EXHIBIT 99.1
For immediate release
April 19, 2006
April 19, 2006
MEDIA CONTACT
Patty Sullivan, 214.932.6850
patty.sullivan@texascapitalbank.com
Patty Sullivan, 214.932.6850
patty.sullivan@texascapitalbank.com
INVESTOR CONTACT
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com
TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2006
Dallas, Texas — April 19, 2006 — Texas Capital Bancshares (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings for the first quarter of 2006.
• | Net income increased 26% | ||
• | EPS increased 25% | ||
• | Loans held for investment grew 35% | ||
• | Total loans grew 37% | ||
• | Demand deposits grew 19% | ||
• | Total deposits grew 24% |
“We have begun 2006 with exceptional growth in loans and continued expansion in our business,” said Jody Grant, Chairman and CEO. “I am further pleased by the results of some of our newer endeavors and expect to see additional improvement going forward. The momentum reflected in the first quarter’s results gives me great confidence in our ability to achieve our goals for all of 2006.”
FINANCIAL SUMMARY
(dollars and shares in thousands)
(dollars and shares in thousands)
Q1 2006 | Q1 2005 | % Change | ||||||||||
OPERATING RESULTS | ||||||||||||
Net Income | $ | 6,643 | $ | 5,276 | 26 | % | ||||||
Diluted EPS | $ | .25 | $ | .20 | 25 | % | ||||||
ROA | .88 | % | .82 | % | ||||||||
ROE | 12.22 | % | 10.89 | % | ||||||||
Diluted Shares | 26,568 | 26,623 | ||||||||||
BALANCE SHEET | ||||||||||||
Total Assets | $ | 3,192,932 | $ | 2,636,920 | 21 | % | ||||||
Demand Deposits | 481,410 | 405,162 | 19 | % | ||||||||
Total Deposits | 2,463,719 | 1,981,701 | 24 | % | ||||||||
Loans Held for Investment | 2,263,007 | 1,676,799 | 35 | % | ||||||||
Total Loans | 2,393,292 | 1,747,471 | 37 | % | ||||||||
Stockholders’ Equity | 221,766 | 194,511 | 14 | % |
DETAILED FINANCIALS
Texas Capital Bancshares, Inc. reported net income of $6.6 million for the first quarter of 2006 compared to $5.3 million for the first quarter of 2005. On a fully diluted basis, earnings per share were $.25 for the three months ended March 31, 2006, compared to $.20 for the same quarter last year, representing an increase of 25 percent. On a fully diluted basis, assuming FAS 123R had been adopted at March 31, 2005, earnings per share would have increased 32 percent from $.19 for the three months ended March 31, 2005, to $.25 for the three months ended March 31, 2006.
The first quarter of each year is uniquely impacted by certain events, such as the timing of FICA and other employment taxes generated by our incentive and compensation structure. The first quarter of 2006 was additionally influenced by the adoption of FAS 123R, and a vesting of restricted stock triggered by the attainment of certain price targets of the company’s common stock. In aggregate, these events, plus the quarter being the shortest of the year, adversely affected operating results by 4.7 cents per share on a linked-quarter basis.
Return on average equity was 12.22 percent and return on average assets was .88 percent for the first quarter of 2006 compared to 10.89 percent and .82 percent, respectively, for the first quarter of 2005. The increase in net income and improvement in return on assets in 2006 are attributed to growth in net interest income which came from continued earning asset growth, as well as an improvement in net interest margin.
Net interest income was $28.7 million for the first quarter of 2006, compared to $21.7 million for the first quarter of 2005. The increase was due to an increase in average earning assets of $409.1 million over levels reported in the first quarter of 2005 and an improvement in the net interest margin. The increase in average earning assets included a $578.2 million increase in average loans held for investment and an increase of $20.1 million in average loans held for sale, offset by a decrease of $162.3 million in average securities. The net interest margin in the first quarter of 2006 was 4.09 percent, a 48 basis point increase from the first quarter of 2005 and a 4 basis point decrease from the fourth quarter of 2005. The improvement in the net interest margin for the first quarter of 2006 as compared to the first quarter of 2005 resulted primarily from a 182 basis point increase in the yield on earning assets offset by a 159 basis point increase in the cost of interest bearing liabilities. Strong loan growth funded by interest-bearing liabilities resulted in the 4 basis point decline in the linked quarter net interest margin.
Average interest bearing liabilities increased $350.9 million from the first quarter of 2005, which included a $479.1 million increase in interest bearing deposits offset by a $153.9 million decrease in other borrowings. For the same periods, the average balance of demand deposits increased to $445.0 million from $363.4 million.
Key measures of credit quality remained very favorable during the first quarter of 2006. In the first quarter of 2006, net recoveries were $12,000, compared to net recoveries of $17,000, in the first quarter of 2005 and net charge-offs of $11,000 in the fourth quarter of 2005. Non-accrual loans were $6.0 million, or .27 percent of loans, at the end of the first quarter of 2006, compared to $6.0 million, or .36 percent of loans, at the end of first quarter of 2005. Loans 90 days past due and still accruing were $2.8 million at the end of the first quarter of 2006 and included $2.5 million in premium finance loans, compared to $18,000 at the end of the first quarter of 2005. The premium finance loans are secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take up to 180 days from the cancellation date. Due to the experience in loan recoveries and other factors considered in the methodology for assessing the
adequacy of the allowance for possible loan losses, the Company did not record a provision for possible loan losses in the first quarter of 2006. Reserve coverage of historical losses, non-performing assets and classified loans remains strong. In management’s opinion, the reserve is sufficient to cover all reasonably expected losses in the portfolio and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio.
Non-interest income for the first quarter of 2006 increased $1.9 million, or 45 percent, to $6.1 million from $4.2 million in the first quarter of 2005. The increase is primarily related to a $610,000 increase in insurance commission income from $113,000 to $723,000 due to increased focus on the insurance business. Trust fee income increased $257,000 due to continued growth of trust assets.
Non-interest expense for the first quarter of 2006 increased $6.8 million, or 38 percent, to $24.7 million from $17.9 million in the first quarter of 2005. The increase is primarily related to a $3.9 million increase in salaries and employee benefits to $15.4 million from $11.5 million. The increase in salaries and employee benefits resulted from an increase in the total number of employees related to general business growth, addition of the premium finance business, the continued expansion of the residential mortgage lending division, increased focus on the insurance business and increased compensation reflective of the Company’s performance. Occupancy expense increased $1.1 million from $1.7 million to $2.8 million in the first quarter of 2006 relating to our general business growth, continued growth in the residential mortgage lending division, and depreciation related to expansion of our operating lease portfolio.
ABOUT TEXAS CAPITAL BANCSHARES
Texas Capital Bancshares (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.
This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares’ control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.
3
TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)
(Dollars in thousands except per share data)
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | ||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||
Interest income | $ | 52,807 | $ | 49,195 | $ | 45,146 | $ | 39,167 | $ | 34,187 | ||||||||||
Interest expense | 24,086 | 20,734 | 18,188 | 14,683 | 12,519 | |||||||||||||||
Net interest income | 28,721 | 28,461 | 26,958 | 24,484 | 21,668 | |||||||||||||||
Provision for loan losses | — | — | — | — | — | |||||||||||||||
Net interest income after provision for loan losses | 28,721 | 28,461 | 26,958 | 24,484 | 21,668 | |||||||||||||||
Non-interest income | 6,072 | 5,986 | 5,790 | 4,694 | 4,179 | |||||||||||||||
Non-interest expense | 24,713 | 22,736 | 21,249 | 19,190 | 17,854 | |||||||||||||||
Income before income taxes | 10,080 | 11,711 | 11,499 | 9,988 | 7,993 | |||||||||||||||
Income tax expense | 3,437 | 3,966 | 3,915 | 3,401 | 2,717 | |||||||||||||||
Net income | $ | 6,643 | $ | 7,745 | $ | 7,584 | $ | 6,587 | $ | 5,276 | ||||||||||
Diluted EPS | $ | .25 | $ | .29 | $ | .28 | $ | .25 | $ | .20 | ||||||||||
Diluted shares | 26,567,893 | 26,736,858 | 26,676,335 | 26,543,191 | 26,622,813 | |||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 3,192,932 | $ | 3,042,225 | $ | 2,932,662 | $ | 2,818,039 | $ | 2,636,920 | ||||||||||
Loans held for investment | 2,263,007 | 2,075,961 | 1,935,818 | 1,805,630 | 1,676,799 | |||||||||||||||
Loans held for sale | 130,285 | 111,178 | 118,929 | 120,708 | 70,672 | |||||||||||||||
Securities | 604,987 | 630,482 | 674,792 | 725,554 | 754,154 | |||||||||||||||
Demand deposits | 481,410 | 512,294 | 457,333 | 475,516 | 405,162 | |||||||||||||||
Total deposits | 2,463,719 | 2,495,179 | 2,312,345 | 1,971,005 | 1,981,701 | |||||||||||||||
Other borrowings | 441,991 | 265,721 | 366,501 | 610,254 | 431,682 | |||||||||||||||
Long-term debt | 46,394 | 46,394 | 20,620 | 20,620 | 20,620 | |||||||||||||||
Stockholders’ equity | 221,766 | 215,523 | 212,318 | 205,880 | 194,511 | |||||||||||||||
End of period shares | 25,854,651 | 25,771,718 | 25,672,369 | 25,616,829 | 25,557,896 | |||||||||||||||
Book value (excluding securities gains/losses) | $ | 8.94 | $ | 8.68 | $ | 8.36 | $ | 8.06 | $ | 7.79 | ||||||||||
SELECTED FINANCIAL RATIOS | ||||||||||||||||||||
Net interest margin | 4.09 | % | 4.13 | % | 3.97 | % | 3.88 | % | 3.61 | % | ||||||||||
Return on average assets | .88 | % | 1.04 | % | 1.04 | % | .97 | % | .82 | % | ||||||||||
Return on average equity | 12.22 | % | 14.53 | % | 14.41 | % | 13.14 | % | 10.89 | % | ||||||||||
Non-interest expense to earning assets | 3.49 | % | 3.28 | % | 3.10 | % | 3.01 | % | 2.94 | % | ||||||||||
Efficiency ratio | 71.0 | % | 66.0 | % | 64.9 | % | 65.8 | % | 69.1 | % | ||||||||||
Tier 1 capital ratio | 9.6 | % | 10.1 | % | 9.5 | % | 9.9 | % | 10.4 | % | ||||||||||
Total capital ratio | 10.3 | % | 10.8 | % | 10.3 | % | 10.7 | % | 11.3 | % | ||||||||||
Tier 1 leverage ratio | 8.6 | % | 8.7 | % | 7.8 | % | 8.1 | % | 8.3 | % | ||||||||||
ASSET QUALITY SUMMARY | ||||||||||||||||||||
Net charge-offs (recoveries) | $ | (12 | ) | $ | 11 | $ | (134 | ) | $ | (59 | ) | $ | (17 | ) | ||||||
Net charge-offs (recoveries) to average loans(1) | (.00 | )% | .00 | % | (.03 | )% | (.01 | )% | (.00 | )% | ||||||||||
Non-accrual loans | $ | 6,032 | $ | 5,657 | $ | 1,353 | $ | 5,718 | $ | 6,047 | ||||||||||
Loans past due (90 days) | $ | 2,824 | $ | 2,795 | $ | 941 | $ | — | $ | 18 | ||||||||||
Non-accrual loans to loans(1) | .27 | % | .27 | % | .07 | % | .32 | % | .36 | % | ||||||||||
Loans past due 90 days to loans(1) | .12 | % | .13 | % | .05 | % | .00 | % | .00 | % | ||||||||||
Non-performing loans to loans(1) | .39 | % | .41 | % | .12 | % | .32 | % | .36 | % | ||||||||||
Reserve to loans(1) | .84 | % | .91 | % | .98 | % | 1.04 | % | 1.12 | % |
(1) | Excludes loans held for sale. |
4
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Dollars in thousands)
March 31, 2006 | March 31, 2005 | % Change | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 108,429 | $ | 86,846 | 25 | % | ||||||
Securities, available-for-sale | 604,987 | 754,154 | (20 | )% | ||||||||
Loans held for sale | 130,285 | 70,672 | 84 | % | ||||||||
Loans held for investment (net of unearned income) | 2,263,007 | 1,676,799 | 35 | % | ||||||||
Less: Allowance for loan losses | 18,909 | 18,715 | 1 | % | ||||||||
Loans held for investment, net | 2,244,098 | 1,658,084 | 35 | % | ||||||||
Premises and equipment, net | 21,155 | 4,581 | 362 | % | ||||||||
Accrued interest receivable and other assets | 71,573 | 61,087 | 17 | % | ||||||||
Goodwill, net | 12,405 | 1,496 | 729 | % | ||||||||
Total assets | $ | 3,192,932 | $ | 2,636,920 | 21 | % | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 481,410 | $ | 405,162 | 19 | % | ||||||
Interest bearing | 1,478,730 | 1,276,529 | 16 | % | ||||||||
Interest bearing in foreign branches | 503,579 | 300,010 | 68 | % | ||||||||
Total deposits | 2,463,719 | 1,981,701 | 24 | % | ||||||||
Accrued interest payable | 4,857 | 3,125 | 55 | % | ||||||||
Other liabilities | 14,205 | 5,281 | 169 | % | ||||||||
Federal funds purchased | 263,187 | 147,684 | 78 | % | ||||||||
Repurchase agreements | 103,642 | 282,964 | (63 | )% | ||||||||
Other borrowings | 75,162 | 1,034 | 7,169 | % | ||||||||
Long-term debt | 46,394 | 20,620 | 125 | % | ||||||||
Total liabilities | 2,971,166 | 2,442,409 | 22 | % | ||||||||
Stockholders’ equity: | ||||||||||||
Common stock, $.01 par value: | ||||||||||||
Authorized shares — 100,000,000 Issued shares — 25,854,651 and 25,557,896 at March 31, 2006 and 2005, respectively | 259 | 256 | ||||||||||
Additional paid-in capital | 177,014 | 173,397 | ||||||||||
Retained earnings | 53,882 | 25,323 | ||||||||||
Treasury stock (shares at cost: 84,274 at March 31, 2006 and 2005, respectively) | (573 | ) | (573 | ) | ||||||||
Deferred compensation | 573 | 573 | ||||||||||
Accumulated other comprehensive income (loss) | (9,389 | ) | (4,465 | ) | ||||||||
Total stockholders’ equity | 221,766 | 194,511 | 14 | % | ||||||||
Total liabilities and stockholders’ equity | $ | 3,192,932 | $ | 2,636,920 | 21 | % | ||||||
5
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)
(Dollars in thousands except per share data)
Three Months Ended March 31 | ||||||||
2006 | 2005 | |||||||
Interest income | ||||||||
Interest and fees on loans | $ | 45,941 | $ | 25,692 | ||||
Securities | 6,831 | 8,296 | ||||||
Federal funds sold | 24 | 80 | ||||||
Deposits in other banks | 11 | 119 | ||||||
Total interest income | 52,807 | 34,187 | ||||||
Interest expense | ||||||||
Deposits | 19,307 | 8,933 | ||||||
Federal funds purchased | 2,195 | 861 | ||||||
Repurchase agreements | 1,202 | 2,394 | ||||||
Other borrowings | 554 | 4 | ||||||
Long-term debt | 828 | 327 | ||||||
Total interest expense | 24,086 | 12,519 | ||||||
Net interest income | 28,721 | 21,668 | ||||||
Provision for loan losses | — | — | ||||||
Net interest income after provision for loan losses | 28,721 | 21,668 | ||||||
Non-interest income | ||||||||
Service charges on deposit accounts | 856 | 781 | ||||||
Trust fee income | 843 | 586 | ||||||
Bank owned life insurance (BOLI) income | 286 | 288 | ||||||
Brokered loan fees | 369 | 219 | ||||||
Gain on sale of mortgage loans | 1,623 | 1,765 | ||||||
Insurance commissions | 723 | 113 | ||||||
Other | 1,372 | 427 | ||||||
Total non-interest income | 6,072 | 4,179 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 15,452 | 11,529 | ||||||
Net occupancy expense | 2,752 | 1,683 | ||||||
Marketing | 799 | 699 | ||||||
Legal and professional | 1,468 | 1,097 | ||||||
Communications and data processing | 684 | 655 | ||||||
Franchise taxes | 61 | 45 | ||||||
Other | 3,497 | 2,146 | ||||||
Total non-interest expense | 24,713 | 17,854 | ||||||
Income before income taxes | 10,080 | 7,993 | ||||||
Income tax expense | 3,437 | 2,717 | ||||||
Net income | $ | 6,643 | $ | 5,276 | ||||
Earnings per share: | ||||||||
Basic | $ | .26 | $ | .21 | ||||
Diluted | $ | .25 | $ | .20 |
6
TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)
(Dollars in thousands)
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | ||||||||||||||||
Beginning balance | $ | 18,897 | $ | 18,908 | $ | 18,774 | $ | 18,715 | $ | 18,698 | ||||||||||
Loans charged-off: | ||||||||||||||||||||
Commercial | — | 60 | 14 | 70 | 266 | |||||||||||||||
Real estate | — | — | — | 28 | — | |||||||||||||||
Consumer | 3 | 8 | 32 | 52 | 1 | |||||||||||||||
Leases | 10 | 6 | — | 2 | 58 | |||||||||||||||
Total | 13 | 74 | 46 | 152 | 325 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial | 4 | 3 | 115 | 171 | 282 | |||||||||||||||
Consumer | 1 | — | — | — | — | |||||||||||||||
Leases | 20 | 60 | 65 | 40 | 60 | |||||||||||||||
Total recoveries | 25 | 63 | 180 | 211 | 342 | |||||||||||||||
Net charge-offs (recoveries) | (12 | ) | 11 | (134 | ) | (59 | ) | (17 | ) | |||||||||||
Provision for loan losses | — | — | — | — | — | |||||||||||||||
Ending balance | $ | 18,909 | $ | 18,897 | $ | 18,908 | $ | 18,774 | $ | 18,715 | ||||||||||
Reserve to loans held for investment(2) | .84 | % | .91 | % | .98 | % | 1.04 | % | 1.12 | % | ||||||||||
Reserve to average loans held for investment(2) | .87 | % | .94 | % | 1.00 | % | 1.07 | % | 1.18 | % | ||||||||||
Net charge-offs (recoveries) to average loans(1) (2) | (.00 | )% | .00 | % | (.03 | )% | (.01 | )% | (.00 | )% | ||||||||||
Provision for loan losses to average loans(1) (2) | — | — | — | — | — | |||||||||||||||
Recoveries to gross charge-offs | 192.31 | % | 85.14 | % | 391.3 | % | 138.8 | % | 105.2 | % | ||||||||||
Reserve as a multiple of net charge-offs | N/M | 1,717.9 | x | N/M | N/M | N/M | ||||||||||||||
Non-performing loans: | ||||||||||||||||||||
Loans past due (90 days)(3) | $ | 2,824 | $ | 2,795 | $ | 941 | $ | — | $ | 18 | ||||||||||
Non-accrual | 6,032 | 5,657 | 1,353 | 5,718 | 6,047 | |||||||||||||||
Total | $ | 8,856 | $ | 8,452 | $ | 2,294 | $ | 5,718 | $ | 6,065 | ||||||||||
Reserve as a percent of non-performing loans | 2.1 | x | 2.2 | x | 8.2 | x | 3.3 | x | 3.1 | x | ||||||||||
Reserve as a percent of non-accrual loans | 3.1 | x | 3.3 | x | 14.0 | x | 3.3 | x | 3.1 | x |
(1) | Interim period ratios are annualized. | |
(2) | Excludes loans held for sale. | |
(3) | At March 31, 2006, loans past due 90 days and still accruing includes premium finance loans of $2.5 million (90% of total). These loans are secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take up to 180 days from the cancellation date. |
7
TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Dollars in thousands)
(Dollars in thousands)
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 45,941 | $ | 41,915 | $ | 37,363 | $ | 31,255 | $ | 25,692 | ||||||||||
Securities | 6,831 | 7,087 | 7,442 | 7,887 | 8,296 | |||||||||||||||
Federal funds sold | 24 | 183 | 334 | 14 | 80 | |||||||||||||||
Deposits in other banks | 11 | 10 | 7 | 11 | 119 | |||||||||||||||
Total interest income | 52,807 | 49,195 | 45,146 | 39,167 | 34,187 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 19,307 | 16,991 | 13,658 | 10,446 | 8,933 | |||||||||||||||
Federal funds purchased | 2,195 | 1,159 | 989 | 1,374 | 861 | |||||||||||||||
Repurchase agreements | 1,202 | 1,727 | 2,706 | 2,151 | 2,394 | |||||||||||||||
Other borrowings | 554 | 68 | 451 | 354 | 4 | |||||||||||||||
Long-term debt | 828 | 789 | 384 | 358 | 327 | |||||||||||||||
Total interest expense | 24,086 | 20,734 | 18,188 | 14,683 | 12,519 | |||||||||||||||
Net interest income | 28,721 | 28,461 | 26,958 | 24,484 | 21,668 | |||||||||||||||
Provision for loan losses | — | — | — | — | — | |||||||||||||||
Net interest income after provision for loan losses | 28,721 | 28,461 | 26,958 | 24,484 | 21,668 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposit accounts | 856 | 833 | 816 | 793 | 781 | |||||||||||||||
Trust fee income | 843 | 760 | 778 | 615 | 586 | |||||||||||||||
Bank owned life insurance (BOLI) income | 286 | 290 | 267 | 291 | 288 | |||||||||||||||
Brokered loan fees | 369 | 178 | 962 | 400 | 219 | |||||||||||||||
Gain on sale of mortgage loans | 1,623 | 2,118 | 2,198 | 1,911 | 1,765 | |||||||||||||||
Insurance commissions | 723 | 648 | 114 | 172 | 113 | |||||||||||||||
Other | 1,372 | 1,159 | 655 | 512 | 427 | |||||||||||||||
Total non-interest income | 6,072 | 5,986 | 5,790 | 4,694 | 4,179 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 15,452 | 13,874 | 13,465 | 11,858 | 11,529 | |||||||||||||||
Net occupancy expense | 2,752 | 2,025 | 1,937 | 1,875 | 1,683 | |||||||||||||||
Marketing | 799 | 894 | 821 | 922 | 699 | |||||||||||||||
Legal and professional | 1,468 | 1,783 | 1,183 | 1,103 | 1,097 | |||||||||||||||
Communications and data processing | 684 | 673 | 658 | 914 | 655 | |||||||||||||||
Franchise taxes | 61 | 134 | 49 | 45 | 45 | |||||||||||||||
Other | 3,497 | 3,353 | 3,136 | 2,473 | 2,146 | |||||||||||||||
Total non-interest expense | 24,713 | 22,736 | 21,249 | 19,190 | 17,854 | |||||||||||||||
Income before income taxes | 10,080 | 11,711 | 11,499 | 9,988 | 7,993 | |||||||||||||||
Income tax expense | 3,437 | 3,966 | 3,915 | 3,401 | 2,717 | |||||||||||||||
Net income | $ | 6,643 | $ | 7,745 | $ | 7,584 | $ | 6,587 | $ | 5,276 | ||||||||||
8
QUARTERLY FINANCIAL SUMMARY – UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
(Dollars in thousands)
Consolidated Daily Average Balances, Average Yields and Rates
(Dollars in thousands)
1st Quarter 2006 | 4th Quarter 2005 | 3rd Quarter 2005 | 2nd Quarter 2005 | 1st Quarter 2005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Expense(1)(2) | Rate | Balance | Expense(1)(2) | Rate | Balance | Expense(1)(2) | Rate | Balance | Expense(1)(2) | Rate | Balance | Expense(1)(2) | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities — Taxable | $ | 567,653 | $ | 6,396 | 4.57 | % | $ | 598,280 | $ | 6,653 | 4.41 | % | $ | 643,319 | $ | 7,007 | 4.32 | % | $ | 685,058 | $ | 7,451 | 4.36 | % | $ | 729,907 | $ | 7,861 | 4.37 | % | ||||||||||||||||||||||||||||||||||
Securities — Non-taxable | 48,635 | 669 | 5.58 | % | 48,655 | 668 | 5.45 | % | 48,675 | 669 | 5.45 | % | 48,694 | 671 | 5.53 | % | 48,715 | 669 | 5.57 | % | ||||||||||||||||||||||||||||||||||||||||||||
Federal funds sold | 2,233 | 24 | 4.36 | % | 18,553 | 183 | 3.91 | % | 37,532 | 334 | 3.53 | % | 1,980 | 14 | 2.84 | % | 12,377 | 80 | 2.62 | % | ||||||||||||||||||||||||||||||||||||||||||||
Deposits in other banks | 1,079 | 11 | 4.13 | % | 980 | 10 | 4.05 | % | 895 | 7 | 3.10 | % | 1,736 | 11 | 2.54 | % | 17,858 | 119 | 2.70 | % | ||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale(3) | 102,030 | 3,295 | 13.10 | % | 99,882 | 3,521 | 13.99 | % | 121,181 | 3,650 | 11.95 | % | 84,497 | 2,897 | 13.75 | % | 81,956 | 2,281 | 11.29 | % | ||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | 2,168,410 | 42,646 | 7.98 | % | 2,006,132 | 38,394 | 7.59 | % | 1,884,161 | 33,713 | 7.10 | % | 1,755,311 | 28,358 | 6.48 | % | 1,590,207 | 23,411 | 5.97 | % | ||||||||||||||||||||||||||||||||||||||||||||
Less reserve for loan losses | 18,898 | — | — | 18,924 | — | — | 18,882 | — | — | 18,753 | — | — | 18,930 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net of reserve | 2,251,542 | 45,941 | 8.28 | % | 2,087,090 | 41,915 | 7.97 | % | 1,986,460 | 37,363 | 7.46 | % | 1,821,055 | 31,255 | 6.88 | % | 1,653,233 | 25,692 | 6.30 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 2,871,142 | 53,041 | 7.49 | % | 2,753,558 | 49,429 | 7.12 | % | 2,716,881 | 45,380 | 6.63 | % | 2,558,523 | 39,402 | 6.18 | % | 2,462,090 | 34,421 | 5.67 | % | ||||||||||||||||||||||||||||||||||||||||||||
Cash and other assets | 205,999 | 188,998 | 175,986 | 162,835 | 148,557 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 3,077,141 | $ | 2,942,556 | $ | 2,892,867 | $ | 2,721,358 | $ | 2,610,647 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 117,685 | $ | 312 | 1.08 | % | $ | 108,245 | $ | 282 | 1.03 | % | $ | 107,398 | $ | 271 | 1.00 | % | $ | 111,029 | $ | 272 | 0.98 | % | $ | 107,162 | $ | 255 | 0.97 | % | ||||||||||||||||||||||||||||||||||
Savings deposits | 671,102 | 6,195 | 3.74 | % | 691,575 | 5,800 | 3.33 | % | 628,019 | 4,442 | 2.81 | % | 654,519 | 3,906 | 2.39 | % | 613,391 | 3,147 | 2.08 | % | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 635,250 | 6,664 | 4.25 | % | 564,405 | 5,561 | 3.91 | % | 614,433 | 5,548 | 3.58 | % | 482,249 | 3,958 | 3.29 | % | 520,083 | 3,947 | 3.08 | % | ||||||||||||||||||||||||||||||||||||||||||||
Deposits in foreign branches | 541,084 | 6,136 | 4.60 | % | 518,316 | 5,348 | 4.09 | % | 373,298 | 3,397 | 3.61 | % | 300,394 | 2,310 | 3.08 | % | 245,414 | 1,584 | 2.62 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing deposits | 1,965,121 | 19,307 | 3.98 | % | 1,882,541 | 16,991 | 3.58 | % | 1,723,148 | 13,658 | 3.14 | % | 1,548,191 | 10,446 | 2.71 | % | 1,486,050 | 8,933 | 2.44 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 380,832 | 3,951 | 4.21 | % | 325,350 | 2,954 | 3.60 | % | 504,700 | 4,146 | 3.26 | % | 545,896 | 3,879 | 2.85 | % | 534,773 | 3,259 | 2.47 | % | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 46,394 | 828 | 7.24 | % | 44,722 | 789 | 7.00 | % | 20,620 | 384 | 7.39 | % | 20,620 | 358 | 6.96 | % | 20,620 | 327 | 6.43 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 2,392,347 | 24,086 | 4.08 | % | 2,252,613 | 20,734 | 3.65 | % | 2,248,468 | 18,188 | 3.21 | % | �� | 2,114,707 | 14,683 | 2.78 | % | 2,041,443 | 12,519 | 2.49 | % | |||||||||||||||||||||||||||||||||||||||||||
Demand deposits | 445,012 | 458,743 | 420,288 | 397,266 | 363,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 19,309 | 19,702 | 15,265 | 8,370 | 9,241 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 220,473 | 211,498 | 208,846 | 201,015 | 196,565 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,077,141 | $ | 2,942,556 | $ | 2,892,867 | $ | 2,721,358 | $ | 2,610,647 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 28,955 | $ | 28,695 | $ | 27,192 | $ | 24,719 | $ | 21,902 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 4.09 | % | 4.13 | % | 3.97 | % | 3.88 | % | 3.61 | % |
(1) | The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income. | |
(2) | Taxable equivalent rates used where applicable. | |
(3) | Revenue includes origination fees and other loan fees for our residential mortgage loans that are earned when the loan is sold. This increases our overall yield on these loans since most of the mortgage loans are on our books for less than 30 days. |
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