Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact:
Jeffrey W. Farrar
Executive Vice President and CFO
(434) 964-2217
farrarj@vfgi.net
VIRGINIA FINANCIAL GROUP, INC.
ANNOUNCES FIRST QUARTER 2007 EARNINGS
Culpeper, VA, April 24, 2007—Virginia Financial Group, Inc. (NASDAQ: VFGI) (VFG) today reported first quarter 2007 earnings of $4.0 million, down 10.0% from $4.5 million for the first quarter of 2006. Net income per diluted share was $.37, down 9.8% from $.41 for the same period in 2006. VFG’s earnings for the first quarter of 2007 produced an annualized return on average assets (ROA) of 1.01% and an annualized return on average equity (ROE) of 10.72%, compared to prior year ratios of 1.19% and 12.95%, respectively. Excluding the effects of net-of-tax nonrecurring transaction of $150 thousand associated with the charter consolidation consummated during the quarter, earnings would have been $4.2 million or $.39 per share, resulting in a ROA of 1.05% and ROE of 11.17%, respectively.
O.R. Barham, Jr., President and CEO, commented, “The difficult operating environment coupled with some investments in future growth impacted our earnings for the quarter. The lack of balance sheet growth and spread compression exacerbated by a prolonged inversion of the yield curve resulted in a contraction of revenues derived from net interest income compared to the first quarter of 2006. Revenues from noninterest income were more encouraging, with growth of 11.1% on a recurring basis. The four full service retail branches and Winchester loan production office opened during 2006 are beginning to contribute, but continue to impact the rate of overhead growth. Asset quality continues to remain solid, while our trust and brokerage units enjoyed another solid quarter of earnings contribution. Market conditions will continue to challenge our ability to grow earnings in the short term.”
Financial Performance
Net Interest Income
Net interest income amounted to $14.4 million for the first quarter of 2007, down $510 thousand or 3.4% compared with $14.9 million for the same quarter in 2006. Net interest margin compression coupled with a reduction in the rate of growth in average earning assets contributed to this decrease. The net interest margin for the first quarter of 2007 was 4.05%, down three basis points sequentially compared to 4.08% for the fourth quarter of 2006, and down thirty basis points when compared to 4.35% for the first quarter of 2006. Asset yields rose sequentially, with an average yield on assets of 6.92% for the first quarter of 2007, compared to
6.82% for the fourth quarter of 2006 and 6.43% for the first quarter of 2006. Average cost of interest bearing deposits increased to 3.25% for the first quarter of 2007, as compared to 3.13% for the fourth quarter of 2006 and 2.38% for the first quarter of 2006. Average balances in VFG commercial paper increased to $63.8 million for the first quarter of 2007 at a cost of 4.73%, compared to $30.6 million at a cost of 4.00% for the first quarter of 2006 and remained stable on a linked quarter basis compared to $66.5 million at a cost of 4.67%. Average balances in FHLB advances increased to $62.2 million for the first quarter of 2007 at a cost of 5.00%, compared to $56.4 million at a cost of 4.18% for the first quarter of 2006 and stable on a linked quarter basis compared to $65.0 million at a cost of 4.70%.
Non-Interest Income
Total non-interest income was $3.8 million for the first quarter of 2007, up compared with $3.3 million for the first quarter of 2006 and down sequentially compared with $4.0 million for the fourth quarter of 2006. Retail banking fee income increased $136 thousand or 8.5% to $1.7 million, compared to $1.6 million in the first quarter of 2006. Mortgage banking revenue amounted to $599 thousand, a decrease of $34 thousand or 5.4%, as compared to $633 thousand for the first quarter of 2006, and down sequentially $98 thousand or 14.1% from the fourth quarter of 2006. Revenues from trust and brokerage for the first quarter were $1.1 million, up $46 thousand or 4.4% compared to $1.0 million in the first quarter of 2006, and up sequentially $105 thousand or 10.7% from the fourth quarter of 2006. Fiduciary and brokerage assets under management were $628 million at March 31, 2007, representing an increase of $30.0 million or 5.0% from $598 million at December 31, 2006. Included in other non-interest income during first quarter 2007 was income associated with an investment in bank owned life insurance of $119 thousand.
Non-interest Expense
Non-interest expense for the first quarter of 2007 amounted to $12.3 million, up $1.1 million or 9.9% from $11.2 million for the same period in 2006, and up sequentially $230 thousand or 1.9% from the fourth quarter of 2006. This increase reflects incremental operating costs of $471 thousand associated with four branches and a loan production office opened during 2006. Additionally, $231 thousand of non-recurring transaction costs associated with the consummated combination of our Second Bank & Trust affiliate and former Virginia Heartland Bank affiliate during the first quarter. Increases in other operating expenses are attributed to increases in training costs and aforementioned transaction costs. VFG’s efficiency ratio was 65.6% for the quarter, compared to 59.6% for the same quarter in 2006. Excluding the impact of the nonrecurring transaction costs, the efficiency ratio was 64.35% for the quarter.
Loan Portfolio
Average loans for the first quarter were $1.22 billion, up $61.4 million or 5.3% from the first quarter of 2006, and up sequentially from $1.21 billion for the fourth quarter of 2006. Period end loans were essentially flat for the quarter, and up $28.4 million or 2.4% over the last twelve months. Commercial real estate construction and commercial industrial reflect the largest quarterly sequential increases, as well as the largest increases for the twelve month period.
Deposits and Borrowings
Average deposits for the first quarter were $1.30 billion, up $36.1 million or 2.9% from the first quarter of 2006, and essentially flat with the fourth quarter of 2006. Excluding the impact of one large non-core deposit of $36 million outstanding at December 31, 2006, period end deposits were also flat sequentially. Average borrowings for the first quarter amounted to $154.9 million, an increase of $32.2 million or 26.2% compared to the same period in 2006, and down sequentially $983 thousand or .6% from the fourth quarter of 2006.
Capital
At March 31, 2007 VFG had total assets of $1.60 billion, compared to $1.55 billion at March 31, 2006. Shareholder’s equity at March 31, 2007 was $153.4 million, an increase of $14.1 million or 10.1% compared to March 31, 2006. Shareholder’s equity represented 9.58% of total assets at March 31, 2007, while tangible equity capital represented 8.58% of tangible assets at March 31, 2007. Book value at March 31, 2007 was $14.21 per share, compared to $12.94 at March 31, 2006.
Asset Quality
VFG’s ratio of non-performing assets as a percentage of total assets amounting to .17% as of March 31, 2007, compared to .13% at March 31, 2006 and .19% at December 31, 2006. Net charge-offs as a percentage of average loans receivable amounted to .05% for the quarter ended March 31, 2007, compared to .05% for the same period in 2006. At March 31, 2007, the allowance for loan losses was approximately five times the level of non-performing assets, while the allowance as a percentage of total loans amounted to 1.19%. VFG recorded a provision for loan losses for the first quarter of $165 thousand compared to net charge-offs of $164 thousand for the period, and compared to a provision of $510 thousand for the three months ended March 31, 2006. The reduction in provision is a result of reduced loan growth and continuing strength in asset quality during the period.
Other Events
Resource Reallocation Initiative
VFG has initiated a plan which involves the closing of five branches as well as some staffing adjustments throughout the Company. Each of these branches is located in slow growth to declining markets and not complimentary to future expansion plans of the company. The branches will be combined with existing branches nearby. A total of twenty-two FTE’s will be impacted, and the facilities will close during the third quarter 2007. Annual net cost savings from this component amount to approximately $1 million, with approximately $400 thousand expected to be realized in 2007. The additional staffing adjustments came about after much analysis to adjust appropriate staffing levels to better align the Company with current customer behaviors and organizational effectiveness. This analysis resulted in the companywide reduction of another twenty-one FTE’s effective immediately, creating annual cost savings of $1.2 million of which $450 thousand is expected to be realized in 2007. Severance benefits and transaction costs, which have not been reflected in cost savings estimates, are estimated at $300 thousand and will be accrued in the second quarter of 2007.
O.R. Barham, Jr., President and CEO, commented, “We are pleased to announce a resource reallocation initiative which reflects the results of a project that began in mid-2006 to evaluate the effectiveness of our business in a rapidly changing business environment. As in any business, growth patterns change, new delivery systems modify customer needs and behaviors and competition demands improved levels of customer service. This initiative will allow us to allocate critical resources to essential areas including further development of our higher growth markets.
Richmond Market Entry
VFG has opened a loan production office in Richmond, Virginia and hired T. Patrick Collins as Area Executive. Pat was most recently a Managing Director with SunTrust Robinson Humphrey, where he was responsible for originating capital market opportunities with SunTrust Bank’s Commercial and Private Wealth Management clients in the MidAtlantic Region. Pat’s experience includes comprehensive responsibilities for commercial, middle market and larger corporate relationships with the former Crestar Bank.
O.R. Barham, Jr., President and CEO, commented, “Our entry into the greater Richmond market follows a similar pattern we have used successfully over the years, that of initially entering the market through a loan production office to be followed by a retail presence. Pat is intimately familiar with and ingrained in the market. Our past relationship with him makes us confident that he can drive production, provide leadership and ensure our success in the market.”
About VFG
VFG is the holding company for Planters Bank & Trust Company of Virginia – in Staunton; Second Bank &
Trust – in Fredericksburg and Virginia Commonwealth Trust Company – in Culpeper. The Company is a traditional community banking provider, offering a full range of business and consumer banking services including trust and asset management service via its trust company affiliate. The organization maintains a network of forty branches serving Northern, Central and Southwest Virginia. It also maintains five trust and investment service offices in its markets.
Non-GAAP Financial Measures
This report refers to the efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income on a tax equivalent basis and non-interest income excluding gains or losses on securities, fixed assets and foreclosed assets. This is a non-GAAP financial measure that we believe provides investors with important information regarding our operational efficiency. Comparison of our efficiency ratio with those of other companies may not be possible, because other companies may calculate the efficiency ratio differently. Such information is not in accordance with generally accepted accounting principles (GAAP) and should not be construed as such. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information not be viewed as a substitute for GAAP. VFG, in referring to its net income, is referring to income under generally accepted accounting principles, or “GAAP.”
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results, or those anticipated. When we use words such as “believes”, “expects”, “anticipates” or similar expressions, we are making forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date thereof. VFG wishes to caution the reader that factors, such as those listed below, in some cases have affected and could affect VFG’s actual results, causing actual results to differ materially from those in any forward looking statement. These factors include: (i) expected cost savings from VFG’s acquisitions and dispositions, (ii) competitive pressure in the banking industry or in VFG’s markets may increase significantly, (iii) changes in the interest rate environment may reduce margins, (iv) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, credit quality deterioration, (v) changes may occur in banking legislation and regulation (vi) changes may occur in general business conditions and (vii) changes may occur in the securities markets. Please refer to VFG’s filings with the Securities and Exchange Commission for additional information, which may be accessed atwww.vfgi.net.
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands, except per share data)
For the Three Months Ended | Percent Increase | ||||||||||
3/31/2007 | 3/31/2006 | (Decrease) | |||||||||
INCOME STATEMENT | |||||||||||
Interest income - taxable equivalent | $ | 25,495 | $ | 22,631 | 12.66 | % | |||||
Interest expense | 10,591 | 7,308 | 44.92 | % | |||||||
Net interest income - taxable equivalent | 14,904 | 15,323 | -2.73 | % | |||||||
Less: taxable equivalent adjustment | 549 | 458 | 19.87 | % | |||||||
Net interest income | 14,355 | 14,865 | -3.43 | % | |||||||
Provision for loan and lease losses | 165 | 510 | -67.65 | % | |||||||
Net interest income after provision for loan and lease losses | 14,190 | 14,355 | -1.15 | % | |||||||
Noninterest income | 3,828 | 3,263 | 17.32 | % | |||||||
Noninterest expense | 12,287 | 11,183 | 9.87 | % | |||||||
Provision for income taxes | 1,713 | 1,971 | -13.09 | % | |||||||
Net income | $ | 4,018 | $ | 4,464 | -9.99 | % | |||||
PER SHARE DATA | |||||||||||
Basic earnings | $ | 0.37 | $ | 0.41 | -9.76 | % | |||||
Diluted earnings | $ | 0.37 | $ | 0.41 | -9.76 | % | |||||
Shares outstanding | 10,791,669 | 10,768,446 | |||||||||
Weighted average shares - | |||||||||||
Basic | 10,789,966 | 10,765,223 | |||||||||
Diluted | 10,820,955 | 10,846,149 | |||||||||
Dividends paid on common shares | $ | 0.16 | $ | 0.15 | |||||||
PERFORMANCE RATIOS | |||||||||||
Return on average assets | 1.01 | % | 1.19 | % | -15.13 | % | |||||
Return on average equity | 10.77 | % | 13.08 | % | -17.66 | % | |||||
Return on average realized equity (A) | 10.72 | % | 12.95 | % | -17.22 | % | |||||
Net interest margin (taxable equivalent) | 4.05 | % | 4.35 | % | -6.90 | % | |||||
Efficiency (taxable equivalent) (B) | 65.58 | % | 59.50 | % | 10.22 | % | |||||
ASSET QUALITY | |||||||||||
Allowance for loan losses | |||||||||||
Beginning of period | $ | 14,500 | $ | 13,581 | |||||||
Provision for loan losses | 165 | 510 | |||||||||
Charge offs | (211 | ) | (173 | ) | |||||||
Recoveries | 47 | 23 | |||||||||
Net charge-offs | (164 | ) | (150 | ) | |||||||
End of period | $ | 14,501 | $ | 13,941 | |||||||
Non-performing assets: | |||||||||||
Non-accrual loans | $ | 2,709 | $ | 1,787 | |||||||
Loans 90+ days past due and still accruing | — | — | |||||||||
Foreclosed assets | 38 | 79 | |||||||||
Troubled debt restructurings | — | 134 | |||||||||
Total non-performing assets | $ | 2,747 | $ | 2,000 | |||||||
to total assets: | 0.17 | % | 0.13 | % | |||||||
to total loans plus foreclosed assets: | 0.23 | % | 0.17 | % | |||||||
Allowance for loan losses to total loans | 1.19 | % | 1.17 | % | |||||||
Net charge-offs (recoveries) | $ | 164 | $ | 150 | |||||||
Net charge-offs to average loans outstanding | 0.05 | % | 0.05 | % |
NOTES:
(A) | Excludes the effect on average stockholders’ equity of unrealized gains (losses) that result from changes in market values of securities and other comprehensive pension expense. |
(B) | Computed by dividing non-interest expense by the sum of net interest income and non-interest income, net of gains or losses on securities, fixed assets and foreclosed assets. |
(C) | Individual amounts shown above are calculated from actual, not rounded amounts in the thousands, which appear above. |
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands, except per share data)
3/31/2007 | 3/31/2006 | Percent Increase (Decrease) | |||||||||
SELECTED BALANCE SHEET DATA | |||||||||||
(Dollars in thousands) | |||||||||||
End of period balances | |||||||||||
Cash and cash equivalents | $ | 36,749 | $ | 64,402 | -42.94 | % | |||||
Securities available for sale | 264,129 | 228,463 | 15.61 | % | |||||||
Securities held to maturity | 3,331 | 3,320 | 0.33 | % | |||||||
Total securities | 267,460 | 231,783 | 15.39 | % | |||||||
Real estate - construction | 225,350 | 166,924 | 35.00 | % | |||||||
Real estate - 1-4 family residential | 313,012 | 303,639 | 3.09 | % | |||||||
Real estate - commercial and multifamily | 528,702 | 586,054 | -9.79 | % | |||||||
Commercial, financial and agricultural | 112,455 | 93,503 | 20.27 | % | |||||||
Consumer loans | 31,176 | 36,909 | -15.53 | % | |||||||
All other loans | 6,305 | 1,558 | >100.00 | % | |||||||
Total loans | 1,217,000 | 1,188,587 | 2.39 | % | |||||||
Deferred loan costs | 935 | 659 | 41.88 | % | |||||||
Allowance for loan losses | (14,501 | ) | (13,941 | ) | 4.02 | % | |||||
Net loans | 1,203,434 | 1,175,305 | 2.39 | % | |||||||
Bank owned life insurance | 10,350 | — | — | ||||||||
Other assets | 93,510 | 79,630 | 17.43 | % | |||||||
Total assets | 1,601,153 | 1,551,120 | 3.23 | % | |||||||
Noninterest bearing deposits | 240,649 | 256,910 | -6.33 | % | |||||||
Money market & interest checking | 320,953 | 337,063 | -4.78 | % | |||||||
Savings | 96,479 | 112,905 | -14.55 | % | |||||||
CD’s and other time deposits | 619,674 | 566,174 | 9.45 | % | |||||||
Total deposits | 1,277,755 | 1,273,052 | 0.37 | % | |||||||
Federal funds purchased and securities sold under agreements to repurchase | 18,000 | 3,795 | >100.00 | % | |||||||
Federal Home Loan Bank advances | 55,000 | 60,000 | -8.33 | % | |||||||
Subordinated debt | 20,619 | 20,619 | 0.00 | % | |||||||
Commercial paper | 63,788 | 42,370 | 50.55 | % | |||||||
Other borrowed funds | 493 | 2 | >100.00 | % | |||||||
Other liabilities | 12,115 | 11,995 | 1.00 | % | |||||||
Total liabilities | 1,447,770 | 1,411,833 | 2.55 | % | |||||||
Total stockholders’ equity | $ | 153,383 | $ | 139,287 | 10.12 | % | |||||
Accumulated comprehensive loss | $ | (686 | ) | $ | (1,794 | ) | -61.76 | % | |||
Average balances | |||||||||||
For the Three Months Ended | Percent Increase | ||||||||||
3/31/2007 | 3/31/2006 | (Decrease) | |||||||||
Total assets | $ | 1,606,052 | $ | 1,524,863 | 5.32 | % | |||||
Total stockholders’ equity | $ | 151,311 | $ | 138,364 | 9.36 | % | |||||
OTHER DATA | |||||||||||
End of period full time employees | 578 | 521 |
QUARTERLY PERFORMANCE SUMMARY
Virginia Financial Group, Inc. (NASDAQ: VFGI)
(Dollars in thousands)
For the Three Months Ended | Percent Increase | |||||||||
3/31/2007 | 3/31/2006 | (Decrease) | ||||||||
Interest Income | ||||||||||
Loans, including fees | $ | 21,985 | $ | 19,433 | 13.13 | % | ||||
Deposits in other banks | 6 | 35 | -82.86 | % | ||||||
Investment securities: | ||||||||||
Taxable | 1,834 | 1,499 | 22.35 | % | ||||||
Tax-exempt | 943 | 815 | 15.71 | % | ||||||
Dividends | 126 | 115 | 9.57 | % | ||||||
Federal funds sold | 53 | 276 | -80.80 | % | ||||||
Total interest income | 24,947 | 22,173 | 12.51 | % | ||||||
Interest Expense | ||||||||||
Deposits | 8,531 | 5,960 | 43.14 | % | ||||||
Federal funds repurchased and securities sold under agreements to repurchase | 108 | 86 | 25.58 | % | ||||||
Federal Home Loan Bank advances | 777 | 582 | 33.51 | % | ||||||
Subordinated debt | 417 | 374 | 11.50 | % | ||||||
Commercial paper | 754 | 302 | >100.00 | % | ||||||
Other borrowings | 5 | 4 | 25.00 | % | ||||||
Total interest expense | 10,592 | 7,308 | 44.94 | % | ||||||
Net interest income | 14,355 | 14,865 | -3.43 | % | ||||||
Provision for loan losses | 165 | 510 | -67.65 | % | ||||||
Net interest income after provision for loan losses | 14,190 | 14,355 | -1.15 | % | ||||||
Noninterest Income | ||||||||||
Retail banking fees | 1,743 | 1,607 | 8.46 | % | ||||||
Commissions and fees from fiduciary activities | 828 | 811 | 2.10 | % | ||||||
Brokerage fee income | 256 | 227 | 12.78 | % | ||||||
Other operating income | 402 | 166 | >100.00 | % | ||||||
Losses on securities available for sale | — | (181 | ) | -100.00 | % | |||||
Mortgage banking-related fees | 599 | 633 | -5.37 | % | ||||||
Total noninterest income | 3,828 | 3,263 | 17.32 | % | ||||||
Noninterest Expense | ||||||||||
Compensation and employee benefits | 6,819 | 6,601 | 3.30 | % | ||||||
Net occupancy | 874 | 766 | 14.10 | % | ||||||
Supplies and equipment | 1,121 | 977 | 14.74 | % | ||||||
Amortization-intangible assets | 164 | 100 | 64.00 | % | ||||||
Marketing | 249 | 125 | 99.20 | % | ||||||
State franchise taxes | 244 | 248 | -1.61 | % | ||||||
Data processing | 468 | 383 | 22.19 | % | ||||||
Telecommunications | 238 | 274 | -13.14 | % | ||||||
Professional fees | 150 | 130 | 15.38 | % | ||||||
Other operating expenses | 1,960 | 1,579 | 24.13 | % | ||||||
Total noninterest expense | 12,287 | 11,183 | 9.87 | % | ||||||
Income before income taxes | 5,731 | 6,435 | -10.94 | % | ||||||
Income tax expense | 1,713 | 1,971 | -13.09 | % | ||||||
Net income | $ | 4,018 | $ | 4,464 | -9.99 | % |
VIRGINIA FINANCIAL GROUP INC.
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
THREE MONTHS ENDED MARCH 31, 2007 AND 2006
(Dollars in thousands)
Three months ended March 31, | ||||||||||||||||||
2007 | 2006 | |||||||||||||||||
Dollars in thousands | Average Balance | Interest Inc/Exp | Average Rates | Average Balance | Interest Inc/Exp | Average Rates | ||||||||||||
Assets |
| |||||||||||||||||
Loans receivable, net | $ | 1,219,094 | $ | 22,026 | 7.33 | % | $ | 1,157,736 | $ | 19,453 | 6.81 | % | ||||||
Investment securities | ||||||||||||||||||
Taxable | 174,839 | 1,960 | 4.48 | % | 152,945 | 1,614 | 4.28 | % | ||||||||||
Tax exempt | 94,854 | 1,451 | 6.12 | % | 80,623 | 1,253 | 6.30 | % | ||||||||||
Total investments | 269,693 | 3,411 | 5.05 | % | 233,568 | 2,867 | 4.98 | % | ||||||||||
Interest bearing deposits | 626 | 6 | 3.83 | % | 5,961 | 35 | 2.38 | % | ||||||||||
Federal funds sold | 3,831 | 52 | 5.43 | % | 30,691 | 276 | 3.65 | % | ||||||||||
274,150 | 3,469 | 5.05 | % | 270,220 | 3,178 | 4.77 | % | |||||||||||
Total earning assets | 1,493,244 | 25,495 | 6.92 | % | 1,427,956 | 22,631 | 6.43 | % | ||||||||||
Total nonearning assets | 112,808 | 96,907 | ||||||||||||||||
Total assets | $ | 1,606,052 | $ | 1,524,863 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||
Interest checking | $ | 159,417 | $ | 63 | 0.16 | % | $ | 180,122 | $ | 198 | 0.45 | % | ||||||
Money market | 179,678 | 1,256 | 2.83 | % | 166,666 | 701 | 1.71 | % | ||||||||||
Savings | 96,518 | 302 | 1.27 | % | 120,090 | 195 | 0.66 | % | ||||||||||
Time deposits: | ||||||||||||||||||
Less than $100,000 | 414,884 | 4,434 | 4.33 | % | 372,152 | 3,185 | 3.47 | % | ||||||||||
$100,000 and more | 213,672 | 2,475 | 4.70 | % | 175,314 | 1,681 | 3.89 | % | ||||||||||
Total interest-bearing deposits | 1,064,169 | 8,530 | 3.25 | % | 1,014,344 | 5,960 | 2.38 | % | ||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 7,883 | 108 | 5.48 | % | 14,801 | 86 | 2.36 | % | ||||||||||
Federal Home Loan Bank advances | 62,205 | 777 | 5.00 | % | 56,427 | 582 | 4.18 | % | ||||||||||
Subordinated debt | 20,619 | 417 | 8.09 | % | 20,619 | 374 | 7.36 | % | ||||||||||
Commercial paper | 63,805 | 754 | 4.73 | % | 30,602 | 302 | 4.00 | % | ||||||||||
Other borrowings | 345 | 5 | 5.80 | % | 254 | 4 | 6.39 | % | ||||||||||
154,857 | 2,061 | 5.32 | % | 122,703 | 1,348 | 4.46 | % | |||||||||||
Total interest-bearing liabilities | 1,219,026 | 10,591 | 3.51 | % | 1,137,047 | 7,308 | 2.60 | % | ||||||||||
Total noninterest-bearing liabilities | 235,715 | 249,452 | ||||||||||||||||
Total liabilities | 1,454,741 | 1,386,499 | ||||||||||||||||
Stockholders’ equity | 151,311 | 138,364 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,606,052 | $ | 1,524,863 | ||||||||||||||
Net interest income (tax equivalent) | $ | 14,904 | $ | 15,323 | ||||||||||||||
Average interest rate spread | 3.41 | % | 3.83 | % | ||||||||||||||
Interest expense as percentage of average earning assets | 2.88 | % | 2.08 | % | ||||||||||||||
Net interest margin | 4.05 | % | 4.35 | % |