Exhibit 99.1
![](https://capedge.com/proxy/8-K/0001071992-07-000022/release.jpg)
CONTACT:
B. Grant Yarber
President and Chief Executive Officer
Phone: (919) 645-3494
Email: gyarber@capitalbank-nc.com
FOR IMMEDIATE RELEASE
Capital Bank Corporation Reports Second Quarter Net Income of $2.7 Million
RALEIGH, N.C. – July 24, 2007 – Capital Bank Corporation (Nasdaq: CBKN), the parent company of Capital Bank, today announced net income for the quarter ended June 30, 2007 of $2.7 million, a decrease of 13% from the $3.1 million earned for the second quarter of 2006. Fully diluted earnings per share were $0.23 for the quarter ended June 30, 2007 compared to $0.26 for the quarter ended June 30, 2006. For the first six months ended June 30, 2007 and 2006, net income was $5.1 million and $5.8 million, respectively, and fully diluted earnings per share were $0.44 and $0.50, respectively.
Commenting on the Company’s results, B. Grant Yarber, President and CEO, stated, “Despite the challenging operating environment, Capital Bank continues to gain market share in the Triangle and continues to invest in people and technology. We anticipate continued loan growth in the Triangle market but slower 2007 loan growth for the remainder of the franchise. Our net interest margin expanded slightly in the second quarter compared to the first quarter of 2007; however, as long as short term interest rates remain flat we anticipate continued margin pressure.”
As of June 30, 2007, total assets were $1.440 billion compared to $1.364 billion at June 30, 2006 and $1.422 billion at December 31, 2006. Gross loans increased 6% to $1.022 billion at June 30, 2007 from $965 million at June 30, 2006. At December 31, 2006, gross loans were $1.008 billion. During the quarter ended June 30, 2007, gross loans decreased $3 million as a result of large commercial loan paydowns near the end of the quarter. During the quarter ended June 30, 2007, average loans and investments increased $9 million and $5 million, respectively, and average short-term investments decreased $14 million, which resulted in flat earning assets for the quarter compared to the immediate preceding quarter. Total deposits at June 30, 2007 were $1.073 billion compared to $1.026 billion at June 30, 2006 and $1.055 billion at December 31, 2006. During the quarter ended June 30, 2007, average core deposits increased $40 million to $523 million while average time deposits decreased $46 million to $555 million.
Net interest income for the quarter ended June 30, 2007 totaled $11.3 million, a decrease of $354,000 compared to the quarter ended June 30, 2006. The net interest margin on a fully taxable equivalent basis was 3.65% for the quarter ended June 30, 2007, up 13 basis points from 3.52% for the quarter ended March 31, 2007 and down 39 basis points from 4.04% for the quarter ended June 30, 2006. The decrease in net interest income for the quarter ended June 30, 2007 compared to the same quarter of 2006 was attributable to a lower net interest margin, which was partially offset by the $121 million growth in earning assets. The decline in net interest margin from June 30, 2006 is primarily because the cost of funds had risen more than the yield on earning assets.
Asset quality improved during the quarter ended June 30, 2007 primarily from the reduction of other real estate owned. The Company’s nonperforming assets decreased $800,000 to $8.5 million, or 0.59% of total assets at June 30, 2007, from $9.3 million, or 0.63% of assets at March 31, 2007, and past due loans decreased to $13.0 million at June 30, 2007 from $16.2 million at March 31, 2007. Included in nonperforming loans at June 30, 2007 are loans totaling $1.2 million to a developer who has been accused of engaging in fraudulent marketing and financing practices in Western North Carolina. The Company believes it has established adequate reserves for losses on these loans.
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The Company provided a credit provision for loan losses for the quarter ended June 30, 2007 of ($91,000) compared to a provision in the quarter ended June 30, 2006 of $249,000. Net charge-offs for the quarter ended June 30, 2007 were $101,000, or 0.04% of average loans, compared to charge-offs of $523,000, or 0.22% of average loans, for the quarter ended June 30, 2006. Nonperforming loans were $7.6 million at June 30, 2007 compared to $6.1 million at June 30, 2006. Total past due loans were $13.0 million, or 1.27% of average loans, at June 30, 2007 compared to $9.2 million, or 0.96% of average loans, at June 30, 2006. The allowance for loan losses was 1.31% of total loans at June 30, 2007 compared with 1.32% of total loans at December 31, 2006.
The Company’s noninterest income for the quarter ended June 30, 2007 totaled $2.3 million, a decrease of $300,000 from the $2.6 million reported for the quarter ended June 30, 2006. A gain of $138,000 from the sale of former branch real estate was reported in the quarter ended June 30, 2006. Nonsufficient funds fees decreased $114,000, and loan fees decreased $74,000 for the quarter ended June 30, 2007 compared to the prior year but were partially offset by an increase in interchange fees of $72,000.
Noninterest expense increased to $9.8 million for the quarter ended June 30, 2007 compared to $9.3 million for the quarter ended June 30, 2006, primarily in salaries and benefits. Mr. Yarber noted, “Our deposit strategies continue to be successful, and loan demand remains strong in both the Triangle and Western North Carolina regions. Contributing to the increase in salaries and benefits expense, we continue to attract key talent throughout the franchise, recruiting and hiring thirteen additional experienced and proven sales associates thus far in 2007.”
Capital Bank Corporation will hold a quarterly earnings conference call on Wednesday, July 25, 2007 at 11:00 a.m. ET. Persons wishing to access the call may do so via the internet by visiting the Company’s website at www.capitalbank-nc.com.
Capital Bank Corporation, headquartered in Raleigh, N.C., with approximately $1.4 billion in total assets, offers a broad range of financial services. Capital Bank operates 26 banking offices in Asheville (3), Burlington (4), Cary, Graham (2), Greensboro, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Raleigh (5), Sanford (3), Siler City and Wake Forest. The Company’s website is http://www.capitalbank-nc.com.
Information in this press release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Capital Bank Corporation’s filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. Capital Bank Corporation does not undertake a duty to update any forward-looking statements in this press release.
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CAPITAL BANK CORPORATION
Summary of Operations
(Unaudited) | Three Months Ended June 30, 2007 | Three Months Ended June 30, 2006 | Six Months Ended June 30, 2007 | Six Months Ended June 30, 2006 | ||||||||||||
(In thousands except per share data) | ||||||||||||||||
Interest income | $ | 23,668 | $ | 21,109 | $ | 46,843 | $ | 40,779 | ||||||||
Interest expense | 12,414 | 9,501 | 24,866 | 17,781 | ||||||||||||
Net interest income | 11,254 | 11,608 | 21,977 | 22,998 | ||||||||||||
Provision (credit) for loan losses | (91 | ) | 249 | 246 | 661 | |||||||||||
Net interest income after provision for loan losses | 11,345 | 11,359 | 21,731 | 22,337 | ||||||||||||
Noninterest income | 2,307 | 2,612 | 4,497 | 4,627 | ||||||||||||
Noninterest expense | 9,788 | 9,341 | 19,024 | 18,155 | ||||||||||||
Income before taxes | 3,864 | 4,630 | 7,204 | 8,809 | ||||||||||||
Income tax expense | 1,188 | 1,579 | 2,144 | 2,995 | ||||||||||||
Net income | $ | 2,676 | $ | 3,051 | $ | 5,060 | $ | 5,814 | ||||||||
Income per share – basic | $ | 0.23 | $ | 0.26 | $ | 0.44 | $ | 0.50 | ||||||||
Income per share – fully diluted | $ | 0.23 | $ | 0.26 | $ | 0.44 | $ | 0.50 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 11,503 | 11,639 | 11,498 | 11,628 | ||||||||||||
Fully diluted | 11,574 | 11,727 | 11,574 | 11,716 |
End of Period Balances
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
June 30 | March 31 | December 31(a) | September 30 | June 30 | ||||||||||||||||
(Dollars in thousands except per share data) | ||||||||||||||||||||
Total assets | $ | 1,440,240 | $ | 1,481,141 | $ | 1,422,384 | $ | 1,399,673 | $ | 1,364,030 | ||||||||||
Investment securities | 241,666 | 248,726 | 239,047 | 200,647 | 189,669 | |||||||||||||||
Loans (gross)* | 1,022,147 | 1,025,464 | 1,008,052 | 1,003,835 | 965,484 | |||||||||||||||
Allowance for loan losses | 13,339 | 13,531 | 13,347 | 13,894 | 14,007 | |||||||||||||||
Total earning assets | 1,285,715 | 1,295,018 | 1,280,301 | 1,240,343 | 1,181,535 | |||||||||||||||
Deposits | 1,072,979 | 1,120,332 | 1,055,209 | 1,043,755 | 1,025,949 | |||||||||||||||
Shareholders’ equity | 162,402 | 163,855 | 161,681 | 160,871 | 157,770 | |||||||||||||||
Book value per share | $ | 14.17 | $ | 14.32 | $ | 14.19 | $ | 13.98 | $ | 13.66 | ||||||||||
Tangible book value per share | $ | 8.59 | $ | 8.71 | $ | 8.53 | $ | 8.19 | $ | 7.86 | ||||||||||
(a) Derived from audited consolidated financial statements | ||||||||||||||||||||
*Includes loans held for sale ($11.1 million at June 30, 2007) |
Average Balances
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
June 30 | March 31 | December 31(a) | September 30 | June 30 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Total assets | $ | 1,436,584 | $ | 1,437,234 | $ | 1,410,668 | $ | 1,365,832 | $ | 1,322,781 | ||||||||||
Investments | 248,850 | 243,732 | 219,765 | 195,323 | 190,045 | |||||||||||||||
Loans (gross)* | 1,021,517 | 1,012,483 | 1,008,053 | 982,037 | 954,420 | |||||||||||||||
Total earning assets | 1,292,651 | 1,292,811 | 1,258,780 | 1,213,002 | 1,171,648 | |||||||||||||||
Deposits | 1,078,430 | 1,084,418 | 1,050,139 | 1,020,143 | 990,037 | |||||||||||||||
Shareholders’ equity | 164,877 | 163,291 | 162,525 | 161,901 | 161,321 | |||||||||||||||
(a) Derived from audited consolidated financial statements | ||||||||||||||||||||
*Includes loans held for sale |
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CAPITAL BANK CORPORATION
Quarterly Results
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
June 30 | March 31 | December 31(a) | September 30 | June 30 | ||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||||
Interest income | $ | 23,668 | $ | 23,175 | $ | 23,505 | $ | 22,668 | $ | 21,109 | ||||||||||
Interest expense | 12,414 | 12,452 | 11,898 | 11,075 | 9,501 | |||||||||||||||
Net interest income | 11,254 | 10,723 | 11,607 | 11,593 | 11,608 | |||||||||||||||
Provision (credit) for loan losses | (91 | ) | 337 | 154 | (215 | ) | 249 | |||||||||||||
Net interest income after provision for loan losses | 11,345 | 10,386 | 11,453 | 11,808 | 11,359 | |||||||||||||||
Noninterest income | 2,307 | 2,190 | 2,448 | 2,258 | 2,612 | |||||||||||||||
Noninterest expense | 9,788 | 9,236 | 9,098 | 9,069 | 9,341 | |||||||||||||||
Income before taxes | 3,864 | 3,340 | 4,803 | 4,997 | 4,630 | |||||||||||||||
Income tax expense | 1,188 | 956 | 1,546 | 1,730 | 1,579 | |||||||||||||||
Net income | $ | 2,676 | $ | 2,384 | $ | 3,257 | $ | 3,267 | $ | 3,051 | ||||||||||
Income per share – basic | $ | 0.23 | $ | 0.21 | $ | 0.28 | $ | 0.28 | $ | 0.26 | ||||||||||
Income per share – fully diluted | $ | 0.23 | $ | 0.21 | $ | 0.28 | $ | 0.28 | $ | 0.26 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 11,503 | 11,493 | 11,536 | 11,611 | 11,639 | |||||||||||||||
Fully diluted | 11,574 | 11,573 | 11,618 | 11,694 | 11,727 | |||||||||||||||
(a) Derived from audited consolidated financial statements |
Quarterly Net Interest Margin*
(Unaudited) | 2007 | 2006 | |||||||||
June 30 | March 31 | December 31(a) | September 30 | June 30 | |||||||
Yield on earning assets | 7.51% | 7.43% | 7.53% | 7.53% | 7.29% | ||||||
Cost of interest bearing liabilities | 4.34% | 4.36% | 4.18% | 4.02% | 3.63% | ||||||
Net interest spread | 3.17% | 3.07% | 3.35% | 3.51% | 3.66% | ||||||
Net interest margin | 3.65% | 3.52% | 3.78% | 3.91% | 4.04% | ||||||
*Annualized and on a fully taxable equivalent basis | |||||||||||
(a) Derived from audited consolidated financial statements |
Nonperforming Assets
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
June 30 | March 31 | December 31(a) | September 30 | June 30 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and commercial real estate | $ | 6,089 | $ | 5,725 | $ | 2,783 | $ | 3,885 | $ | 3,728 | ||||||||||
Consumer | 67 | 241 | 50 | 259 | 106 | |||||||||||||||
Equity lines | 471 | 433 | 410 | 440 | 418 | |||||||||||||||
Construction | – | - | 616 | 71 | 193 | |||||||||||||||
Mortgage | 975 | 957 | 1,043 | 1,453 | 1,695 | |||||||||||||||
Total nonperforming loans | 7,602 | 7,356 | 4,902 | 6,108 | 6,140 | |||||||||||||||
Other real estate owned | 866 | 1,961 | 1,111 | 1 | 637 | 1 | 879 | 1 | ||||||||||||
Total nonperforming assets | $ | 8,468 | $ | 9,317 | $ | 6,013 | $ | 6,745 | $ | 7,019 | ||||||||||
Nonperforming assets include loans that are 90 days or more past due or in nonaccrual status and other real estate owned. | ||||||||||||||||||||
(a) Derived from audited consolidated financial statements | ||||||||||||||||||||
1 Other real estate owned excludes $739, $776 and $776 as of December 31, 2006, September 30, 2006 and June 30, 2006, respectively, related to branch locations that are held for sale. |
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CAPITAL BANK CORPORATION
Key Ratios
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
June 30 | March 31 | December 31(a) | September 30 | June 30 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Past due loans | $ | 13,008 | $ | 16,241 | $ | 11,237 | $ | 9,491 | $ | 9,179 | ||||||||||
Past due loans as a percent of average loans | 1.27 | % | 1.60 | % | 1.11 | % | 0.97 | % | 0.96 | % | ||||||||||
Net charge-offs (recoveries) | $ | 101 | $ | 153 | $ | 701 | $ | (102 | ) | $ | 523 | |||||||||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 0.04 | % | 0.06 | % | 0.28 | % | (0.04 | %) | 0.22 | % | ||||||||||
Allowance for loan losses as a percent of total loans | 1.31 | % | 1.32 | % | 1.32 | % | 1.38 | % | 1.45 | % | ||||||||||
Nonperforming assets as a percent of total assets | 0.59 | % | 0.63 | % | 0.42 | % | 0.48 | % | 0.51 | % | ||||||||||
Allowance for loan losses as a percent of nonperforming loans | 175 | % | 184 | % | 272 | % | 227 | % | 228 | % | ||||||||||
(a) Derived from audited consolidated financial statements |
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CAPITAL BANK CORPORATION
Condensed Consolidated Balance Sheets
June 30, 2007 and December 31, 2006
June 30, 2007 | December 31, 2006 | |||||||
(Dollars in thousands except share data) | (Unaudited) | |||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Interest earning | $ | 3,794 | $ | 12,348 | ||||
Noninterest earning | 32,294 | 33,504 | ||||||
Federal funds sold and short term investments | 18,108 | 8,480 | ||||||
Investment securities – available for sale, at fair value | 231,352 | 228,214 | ||||||
Investment securities – held to maturity, at amortized cost | 10,314 | 10,833 | ||||||
Loans – net of unearned income and deferred fees | 1,022,147 | 1,008,052 | ||||||
Allowance for loan losses | (13,339 | ) | (13,347 | ) | ||||
Net loans | 1,008,808 | 994,705 | ||||||
Premises and equipment, net | 24,137 | 23,125 | ||||||
Bank owned life insurance | 21,075 | 20,662 | ||||||
Deposit premium and goodwill, net | 63,943 | 64,543 | ||||||
Other assets | 26,415 | 25,970 | ||||||
Total assets | $ | 1,440,240 | $ | 1,422,384 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Demand, noninterest bearing | $ | 123,628 | $ | 120,945 | ||||
Savings and interest-bearing demand deposits | 416,898 | 366,243 | ||||||
Time deposits | 532,453 | 568,021 | ||||||
Total deposits | 1,072,979 | 1,055,209 | ||||||
Repurchase agreements and federal funds purchased | 34,243 | 34,238 | ||||||
Borrowings | 125,914 | 125,924 | ||||||
Subordinated debentures | 30,930 | 30,930 | ||||||
Other liabilities | 13,772 | 14,402 | ||||||
Total liabilities | 1,277,838 | 1,260,703 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, no par value; 20,000,000 authorized; 11,459,530 and 11,393,990 issued and outstanding as of June 30, 2007 and December 31, 2006, respectively | 140,381 | 139,484 | ||||||
Retained earnings | 26,981 | 23,754 | ||||||
Accumulated other comprehensive loss | (4,960 | ) | (1,557 | ) | ||||
Total shareholders’ equity | 162,402 | 161,681 | ||||||
Total liabilities and shareholders’ equity | $ | 1,440,240 | $ | 1,422,384 |
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CAPITAL BANK CORPORATION
Condensed Consolidated Statements of Operations
Three and Six Months Ended June 30, 2007 and 2006 (Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(Dollars in thousands except share and per share data) | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans and loan fees | $ | 20,519 | $ | 18,646 | $ | 40,402 | $ | 35,664 | ||||||||
Investment securities | 2,858 | 2,155 | 5,665 | 4,265 | ||||||||||||
Federal funds and other interest income | 291 | 308 | 776 | 850 | ||||||||||||
Total interest income | 23,668 | 21,109 | 46,843 | 40,779 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 9,918 | 7,328 | 19,924 | 13,438 | ||||||||||||
Borrowings and repurchase agreements | 2,496 | 2,173 | 4,942 | 4,343 | ||||||||||||
Total interest expense | 12,414 | 9,501 | 24,866 | 17,781 | ||||||||||||
Net interest income | 11,254 | 11,608 | 21,977 | 22,998 | ||||||||||||
Provision (credit) for loan losses | (91 | ) | 249 | 246 | 661 | |||||||||||
Net interest income after provision (credit) for loan losses | 11,345 | 11,359 | 21,731 | 22,337 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and other fees | 998 | 1,061 | 1,926 | 2,026 | ||||||||||||
Mortgage fees and revenues | 580 | 654 | 1,121 | 1,018 | ||||||||||||
Net gain on sale of securities | – | – | – | – | ||||||||||||
Other noninterest income | 729 | 897 | 1,450 | 1,583 | ||||||||||||
Total noninterest income | 2,307 | 2,612 | 4,497 | 4,627 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 5,314 | 4,851 | 10,408 | 9,393 | ||||||||||||
Occupancy | 973 | 938 | 1,971 | 1,716 | ||||||||||||
Furniture and equipment | 647 | 562 | 1,262 | 1,054 | ||||||||||||
Director fees | 229 | 283 | 497 | 659 | ||||||||||||
Data processing | 326 | 111 | 622 | 600 | ||||||||||||
Advertising | 250 | 324 | 499 | 579 | ||||||||||||
Amortization of deposit premiums | 300 | 343 | 600 | 686 | ||||||||||||
Professional fees | 378 | 354 | 587 | 566 | ||||||||||||
Other expenses | 1,371 | 1,575 | 2,578 | 2,902 | ||||||||||||
Total noninterest expense | 9,788 | 9,341 | 19,024 | 18,155 | ||||||||||||
Net income before tax expense | 3,864 | 4,630 | 7,204 | 8,809 | ||||||||||||
Income tax expense | 1,188 | 1,579 | 2,144 | 2,995 | ||||||||||||
Net income | $ | 2,676 | $ | 3,051 | $ | 5,060 | $ | 5,814 | ||||||||
Earnings per share – basic | $ | 0.23 | $ | 0.26 | $ | 0.44 | $ | 0.50 | ||||||||
Earnings per share – diluted | $ | 0.23 | $ | 0.26 | $ | 0.44 | $ | 0.50 | ||||||||
Weighted average shares: | ||||||||||||||||
Basic | 11,503,441 | 11,639,014 | 11,498,125 | 11,628,015 | ||||||||||||
Fully diluted | 11,574,110 | 11,726,584 | 11,573,632 | 11,715,510 |
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Average Balances, Interest Earned or Paid, and Interest Yields/Rates
For the Three Months Ended June 30, 2007, June 30, 2006 and March 31, 2007 (Unaudited)
Tax Equivalent Basis 1
Quarter Ended June 30, 2007 | Quarter Ended June 30, 2006 | Quarter Ended March 31, 2007 | ||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Amount Earned | Average Rate | Average Balance | Amount Earned | Average Rate | Average Balance | Amount Earned | Average Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Loans receivable: 2 | ||||||||||||||||||||||||||||
Commercial | $ | 615,200 | $ | 12,136 | 7.91 | % | $ | 612,402 | $ | 11,198 | 7.33 | % | $ | 589,892 | $ | 11,261 | 7.74 | % | ||||||||||
Construction | 246,672 | 5,223 | 8.49 | % | 169,287 | 4,044 | 9.58 | % | 262,236 | 5,495 | 8.50 | % | ||||||||||||||||
Consumer | 31,300 | 677 | 8.68 | % | 21,159 | 495 | 9.38 | % | 30,822 | 652 | 8.58 | % | ||||||||||||||||
Home equity lines | 81,736 | 1,727 | 8.47 | % | 96,151 | 1,967 | 8.21 | % | 82,298 | 1,727 | 8.51 | % | ||||||||||||||||
Mortgage 3 | 46,609 | 756 | 6.51 | % | 55,421 | 944 | 6.83 | % | 47,235 | 748 | 6.42 | % | ||||||||||||||||
Total loans | 1,021,517 | 20,519 | 8.06 | % | 954,420 | 18,648 | 7.84 | % | 1,012,483 | 19,883 | 7.96 | % | ||||||||||||||||
Investment securities 4 | 248,850 | 3,382 | 5.45 | % | 190,045 | 2,345 | 4.95 | % | 243,732 | 3,303 | 5.50 | % | ||||||||||||||||
Federal funds sold and other interest on short-term investments | 22,284 | 291 | 5.24 | % | 27,183 | 308 | 4.94 | % | 36,596 | 485 | 5.37 | % | ||||||||||||||||
Total interest earning assets | 1,292,651 | $ | 24,192 | 7.51 | % | 1,171,648 | $ | 21,301 | 7.29 | % | 1,292,811 | $ | 23,671 | 7.43 | % | |||||||||||||
Cash and due from banks | 27,489 | 32,202 | 27,593 | |||||||||||||||||||||||||
Other assets | 129,972 | 133,222 | 130,126 | |||||||||||||||||||||||||
Allowance for loan losses | (13,528 | ) | (14,291 | ) | (13,296 | ) | ||||||||||||||||||||||
Total assets | $ | 1,436,584 | $ | 1,322,781 | $ | 1,437,234 | ||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||
Savings deposits | $ | 33,664 | $ | 44 | 0.52 | % | $ | 41,477 | $ | 52 | 0.50 | % | $ | 34,370 | $ | 42 | 0.50 | % | ||||||||||
Interest-bearing demand deposits | 377,274 | 3,264 | 3.47 | % | 279,029 | 1,981 | 2.85 | % | 342,814 | 2,922 | 3.46 | % | ||||||||||||||||
Time deposits | 554,979 | 6,610 | 4.78 | % | 564,025 | 5,296 | 3.77 | % | 600,865 | 7,042 | 4.75 | % | ||||||||||||||||
Total interest-bearing deposits | 965,917 | 9,918 | 4.12 | % | 884,531 | 7,329 | 3.32 | % | 978,049 | 10,006 | 4.15 | % | ||||||||||||||||
Borrowed funds | 119,978 | 1,567 | 5.24 | % | 107,724 | 1,287 | 4.79 | % | 113,686 | 1,503 | 5.36 | % | ||||||||||||||||
Subordinated debt | 30,930 | 592 | 7.68 | % | 30,930 | 596 | 7.73 | % | 30,930 | 586 | 7.68 | % | ||||||||||||||||
Repurchase agreements | 31,696 | 337 | 4.26 | % | 26,884 | 289 | 4.31 | % | 34,328 | 357 | 4.22 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,148,521 | $ | 12,414 | 4.34 | % | 1,050,069 | $ | 9,501 | 3.63 | % | 1,156,993 | $ | 12,452 | 4.36 | % | |||||||||||||
Noninterest-bearing deposits | 112,513 | 105,506 | 106,369 | |||||||||||||||||||||||||
Other liabilities | 10,673 | 5,885 | 10,581 | |||||||||||||||||||||||||
Total liabilities | 1,271,707 | 1,161,460 | 1,273,943 | |||||||||||||||||||||||||
Shareholders’ equity | 164,877 | 161,321 | 163,291 | |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,436,584 | $ | 1,322,781 | $ | 1,437,234 | ||||||||||||||||||||||
Net interest spread 5 | 3.17 | % | 3.66 | % | 3.07 | % | ||||||||||||||||||||||
Tax equivalent adjustment | $ | 524 | $ | 192 | $ | 496 | ||||||||||||||||||||||
Net interest income and net interest margin 6 | $ | 11,778 | 3.65 | % | $ | 11,800 | 4.04 | % | $ | 11,219 | 3.52 | % |
1 | The tax equivalent basis is computed using a blended federal and state tax rate of approximately 36% and 38% in 2007 and 2006, respectively. |
2 | Loans receivable include nonaccrual loans for which accrual of interest has not been recorded. |
3 | Includes loans held for sale. |
4 | The average balance for investment securities excludes the effect of their mark-to-market adjustment, if any. |
5 | Net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
6 | Net interest margin represents net interest income divided by average interest-earning assets. |
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