Exhibit 99.2
QUARTERLY PERFORMANCE SUMMARY
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands, except per share data)
For the Three Months Ended | Percent Increase (Decrease) | ||||||||||
3/31/2008 | 3/31/2007 | ||||||||||
INCOME STATEMENT | |||||||||||
Interest income - taxable equivalent | $ | 31,114 | $ | 25,496 | 22.03 | % | |||||
Interest expense | 13,113 | 10,592 | 23.80 | % | |||||||
Net interest income - taxable equivalent | 18,001 | 14,904 | 20.78 | % | |||||||
Less: taxable equivalent adjustment | 486 | 549 | -11.48 | % | |||||||
Net interest income | 17,515 | 14,355 | 22.01 | % | |||||||
Provision for loan and lease losses | 953 | 165 | >100.00 | % | |||||||
Net interest income after provision for loan and lease losses | 16,562 | 14,190 | 16.72 | % | |||||||
Noninterest income | 5,165 | 3,828 | 34.93 | % | |||||||
Noninterest expense | 19,038 | 12,287 | 54.94 | % | |||||||
Provision for income taxes | 602 | 1,713 | -64.86 | % | |||||||
Net income | $ | 2,087 | $ | 4,018 | -48.06 | % | |||||
PER SHARE DATA | |||||||||||
Basic earnings | $ | 0.14 | $ | 0.37 | -62.16 | % | |||||
Diluted earnings | $ | 0.14 | $ | 0.37 | -62.16 | % | |||||
Shares outstanding | 22,577,687 | 10,791,669 | |||||||||
Weighted average shares - | |||||||||||
Basic | 15,077,544 | 10,789,966 | |||||||||
Diluted | 15,156,260 | 10,820,955 | |||||||||
Dividends paid on common shares | $ | 0.16 | $ | 0.16 | |||||||
PERFORMANCE RATIOS | |||||||||||
Return on average assets | 0.40 | % | 1.01 | % | -60.40 | % | |||||
Return on average equity | 3.81 | % | 10.77 | % | -64.62 | % | |||||
Return on average realized equity (A) | 3.85 | % | 10.72 | % | -64.09 | % | |||||
Net interest margin (taxable equivalent) | 3.75 | % | 4.05 | % | -7.41 | % | |||||
Efficiency (taxable equivalent) (B) | 80.41 | % | 65.58 | % | 22.61 | % | |||||
ASSET QUALITY | |||||||||||
Allowance for loan losses | |||||||||||
Beginning of period | $ | 15,082 | $ | 14,500 | |||||||
Provision for loan losses | 953 | 165 | |||||||||
Charge offs | (618 | ) | (211 | ) | |||||||
Recoveries | 81 | 47 | |||||||||
Net charge-offs | (537 | ) | (164 | ) | |||||||
Allowance acquired via acquisition | 11,539 | ||||||||||
End of period | $ | 27,037 | $ | 14,501 | |||||||
Non-performing assets: | |||||||||||
Non-accrual loans | $ | 24,959 | $ | 2,709 | |||||||
Loans 90+ days past due and still accruing | 327 | - | |||||||||
Foreclosed assets | 5,617 | 38 | |||||||||
Troubled debt restructurings | 789 | - | |||||||||
Total non-performing assets | $ | 31,692 | $ | 2,747 | |||||||
to total assets: | 1.02 | % | 0.17 | % | |||||||
to total loans plus foreclosed assets: | 1.37 | % | 0.23 | % | |||||||
Allowance for loan losses to total loans | 1.17 | % | 1.19 | % | |||||||
Net charge-offs (recoveries) | $ | 537 | $ | 164 | |||||||
Net charge-offs to average loans outstanding | 0.13 | % | 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. This is a non-GAAP financial measure, which 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. |
(C) | Individual amounts shown above are calculated from actual, not rounded amounts in the thousands, which appear above. |
QUARTERLY PERFORMANCE SUMMARY
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands, except per share data)
Percent Increase (Decrease) | |||||||||||
3/31/2008 | 3/31/2007 | ||||||||||
SELECTED BALANCE SHEET DATA | |||||||||||
(Dollars in thousands) | |||||||||||
End of period balances | |||||||||||
Cash and cash equivalents | $ | 121,198 | $ | 36,749 | >100.00 | % | |||||
Securities available for sale | 417,022 | 256,578 | 62.53 | % | |||||||
Securities held to maturity | 3,594 | 3,331 | 7.90 | % | |||||||
Total securities | 420,616 | 259,909 | 61.83 | % | |||||||
Real estate - construction | 392,546 | 225,350 | 74.19 | % | |||||||
Real estate - 1-4 family residential | 732,319 | 313,012 | 133.96 | % | |||||||
Real estate - commercial and multifamily | 850,530 | 528,702 | 60.87 | % | |||||||
Commercial, financial and agricultural | 230,783 | 112,455 | 105.22 | % | |||||||
Consumer loans | 83,386 | 31,176 | 167.47 | % | |||||||
All other loans | 20,759 | 6,305 | 229.25 | % | |||||||
Total loans | 2,310,323 | 1,217,000 | 89.84 | % | |||||||
Deferred loan costs | 46 | 935 | -95.08 | % | |||||||
Allowance for loan losses | (27,037 | ) | (14,501 | ) | 86.45 | % | |||||
Net loans | 2,283,332 | 1,203,434 | 89.73 | % | |||||||
Core deposit intangibles, net | 11,673 | 3,707 | >100.00 | % | |||||||
Goodwill | 75,041 | 13,896 | >100.00 | % | |||||||
Bank owned life insurance | 27,882 | 10,350 | >100.00 | % | |||||||
Other assets | 173,548 | 73,108 | >100.00 | % | |||||||
Total assets | 3,113,290 | 1,601,153 | 94.44 | % | |||||||
Noninterest bearing deposits | 337,354 | 240,649 | 40.19 | % | |||||||
Money market & interest checking | 655,297 | 320,953 | >100.00 | % | |||||||
Savings | 215,475 | 96,479 | >100.00 | % | |||||||
CD’s and other time deposits | 1,160,341 | 619,674 | 87.25 | % | |||||||
Total deposits | 2,368,467 | 1,277,755 | 85.36 | % | |||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,136 | 18,000 | -93.69 | % | |||||||
Federal Home Loan Bank advances | 240,958 | 55,000 | >100.00 | % | |||||||
Subordinated debt | 32,991 | 20,619 | 60.00 | % | |||||||
Commercial paper | 74,309 | 63,788 | 16.49 | % | |||||||
Other borrowed funds | 350 | 493 | -29.01 | % | |||||||
Other liabilities | 26,492 | 12,115 | >100.00 | % | |||||||
Total liabilities | 2,744,703 | 1,447,770 | 89.58 | % | |||||||
Total stockholders’ equity | $ | 368,587 | $ | 153,383 | >100.00 | % | |||||
Accumulated comprehensive loss | $ | 1,869 | $ | (686 | ) | >(100.00 | %) | ||||
Average balances | |||||||||||
For the Three Months Ended | Percent Increase (Decrease) | ||||||||||
3/31/2008 | 3/31/2007 | ||||||||||
Total assets | $ | 2,100,220 | $ | 1,606,052 | 30.77 | % | |||||
Total stockholders’ equity | $ | 220,319 | $ | 151,311 | 45.61 | % | |||||
OTHER DATA | |||||||||||
End of period full time employees | 908 | 578 |
QUARTERLY PERFORMANCE SUMMARY
StellarOne Corporation (NASDAQ: STEL)
(Dollars in thousands)
For the Three Months Ended | Percent Increase (Decrease) | |||||||||
3/31/2008 | 3/31/2007 | |||||||||
Interest Income | ||||||||||
Loans, including fees | $ | 27,262 | $ | 21,985 | 24.00 | % | ||||
Deposits in other banks | 3 | 6 | -50.00 | % | ||||||
Investment securities: | ||||||||||
Taxable | 2,062 | 1,834 | 12.43 | % | ||||||
Tax-exempt | 837 | 943 | -11.24 | % | ||||||
Dividends | 268 | 126 | >100.00 | % | ||||||
Federal funds sold | 196 | 53 | >100.00 | % | ||||||
Total interest income | 30,628 | 24,947 | 22.77 | % | ||||||
Interest Expense | ||||||||||
Deposits | 10,205 | 8,531 | 19.62 | % | ||||||
Federal funds repurchased and securities sold under agreements to repurchase | 55 | 108 | -49.07 | % | ||||||
Federal Home Loan Bank advances | 1,907 | 777 | >100.00 | % | ||||||
Subordinated debt | 467 | 417 | 11.99 | % | ||||||
Commercial paper | 479 | 754 | -36.47 | % | ||||||
Other borrowings | — | 5 | -100.00 | % | ||||||
Total interest expense | 13,113 | 10,592 | 23.80 | % | ||||||
Net interest income | 17,515 | 14,355 | 22.01 | % | ||||||
Provision for loan losses | 953 | 165 | >100.00 | % | ||||||
Net interest income after provision for loan losses | 16,562 | 14,190 | 16.72 | % | ||||||
Noninterest Income | ||||||||||
Retail banking fees | 2,567 | 1,743 | 47.27 | % | ||||||
Commissions and fees from fiduciary activities | 803 | 828 | -3.02 | % | ||||||
Brokerage fee income | 414 | 256 | 61.72 | % | ||||||
Other operating income | 978 | 402 | >100.00 | % | ||||||
Gains on securities available for sale | 32 | — | N/A | |||||||
Losses on sales of foreclosed assets | (500 | ) | — | N/A | ||||||
Mortgage banking-related fees | 871 | 599 | 45.41 | % | ||||||
Total noninterest income | 5,165 | 3,828 | 34.93 | % | ||||||
Noninterest Expense | ||||||||||
Compensation and employee benefits | 11,168 | 6,819 | 63.78 | % | ||||||
Net occupancy | 1,160 | 874 | 32.72 | % | ||||||
Supplies and equipment | 1,541 | 1,121 | 37.47 | % | ||||||
Amortization-intangible assets | 161 | 164 | -1.83 | % | ||||||
Marketing | 417 | 249 | 67.47 | % | ||||||
State franchise taxes | 395 | 244 | 61.89 | % | ||||||
Data processing | 1,084 | 468 | >100.00 | % | ||||||
Telecommunications | 289 | 238 | 21.43 | % | ||||||
Professional fees | 574 | 150 | >100.00 | % | ||||||
Other operating expenses | 2,249 | 1,960 | 14.74 | % | ||||||
Total noninterest expense | 19,038 | 12,287 | 54.94 | % | ||||||
Income before income taxes | 2,689 | 5,731 | -53.08 | % | ||||||
Income tax expense | 602 | 1,713 | -64.86 | % | ||||||
Net income | $ | 2,087 | $ | 4,018 | -48.06 | % |
STELLARONE CORPORATION
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Dollars in thousands)
Three months ended March 31, | ||||||||||||||||||
2008 | 2007 | |||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||
Dollars in thousands | Balance | Inc/Exp | Rates | Balance | Inc/Exp | Rates | ||||||||||||
Assets | ||||||||||||||||||
Loans receivable, net | $ | 1,627,999 | $ | 27,300 | 6.73 | % | $ | 1,219,094 | $ | 22,026 | 7.33 | % | ||||||
Investment securities | ||||||||||||||||||
Taxable | 202,373 | 2,341 | 4.58 | % | 174,839 | 1,960 | 4.48 | % | ||||||||||
Tax exempt | 84,337 | 1,287 | 6.04 | % | 94,854 | 1,451 | 6.12 | % | ||||||||||
Total investments | 286,710 | 3,628 | 5.01 | % | 269,693 | 3,411 | 5.05 | % | ||||||||||
Interest bearing deposits | 375 | 3 | 3.16 | % | 626 | 6 | 3.83 | % | ||||||||||
Federal funds sold | 17,396 | 183 | 4.16 | % | 3,831 | 53 | 5.53 | % | ||||||||||
304,481 | 3,814 | 4.96 | % | 274,150 | 3,470 | 5.05 | % | |||||||||||
Total earning assets | 1,932,480 | 31,114 | 6.46 | % | 1,493,244 | 25,496 | 6.92 | % | ||||||||||
31,114 | ||||||||||||||||||
Total nonearning assets | 167,740 | 112,808 | ||||||||||||||||
Total assets | $ | 2,100,220 | $ | 1,606,052 | ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||
Interest checking | $ | 305,030 | $ | 1,096 | 1.44 | % | $ | 159,417 | $ | 63 | 0.16 | % | ||||||
Money market | 131,175 | 665 | 2.03 | % | 179,678 | 1,256 | 2.83 | % | ||||||||||
Savings | 127,065 | 338 | 1.07 | % | 96,518 | 302 | 1.27 | % | ||||||||||
Time deposits: | ||||||||||||||||||
Less than $100,000 | 513,723 | 5,298 | 4.14 | % | 414,884 | 4,435 | 4.34 | % | ||||||||||
$100,000 and more | 255,407 | 2,808 | 4.41 | % | 213,672 | 2,475 | 4.70 | % | ||||||||||
Total interest-bearing deposits | 1,332,400 | 10,205 | 3.07 | % | 1,064,169 | 8,531 | 3.25 | % | ||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 5,444 | 54 | 3.92 | % | 7,883 | 108 | 5.48 | % | ||||||||||
Federal Home Loan Bank advances | 185,516 | 1,908 | 4.07 | % | 62,205 | 777 | 5.00 | % | ||||||||||
Subordinated debt | 24,426 | 463 | 7.50 | % | 20,619 | 417 | 8.09 | % | ||||||||||
Commercial paper | 74,261 | 479 | 2.55 | % | 63,805 | 754 | 4.73 | % | ||||||||||
Other borrowings | 782 | 4 | 2.02 | % | 345 | 5 | 5.80 | % | ||||||||||
290,429 | 2,908 | 3.96 | % | 154,857 | 2,061 | 5.32 | % | |||||||||||
Total interest-bearing liabilities | 1,622,829 | 13,113 | 3.23 | % | 1,219,026 | 10,592 | 3.51 | % | ||||||||||
Total noninterest-bearing liabilities | 257,072 | 235,715 | ||||||||||||||||
Total liabilities | 1,876,094 | 1,454,741 | ||||||||||||||||
Stockholders’ equity | 220,319 | 151,311 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,100,220 | $ | 1,606,052 | ||||||||||||||
Net interest income (tax equivalent) | $ | 18,001 | $ | 14,904 | ||||||||||||||
Average interest rate spread | 3.23 | % | 3.41 | % | ||||||||||||||
Interest expense as percentage of average earning assets | 2.71 | % | 2.88 | % | ||||||||||||||
Net interest margin | 3.75 | % | 4.05 | % |