994 | | $ | 70 | | $ | 3,877 | |
Annual growth | | 43.6 | % | 76.2 | % | 2,473.4 | % | 26.5 | % | (2.9 | )% | (115.7 | )% | 83.5 | % |
| | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | |
Quarter ended September 30, 2004 | | $ | 4,401 | | $ | 529 | | $ | 848 | | $ | 64 | | $ | (84 | ) | $ | (952 | ) | $ | 4,806 | |
Quarter ended June 30, 2004 | | 4,161 | | 278 | | (134 | ) | 69 | | 259 | | (681 | ) | 3,952 | |
Annualized quarterly growth | | 22.9 | % | 359.2 | % | 2,915.4 | % | (28.8 | )% | (526.9 | )% | (158.1 | )% | 86.0 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2003 | | $ | 3,588 | | $ | 464 | | $ | (410 | ) | $ | (9 | ) | $ | 109 | | $ | (442 | ) | $ | 3,300 | |
Annual growth | | 22.7 | % | 14.0 | % | 306.8 | % | 811.1 | % | (177.1 | )% | (115.4 | )% | 45.6 | % |
| | | | | | | | | | | | | | | |
Earnings Per Share (Diluted) | | | | | | | | | | | | | | | |
Quarter ended September 30, 2004 | | $ | 0.20 | | $ | 0.03 | | $ | 0.03 | | $ | — | | $ | — | | $ | (0.05 | ) | $ | 0.21 | |
Quarter ended June 30, 2004 | | 0.19 | | 0.02 | | (0.01 | ) | — | | 0.01 | | (0.03 | ) | 0.18 | |
Annualized quarterly growth | | 20.9 | % | 198.9 | % | 1,591.3 | % | .0 | % | (100.0 | )% | (265.2 | )% | 66.3 | % |
| | | | | | | | | | | | | | | |
Quarter ended September 30, 2003 | | $ | 0.16 | | $ | 0.02 | | $ | (0.02 | ) | $ | — | | $ | 0.01 | | $ | (0.02 | ) | $ | 0.15 | |
Annual growth | | 25.0 | % | 50.0 | % | 250.0 | % | .0 | % | (100.0 | )% | (150.0 | )% | 40.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Colorado
Business
Bank | | Arizona
Business
Bank | | Investment
Banking
Services | | Investment
Advisory
and Trust | | Insurance | | Corporate
Support and
Other | | Consolidated | |
Total loans and leases | | | | | | | | | | | | | | | |
At September 30, 2004 | | $ | 820,061 | | $ | 273,515 | | $ | — | | $ | — | | $ | — | | $ | 478 | | $ | 1,094,054 | |
At June 30, 2004 | | 777,181 | | 245,956 | | — | | — | | — | | 725 | | 1,023,862 | |
Annualized quarterly growth | | 21.9 | % | 44.6 | % | .0 | % | .0 | % | .0 | % | (135.5 | )% | 27.3 | % |
| | | | | | | | | | | | | | | |
At September 30, 2003 | | $ | 698,767 | | $ | 187,259 | | $ | — | | $ | — | | $ | — | | $ | 2,229 | | $ | 888,255 | |
Annual growth | | 17.4 | % | 46.1 | % | .0 | % | .0 | % | .0 | % | (78.6 | )% | 23.2 | % |
| | | | | | | | | | | | | | | |
2004 average yield or cost | | 5.8 | % | 6.0 | % | .0 | % | .0 | % | .0 | % | 5.6 | % | 5.9 | % |
| | | | | | | | | | | | | | | |
Total deposits and customer repurchase agreements | | | | | | | | | | | | | | | |
At September 30, 2004 | | $ | 1,036,073 | | $ | 221,121 | | $ | — | | $ | 607 | | $ | — | | $ | — | | $ | 1,257,801 | |
At June 30, 2004 | | 963,011 | | 205,747 | | — | | 1,412 | | — | | — | | 1,170,170 | |
Annualized quarterly growth | | 30.2 | % | 29.7 | % | .0 | % | (226.8 | )% | .0 | % | .0 | % | 29.8 | % |
| | | | | | | | | | | | | | | |
At September 30, 2003 | | $ | 898,859 | | $ | 183,488 | | $ | — | | $ | 857 | | $ | — | | $ | — | | $ | 1,083,204 | |
Annual growth | | 15.3 | % | 20.5 | % | .0 | % | (29.2 | )% | .0 | % | .0 | % | 16.1 | % |
| | | | | | | | | | | | | | | |
2004 average yield or cost | | 0.8 | % | 1.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.9 | % |
| | Three months ended September 30, | | Nine Months ended September 30, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
| | 2004 | | 2003 | | Amount | | % | | 2004 | | 2003 | | Amount | | % | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | |
Deposit service charges | | $ | 688 | | $ | 657 | | $ | 31 | | 5 | % | $ | 2,141 | | $ | 1,888 | | $ | 253 | | 13 | % |
Other loan fees | | 222 | | 170 | | 52 | | 31 | % | 540 | | 530 | | 10 | | 2 | % |
Trust and advisory income | | 921 | | 720 | | 201 | | 28 | % | 2,716 | | 1,586 | | 1,130 | | 71 | % |
Insurance revenue | | 1,936 | | 1,941 | | (5 | ) | (0 | )% | 6,453 | | 4,447 | | 2,006 | | 45 | % |
Investment banking revenue | | 2,800 | | 108 | | 2,692 | | 2493 | % | 3,902 | | 1,139 | | 2,763 | | 243 | % |
Other income | | 464 | | 254 | | 210 | | 83 | % | 998 | | 699 | | 299 | | 43 | % |
Gain on sale of other assets and securities | | 84 | | 27 | | 57 | | 211 | % | 387 | | 83 | | 304 | | 366 | % |
Total noninterest income | | $ | 7,115 | | $ | 3,877 | | $ | 3,238 | | 84 | % | $ | 17,137 | | $ | 10,372 | | $ | 6,765 | | 65 | % |
| | Three months ended September 30, | | Nine Months ended September 30, | |
| | | | | | Increase/(decrease) | | | | | | Increase/(decrease) | |
| | 2004 | | 2003 | | Amount | | % | | 2004 | | 2003 | | Amount | | % | |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 9,055 | | $ | 6,990 | | $ | 2,065 | | 30 | % | $ | 24,810 | | $ | 19,803 | | $ | 5,007 | | 25 | % |
Occupancy expenses, premises and equipment | | 2,325 | | 2,090 | | 235 | | 11 | % | 6,828 | | 5,846 | | 982 | | 17 | % |
Amortization of intangibles | | 133 | | 142 | | (9 | ) | (6 | )% | 395 | | 303 | | 92 | | 30 | % |
Other operating expenses | | 2,430 | | 1,842 | | 588 | | 32 | % | 6,630 | | 5,619 | | 1,011 | | 18 | % |
Total noninterest expenses | | $ | 13,943 | | $ | 11,064 | | $ | 2,879 | | 26 | % | $ | 38,663 | | $ | 31,571 | | $ | 7,092 | | 22 | % |
| | September 30, 2004 | | December 31, 2003 | | September 30, 2003 | | | | | |
| | Amount | | % of
Portfolio | | Amount | | % of
Portfolio | | Amount | | % of
Portfolio | | | | | |
LOANS AND LEASES | | | | | | | | | | | | | | | | | |
Commercial | | $ | 386,444 | | 35.8 | % | $ | 308,174 | | 33.1 | % | $ | 299,796 | | 34.2 | % | | | | |
Real Estate - mortgage | | 516,528 | | 47.8 | % | 454,865 | | 48.8 | % | 408,579 | | 46.6 | % | | | | |
Real Estate - construction | | 115,254 | | 10.7 | % | 109,326 | | 11.7 | % | 111,055 | | 12.7 | % | | | | |
Consumer | | 63,450 | | 5.9 | % | 61,049 | | 6.6 | % | 57,057 | | 6.5 | % | | | | |
Municipal Leases | | 11,900 | | 1.1 | % | 8,803 | | 0.9 | % | 9,539 | | 1.1 | % | | | | |
Small business leases | | 478 | | 0.0 | % | 1,398 | | 0.2 | % | 2,229 | | 0.3 | % | | | | |
Loans and leases | | 1,094,054 | | 101.3 | % | 943,615 | | 101.3 | % | 888,255 | | 101.3 | % | | | | |
Less allowance for loan and lease losses | | (14,340 | ) | (1.3 | )% | (12,403 | ) | (1.3 | )% | (11,601 | ) | (1.3 | )% | | | | |
Net loan and leases | | $ | 1,079,714 | | 100.0 | % | $ | 931,212 | | 100.0 | % | $ | 876,654 | | 100.0 | % | | | | |
| | September 30, 2004 | | December 31, 2003 | | September 30, 2003 | | | | | |
| | Amount | | % of
Portfolio | | Amount | | % of
Portfolio | | Amount | | % of
Portfolio | | | | | |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS | | | | | | | | | | | �� | | | | | | |
NOW and money market accounts | | $ | 427,021 | | 33.9 | % | $ | 348,518 | | 31.6 | % | $ | 330,753 | | 30.5 | % | | | | |
Savings | | 9,926 | | 0.8 | % | 8,804 | | 0.8 | % | 8,876 | | 0.8 | % | | | | |
Certificates of deposits under $100,000 | | 68,839 | | 5.5 | % | 89,367 | | 8.1 | % | 116,667 | | 10.8 | % | | | | |
Certificates of deposits $100,000 and over | | 244,070 | | 19.4 | % | 208,165 | | 18.9 | % | 203,310 | | 18.8 | % | | | | |
Total interest-earning deposits | | 749,856 | | 59.6 | % | 654,854 | | 59.3 | % | 659,606 | | 60.9 | % | | | | |
Noninterest-bearing demand deposits | | 361,991 | | 28.8 | % | 304,324 | | 27.6 | % | 293,802 | | 27.1 | % | | | | |
Customer repurchase agreements | | 145,954 | | 11.6 | % | 144,653 | | 13.1 | % | 129,796 | | 12.0 | % | | | | |
Total deposits and customer repurchase agreements | | $ | 1,257,801 | | 100.0 | % | $ | 1,103,831 | | 100.0 | % | $ | 1,083,204 | | 100.0 | % | | | | |
| | For the three months ended September 30, | |
| | 2004 | | 2003 | |
| | Average
Balance | | Interest
earned
or paid | | Average
yield
or cost | | Average
Balance | | Interest
earned
or paid | | Average
yield
or cost | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | |
Federal funds sold and other | | 4,177 | | 40 | | 3.75 | % | 968 | | 3 | | 1.21 | % |
Investment securities | | 443,796 | | 3,806 | | 3.36 | % | 337,431 | | 3,071 | | 3.56 | % |
Loans and leases | | 1,057,848 | | 16,236 | | 6.01 | % | 863,284 | | 13,339 | | 6.05 | % |
Allowance for loan and leases | | (13,794 | ) | 0 | | 0.00 | % | (11,429 | ) | 0 | | 0.00 | % |
Total interest earning assets | | 1,492,027 | | 20,082 | | 5.27 | % | 1,190,254 | | 16,413 | | 5.40 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 34,973 | | | | | | 34,361 | | | | | |
Other | | 77,592 | | | | | | 43,423 | | | | | |
TOTAL ASSETS | | $ | 1,604,592 | | | | | | $ | 1,268,038 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and Money Market Deposits | | 416,472 | | 892 | | 0.85 | % | 327,308 | | 566 | | 0.69 | % |
Savings Deposits | | 9,781 | | 10 | | 0.41 | % | 8,699 | | 8 | | 0.36 | % |
Certificates of Deposits | | | | | | | | | | | | | |
Under $100,000 | | 70,638 | | 436 | | 2.46 | % | 122,781 | | 779 | | 2.52 | % |
$100,000 and over | | 225,699 | | 1,097 | | 1.93 | % | 199,327 | | 1,074 | | 2.14 | % |
Total Interest-bearing deposits | | 722,590 | | 2,435 | | 1.34 | % | 658,115 | | 2,427 | | 1.46 | % |
Other Borrowings | | | | | | | | | | | | | |
Securities and loans sold under agreements to repurchase and federal funds purchased | | 298,578 | | 1,091 | | 1.43 | % | 139,120 | | 427 | | 1.20 | % |
FHLB advances | | 43,022 | | 165 | | 1.50 | % | 68,425 | | 224 | | 1.28 | % |
Company obligated mandatory redeemable preferred securities | | 71,208 | | 881 | | 4.84 | % | 22,966 | | 304 | | 5.18 | % |
Total interest-bearing liabilities | | 1,135,398 | | 4,572 | | 1.59 | % | 888,626 | | 3,382 | | 1.50 | % |
Noninterest-bearing demand accounts | | 350,405 | | | | | | 280,928 | | | | | |
Total deposits and interest-bearing liabilities | | 1,485,803 | | | | | | 1,169,554 | | | | | |
Other noninterest-bearing liabilities | | 6,349 | | | | | | 5,044 | | | | | |
Total liabilities and preferred securities | | 1,492,152 | | | | | | 1,174,598 | | | | | |
Shareholders’ equity | | 112,440 | | | | | | 93,440 | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,604,592 | | | | | | $ | 1,268,038 | | | | | |
Net interest income | | | | $ | 15,510 | | | | | | $ | 13,031 | | | |
Net interest spread | | | | | | 3.68 | % | | | | | 3.89 | % |
Net interest margin | | | | | | 4.14 | % | | | | | 4.34 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 131.41 | % | | | | | 133.94 | % | | | | |
| | | | | | | | | | | | | | | | | | | |
| | For the nine months ended September 30, | |
| | 2004 | | 2003 | |
| | Average
Balance | | Interest
earned
or paid | | Average
yield
or cost | | Average
Balance | | Interest
earned
or paid | | Average
yield
or cost | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | |
Federal funds sold and other | | 2,722 | | 91 | | 4.47 | % | 1,100 | | 11 | | 1.34 | % |
Investment securities | | 406,962 | | 10,437 | | 3.43 | % | 299,952 | | 8,883 | | 3.96 | % |
Loans and leases | | 1,004,744 | | 45,206 | | 6.01 | % | 836,345 | | 39,334 | | 6.29 | % |
Allowance for loan and leases | | (13,092 | ) | 0 | | | | (10,996 | ) | 0 | | | |
Total interest earning assets | | 1,401,336 | | 55,734 | | 5.31 | % | 1,126,401 | | 48,227 | | 5.72 | % |
Noninterest-earning assets | | | | | | | | | | | | | |
Cash and due from banks | | 35,137 | | | | | | 31,358 | | | | | |
Other | | 72,008 | | | | | | 33,363 | | | | | |
TOTAL ASSETS | | $ | 1,508,481 | | | | | | $ | 1,191,122 | | | | | |
| | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
NOW and Money Market Deposits | | 378,983 | | 2,155 | | 0.76 | % | 310,490 | | 1,855 | | 0.80 | % |
Savings Deposits | | 9,352 | | 24 | | 0.34 | % | 8,341 | | 30 | | 0.48 | % |
Certificates of Deposits | | | | | | | | | | | | | |
Under $100,000 | | 78,935 | | 1,376 | | 2.33 | % | 129,876 | | 2,685 | | 2.76 | % |
$100,000 and over | | 217,224 | | 3,146 | | 1.93 | % | 187,064 | | 3,356 | | 2.40 | % |
Total Interest-bearing deposits | | 684,494 | | 6,701 | | 1.31 | % | 635,771 | | 7,926 | | 1.67 | % |
Other Borrowings | | | | | | | | | | | | | |
Securities and loans sold under agreements to repurchase and federal funds purchased | | 262,510 | | 2,634 | | 1.34 | % | 135,876 | | 1,237 | | 1.22 | % |
FHLB advances | | 66,434 | | 693 | | 1.39 | % | 53,744 | | 652 | | 1.62 | % |
Company obligated mandatory redeemable preferred securities | | 55,953 | | 2,027 | | 4.84 | % | 20,961 | | 892 | | 5.69 | % |
Total interest-bearing liabilities | | 1,069,391 | | 12,055 | | 1.51 | % | 846,352 | | 10,707 | | 1.69 | % |
Noninterest-bearing demand accounts | | 319,364 | | | | | | 251,995 | | | | | |
Total deposits and interest-bearing liabilities | | 1,388,755 | | | | | | 1,098,347 | | | | | |
Other noninterest-bearing liabilities | | 11,138 | | | | | | 4,312 | | | | | |
Total liabilities and preferred securities | | 1,399,893 | | | | | | 1,102,659 | | | | | |
Shareholders’ equity | | 108,588 | | | | | | 88,463 | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,508,481 | | | | | | $ | 1,191,122 | | | | | |
Net interest income | | | | $ | 43,679 | | | | | | $ | 37,520 | | 4.03 | % |
Net interest spread | | | | | | 3.81 | % | | | | | 4.45 | % |
Net interest margin | | | | | | 4.16 | % | | | | | | |
Ratio of average interest-earning assets to average interest-bearing liabilities | | 131.04 | % | | | | | 133.09 | % | | | | |
| | | | | | | | | | | | | | | | | |
