Exhibit 99.1
Heritage Commerce Corp Reports Record Results in 2006
San Jose, CA - February 6, 2007 —Heritage Commerce Corp (NASDAQ: HTBK), parent company of Heritage Bank of Commerce, today reported record results for 2006, driven by improved operating efficiencies and an increase in net interest margin. Net income in 2006 increased 20% to $17.3 million, or $1.44 per diluted share, compared to $14.4 million, or $1.19 per diluted share, for the year ended December 31, 2005. Fourth quarter net income rose 2% to $4.4 million, or $0.37 per diluted share, from $4.3 million, or $0.35 per diluted share for the same period in 2005.
The return on average assets (ROAA) for 2006 increased to 1.57% from 1.27% a year ago, and return on average equity (ROAE) was 14.6%, compared to 13.7% for 2005. Annualized returns on average assets and average equity for the fourth quarter of 2006 were 1.59% and 14.3%, respectively, compared with 1.46% and 15.4%, respectively, for the fourth quarter of 2005.
Financial Highlights:
2006
l | Diluted earnings per share of $1.44 were up 21% from the previous year. |
l | Profitability ratios all improved over 2005 levels: |
n | Net interest margin increased 48 basis points to 5.06%. |
n | ROAA grew 30 basis points to 1.57%. |
n | ROAE improved 89 basis points to 14.6% |
n | The efficiency ratio improved 466 basis points to 56.9 %. |
Fourth Quarter 2006
l | Net income grew to $4.4 million, up 2% from 4Q05 and remained at the same record level achieved in 3Q06. |
l | Diluted earnings per share of $0.37 were up 6% from 4Q05 and 3% from 3Q06. |
l | Book value per share of $10.54 was up 11% from 4Q05 and 3% from 3Q06. |
“The record profitability in 2006 reflects the focus of all our team members on building strong, profitable relationships with our customers,” said Walter T. Kaczmarek, President and Chief Executive Officer. “Interest margin improvement, coupled with solid gains in productivity, generated excellent results for our shareholders. As we look forward to 2007, we believe the economic growth in the local region will provide excellent opportunities for further advances.”
Operating Results
“We remain asset sensitive, which has helped us throughout this period of rising short-term interest rates,” Mr. Kaczmarek continued. Net interest income increased 5% to $50.4 million in 2006, compared to $47.8 million a year ago. Net interest income for the fourth quarter of 2006 was $12.8 million, which remained at the same level as the fourth quarter of 2005. The net interest margin was 5.06% in 2006, compared with 4.58% in 2005. The net interest margin improved to 5.16% in the fourth quarter of 2006 from 4.82% in the fourth quarter a year ago.
Noninterest income increased 4% to $9.8 million in 2006, from $9.4 million in the preceding year. Noninterest income is primarily comprised of gain on sale of SBA and other government guaranteed business loans, servicing fee income, deposit service charges, and increases in the cash surrender value of life insurance. In addition, the first quarter gain on sale of specialty loans contributed $671,000 to 2006 noninterest income and more than offset the $430,000 generated last year from leasing activities, a business Heritage exited in 2005. Fourth quarter noninterest income was $2.39 million, up 8% from the fourth quarter of 2005, and up 4% from the third quarter of 2006.
The efficiency ratio, a measure of operating expenses relative to revenues, improved to 56.9% in 2006 from 61.5% a year ago. The efficiency ratio was 57.3% in the fourth quarter of 2006, compared to 57.0% in the fourth quarter of 2005 and 55.0% in the third quarter of 2006.
In 2006, noninterest expense declined 3% to $34.3 million from $35.2 million a year ago, including a 2% decline in compensation expense. Fourth quarter noninterest expense increased 2% to $8.70 million, compared to $8.57 million in the fourth quarter of 2005 and was up 5% over the third quarter of 2006. The Bank recognized $120,000 of expenses associated with the conversion of the online banking system during the fourth quarter of 2006. Compensation expense decreased 4% and 5%, respectively, from the fourth quarter of 2005 and the third quarter of 2006. Stock option expense was $230,000 in the fourth quarter of 2006 and totaled $780,000 for the full year. In 2005, stock option expense was not included in the compensation expense, but rather footnoted in the financial statements as a pro forma disclosure.
Balance Sheet, Capital Management and Credit Quality
At December 31, 2006, total assets were $1.0 billion, down 8% from December 31, 2005. “We continue to carefully manage our assets and liabilities to improve profitability and manage interest rate and credit risk,” Mr. Kaczmarek noted. “Our focus will remain on building profitable relationships.” In 2006, total loans (excluding loans held for sale) increased 5% from a year ago level to $725.8 million, with commercial loans increasing 17% to $300.6 million, or 41% of the portfolio.
Total deposits decreased 10% to $847 million at December 31, 2006, from $940 million at December 31, 2005, primarily due to reductions in real estate exchange company and title companty accounts of $67 million as of December 31, 2006.
Asset quality remained strong with nonperforming assets (NPAs) totaling $4.3 million, or 0.42% of total assets at December 31, 2006, compared to $3.7 million, or 0.32% of total assets, at December 31, 2005, and $3.0 million, or 0.28% of total assets, at September 30, 2006. Net charge-offs in the fourth quarter of 2006 were $200,000, or 0.11% of average loans, compared to net charge-offs of $176,000, or 0.10% of average loans in the fourth quarter of 2005, and net recoveries of $281,000, or 0.16%, of average loans, in the third quarter of 2006. The allowance for loan losses at December 31, 2006, was $9.3 million, or 1.28% of total loans, and represented 215% of nonperforming loans. The allowance for loan losses at December 31, 2005, was $10.2 million, or 1.48% of total loans, and represented 278% of nonperforming loans. The allowance for loan losses at September 30, 2006, was $9.4 million, or 1.31% of total loans, and represented 317% of nonperforming loans.
Shareholders’ equity increased 10% to $123 million, or $10.54 book value per share, at December 31, 2006, compared to $112 million, or $9.45 book value per share, a year earlier, and $119 million, or $10.22 book value per share at September 30, 2006. Capital ratios continue to be significantly above the well-capitalized guidelines established by regulatory agencies. The Company’s leverage ratio at December 31, 2006 was 13.47%, compared to 11.55% at December 31, 2005 and 13.24% at September 30, 2006.
Heritage Commerce Corp repurchased 47,400 shares of common stock in the fourth quarter of 2006, bringing the total shares repurchased in the year to 330,300 with an average price of $25.93 for the quarter and $23.88 for the full year. The $10 million common stock repurchase program was approved by the Board of Directors in February, 2006 and expires on June 30, 2007. Shares were purchased on the open market using available cash. The repurchase program, which is financed by available cash, may be modified, suspended or terminated by the Board of Directors at any time without notice. The extent to which the Company repurchases its shares and the timing of such repurchases will depend upon market conditions and other corporate considerations.
Heritage Commerce Corp, a bank holding company established in February 1998, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose with offices in Los Gatos, Fremont, Danville, Morgan Hill, Gilroy, Mountain View and Los Altos. Heritage Bank of Commerce is also an SBA Preferred Lender operating from offices in San Jose, Chico, Fremont, Fresno, Jackson, Elk Grove, Santa Cruz and Watsonville, California.
Forward Looking Statement Disclaimer
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to, the Company’s ability to sustain dividend payments, fluctuations in interest rates and monetary policy established by the Federal Reserve, inflation, government regulations, general economic conditions, competition within the business areas in which the Company is conducting its operations, including the real estate market in California, the ability to recognize identified cost savings, and other factors beyond the Company's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. For a discussion of factors which could cause results to differ, please see the Company's reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission and the Company's press releases. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Member FDIC
At and For the Three Months Ended: | Percent Change From: | At and For the Year Ended: | ||||||||||||||||||||||
CONSOLIDATED INCOME STATEMENTS | December 31, | September 30, | December 31, | September 30, | December 31, | December 31, | December 31, | Percent | ||||||||||||||||
(in $000's, unaudited) | 2006 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | Change | ||||||||||||||||
Interest Income | $ | 18,737 | $ | 18,568 | $ | 17,588 | 1 | % | 7% | $ | 72,957 | $ | 63,756 | 14% | ||||||||||
Interest Expense | 5,936 | 5,754 | 4,773 | 3 | % | 24% | 22,525 | 15,907 | 42% | |||||||||||||||
Net Interest Income | 12,801 | 12,814 | 12,815 | 0 | % | 0% | 50,432 | 47,849 | 5% | |||||||||||||||
Provision for Loan Losses | 100 | 0 | 0 | N/ | A | N/A | (503 | ) | 313 | -261% | ||||||||||||||
Net Interest income after Provision for Loan Losses | 12,701 | 12,814 | 12,815 | -1 | % | -1% | 50,935 | 47,536 | 7% | |||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||
Gain on Sale of Loans | 837 | 832 | 711 | 1 | % | 18% | 4,008 | 2,871 | 40% | |||||||||||||||
Servicing Income | 539 | 412 | 470 | 31 | % | 15% | 1,860 | 1,838 | 1% | |||||||||||||||
Increase in Cash Surrender Value of Life Insurance | 369 | 363 | 349 | 2 | % | 6% | 1,439 | 1,236 | 16% | |||||||||||||||
Service Charges and Other Fees on Deposit Accounts | 327 | 354 | 348 | -8 | % | -6% | 1,335 | 1,468 | -9% | |||||||||||||||
Gain on Sale of Leased Equipment | 0 | 0 | 0 | N/ | A | N/A | 0 | 299 | -100% | |||||||||||||||
Equipment Leasing | 0 | 0 | 0 | N/ | A | N/A | 0 | 131 | -100% | |||||||||||||||
Other | 318 | 338 | 326 | -6 | % | -2% | 1,198 | 1,580 | -24% | |||||||||||||||
Total Noninterest Income | 2,390 | 2,299 | 2,204 | 4 | % | 8% | 9,840 | 9,423 | 4% | |||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||
Salaries & Employee Benefits | 4,711 | 4,941 | 4,932 | -5 | % | -4% | 19,414 | 19,845 | -2% | |||||||||||||||
Occupancy & Equipment | 907 | 913 | 933 | -1 | % | -3% | 3,627 | 3,988 | -9% | |||||||||||||||
Other | 3,085 | 2,458 | 2,702 | 26 | % | 14% | 11,227 | 11,400 | -2% | |||||||||||||||
Total Noninterest Expense | 8,703 | 8,312 | 8,567 | 5 | % | 2% | 34,268 | 35,233 | -3% | |||||||||||||||
Income Before Income Taxes | 6,388 | 6,801 | 6,452 | -6 | % | -1% | 26,507 | 21,726 | 22% | |||||||||||||||
Income Tax Expense | 2,036 | 2,448 | 2,194 | -17 | % | -7% | 9,237 | 7,280 | 27% | |||||||||||||||
Net Income | $ | 4,352 | $ | 4,353 | $ | 4,258 | 0 | % | 2% | $ | 17,270 | $ | 14,446 | 20% | ||||||||||
PER SHARE DATA | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Basic Earnings Per Share | $ | 0.37 | $ | 0.37 | $ | 0.36 | 0 | % | 3% | $ | 1.47 | $ | 1.22 | 20% | ||||||||||
Diluted Earnings Per Share | $ | 0.37 | $ | 0.36 | $ | 0.35 | 3 | % | 6% | $ | 1.44 | $ | 1.19 | 21% | ||||||||||
Common Shares Outstanding at Period End | 11,656,943 | 11,681,297 | 11,807,649 | 0 | % | -1% | 11,656,943 | 11,807,649 | -1% | |||||||||||||||
Book Value Per Share | $ | 10.54 | $ | 10.22 | $ | 9.45 | 3 | % | 11% | $ | 10.54 | $ | 9.45 | 11% | ||||||||||
Tangible Book Value Per Share | $ | 10.54 | $ | 10.22 | $ | 9.45 | 3 | % | 11% | $ | 10.54 | $ | 9.45 | 11% | ||||||||||
KEY FINANCIAL RATIOS | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Annualized Return on Average Equity | 14.25 | % | 14.43 | % | 15.41 | % | -1 | % | -8% | 14.62% | 13.73% | 6% | ||||||||||||
Annualized Return on Average Assets | 1.59 | % | 1.61 | % | 1.46 | % | -1 | % | 9% | 1.57% | 1.27% | 24% | ||||||||||||
Net Interest Margin | 5.16 | % | 5.22 | % | 4.82 | % | -1 | % | 7% | 5.06% | 4.58% | 10% | ||||||||||||
Efficiency Ratio | 57.29 | % | 55.00 | % | 57.04 | % | 4 | % | 0% | 56.86% | 61.52% | -8% | ||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||
(in $000's, unaudited) | ||||||||||||||||||||||||
Average Assets | $ | 1,084,440 | $ | 1,074,903 | $ | 1,155,178 | 1 | % | -6% | $ | 1,098,278 | $ | 1,137,185 | -3% | ||||||||||
Average Earning Assets | $ | 984,146 | $ | 973,556 | $ | 1,053,901 | 1 | % | -7% | $ | 996,082 | $ | 1,044,043 | -5% | ||||||||||
Average Total Loans | $ | 715,257 | $ | 706,587 | $ | 697,231 | 1 | % | 3% | $ | 704,009 | $ | 695,769 | 1% | ||||||||||
Average Loans Held For Sale | $ | 23,115 | $ | 32,534 | $ | 71,789 | -29 | % | -68% | $ | 34,288 | $ | 66,559 | -48% | ||||||||||
Average Deposits | $ | 892,983 | $ | 886,976 | $ | 965,574 | 1 | % | -8% | $ | 907,095 | $ | 945,991 | -4% | ||||||||||
Average Demand Deposits - Noninterest Bearing | $ | 233,945 | $ | 218,766 | $ | 258,374 | 7 | % | -9% | $ | 229,190 | $ | 259,881 | -12% | ||||||||||
Average Interest Bearing Deposits | $ | 659,038 | $ | 668,210 | $ | 707,200 | -1 | % | -7% | $ | 677,905 | $ | 686,110 | -1% | ||||||||||
Average Interest Bearing Liabilities | $ | 704,540 | $ | 713,712 | $ | 763,602 | -1 | % | -8% | $ | 727,036 | $ | 750,560 | -3% | ||||||||||
Average Equity | $ | 121,202 | $ | 119,690 | $ | 109,636 | 1 | % | 11% | $ | 118,095 | $ | 105,208 | 12% |
End of Period: | Percent Change From: | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||
(in $000's, unaudited) | 2006 | 2006 | 2005 | 2006 | 2005 | |||||||||||
ASSETS | ||||||||||||||||
Cash and Due from Banks | $ | 34,285 | $ | 41,438 | $ | 35,560 | -17 | % | -4 | % | ||||||
Federal Funds Sold | 15,100 | 41,000 | 62,900 | -63 | % | -76 | % | |||||||||
Securities Available-for-Sale, at Fair Value | 172,298 | 173,723 | 198,495 | -1 | % | -13 | % | |||||||||
Loans Held For Sale | 17,234 | 23,108 | 70,147 | -25 | % | -75 | % | |||||||||
Loans: | ||||||||||||||||
Commercial | 300,611 | 281,488 | 256,713 | 7 | % | 17 | % | |||||||||
Real Estate-Mortgage | 239,041 | 227,732 | 237,566 | 5 | % | 1 | % | |||||||||
Real Estate-Land and Construction | 143,834 | 160,137 | 149,851 | -10 | % | -4 | % | |||||||||
Home Equity | 38,976 | 41,784 | 41,772 | -7 | % | -7 | % | |||||||||
Consumer | 2,422 | 1,387 | 1,721 | 75 | % | 41 | % | |||||||||
Total Loans | 724,884 | 712,528 | 687,623 | 2 | % | 5 | % | |||||||||
Deferred Loan Costs | 870 | 1,172 | 1,155 | -26 | % | -25 | % | |||||||||
Loans, Net of Deferred Costs | 725,754 | 713,700 | 688,778 | 2 | % | 5 | % | |||||||||
Allowance for Loan Losses | (9,279) | (9,379) | (10,224) | -1 | % | -9 | % | |||||||||
Net Loans | 716,475 | 704,321 | 678,554 | 2 | % | 6 | % | |||||||||
Company Owned Life Insurance | 36,174 | 35,805 | 34,735 | 1 | % | 4 | % | |||||||||
Premises & Equipment, Net | 2,539 | 2,494 | 2,541 | 2 | % | 0 | % | |||||||||
Accrued Interest Receivable and Other Assets | 43,033 | 40,939 | 47,577 | 5 | % | -10 | % | |||||||||
Total Assets | $ | 1,037,138 | $ | 1,062,828 | $ | 1,130,509 | -2 | % | -8 | % | ||||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||
Liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand Deposits-Noninterest Bearing | $ | 231,841 | $ | 226,297 | $ | 248,009 | 2 | % | -7 | % | ||||||
Demand Deposits-Interest Bearing | 133,413 | 133,636 | 157,330 | 0 | % | -15 | % | |||||||||
Savings and Money Market | 307,266 | 349,436 | 353,798 | -12 | % | -13 | % | |||||||||
Time Deposits, Under $100 | 31,097 | 31,522 | 35,209 | -1 | % | -12 | % | |||||||||
Time Deposits, $100 and Over | 111,017 | 101,198 | 109,373 | 10 | % | 2 | % | |||||||||
Brokered Deposits, $100 and Over | 31,959 | 34,009 | 36,040 | -6 | % | -11 | % | |||||||||
Total Deposits | 846,593 | 876,098 | 939,759 | -3 | % | -10 | % | |||||||||
Securities Sold Under Agreement to Repurchase | 21,800 | 21,800 | 32,700 | 0 | % | -33 | % | |||||||||
Notes Payable To Subsidiary Grantor Trusts | 23,702 | 23,702 | 23,702 | 0 | % | 0 | % | |||||||||
Accrued Interest Payable and Other Liabilities | 22,223 | 21,892 | 22,731 | 2 | % | -2 | % | |||||||||
Total Liabilities | 914,318 | 943,492 | 1,018,892 | -3 | % | -10 | % | |||||||||
Shareholders' Equity: | ||||||||||||||||
Common Stock | 62,363 | 62,959 | 66,799 | -1 | % | -7 | % | |||||||||
Accumulated Other Comprehensive Loss | (1,995) | (2,306) | (2,721) | -13 | % | -27 | % | |||||||||
Retained Earnings | 62,452 | 58,683 | 47,539 | 6 | % | 31 | % | |||||||||
Total Shareholders' Equity | 122,820 | 119,336 | 111,617 | 3 | % | 10 | % | |||||||||
Total Liabilities & Shareholders' Equity | $ | 1,037,138 | $ | 1,062,828 | $ | 1,130,509 | -2 | % | -8 | % | ||||||
CREDIT QUALITY DATA | ||||||||||||||||
(in $000's, unaudited) | ||||||||||||||||
Nonaccrual Loans | $ | 3,866 | $ | 2,083 | $ | 3,672 | 86 | % | 5 | % | ||||||
Loans Past Due 90 Days or More and Still Accruing | 451 | 879 | 0 | -49 | % | N/ | A | |||||||||
Total Nonperforming Loans | 4,317 | 2,962 | 3,672 | 46 | % | 18 | % | |||||||||
Other Real Estate Owned | 0 | 0 | 0 | N/ | A | N/ | A | |||||||||
Total Nonperforming Assets | $ | 4,317 | $ | 2,962 | $ | 3,672 | 46 | % | 18 | % | ||||||
Net Charge-offs (Recoveries) | $ | 200 | $ | (281) | $ | 176 | 171 | % | 14 | % | ||||||
Net Charge-offs (Recoveries) as Percent of Average Loans | 0.11 | % | -0.16 | % | 0.10 | % | 169 | % | 10 | % | ||||||
Allowance for Loan Losses to Total Loans | 1.28 | % | 1.31 | % | 1.48 | % | -2 | % | -14 | % | ||||||
Allowance for Loan Losses to Nonperforming Loans | 214.94 | % | 316.64 | % | 278.43 | % | -32 | % | -23 | % | ||||||
Nonperforming Assets to Total Assets | 0.42 | % | 0.28 | % | 0.32 | % | 50 | % | 31 | % | ||||||
Nonperforming Loans to Total Loans | 0.60 | % | 0.42 | % | 0.53 | % | 43 | % | 13 | % | ||||||
OTHER PERIOD-END STATISTICS | ||||||||||||||||
(unaudited) | ||||||||||||||||
Shareholders Equity / Total Assets | 11.84 | % | 11.23 | % | 9.87 | % | 5 | % | 20 | % | ||||||
Loan to Deposit Ratio | 85.73 | % | 81.46 | % | 73.29 | % | 5 | % | 17 | % | ||||||
Noninterest Bearing Deposits / Total Deposits | 27.39 | % | 25.83 | % | 26.39 | % | 6 | % | 4 | % | ||||||
Leverage Ratio | 13.47 | % | 13.24 | % | 11.55 | % | 2 | % | 17 | % |
For the Three Months Ended December 31, 2006 | For the Three Months Ended December 31, 2005 | ||||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||||
NET INTEREST INCOME AND NET INTEREST MARGIN | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
(in $000's, unaudited) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
Assets: | |||||||||||||||||||
Loans, gross | $ | 738,372 | $ | 15,836 | 8.51% | $ | 769,020 | $ | 15,109 | 7.79 | % | ||||||||
Securities | 178,835 | 2,014 | 4.47% | 214,123 | 1,773 | 3.29 | % | ||||||||||||
Interest bearing deposits in other financial institutions | 2,890 | 36 | 4.94% | 4,258 | 39 | 3.63 | % | ||||||||||||
Federal funds sold | 64,049 | 851 | 5.27% | 66,500 | 667 | 3.98 | % | ||||||||||||
Total interest earning assets | 984,146 | $ | 18,737 | 7.55% | 1,053,901 | $ | 17,588 | 6.62 | % | ||||||||||
Cash and due from banks | 29,545 | 39,611 | |||||||||||||||||
Premises and equipment, net | 2,607 | 2,641 | |||||||||||||||||
Other assets | 68,142 | 59,025 | |||||||||||||||||
Total assets | $ | 1,084,440 | $ | 1,155,178 | |||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand, interest bearing | $ | 135,356 | $ | 769 | 2.25% | $ | 146,244 | $ | 622 | 1.69 | % | ||||||||
Savings and money market | 356,489 | 2,819 | 3.14% | 376,613 | 2,013 | 2.12 | % | ||||||||||||
Time deposits, under $100 | 30,460 | 276 | 3.59% | 36,147 | 243 | 2.67 | % | ||||||||||||
Time deposits, $100 and over | 104,325 | 1,033 | 3.93% | 111,586 | 804 | 2.86 | % | ||||||||||||
Brokered time deposits, $100 and over | 32,408 | 312 | 3.82% | 36,610 | 344 | 3.73 | % | ||||||||||||
Notes payable to subsidiary grantor trusts | 23,702 | 586 | 9.81% | 23,702 | 555 | 9.29 | % | ||||||||||||
Securities sold under agreement to repurchase | 21,800 | 141 | 2.57% | 32,700 | 192 | 2.33 | % | ||||||||||||
Total interest bearing liabilities | 704,540 | $ | 5,936 | 3.34% | 763,602 | $ | 4,773 | 2.48 | % | ||||||||||
Demand, noninterest bearing | 233,945 | 258,374 | |||||||||||||||||
Other liabilities | 24,753 | 23,566 | |||||||||||||||||
Total liabilities | 963,238 | 1,045,542 | |||||||||||||||||
Shareholders' equity: | 121,202 | 109,636 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,084,440 | $ | 1,155,178 | |||||||||||||||
Net interest income / margin | $ | 12,801 | 5.16% | $ | 12,815 | 4.82 | % | ||||||||||||
For the Year Ended December 31, 2006 | For the Year Ended December 31, 2005 | ||||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||||
NET INTEREST INCOME AND NET INTEREST MARGIN | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
(in $000's, unaudited) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
Assets: | |||||||||||||||||||
Loans, gross | $ | 738,297 | $ | 61,859 | 8.38% | $ | 762,328 | $ | 54,643 | 7.17 | % | ||||||||
Securities | 191,220 | 7,796 | 4.08% | 226,043 | 7,247 | 3.21 | % | ||||||||||||
Interest bearing deposits in other financial institutions | 2,826 | 132 | 4.67% | 3,234 | 97 | 3.00 | % | ||||||||||||
Federal funds sold | 63,739 | 3,170 | 4.97% | 52,438 | 1,769 | 3.37 | % | ||||||||||||
Total interest earning assets | 996,082 | $ | 72,957 | 7.32% | 1,044,043 | $ | 63,756 | 6.11 | % | ||||||||||
Cash and due from banks | 34,810 | 38,670 | |||||||||||||||||
Premises and equipment, net | 2,482 | 2,879 | |||||||||||||||||
Other assets | 64,904 | 51,593 | |||||||||||||||||
Total assets | $ | 1,098,278 | $ | 1,137,185 | |||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand, interest bearing | $ | 145,471 | $ | 3,220 | 2.21% | $ | 134,412 | $ | 1,749 | 1.30 | % | ||||||||
Savings and money market | 358,846 | 10,274 | 2.86% | 363,570 | 6,058 | 1.67 | % | ||||||||||||
Time deposits, under $100 | 31,967 | 1,037 | 3.24% | 37,260 | 862 | 2.31 | % | ||||||||||||
Time deposits, $100 and over | 107,387 | 3,762 | 3.50% | 115,104 | 2,867 | 2.49 | % | ||||||||||||
Brokered time deposits, $100 and over | 34,234 | 1,295 | 3.78% | 35,764 | 1,313 | 3.67 | % | ||||||||||||
Notes payable to subsidiary grantor trusts | 23,702 | 2,310 | 9.75% | 23,702 | 2,136 | 9.01 | % | ||||||||||||
Securities sold under agreement to repurchase | 25,429 | 627 | 2.47% | 40,748 | 922 | 2.26 | % | ||||||||||||
Total interest bearing liabilities | 727,036 | $ | 22,525 | 3.10% | 750,560 | $ | 15,907 | 2.12 | % | ||||||||||
Demand, noninterest bearing | 229,190 | 259,881 | |||||||||||||||||
Other liabilities | 23,957 | 21,536 | |||||||||||||||||
Total liabilities | 980,183 | 1,031,977 | |||||||||||||||||
Shareholders' equity: | 118,095 | 105,208 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,098,278 | $ | 1,137,185 | |||||||||||||||
Net interest income / margin | $ | 50,432 | 5.06% | $ | 47,849 | 4.58 | % | ||||||||||||