Exhibit 99.1
FOR FURTHER INFORMATION AT THE COMPANY:
Julia Gouw | Steven Canup |
Chief Financial Officer | Investor Relations |
(626) 583-3512 | (626) 583-3775 |
EAST WEST BANCORP REPORTS RECORD EARNINGS
FOR THIRD QUARTER OF 2004
EPS Increases 22% to $0.39
Performance driven by loan growth, operational efficiencies and sustained asset quality
East West increases 2004 Guidance to$1.47 and provides initial 2005 guidance of 20% EPS growth
San Marino, CA – October 21, 2004 – East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, one of the nation’s premier community banks and a leading institution focused on the Chinese-American and other niche markets, today reported financial results for the third quarter of 2004. Earnings per share for the third quarter increased 22% to a record $0.39 from $0.32 in the prior year period. The growth in earnings in the third quarter was largely attributable to a significant increase in net interest income resulting from the strong loan growth as well as continued operating efficiencies.
Third quarter highlights include:
• Gross loans increased 44% year to date to a record $4.7 billion;
• Total deposits equaled $4.3 billion, a 30% increase over year end 2003;
• Third quarter net interest margin of 4.24%;
• Total cost of deposits for the quarter of 1.00%;
• Efficiency ratio of 34.75%;
• Total non-performing assets were 0.05% of total assets;
• Closing of the Trust Bank acquisition.
- more -
Financial Summary
Third quarter net income totaled $20.4 million, 26% higher than the $16.1 million reported in the same period of the previous year and the largest amount in the Bank’s history. Return on average assets for the third quarter was 1.55%, compared with 1.77% in the previous year, while return on average equity for the quarter was 17.84%, compared with 19.52% in the third quarter of 2003. Total shareholders’ equity as of September 30 increased by $129.4 million from year end to $491.4 million, due primarily to the issuance of equity in the Bank’s private placement, the issuance of shares for the Trust acquisition and an increase in retained earnings.
“We continued to expand our range of relationships during the quarter, generating loan and deposit growth not only from existing customers, but also through the addition of new customers,” stated Dominic Ng, Chairman, President and CEO of East West. “We are particularly pleased that we increased our market share without compromising our commitment to sound underwriting standards, disciplined pricing and controlled operating expenses. Combined with strong growth in our balance sheet, we achieved the lowest ratio of nonperforming assets and the lowest efficiency ratio in the past decade. As in recent quarters, this performance, particularly the growth in the loan portfolio, was driven by a balanced contribution from existing account officers, new hires and from a greater marketing effort from our retail branches.”
“Also during the third quarter, we closed the acquisition of Trust Bank, adding over 4,000 deposit customers to the East West franchise. We completed the conversion and integration of all Trust Bank systems in the first week of October and have already begun to cultivate these new relationships to generate additional lending and deposit opportunities” concluded Ng.
Management Guidance
The Company provided updated guidance for 2004 earnings per share. Based on the year-to-date performance and the expected results for the fourth quarter, management has increased its full year EPS estimate to $1.47, representing a fourth quarter EPS of $0.40, compared to the previous full year guidance of $1.40 to $1.42. These estimates assume a stable interest rate environment, as well as a loss provision, efficiency ratio and tax rate roughly equal to those of the third quarter.
East West also provided initial guidance for 2005 EPS, growth of 20%, representing an initial EPS estimate of $1.76. Mr. Ng commented on the Bank’s outlook, “We are encouraged by the levels of our loan pipeline and have realized higher net interest income due to the recent movements by the Federal Reserve. This strong loan origination, combined with growth in our deposit base and our commitment to controlled expense levels, will deliver earnings growth in the 20% range in 2005. Our EPS guidance is also based on a stable interest rate environment, annualized loan growth in 2005 of approximately 18% and 20%, approximately 15% to 17% annualized deposit growth, an
2
efficiency ratio in the high 30% range, and an effective tax rate of approximately 36% to 38%,” said Mr. Ng.
Balance Sheet Summary
At September 30, 2004, total assets equaled a record $5.6 billion, 37% above assets at December 31, 2003. The growth in assets was primarily attributable to the growth of the loan portfolio. Gross loans at September 30, 2004 equaled $4.7 billion, an increase of 44% over $3.3 billion at December 31, 2003. Organic loan growth, excluding the impact of the Trust Bank acquisition, equaled 39% year to date. East West also executed a FNMA multifamily loan securitization of approximately $24 million in the third quarter. The Bank undertook the securitization for capital management purposes and retained all of the securities on its balance sheet. The transaction was accounted for as a pass through security, which did not generate any gain on sale or other capitalized income. Commercial real estate, multifamily and construction loans contributed the largest dollar volume of the portfolio growth, although every category of loans experienced double digit growth rates for the year to date. Single family mortgages increased nearly $128 million from the end of 2003, reflecting a previously discussed shift to more variable rate and hybrid products.
Average earning assets for the third quarter equaled $5.0 billion, 46% higher than for the third quarter of 2003. The growth in average earning assets was driven by a 58% increase in average loans to $4.4 billion, and a 10% increase in average investment securities. The yield on average earning assets for the quarter equaled 5.37%, slightly above the 5.33% in the year ago quarter.
Total deposits as of September 30, 2004 equaled $4.3 billion, a 30% increase over total deposits of $3.3 billion at December 31, 2003. Organic deposit growth year to date totaled 25%. Core deposits at September 30, 2004 totaled $2.3 billion, an increase of 27% over $1.8 billion at December 31, 2003. As a result of the Bank’s focus on gathering additional small to mid-sized commercial relationships, demand deposits and money market accounts represented the majority of the core deposit growth year to date, increasing a combined $425 million since the end of 2003. The Bank also generated over $510 million in time deposits year to date, including the Trust Bank acquisition.
Average deposits for the third quarter totaled $3.9 billion, 26% above the figure for the prior year period, while average core deposits equaled $2.0 billion, 22% greater than a year ago. The year-over-year increase in average core deposits is primarily attributable to the expansion in commercial relationships, as well as programs in the retail branches targeting smaller businesses, as well as the Trust Bank acquisition.
The average cost of deposits for the third quarter increased to 1.00% from 0.86% for the third quarter of 2003. The increase in the cost of deposits for the year-over-year period is attributable primarily to the higher cost of deposits from Trust Bank, and secondarily to a higher market interest rate on selected deposit categories, including time deposits.
3
Operating Results
Net interest income for the third quarter climbed 41% to a record $52.8 million, representing a net interest margin of 4.24%, compared to 4.39% a year ago and 4.12% in the previous quarter. The sequential quarter increase in net interest margin is attributable to the impact of the increase in the Fed Funds rate during the quarter as well as the continued growth in the loan portfolio. The prior year net interest margin includes approximately $1.1 million in charges and interest from the resolution and repayment of selected loans. Excluding these items, the margin for the third quarter of 2003 was 4.26%. Management now anticipates a net interest margin for the fourth quarter of 2004, assuming stable interest rates, of 4.25% to 4.28%. For 2005, management anticipates a net interest margin, again assuming a stable rate environment, of between 4.28% and 4.30%.
East West provided $5.0 million for loan losses during the third quarter, compared to $2.0 million in the year ago quarter. The increased provision reflects the strong rate of growth in loans, offset by the sustained low levels of nonperforming assets. Given the outlook for loan growth, management believes that provision for loan losses for the next several quarters should remain consistent with the third quarter level.
Noninterest income for the third quarter totaled $7.2 million, 22% lower than the year ago level. Core noninterest income for the quarter, which excludes non-recurring gains on sales of loans, securities and other assets, totaled $5.6 million, compared to $8.6 million in the prior year period. The overall level of core noninterest income was negatively impacted by a $2.2 million decrease in secondary marketing income due to both a customer shift to variable rate and hybrid mortgages which East West retains in its portfolio. Total noninterest income for the third quarter included gains on the sale of securities related to the Trust Bank acquisition, as well as a net gain of $900,000 on the disposition of bank premises due to future relocation.
Total non-interest expense for the third quarter was $23.2 million, 17% above a year ago. Cash operating expenses, which exclude the amortization of intangibles and investments in affordable housing partnerships, totaled $20.9 million for the quarter, an 19% increase over the prior year period. The increase in noninterest expense over the prior year is primarily due to higher compensation related to the addition of the Trust Bank staff as well as organic growth in account officers, higher occupancy expense from the addition of new branches and higher other expenses, which can be attributed to overall deposit and loan growth. Management anticipates modest expense growth in the fourth quarter of 2004 and an annualized rate of growth in expenses for 2005 in the 12% to 15% range.
East West generated a 34.75% efficiency ratio for the third quarter of 2004, compared to 37.58% a year ago. The year-over-year improvement in efficiency ratio is attributable to increased efficiencies in the Bank’s operating platform and the significant growth in net interest income. Management expects the efficiency ratio for 2005 to range from 35% to 38%.
4
The effective tax rate for the third quarter was 35.9% compared to 34.9% a year ago. As the Bank’s pretax income increases, the fixed dollar value of existing tax credits result in a smaller reduction in the Bank’s effective tax rate. Management anticipates an effective tax rate for the fourth quarter of approximately 36% and for 2005 of 36% to 38%.
Asset Quality
Total nonperforming assets reached the lowest level the Bank has experienced in the past decade. Total nonperforming assets were $2.6 million, or 0.05% of total assets at September 30, 2004, which compares with $5.8 million, or 0.15% of total assets, at September 30, 2003. Nonaccrual loans at September 30, 2004 were $2.6 million, or 0.06% of total loans, compared to $4.6 million, or 0.16% of total loans, a year ago.
Net chargeoffs for the quarter totaled $3.3 million, or an annualized 0.30% of average loans, compared to net recoveries of $467,000, or an annualized recovery of 0.07% of average loans, for the third quarter of 2003. Net chargeoffs in the third quarter of 2004 resulted almost entirely from two commercial loans, both of which were previously on nonperforming status.
Management believes that the overall level of asset quality remains sound and that nonperforming assets should continue to be below 0.50% of total assets and that net chargeoffs should remain below an annualized 0.35% in 2004 and 2005. The allowance for loan losses at September 30, 2004 was $46.9 million, or 0.99% of total loans and 1,804% of nonaccrual loans, compared to $37.5 million, or 1.28% of total loans and 819% of nonaccrual loans at September 30, 2003.
Capitalization
East West continues to be well capitalized under all regulatory guidelines, with a Tier I risk-based capital ratio of 9.63%, a total risk-based capital ratio of 10.70% and a Tier I leverage ratio of 9.18%. Total stockholders’ equity as of September 30, 2004 was $491.4 million, representing a book value per share of $9.39. East West did not repurchase any shares during the quarter. The investors in the Bank’s recent private equity placement exercised their option to purchase an additional $10 million of shares during the third quarter, resulting in the issuance of approximately 406,000 shares. During the third quarter, East West closed the Trust Bank acquisition and issued approximately 1.2 million shares.
About East West
East West Bancorp is a publicly owned company, with $5.6 billion in assets, whose stock is traded on the Nasdaq National Market under the symbol “EWBC”. The Company’s wholly owned subsidiary, East West Bank, is one of the largest independent commercial banks headquartered in Los Angeles. East West Bank serves the community with 42 branches throughout Los Angeles, Orange, San Francisco, Alameda, Santa Clara, and San Mateo counties and a Beijing Representative Office in China. It is also one of the largest
5
financial institutions in the nation focusing on the Chinese-American community. For more information on East West Bancorp, visit the company’s website at www.eastwestbank.com.
Forward-Looking Statements
This release may contain forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and accordingly, the cautionary statements contained in East West Bancorp’s Annual Report on Form 10-K for the year ended Dec. 31, 2003 (See Item I — Business, and Item 7 — Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. These factors include, but are not limited to: the effect of interest rate and currency exchange fluctuations; competition in the financial services market for both deposits and loans; EWBC’s ability to efficiently incorporate acquisitions into its operations; the ability of EWBC and its subsidiaries to increase its customer base; the effect of regulatory and legislative action, including recently enacted California tax legislation and an announcement by the state’s Franchise Tax Board regarding the taxation of Registered Investment Companies; and regional and general economic conditions. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. East West expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Bank’s expectations of results or any change in events.
6
EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except per share amounts)
|
| September 30, |
| December 31, |
| % Change |
| ||
Assets |
|
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 110,631 |
| $ | 141,589 |
| (22 | ) |
Investment securities |
| 466,905 |
| 445,736 |
| 5 |
| ||
Loans (net of allowance for loan losses of $46,902 and $39,246) |
| 4,672,851 |
| 3,234,133 |
| 44 |
| ||
Premiums on deposits acquired, net |
| 8,326 |
| 7,565 |
| 10 |
| ||
Goodwill |
| 45,428 |
| 28,710 |
| 58 |
| ||
Other assets |
| 262,396 |
| 197,700 |
| 33 |
| ||
Total assets |
| $ | 5,566,537 |
| $ | 4,055,433 |
| 37 |
|
|
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
| ||
Deposits |
| $ | 4,313,454 |
| $ | 3,312,667 |
| 30 |
|
Short-term borrowings |
| — |
| 12,000 |
| (100 | ) | ||
FHLB advances |
| 655,250 |
| 281,300 |
| 133 |
| ||
Accrued expenses and other liabilities |
| 57,525 |
| 53,589 |
| 7 |
| ||
Notes payable |
| 6,913 |
| 2,192 |
| 215 |
| ||
Junior subordinated debt securities |
| 42,012 |
| 31,702 |
| 33 |
| ||
Total liabilities |
| 5,075,154 |
| 3,693,450 |
| 37 |
| ||
Stockholders’ equity |
| 491,383 |
| 361,983 |
| 36 |
| ||
Total liabilities and stockholders’ equity |
| $ | 5,566,537 |
| $ | 4,055,433 |
| 37 |
|
Book value per share (1) |
| $ | 9.39 |
| $ | 7.41 |
| 27 |
|
Number of shares at period end (1) |
| 52,319 |
| 48,857 |
| 7 |
| ||
Ending Balances
|
| September 30, |
| December 31, |
| % Change |
| ||
Loans |
|
|
|
|
|
|
| ||
Residential first mortgage |
| $ | 274,341 |
| $ | 146,686 |
| 87 |
|
Real estate - multifamily |
| 1,057,585 |
| 809,311 |
| 31 |
| ||
Real estate - commercial |
| 2,362,038 |
| 1,558,594 |
| 52 |
| ||
Real estate - construction |
| 317,729 |
| 179,544 |
| 77 |
| ||
Commercial business |
| 392,728 |
| 311,133 |
| 26 |
| ||
Trade finance |
| 139,580 |
| 120,809 |
| 16 |
| ||
Consumer |
| 177,200 |
| 147,150 |
| 20 |
| ||
Total gross loans |
| $ | 4,721,201 |
| $ | 3,273,227 |
| 44 |
|
Unearned fees, premiums and discounts |
| (1,448 | ) | 152 |
| (1,053 | ) | ||
Allowance for loan losses |
| (46,902 | ) | (39,246 | ) | 20 |
| ||
Net loans |
| $ | 4,672,851 |
| $ | 3,234,133 |
| 44 |
|
|
|
|
|
|
|
|
| ||
Deposits |
|
|
|
|
|
|
| ||
Noninterest-bearing demand |
| $ | 1,135,476 |
| $ | 922,946 |
| 23 |
|
Interest-bearing checking |
| 305,406 |
| 276,390 |
| 10 |
| ||
Money market |
| 501,720 |
| 289,217 |
| 73 |
| ||
Savings |
| 337,943 |
| 301,154 |
| 12 |
| ||
Total core deposits |
| 2,280,545 |
| 1,789,707 |
| 27 |
| ||
Time deposits |
| 2,032,909 |
| 1,522,960 |
| 33 |
| ||
Total deposits |
| $ | 4,313,454 |
| $ | 3,312,667 |
| 30 |
|
(1) Prior period amounts have been restated to reflect the 2 for 1 stock split on June 21, 2004
7
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share amounts)
|
| For the three months ended September 30, |
| ||||||
|
| 2004 |
| 2003 |
| % Change |
| ||
|
|
|
|
|
|
|
| ||
Interest and dividend income |
| $ | 66,815 |
| $ | 45,427 |
| 47 |
|
Interest expense |
| (13,980 | ) | (7,966 | ) | 75 |
| ||
Net interest income |
| 52,835 |
| 37,461 |
| 41 |
| ||
Provision for loan losses |
| (5,000 | ) | (2,000 | ) | 150 |
| ||
Net interest income after provision for loan losses |
| 47,835 |
| 35,461 |
| 35 |
| ||
Noninterest income |
| 7,176 |
| 9,193 |
| (22 | ) | ||
Noninterest expense |
| (23,210 | ) | (19,843 | ) | 17 |
| ||
Income before taxes |
| 31,801 |
| 24,811 |
| 28 |
| ||
Income taxes |
| (11,402 | ) | (8,669 | ) | 32 |
| ||
Net income |
| $ | 20,399 |
| $ | 16,142 |
| 26 |
|
Net income per share, basic (1) |
| $ | 0.40 |
| $ | 0.33 |
| 21 |
|
Net income per share, diluted (1) |
| $ | 0.39 |
| $ | 0.32 |
| 22 |
|
Shares used to compute per share net income: |
|
|
|
|
|
|
| ||
- Basic (1) |
| 51,210 |
| 48,138 |
| 6 |
| ||
- Diluted (1) |
| 52,884 |
| 49,600 |
| 7 |
| ||
|
| For the nine months ended September 30, |
| ||||||
|
| 2004 |
| 2003 |
| % Change |
| ||
|
|
|
|
|
|
|
| ||
Interest and dividend income |
| $ | 175,307 |
| $ | 130,352 |
| 34 |
|
Interest expense |
| (35,385 | ) | (26,851 | ) | 32 |
| ||
Net interest income |
| 139,922 |
| 103,501 |
| 35 |
| ||
Provision for loan losses |
| (11,750 | ) | (6,500 | ) | 81 |
| ||
Net interest income after provision for loan losses |
| 128,172 |
| 97,001 |
| 32 |
| ||
Noninterest income |
| 23,001 |
| 24,655 |
| (7 | ) | ||
Noninterest expense |
| (65,612 | ) | (56,546 | ) | 16 |
| ||
Income before taxes |
| 85,561 |
| 65,110 |
| 31 |
| ||
Income taxes |
| (30,188 | ) | (22,525 | ) | 34 |
| ||
Net income |
| $ | 55,373 |
| $ | 42,585 |
| 30 |
|
Net income per share, basic (1) |
| $ | 1.10 |
| $ | 0.89 |
| 24 |
|
Net income per share, diluted (1) |
| $ | 1.07 |
| $ | 0.86 |
| 24 |
|
Shares used to compute per share net income: |
|
|
|
|
|
|
| ||
- Basic (1) |
| 50,137 |
| 47,952 |
| 5 |
| ||
- Diluted (1) |
| 51,752 |
| 49,254 |
| 5 |
| ||
(1) Prior period amounts have been restated to reflect the 2 for 1 stock split on June 21, 2004
8
SELECTED FINANCIAL INFORMATION
(unaudited)
(Dollars in thousands)
Average Balances
|
| For the three months ended September 30, |
| ||||||
|
| 2004 |
| 2003 |
| % Change |
| ||
Loans |
|
|
|
|
|
|
| ||
Residential first mortgage |
| $ | 246,482 |
| $ | 160,788 |
| 53 |
|
Real estate - multifamily |
| 1,006,020 |
| 725,184 |
| 39 |
| ||
Real estate - commercial |
| 2,223,589 |
| 1,243,539 |
| 79 |
| ||
Real estate - construction |
| 292,499 |
| 162,450 |
| 80 |
| ||
Commercial business |
| 375,378 |
| 274,494 |
| 37 |
| ||
Trade finance |
| 134,231 |
| 120,712 |
| 11 |
| ||
Consumer |
| 169,900 |
| 129,530 |
| 31 |
| ||
Total loans |
| 4,448,099 |
| 2,816,697 |
| 58 |
| ||
Investment securities |
| 469,550 |
| 428,033 |
| 10 |
| ||
Earning assets |
| 4,980,691 |
| 3,410,611 |
| 46 |
| ||
Total assets |
| 5,272,107 |
| 3,648,731 |
| 44 |
| ||
|
|
|
|
|
|
|
| ||
Deposits |
|
|
|
|
|
|
| ||
Noninterest-bearing demand |
| 964,794 |
| 871,196 |
| 11 |
| ||
Interest-bearing checking |
| 287,506 |
| 282,026 |
| 2 |
| ||
Money market |
| 460,529 |
| 224,478 |
| 105 |
| ||
Savings |
| 329,466 |
| 298,150 |
| 11 |
| ||
Total core deposits |
| 2,042,295 |
| 1,675,850 |
| 22 |
| ||
Time deposits |
| 1,852,565 |
| 1,420,053 |
| 30 |
| ||
Total deposits |
| 3,894,860 |
| 3,095,903 |
| 26 |
| ||
Interest-bearing liabilities |
| 3,747,094 |
| 2,398,963 |
| 56 |
| ||
Stockholders’ equity |
| 457,446 |
| 330,733 |
| 38 |
| ||
|
| For the nine months ended September 30, |
| ||||||
|
| 2004 |
| 2003 |
| % Change |
| ||
Loans |
|
|
|
|
|
|
| ||
Residential first mortgage |
| $ | 190,982 |
| $ | 142,698 |
| 34 |
|
Real estate - multifamily |
| 906,945 |
| 689,006 |
| 32 |
| ||
Real estate - commercial |
| 1,939,907 |
| 1,122,831 |
| 73 |
| ||
Real estate - construction |
| 244,497 |
| 176,587 |
| 38 |
| ||
Commercial business |
| 345,609 |
| 268,629 |
| 29 |
| ||
Trade finance |
| 125,912 |
| 108,294 |
| 16 |
| ||
Consumer |
| 160,203 |
| 119,647 |
| 34 |
| ||
Total loans |
| 3,914,055 |
| 2,627,692 |
| 49 |
| ||
Investment securities |
| 431,451 |
| 459,792 |
| (6 | ) | ||
Earning assets |
| 4,447,684 |
| 3,259,276 |
| 36 |
| ||
Total assets |
| 4,718,172 |
| 3,493,139 |
| 35 |
| ||
|
|
|
|
|
|
|
| ||
Deposits |
|
|
|
|
|
|
| ||
Noninterest-bearing demand |
| 926,339 |
| 778,433 |
| 19 |
| ||
Interest-bearing checking |
| 283,054 |
| 261,104 |
| 8 |
| ||
Money market |
| 381,914 |
| 209,063 |
| 83 |
| ||
Savings |
| 316,116 |
| 283,571 |
| 11 |
| ||
Total core deposits |
| 1,907,423 |
| 1,532,171 |
| 24 |
| ||
Time deposits |
| 1,704,818 |
| 1,475,524 |
| 16 |
| ||
Total deposits |
| 3,612,241 |
| 3,007,695 |
| 20 |
| ||
Interest-bearing liabilities |
| 3,304,249 |
| 2,352,857 |
| 40 |
| ||
Stockholders’ equity |
| 415,588 |
| 317,546 |
| 31 |
| ||
9
|
| For the |
| For the |
| ||||||||
|
| 2004 |
| 2003 |
| % Change |
| 2004 |
| 2003 |
| % Change |
|
Selected Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Period |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
| 1.55 | % | 1.77 | % | (12 | ) | 1.56 | % | 1.63 | % | (4 | ) |
Return on average equity |
| 17.84 | % | 19.52 | % | (9 | ) | 17.77 | % | 17.88 | % | (1 | ) |
Interest rate spread |
| 3.87 | % | 4.00 | % | (3 | ) | 3.83 | % | 3.81 | % | 1 |
|
Net interest margin |
| 4.24 | % | 4.39 | % | (3 | ) | 4.19 | % | 4.23 | % | (1 | ) |
Yield on earning assets |
| 5.37 | % | 5.33 | % | 1 |
| 5.26 | % | 5.33 | % | (1 | ) |
Cost of deposits |
| 1.00 | % | 0.86 | % | 16 |
| 0.94 | % | 1.03 | % | (9 | ) |
Cost of funds |
| 1.19 | % | 0.97 | % | 23 |
| 1.12 | % | 1.14 | % | (2 | ) |
Noninterest expense/ average assets (2) |
| 1.58 | % | 1.92 | % | (18 | ) | 1.65 | % | 1.92 | % | (14 | ) |
Efficiency ratio (2) |
| 34.75 | % | 37.58 | % | (8 | ) | 35.87 | % | 39.25 | % | (9 | ) |
Net chargeoffs (recoveries) to average loans (annualized) |
| 0.30 | % | (0.07 | )% | 529 |
| 0.15 | % | 0.07 | % | 114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital ratio |
|
|
|
|
|
|
| 9.63 | % | 9.83 | % | (2 | ) |
Total risk-based capital ratio |
|
|
|
|
|
|
| 10.70 | % | 11.04 | % | (3 | ) |
Tier 1 leverage ratio |
|
|
|
|
|
|
| 9.18 | % | 8.99 | % | 2 |
|
Nonperforming assets to total assets |
|
|
|
|
|
|
| 0.05 | % | 0.15 | % | (67 | ) |
Nonaccrual loans to total loans |
|
|
|
|
|
|
| 0.06 | % | 0.16 | % | (63 | ) |
Allowance for loan losses to total loans |
|
|
|
|
|
|
| 0.99 | % | 1.28 | % | (23 | ) |
Allowance for loan losses to nonaccrual loans |
|
|
|
|
|
|
| 1,803.92 | % | 819.26 | % | 120 |
|
|
| For the |
| For the |
| ||||||||||||
|
| 2004 |
| 2003 |
| % Change |
| 2004 |
| 2003 |
| % Change |
| ||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loan fees |
| $ | 750 |
| $ | 1,283 |
| (42 | ) | $ | 3,876 |
| $ | 3,387 |
| 14 |
|
Branch fees |
| 1,693 |
| 1,855 |
| (9 | ) | 5,327 |
| 5,408 |
| (1 | ) | ||||
Letters of credit fees and commissions |
| 1,782 |
| 1,782 |
| 0 |
| 5,971 |
| 5,121 |
| 17 |
| ||||
Net gain (loss) on fixed assets |
| 911 |
| 13 |
| 6,908 |
| 931 |
| (156 | ) | 697 |
| ||||
Net gain on sale of loans |
| 16 |
| 172 |
| (91 | ) | 273 |
| 354 |
| (23 | ) | ||||
Net gain on securities |
| 678 |
| 398 |
| 70 |
| 1,481 |
| 1,385 |
| 7 |
| ||||
Income from secondary market activities |
| 15 |
| 2,170 |
| (99 | ) | 868 |
| 4,292 |
| (80 | ) | ||||
Other |
| 1,331 |
| 1,520 |
| (12 | ) | 4,274 |
| 4,864 |
| (12 | ) | ||||
Total |
| $ | 7,176 |
| $ | 9,193 |
| (22 | ) | $ | 23,001 |
| $ | 24,655 |
| (7 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Compensation and other employee benefits |
| $ | 9,386 |
| $ | 7,970 |
| 18 |
| $ | 27,693 |
| $ | 23,579 |
| 17 |
|
Net occupancy of premises |
| 3,146 |
| 2,631 |
| 20 |
| 8,694 |
| 7,469 |
| 16 |
| ||||
Deposit insurance premiums and regulatory assessments |
| 211 |
| 187 |
| 13 |
| 572 |
| 550 |
| 4 |
| ||||
Data processing |
| 566 |
| 461 |
| 23 |
| 1,534 |
| 1,321 |
| 16 |
| ||||
Amortization of positive intangibles |
| 575 |
| 518 |
| 11 |
| 1,612 |
| 1,470 |
| 10 |
| ||||
Amortization of investments in affordable housing partnerships |
| 1,784 |
| 1,792 |
| (0 | ) | 5,559 |
| 4,776 |
| 16 |
| ||||
Other |
| 7,542 |
| 6,284 |
| 20 |
| 19,948 |
| 17,381 |
| 15 |
| ||||
Total |
| $ | 23,210 |
| $ | 19,843 |
| 17 |
| $ | 65,612 |
| $ | 56,546 |
| 16 |
|
(2) Excludes the amortization of intangibles and investments in affordable housing partnerships
# # #
10