Exhibit 99.1
![](https://capedge.com/proxy/8-K/0001071992-07-000030/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 Third Quarter Results and Increased Loan Growth
RALEIGH, N.C. – October 23, 2007 – Capital Bank Corporation (Nasdaq: CBKN), the parent company of Capital Bank, today announced net income for the quarter ended September 30, 2007 of $2.8 million, a decrease of 15% from the $3.3 million earned for the third quarter of 2006. Fully diluted earnings per share were $0.24 for the quarter ended September 30, 2007 compared to $0.28 for the quarter ended September 30, 2006. For the first nine months ended September 30, 2007 and 2006, net income was $7.8 million and $9.1 million, respectively, and fully diluted earnings per share were $0.68 and $0.78, respectively.
As of September 30, 2007, total assets were $1.49 billion compared to $1.40 billion at September 30, 2006 and $1.42 billion at December 31, 2006. Loans increased 7% to $1.07 billion at September 30, 2007 from $1.00 billion at September 30, 2006 and $1.01 billion at December 31, 2006. Total deposits at September 30, 2007 were $1.09 billion compared to $1.04 billion at September 30, 2006 and $1.06 billion at December 31, 2006. Shareholders’ equity at September 30, 2007 was $164.1 million compared to $160.9 million at September 30, 2006 and $161.7 million at December 31, 2006. The Company repurchased 207,196 shares of its common stock during the quarter ended September 30, 2007 and has 341,645 common shares remaining for purchase under its current share repurchase program.
Commenting on the Company’s results, B. Grant Yarber, President and CEO, stated “We are pleased with the Company’s loan growth thus far in 2007. We are seeing continued expansion of our franchise especially in the Triangle region. We anticipate opening our twenty-seventh branch in Zebulon in the fourth quarter, and we have plans to open two more Wake County branches in early 2008.”
Net interest income for the quarter ended September 30, 2007 totaled $11.2 million, a decrease of $408,000 compared to the quarter ended September 30, 2006. The net interest margin on a fully taxable equivalent basis was 3.57% for the quarter ended September 30, 2007, a decrease of 8 basis points from 3.65% for the quarter ended June 30, 2007 and down 34 basis points from 3.91% for the quarter ended September 30, 2006. The decrease in net interest income for the quarter ended September 30, 2007 compared to the same quarter of 2006 was attributable to a lower net interest margin, which was partially offset by the $90 million growth in average earning assets. The decline in net interest margin from September 30, 2006 is primarily because of an increase in the Company’s cost of funds. The competitive environment for deposits is continuing to put pressure on the interest margin.
The Company provided a provision for loan losses for the quarter ended September 30, 2007 of $261,000 compared to a credit provision in the quarter ended September 30, 2006 of $(215,000). Net charge-offs for the quarter ended September 30, 2007 were $234,000, or an annualized rate of 0.09% of average loans, compared to net recoveries of $102,000, or 0.04% of average loans, for the quarter ended September 30, 2006. Nonperforming loans were $10.2 million at September 30, 2007 compared to $6.1 million at September 30, 2006. Total past due loans were $13.2 million, or 1.23% of average loans, at September 30, 2007 compared to $9.5 million, or 0.97% of average loans, at September 30, 2006. The allowance for loan losses was 1.25% of total loans at September 30, 2007 compared with 1.32% of total loans at December 31, 2006. Mr. Yarber added, “Although we had an increase in nonperforming loans during the quarter, these additional nonperforming loans have been adequately reserved. The Company has no subprime exposure in its loan or investment portfolios.”
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The Company’s noninterest income for the quarter ended September 30, 2007 totaled $2.2 million, down slightly from the $2.3 million reported for the quarter ended September 30, 2006. Noninterest expense increased $230,000, or 3%, to $9.3 million for the quarter ended September 30, 2007 compared to $9.1 million for the quarter ended September 30, 2006 with the largest increase from salaries and benefits. Mr. Yarber commented, “The Company has recently seen positive results from its expense control measures as operating expenses decreased 5% in the quarter ended September 30, 2007 compared to the quarter ended June 30, 2007. We are committed to finding the most efficient ways to best serve our customers using innovative technology where appropriate. We continue to recruit talent to enhance our sales force to increase our market share.”
Capital Bank Corporation will hold a quarterly earnings conference call on Wednesday, October 24, 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. Following the completion of the call, a webcast replay will be available until November 30, 2007.
Capital Bank Corporation, headquartered in Raleigh, N.C., with approximately $1.5 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 September 30, 2007 | Three Months Ended September 30, 2006 | Nine Months Ended September 30, 2007 | Nine Months Ended September 30, 2006 | |||||||||
(In thousands except per share data) | |||||||||||||
Interest income | $ | 23,855 | $ | 22,668 | $ | 70,697 | $ | 63,447 | |||||
Interest expense | 12,670 | 11,075 | 37,535 | 28,856 | |||||||||
Net interest income | 11,185 | 11,593 | 33,162 | 34,591 | |||||||||
Provision (credit) for loan losses | 261 | (215 | ) | 507 | 446 | ||||||||
Net interest income after provision for loan losses | 10,924 | 11,808 | 32,655 | 34,145 | |||||||||
Noninterest income | 2,233 | 2,258 | 6,730 | 6,885 | |||||||||
Noninterest expense | 9,299 | 9,069 | 28,323 | 27,224 | |||||||||
Income before taxes | 3,858 | 4,997 | 11,062 | 13,806 | |||||||||
Income tax expense | 1,105 | 1,730 | 3,249 | 4,725 | |||||||||
Net income | $ | 2,753 | $ | 3,267 | $ | 7,813 | $ | 9,081 | |||||
Income per share – basic | $ | 0.24 | $ | 0.28 | $ | 0.68 | $ | 0.78 | |||||
Income per share – fully diluted | $ | 0.24 | $ | 0.28 | $ | 0.68 | $ | 0.78 | |||||
Weighted average shares outstanding: | |||||||||||||
Basic | 11,451 | 11,611 | 11,482 | 11,622 | |||||||||
Fully diluted | 11,510 | 11,694 | 11,552 | 11,708 |
End of Period Balances
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31(a) | September 30 | ||||||||||||||||
(Dollars in thousands except per share data) | ||||||||||||||||||||
Total assets | $ | 1,490,244 | $ | 1,440,240 | $ | 1,481,141 | $ | 1,422,384 | $ | 1,399,673 | ||||||||||
Investment securities | 249,083 | 241,666 | 248,726 | 239,047 | 200,647 | |||||||||||||||
Loans (gross)* | 1,070,656 | 1,022,147 | 1,025,464 | 1,008,052 | 1,003,835 | |||||||||||||||
Allowance for loan losses | 13,366 | 13,339 | 13,531 | 13,347 | 13,894 | |||||||||||||||
Total earning assets | 1,335,434 | 1,285,715 | 1,295,018 | 1,280,301 | 1,240,343 | |||||||||||||||
Deposits | 1,090,589 | 1,072,979 | 1,120,332 | 1,055,209 | 1,043,755 | |||||||||||||||
Shareholders’ equity | 164,089 | 162,402 | 163,855 | 161,681 | 160,871 | |||||||||||||||
Book value per share | $ | 14.58 | $ | 14.17 | $ | 14.32 | $ | 14.19 | $ | 13.98 | ||||||||||
Tangible book value per share | $ | 8.93 | $ | 8.59 | $ | 8.71 | $ | 8.53 | $ | 8.19 | ||||||||||
(a) Derived from audited consolidated financial statements | ||||||||||||||||||||
*Includes loans held for sale ($6.7 million at September 30, 2007) |
Average Balances
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31(a) | September 30 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Total assets | $ | 1,445,915 | $ | 1,436,584 | $ | 1,437,234 | $ | 1,410,668 | $ | 1,365,832 | ||||||||||
Investments | 252,090 | 248,850 | 243,732 | 219,765 | 195,323 | |||||||||||||||
Loans (gross)* | 1,042,635 | 1,021,517 | 1,012,483 | 1,008,053 | 982,037 | |||||||||||||||
Total earning assets | 1,302,859 | 1,292,651 | 1,292,811 | 1,258,780 | 1,213,002 | |||||||||||||||
Deposits | 1,064,174 | 1,078,430 | 1,084,418 | 1,050,139 | 1,020,143 | |||||||||||||||
Shareholders’ equity | 163,850 | 164,877 | 163,291 | 162,525 | 161,901 | |||||||||||||||
(a) Derived from audited consolidated financial statements | ||||||||||||||||||||
*Includes loans held for sale |
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CAPITAL BANK CORPORATION
Quarterly Results
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31(a) | September 30 | ||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||||
Interest income | $ | 23,855 | $ | 23,668 | $ | 23,175 | $ | 23,505 | $ | 22,668 | ||||||||||
Interest expense | 12,670 | 12,414 | 12,452 | 11,898 | 11,075 | |||||||||||||||
Net interest income | 11,185 | 11,254 | 10,723 | 11,607 | 11,593 | |||||||||||||||
Provision (credit) for loan losses | 261 | (91 | ) | 337 | 154 | (215 | ) | |||||||||||||
Net interest income after provision for loan losses | 10,924 | 11,345 | 10,386 | 11,453 | 11,808 | |||||||||||||||
Noninterest income | 2,233 | 2,307 | 2,190 | 2,448 | 2,258 | |||||||||||||||
Noninterest expense | 9,299 | 9,788 | 9,236 | 9,098 | 9,069 | |||||||||||||||
Income before taxes | 3,858 | 3,864 | 3,340 | 4,803 | 4,997 | |||||||||||||||
Income tax expense | 1,105 | 1,188 | 956 | 1,546 | 1,730 | |||||||||||||||
Net income | $ | 2,753 | $ | 2,676 | $ | 2,384 | $ | 3,257 | $ | 3,267 | ||||||||||
Income per share – basic | $ | 0.24 | $ | 0.23 | $ | 0.21 | $ | 0.28 | $ | 0.28 | ||||||||||
Income per share – fully diluted | $ | 0.24 | $ | 0.23 | $ | 0.21 | $ | 0.28 | $ | 0.28 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 11,451 | 11,503 | 11,493 | 11,536 | 11,611 | |||||||||||||||
Fully diluted | 11,510 | 11,574 | 11,573 | 11,618 | 11,694 | |||||||||||||||
(a) Derived from audited consolidated financial statements |
Quarterly Net Interest Margin*
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31(a) | September 30 | ||||||||||||||||
Yield on earning assets | 7.42 | % | 7.51 | % | 7.43 | % | 7.53 | % | 7.53 | % | ||||||||||
Cost of interest bearing liabilities | 4.32 | % | 4.34 | % | 4.36 | % | 4.18 | % | 4.02 | % | ||||||||||
Net interest spread | 3.10 | % | 3.17 | % | 3.07 | % | 3.35 | % | 3.51 | % | ||||||||||
Net interest margin | 3.57 | % | 3.65 | % | 3.52 | % | 3.78 | % | 3.91 | % | ||||||||||
*Annualized and on a fully taxable equivalent basis | ||||||||||||||||||||
(a) Derived from audited consolidated financial statements |
Nonperforming Assets
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31(a) | September 30 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and commercial real estate | $ | 7,304 | $ | 6,089 | $ | 5,725 | $ | 2,783 | $ | 3,885 | ||||||||||
Consumer | 23 | 67 | 241 | 50 | 259 | |||||||||||||||
Equity lines | 491 | 471 | 433 | 410 | 440 | |||||||||||||||
Construction | – | – | - | 616 | 71 | |||||||||||||||
Mortgage | 2,414 | 975 | 957 | 1,043 | 1,453 | |||||||||||||||
Total nonperforming loans | 10,232 | 7,602 | 7,356 | 4,902 | 6,108 | |||||||||||||||
Other real estate owned | 309 | 866 | 1,961 | 1,111 | 1 | 637 | 1 | |||||||||||||
Total nonperforming assets | $ | 10,541 | $ | 8,468 | $ | 9,317 | $ | 6,013 | $ | 6,745 | ||||||||||
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 and $776 as of December 31, 2006 and September 30, 2006, respectively, related to branch locations that were held for sale. |
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CAPITAL BANK CORPORATION
Key Ratios
(Unaudited) | 2007 | 2006 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31(a) | September 30 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Past due loans | $ | 13,157 | $ | 13,008 | $ | 16,241 | $ | 11,237 | $ | 9,491 | ||||||||||
Past due loans as a percent of average loans | 1.26 | % | 1.27 | % | 1.60 | % | 1.11 | % | 0.97 | % | ||||||||||
Net charge-offs (recoveries) | $ | 234 | $ | 101 | $ | 153 | $ | 701 | $ | (102 | ) | |||||||||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 0.09 | % | 0.04 | % | 0.06 | % | 0.28 | % | (0.04 | %) | ||||||||||
Allowance for loan losses as a percent of total loans | 1.25 | % | 1.31 | % | 1.32 | % | 1.32 | % | 1.38 | % | ||||||||||
Nonperforming assets as a percent of total assets | 0.71 | % | 0.59 | % | 0.63 | % | 0.42 | % | 0.48 | % | ||||||||||
Allowance for loan losses as a percent of nonperforming loans | 131 | % | 175 | % | 184 | % | 272 | % | 227 | % | ||||||||||
(a) Derived from audited consolidated financial statements |
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CAPITAL BANK CORPORATION
Condensed Consolidated Balance Sheets
September 30, 2007 and December 31, 2006
September 30, 2007 | December 31, 2006 | |||||||
(Dollars in thousands except share data) | (Unaudited) | |||||||
ASSETS | ||||||||
Cash and due from banks: | ||||||||
Interest earning | $ | 3,749 | $ | 12,348 | ||||
Noninterest earning | 32,627 | 33,504 | ||||||
Federal funds sold and short term investments | 11,946 | 8,480 | ||||||
Investment securities – available for sale, at fair value | 238,942 | 228,214 | ||||||
Investment securities – held to maturity, at amortized cost | 10,141 | 10,833 | ||||||
Loans – net of unearned income and deferred fees | 1,070,656 | 1,008,052 | ||||||
Allowance for loan losses | (13,366 | ) | (13,347 | ) | ||||
Net loans | 1,057,290 | 994,705 | ||||||
Premises and equipment, net | 24,142 | 23,125 | ||||||
Bank owned life insurance | 21,353 | 20,662 | ||||||
Deposit premium and goodwill, net | 63,643 | 64,543 | ||||||
Other assets | 26,412 | 25,970 | ||||||
Total assets | $ | 1,490,244 | $ | 1,422,384 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Demand, noninterest bearing | $ | 123,831 | $ | 120,945 | ||||
Savings and interest-bearing demand deposits | 392,796 | 366,243 | ||||||
Time deposits | 573,962 | 568,021 | ||||||
Total deposits | 1,090,589 | 1,055,209 | ||||||
Repurchase agreements and federal funds purchased | 34,778 | 34,238 | ||||||
Borrowings | 155,969 | 125,924 | ||||||
Subordinated debentures | 30,930 | 30,930 | ||||||
Other liabilities | 13,889 | 14,402 | ||||||
Total liabilities | 1,326,155 | 1,260,703 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, no par value; 20,000,000 authorized; 11,252,334 and 11,393,990 issued and outstanding as of September 30, 2007 and December 31, 2006, respectively | 137,241 | 139,484 | ||||||
Retained earnings | 28,833 | 23,754 | ||||||
Accumulated other comprehensive loss | (1,985 | ) | (1,557 | ) | ||||
Total shareholders’ equity | 164,089 | 161,681 | ||||||
Total liabilities and shareholders’ equity | $ | 1,490,244 | $ | 1,422,384 |
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CAPITAL BANK CORPORATION
Condensed Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2007 and 2006 (Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(Dollars in thousands except share and per share data) | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans and loan fees | $ | 20,830 | $ | 19,982 | $ | 61,231 | $ | 55,646 | ||||||||
Investment securities | 2,918 | 2,223 | 8,583 | 6,488 | ||||||||||||
Federal funds and other interest income | 107 | 463 | 883 | 1,313 | ||||||||||||
Total interest income | 23,855 | 22,668 | 70,697 | 63,447 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 9,847 | 8,677 | 29,771 | 22,115 | ||||||||||||
Borrowings and repurchase agreements | 2,823 | 2,398 | 7,764 | 6,741 | ||||||||||||
Total interest expense | 12,670 | 11,075 | 37,535 | 28,856 | ||||||||||||
Net interest income | 11,185 | 11,593 | 33,162 | 34,591 | ||||||||||||
Provision (credit) for loan losses | 261 | (215 | ) | 507 | 446 | |||||||||||
Net interest income after provision (credit) for loan losses | 10,924 | 11,808 | 32,655 | 34,145 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and other fees | 1,021 | 895 | 2,947 | 2,921 | ||||||||||||
Mortgage fees and revenues | 561 | 507 | 1,682 | 1,525 | ||||||||||||
Net gain on sale of securities | – | 128 | – | 128 | ||||||||||||
Other noninterest income | 651 | 728 | 2,101 | 2,311 | ||||||||||||
Total noninterest income | 2,233 | 2,258 | 6,730 | 6,885 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 4,890 | 4,287 | 15,298 | 13,680 | ||||||||||||
Occupancy | 1,058 | 1,044 | 3,029 | 2,760 | ||||||||||||
Furniture and equipment | 664 | 675 | 1,926 | 1,729 | ||||||||||||
Director fees | 72 | 369 | 569 | 1,028 | ||||||||||||
Data processing | 350 | 214 | 972 | 814 | ||||||||||||
Advertising | 272 | 234 | 771 | 813 | ||||||||||||
Amortization of deposit premiums | 300 | 342 | 900 | 1,028 | ||||||||||||
Professional fees | 369 | 290 | 956 | 856 | ||||||||||||
Other expenses | 1,324 | 1,614 | 3,902 | 4,516 | ||||||||||||
Total noninterest expense | 9,299 | 9,069 | 28,323 | 27,224 | ||||||||||||
Net income before tax expense | 3,858 | 4,997 | 11,062 | 13,806 | ||||||||||||
Income tax expense | 1,105 | 1,730 | 3,249 | 4,725 | ||||||||||||
Net income | $ | 2,753 | $ | 3,267 | $ | 7,813 | $ | 9,081 | ||||||||
Earnings per share – basic | $ | 0.24 | $ | 0.28 | $ | 0.68 | $ | 0.78 | ||||||||
Earnings per share – diluted | $ | 0.24 | $ | 0.28 | $ | 0.68 | $ | 0.78 | ||||||||
Weighted average shares: | ||||||||||||||||
Basic | 11,451,322 | 11,611,476 | 11,482,352 | 11,622,422 | ||||||||||||
Fully diluted | 11,510,127 | 11,694,498 | 11,551,677 | 11,708,446 |
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CAPITAL BANK CORPORATION
Average Balances, Interest Earned or Paid, and Interest Yields/Rates
For the Three Months Ended September 30, 2007, June 30, 2007 and September 30, 2006 (Unaudited)
Tax Equivalent Basis 1
Quarter Ended September 30, 2007 | Quarter Ended June 30, 2007 | Quarter Ended September 30, 2006 | ||||||||||||||||||||||||||
(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 | $ | 1,042,635 | $ | 20,830 | 7.93 | % | $ | 1,021,517 | $ | 20,519 | 8.06 | % | $ | 982,037 | $ | 19,980 | 8.07 | % | ||||||||||
Investment securities 3 | 252,090 | 3,443 | 5.42 | % | 248,850 | 3,382 | 5.45 | % | 195,323 | 2,586 | 5.25 | % | ||||||||||||||||
Federal funds sold and other interest on short-term investments | 8,134 | 107 | 5.22 | % | 22,284 | 291 | 5.24 | % | 35,642 | 463 | 5.15 | % | ||||||||||||||||
Total interest earning assets | 1,302,859 | $ | 24,380 | 7.42 | % | 1,292,651 | $ | 24,192 | 7.51 | % | 1,213,002 | $ | 23,029 | 7.53 | % | |||||||||||||
Cash and due from banks | 28,261 | 27,489 | 32,094 | |||||||||||||||||||||||||
Other assets | 128,078 | 129,972 | 133,897 | |||||||||||||||||||||||||
Allowance for loan losses | (13,283 | ) | (13,528 | ) | (13,161 | ) | ||||||||||||||||||||||
Total assets | $ | 1,445,915 | $ | 1,436,584 | $ | 1,365,832 | ||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||
Savings deposits | $ | 33,402 | $ | 51 | 0.61 | % | $ | 33,664 | $ | 44 | 0.52 | % | $ | 38,137 | $ | 48 | 0.50 | % | ||||||||||
Interest-bearing demand deposits | 366,824 | 3,230 | 3.49 | % | 377,274 | 3,264 | 3.47 | % | 304,355 | 2,521 | 3.29 | % | ||||||||||||||||
Time deposits | 549,968 | 6,566 | 4.74 | % | 554,979 | 6,610 | 4.78 | % | 578,018 | 6,107 | 4.19 | % | ||||||||||||||||
Total interest-bearing deposits | 950,194 | 9,847 | 4.11 | % | 965,917 | 9,918 | 4.12 | % | 920,510 | 8,676 | 3.74 | % | ||||||||||||||||
Borrowed funds | 147,843 | 1,841 | 4.94 | % | 119,978 | 1,567 | 5.24 | % | 110,164 | 1,402 | 5.05 | % | ||||||||||||||||
Subordinated debt | 30,930 | 599 | 7.68 | % | 30,930 | 592 | 7.68 | % | 30,930 | 619 | 7.94 | % | ||||||||||||||||
Repurchase agreements | 34,233 | 383 | 4.44 | % | 31,696 | 337 | 4.26 | % | 31,562 | 378 | 4.75 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,163,200 | $ | 12,670 | 4.32 | % | 1,148,521 | $ | 12,414 | 4.34 | % | 1,093,166 | $ | 11,075 | 4.02 | % | |||||||||||||
Noninterest-bearing deposits | 113,980 | 112,513 | 99,633 | |||||||||||||||||||||||||
Other liabilities | 4,885 | 10,673 | 11,132 | |||||||||||||||||||||||||
Total liabilities | 1,282,065 | 1,271,707 | 1,203,931 | |||||||||||||||||||||||||
Shareholders’ equity | 163,850 | 164,877 | 161,901 | |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,445,915 | $ | 1,436,584 | $ | 1,365,832 | ||||||||||||||||||||||
Net interest spread 4 | 3.10 | % | 3.17 | % | 3.51 | % | ||||||||||||||||||||||
Tax equivalent adjustment | $ | 525 | $ | 524 | $ | 363 | ||||||||||||||||||||||
Net interest income and net interest margin 5 | $ | 11,710 | 3.57 | % | $ | 11,778 | 3.65 | % | $ | 11,954 | 3.91 | % |
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 and includes loans held for sale. |
3 | The average balance for investment securities excludes the effect of their mark-to-market adjustment, if any. |
4 | Net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
5 | Net interest margin represents net interest income divided by average interest-earning assets. |
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