Exhibit 99.1
![](https://capedge.com/proxy/8-K/0001071992-08-000006/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 Announces First Quarter 2008 Financial Results and Improved Asset Quality
RALEIGH, N.C. – April 22, 2008 – Capital Bank Corporation (Nasdaq: CBKN), the parent company of Capital Bank, today reported net income for the quarter ended March 31, 2008 of $2.2 million compared to $2.4 million for the quarter ended March 31, 2007. Earnings per share on a fully diluted basis were $0.19 for the first quarter of 2008 compared to $0.21 for the first quarter 2007.
“The current banking environment is extremely challenging; however, I am pleased with the stability and positive trends that Capital Bank has been able to achieve. Asset quality has improved both from the first quarter one year ago as well as the end of 2007. Loans have grown by $125 million, or 12.2%, over the last twelve months. More recently, we have experienced positive deposit growth in our core checking account products,” stated Grant Yarber, President and CEO.
Nonperforming assets, which includes loans on nonaccrual and other real estate owned, decreased to 0.33% of total assets at the end of March 2008 compared to 0.50% at the end of December 2007 and 0.63% at the end of March 2007. In addition, past due loans declined to 0.82% of total loans as of end March 2008 compared to 0.98% at the end of December 2007 and 1.58% at the end of March 2007. Allowance for loan losses totaled 1.18% of total loans at the end of March 2008 compared to 1.32% at the end of March 2007. The allowance for loan losses as a percent of nonperforming loans was 319% at end of the first quarter 2008 compared to 184% at the end of the first quarter 2007.
“We continue to closely monitor our portfolio and the economy, and remain cautiously optimistic that we and our borrowers will weather this economic downturn,” commented Mark Redmond, EVP and Chief Credit Officer.
Capital Bank achieved $55.4 million in loan growth during the first quarter. Much of the growth has occurred in the Triangle and Western North Carolina markets, which continue to present excellent growth opportunities. Comparing balances as of December 31, 2007 to those as of March 31, 2008, deposits increased $52.2 million from $1.10 billion to $1.15 billion, checking accounts increased $26.3 million as the bank continued to emphasize growth in this critical product area, time deposits increased $55.5 million, and money market deposits decreased $29.7 million. Much of the growth in time deposits was due to retail customers shifting funds from money market savings products to CDs.
Net interest income for the first quarter of 2008 increased $186 thousand compared to the first quarter of 2007. This improvement was primarily due to the higher level of average earning assets partially offset by the decline in net interest margin from 3.52% in the quarter ended March 31, 2007 to 3.23% in the quarter ended March 31, 2008. The decline in the net interest margin is a result of the 3.00% reduction in the Prime Rate over the last twelve months.
In the quarter ended March 31, 2008, noninterest income increased $37 thousand compared to the same period one year ago. Mortgage revenue was down $256 thousand from one year ago due to the slower housing market and the company’s recent decision to focus efforts on other areas of its business that have greater potential to produce positive results in the present economy. On the other hand, service charge income, bank card income, and brokerage income increased a combined $218 thousand compared to the first quarter of 2007.
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Noninterest expense increased 4.0% to $9.6 million in the quarter ended March 31, 2008, from $9.2 million in the quarter ended March 31, 2007. Employment and occupancy cost were flat when compared to the first quarter of 2007. Other noninterest expense increased primarily from increases in equipment expense of $132 thousand and professional fees of $187 thousand. The increase in equipment expense was due to equipment upgrades and increased maintenance cost.
Capital Bank Corporation, headquartered in Raleigh, N.C., with approximately $1.6 billion in total assets, offers a broad range of financial services. Capital Bank operates 27 banking offices in Asheville (3), Burlington (4), Cary, Graham (2), Greensboro, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Raleigh (5), Sanford (3), Siler City, Wake Forest and Zebulon. 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 March 31, 2008 | Three Months Ended March 31, 2007 | |||||||
(In thousands except per share data) | ||||||||
Interest income | $ | 22,718 | $ | 23,175 | ||||
Interest expense | 11,809 | 12,452 | ||||||
Net interest income | 10,909 | 10,723 | ||||||
Provision for loan losses | 565 | 337 | ||||||
Net interest income after provision for loan losses | 10,344 | 10,386 | ||||||
Noninterest income | 2,227 | 2,190 | ||||||
Noninterest expense | 9,605 | 9,236 | ||||||
Income before taxes | 2,966 | 3,340 | ||||||
Income tax expense | 799 | 956 | ||||||
Net income | $ | 2,167 | $ | 2,384 | ||||
Income per share – basic | $ | 0.19 | $ | 0.21 | ||||
Income per share – fully diluted | $ | 0.19 | $ | 0.21 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 11,289 | 11,493 | ||||||
Fully diluted | 11,306 | 11,573 |
End of Period Balances
(Unaudited)
2008 | 2007 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars in thousands except per share data) | ||||||||||||||||||||
Total assets | $ | 1,575,301 | $ | 1,517,603 | $ | 1,490,244 | $ | 1,440,240 | $ | 1,481,141 | ||||||||||
Investment securities | 258,086 | 259,116 | 249,083 | 241,666 | 248,726 | |||||||||||||||
Loans (gross)* | 1,150,497 | 1,095,107 | 1,070,656 | 1,022,147 | 1,025,464 | |||||||||||||||
Allowance for loan losses | 13,563 | 13,571 | 13,366 | 13,339 | 13,531 | |||||||||||||||
Total earning assets | 1,419,174 | 1,362,048 | 1,335,434 | 1,285,715 | 1,327,718 | |||||||||||||||
Deposits | 1,150,897 | 1,098,698 | 1,090,589 | 1,072,979 | 1,120,251 | |||||||||||||||
Shareholders’ equity | 167,967 | 164,300 | 164,089 | 162,402 | 163,855 | |||||||||||||||
Book value per share | $ | 14.95 | $ | 14.71 | $ | 14.58 | $ | 14.17 | $ | 14.32 | ||||||||||
Tangible book value per share | $ | 9.33 | $ | 9.04 | $ | 8.93 | $ | 8.59 | $ | 8.71 | ||||||||||
*Includes loans held for sale |
Average Balances
(Unaudited)
2008 | 2007 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Total assets | $ | 1,555,986 | $ | 1,492,563 | $ | 1,445,915 | $ | 1,436,584 | $ | 1,437,234 | ||||||||||
Investments | 256,538 | 242,272 | 252,090 | 248,850 | 243,732 | |||||||||||||||
Loans (gross)* | 1,142,728 | 1,090,801 | 1,042,635 | 1,021,517 | 1,012,483 | |||||||||||||||
Total earning assets | 1,407,345 | 1,347,727 | 1,302,859 | 1,292,651 | 1,292,811 | |||||||||||||||
Deposits | 1,139,106 | 1,066,438 | 1,064,174 | 1,078,430 | 1,084,418 | |||||||||||||||
Shareholders’ equity | 167,610 | 166,222 | 163,850 | 164,877 | 163,291 | |||||||||||||||
*Includes loans held for sale |
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CAPITAL BANK CORPORATION
Quarterly Results
(Unaudited)
2008 | 2007 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||||
Net interest income | $ | 10,909 | $ | 10,952 | $ | 11,185 | $ | 11,254 | $ | 10,723 | ||||||||||
Provision (credit) for loan losses | 565 | 3,099 | 261 | (91 | ) | 337 | ||||||||||||||
Net interest income after provision for loan losses | 10,344 | 7,853 | 10,924 | 11,345 | 10,386 | |||||||||||||||
Noninterest income | 2,227 | 2,176 | 2,233 | 2,307 | 2,190 | |||||||||||||||
Noninterest expense | 9,605 | 10,109 | 9,299 | 9,788 | 9,236 | |||||||||||||||
Income (loss) before taxes | 2,966 | (80 | ) | 3,858 | 3,864 | 3,340 | ||||||||||||||
Income tax expense (benefit) | 799 | (125 | ) | 1,105 | 1,188 | 956 | ||||||||||||||
Net income | $ | 2,167 | $ | 45 | $ | 2,753 | $ | 2,676 | $ | 2,384 | ||||||||||
Income per share – basic | $ | 0.19 | $ | – | $ | 0.24 | $ | 0.23 | $ | 0.21 | ||||||||||
Income per share – fully diluted | $ | 0.19 | $ | – | $ | 0.24 | $ | 0.23 | $ | 0.21 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 11,289 | 11,252 | 11,451 | 11,503 | 11,493 | |||||||||||||||
Fully diluted | 11,306 | 11,316 | 11,510 | 11,574 | 11,573 |
Quarterly Net Interest Margin*
(Unaudited)
2008 | 2007 | |||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
Yield on earning assets | 6.60 | % | 7.17 | % | 7.42 | % | 7.51 | % | 7.43 | % | ||
Cost of interest bearing liabilities | 3.76 | 4.33 | 4.32 | 4.34 | 4.36 | |||||||
Net interest spread | 2.83 | 2.84 | 3.10 | 3.17 | 3.07 | |||||||
Net interest margin | 3.23 | 3.38 | 3.57 | 3.65 | 3.52 | |||||||
*Annualized and on a fully taxable equivalent basis |
Nonperforming Assets
(Unaudited)
2008 | 2007 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and commercial real estate | $ | 2,919 | $ | 4,489 | $ | 7,304 | $ | 6,089 | $ | 5,725 | ||||||||||
Consumer | 61 | 28 | 23 | 67 | 241 | |||||||||||||||
Equity lines | 579 | 397 | 491 | 471 | 433 | |||||||||||||||
Construction | 230 | 562 | – | – | – | |||||||||||||||
Mortgage | 463 | 506 | 2,414 | 975 | 957 | |||||||||||||||
Total nonperforming loans | 4,252 | 5,982 | 10,232 | 7,602 | 7,356 | |||||||||||||||
Other real estate owned | 890 | 1,571 | 309 | 866 | 1,961 | |||||||||||||||
Total nonperforming assets | $ | 5,142 | $ | 7,553 | $ | 10,541 | $ | 8,468 | $ | 9,317 | ||||||||||
Nonperforming assets include loans that are 90 days or more past due or in nonaccrual status and other real estate owned. |
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CAPITAL BANK CORPORATION
Key Ratios
(Unaudited)
2008 | 2007 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Past due loans | $ | 9,380 | $ | 10,769 | $ | 13,157 | $ | 13,008 | $ | 16,241 | ||||||||||
Past due loans as a percent of total loans | 0.82 | % | 0.98 | % | 1.23 | % | 1.27 | % | 1.58 | % | ||||||||||
Net charge-offs | $ | 573 | $ | 2,894 | $ | 234 | $ | 101 | $ | 153 | ||||||||||
Net charge-offs as a percent of average loans (annualized) | 0.20 | % | 1.06 | % | 0.09 | % | 0.04 | % | 0.06 | % | ||||||||||
Allowance for loan losses as a percent of total loans | 1.18 | % | 1.24 | % | 1.25 | % | 1.30 | % | 1.32 | % | ||||||||||
Nonperforming assets as a percent of total assets | 0.33 | % | 0.50 | % | 0.71 | % | 0.59 | % | 0.63 | % | ||||||||||
Allowance for loan losses as a percent of nonperforming loans | 319 | % | 227 | % | 131 | % | 175 | % | 184 | % |
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CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2008 and December 31, 2007
Unaudited
March 31, 2008 | December 31, 2007 (a) | $ Change | % Change | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks: | ||||||||||||||||
Interest earning | $ | 10,487 | $ | 7,815 | $ | 2,672 | 34.19 | % | ||||||||
Noninterest earning | 32,661 | 32,347 | 314 | 0.97 | ||||||||||||
Federal funds sold and short term investments | 104 | 10 | 94 | 940.00 | ||||||||||||
Total cash and cash equivalents | 43,252 | 40,172 | 3,080 | 7.67 | ||||||||||||
Investment securities – available for sale, at fair value | 252,191 | 249,094 | 3,097 | 1.24 | ||||||||||||
Investment securities – held to maturity, at amortized cost | 5,895 | 10,022 | (4,127 | ) | (41.18 | ) | ||||||||||
Loans – net of unearned income and deferred fees | 1,150,497 | 1,095,107 | 55,390 | 5.06 | ||||||||||||
Allowance for loan losses | 13,563 | 13,571 | (8 | ) | (0.06 | ) | ||||||||||
Net loans | 1,136,934 | 1,081,536 | 55,398 | 5.12 | ||||||||||||
Premises and equipment, net | 24,584 | 23,863 | 721 | 3.02 | ||||||||||||
Bank-owned life insurance | 21,702 | 21,589 | 113 | 0.52 | ||||||||||||
Deposit premium and goodwill, net | 63,087 | 63,345 | (258 | ) | (0.41 | ) | ||||||||||
Deferred tax assets | 5,010 | 5,829 | (819 | ) | (14.05 | ) | ||||||||||
Accrued interest receivable | 6,961 | 7,789 | (828 | ) | (10.63 | ) | ||||||||||
Other assets | 15,685 | 14,364 | 1,321 | 9.20 | ||||||||||||
Total assets | $ | 1,575,301 | $ | 1,517,603 | $ | 57,698 | 3.80 | % | ||||||||
LIABILITIES | ||||||||||||||||
Deposits: | ||||||||||||||||
Demand, noninterest bearing | $ | 117,186 | $ | 114,780 | $ | 2,406 | 2.10 | % | ||||||||
Savings and interest-bearing demand deposits | 375,547 | 381,258 | (5,711 | ) | (1.49 | ) | ||||||||||
Time deposits | 658,164 | 602,660 | 55,504 | 9.21 | ||||||||||||
Total deposits | 1,150,897 | 1,098,698 | 52,199 | 4.75 | ||||||||||||
Repurchase agreements and federal funds purchased | 35,762 | 45,295 | (9,533 | ) | (21.05 | ) | ||||||||||
Borrowings | 178,000 | 163,347 | 14,653 | 8.97 | ||||||||||||
Subordinated debentures | 30,930 | 30,930 | – | – | ||||||||||||
Other liabilities | 11,745 | 15,033 | (3,288 | ) | (21.87 | ) | ||||||||||
Total liabilities | 1,407,334 | 1,353,303 | 54,031 | 3.99 | ||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Common stock, no par value; 20,000,000 authorized; 11,237,085 and 11,169,777 issued and outstanding as of March 31, 2008 and December 31, 2007, respectively | 136,845 | 136,154 | 691 | 0.51 | ||||||||||||
Retained earnings | 29,251 | 27,985 | 1,266 | 4.52 | ||||||||||||
Accumulated other comprehensive loss | 1,871 | 161 | 1,710 | 1,062.11 | ||||||||||||
Total shareholders’ equity | 167,967 | 164,300 | 3,667 | 2.23 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,575,301 | $ | 1,517,603 | $ | 57,698 | 3.80 | % | ||||||||
(a) Derived from audited financial statements |
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CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2008 and 2007
(Unaudited)
March 31, 2008 | March 31, 2007 | $ Change | % Change | |||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans and loan fees | $ | 19,499 | $ | 19,883 | $ | (384 | ) | (1.93 | )% | |||||||
Investment securities | 3,164 | 2,807 | 357 | 12.72 | ||||||||||||
Federal funds and other interest income | 55 | 485 | (430 | ) | (88.66 | ) | ||||||||||
Total interest income | 22,718 | 23,175 | (457 | ) | (1.97 | ) | ||||||||||
Interest expense: | ||||||||||||||||
Deposits | 9,072 | 10,006 | (934 | ) | (9.33 | ) | ||||||||||
Borrowings and repurchase agreements | 2,737 | 2,446 | 291 | 11.90 | ||||||||||||
Total interest expense | 11,809 | 12,452 | (643 | ) | (5.16 | ) | ||||||||||
Net interest income | 10,909 | 10,723 | 186 | 1.73 | ||||||||||||
Provision for loan losses | 565 | 337 | 228 | 67.66 | ||||||||||||
Net interest income after provision for loan losses | 10,344 | 10,386 | (42 | ) | (0.40 | ) | ||||||||||
Noninterest income: | ||||||||||||||||
Service charges and other fees | 959 | 877 | 82 | 9.35 | ||||||||||||
Mortgage fees and revenues | 272 | 528 | (256 | ) | (48.48 | ) | ||||||||||
Brokerage fees | 156 | 103 | 53 | 51.46 | ||||||||||||
Bank card services | 299 | 216 | 83 | 38.43 | ||||||||||||
Net gain on sale of securities | 71 | – | 71 | – | ||||||||||||
Bank-owned life insurance | 302 | 197 | 105 | 53.30 | ||||||||||||
Other | 168 | 269 | (101 | ) | (37.55 | ) | ||||||||||
Total noninterest income | 2,227 | 2,190 | 37 | 1.69 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 5,036 | 5,042 | (6 | ) | (0.12 | ) | ||||||||||
Occupancy | 958 | 956 | 2 | 0.21 | ||||||||||||
Furniture and equipment | 747 | 615 | 132 | 21.46 | ||||||||||||
Data processing and telecommunications | 432 | 388 | 44 | 11.34 | ||||||||||||
Advertising | 315 | 298 | 17 | 5.70 | ||||||||||||
Office expenses | 365 | 333 | 32 | 9.61 | ||||||||||||
Professional fees | 370 | 183 | 187 | 102.19 | ||||||||||||
Business development and travel | 333 | 313 | 20 | 6.39 | ||||||||||||
Amortization of deposit premiums | 257 | 300 | (43 | ) | (14.33 | ) | ||||||||||
Miscellaneous loan handling costs | 94 | 186 | (92 | ) | (49.46 | ) | ||||||||||
Directors fees | 267 | 268 | (1 | ) | (0.37 | ) | ||||||||||
Insurance | 95 | 90 | 5 | 5.56 | ||||||||||||
Other | 336 | 264 | 72 | 27.27 | ||||||||||||
Total noninterest expenses | 9,605 | 9,236 | 369 | 4.00 | ||||||||||||
Net income before tax expense | 2,966 | 3,340 | (374 | ) | (11.20 | ) | ||||||||||
Income tax expense | 799 | 956 | (157 | ) | (16.42 | ) | ||||||||||
Net income | $ | 2,167 | $ | 2,384 | $ | (217 | ) | (9.10 | )% | |||||||
Earnings per share – basic | $ | 0.19 | $ | 0.21 | $ | (0.02 | ) | |||||||||
Earnings per share – diluted | $ | 0.19 | $ | 0.21 | $ | (0.02 | ) | |||||||||
Weighted average shares: | ||||||||||||||||
Basic | 11,289,453 | 11,492,749 | (203,296 | ) | ||||||||||||
Fully diluted | 11,306,096 | 11,573,094 | (266,998 | ) |
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CAPITAL BANK CORPORATION
Average Balances, Interest Earned or Paid, and Interest Yields/Rates
For the Three Months Ended March 31, 2008, March 31, 2007, and December 31, 2007
Tax Equivalent Basis (1)
1st Quarter 2008 | 1st Quarter 2007 | 4th Quarter 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 | $ | 986,205 | $ | 16,777 | 6.82 | % | $ | 852,128 | $ | 16,756 | 7.97 | % | $ | 933,847 | $ | 17,820 | 7.57 | % | ||||||||||
Consumer | 46,700 | 910 | 7.81 | 30,822 | 652 | 8.58 | 43,042 | 895 | 8.25 | |||||||||||||||||||
Home equity | 79,564 | 1,321 | 6.66 | 82,298 | 1,727 | 8.51 | 78,221 | 1,547 | 7.85 | |||||||||||||||||||
Residential mortgages | 30,259 | 491 | 6.51 | 47,235 | 748 | 6.42 | 35,691 | 572 | 6.36 | |||||||||||||||||||
Total loans | 1,142,728 | 19,499 | 6.84 | 1,012,483 | 19,883 | 7.96 | 1,090,801 | 20,834 | 7.58 | |||||||||||||||||||
Investment securities (3) | 256,538 | 3,590 | 5.61 | 243,732 | 3,303 | 5.50 | 242,272 | 3,347 | 5.48 | |||||||||||||||||||
Federal funds sold and other interest on short-term investments | 8,079 | 55 | 2.72 | 36,596 | 485 | 5.37 | 14,654 | 170 | 4.59 | |||||||||||||||||||
Total interest earning assets | 1,407,345 | $ | 23,144 | 6.60 | % | 1,292,811 | $ | 23,671 | 7.43 | % | 1,347,727 | $ | 24,351 | 7.17 | % | |||||||||||||
Cash and due from banks | 26,232 | 27,593 | 27,617 | |||||||||||||||||||||||||
Other assets | 136,071 | 130,126 | 130,340 | |||||||||||||||||||||||||
Allowance for loan losses | (13,662 | ) | (13,296 | ) | (13,121 | ) | ||||||||||||||||||||||
Total assets | $ | 1,555,986 | $ | 1,437,234 | $ | 1,492,563 | ||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||
Savings deposits | $ | 30,382 | $ | 46 | 0.61 | % | $ | 34,370 | $ | 42 | 0.50 | % | $ | 32,800 | $ | 56 | 0.68 | % | ||||||||||
Interest-bearing demand deposits | 333,108 | 1,856 | 2.23 | 342,814 | 2,922 | 3.46 | 350,580 | 2,750 | 3.11 | |||||||||||||||||||
Time deposits | 657,609 | 7,171 | 4.37 | 600,865 | 7,042 | 4.75 | 568,604 | 7,124 | 4.97 | |||||||||||||||||||
Total interest-bearing deposits | 1,021,099 | 9,072 | 3.56 | 978,049 | 10,006 | 4.15 | 951,984 | 9,930 | 4.14 | |||||||||||||||||||
Borrowed funds | 171,645 | 2,022 | 4.73 | 113,686 | 1,503 | 5.36 | 156,853 | 2,009 | 5.08 | |||||||||||||||||||
Subordinated debt | 30,930 | 526 | 6.82 | 30,930 | 586 | 7.68 | 30,930 | 593 | 7.61 | |||||||||||||||||||
Repurchase agreements and fed funds purchased | 35,563 | 189 | 2.13 | 34,328 | 357 | 4.22 | 38,499 | 339 | 3.49 | |||||||||||||||||||
Total interest-bearing liabilities | 1,259,237 | $ | 11,809 | 3.76 | % | 1,156,993 | $ | 12,452 | 4.36 | % | 1,178,266 | $ | 12,870 | 4.33 | % | |||||||||||||
Noninterest-bearing deposits | 118,007 | 106,369 | 114,454 | |||||||||||||||||||||||||
Other liabilities | 11,132 | 10,581 | 33,621 | |||||||||||||||||||||||||
Total liabilities | 1,388,376 | 1,273,943 | 1,326,341 | |||||||||||||||||||||||||
Shareholders’ equity | 167,610 | 163,291 | 166,222 | |||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,555,986 | $ | 1,437,234 | $ | 1,492,563 | ||||||||||||||||||||||
Net interest spread (4) | 2.83 | % | 3.07 | % | 2.84 | % | ||||||||||||||||||||||
Tax equivalent adjustment | $ | 426 | $ | 496 | $ | 511 | ||||||||||||||||||||||
Net interest income and net interest margin (5) | $ | 11,334 | 3.23 | % | $ | 11,219 | 3.52 | % | $ | 11,480 | 3.38 | % |
(1) | The tax equivalent basis is computed using a blended federal and state tax rate of approximately 38%. |
(2) | Loans receivable include nonaccrual loans for which accrual of interest has not been recorded. |
(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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