Exhibit 99.1
PRESS RELEASE
First Community Bancorp
(NASDAQ: FCBP)
Contact: | Matthew P. Wagner |
| Victor R. Santoro |
| President and |
| Executive Vice President and |
| Chief Executive Officer |
| Chief Financial Officer |
| 120 Wilshire Boulevard |
| 120 Wilshire Boulevard |
| Santa Monica, CA 90401 |
| Santa Monica, CA 90401 |
Phone: | 310-458-1521 x 271 |
| 310-458-1521 x 288 |
Fax: | 310-451-4555 |
| 310-451-4555 |
FOR IMMEDIATE RELEASE | July 22, 2004 |
FIRST COMMUNITY BANCORP ANNOUNCES EARNINGS FOR THE SECOND QUARTER OF 2004
— Net Earnings and EPS Grow 17% from the First Quarter, Fueled by $101 Million of Organic Loan Growth —
— Net Interest Margin Reaches 5.61% and Deposit Cost Declines to 0.34%—
— Demand Deposit Balances Increase to 44% of Total Deposits —
Rancho Santa Fe, California . . . First Community Bancorp (Nasdaq: FCBP) today announced second quarter 2004 net earnings of $8.8 million, or $0.55 per diluted share, compared to second quarter 2003 net earnings of $8.6 million or $0.55 per diluted share. Second quarter 2003 results included after tax securities gains of $1.0 million, or $0.06 per diluted share. There were no such gains in the second quarter of 2004.
Second quarter earnings growth was fueled by organic loan growth of $100.7 million, as compared to $45.0 million and $50.0 million of organic loan growth experienced in the first quarter of 2004 and the fourth quarter of 2003.
Net earnings for the six months ended June 30, 2004, were $16.3 million, or $1.02 per diluted share, compared to net earnings of $15.9 million, or $1.01 per diluted share, for the same period of 2003. Net earnings for the six months ended June 30, 2003, included after tax securities gains of $1.0 million, or $0.06 per diluted share. After tax securities gains for the six months ended June 30, 2004, were $17,000.
1
The comparability of financial information is affected by our acquisitions. Operating results include the operations of acquired entities from the dates of acquisition. Verdugo Banking Company ($212 million in assets) was acquired in August 2003, First Community Financial Corporation, or FC Financial, ($80 million in assets) was acquired in March 2004, and Harbor National Bank ($173 million in assets) was acquired in April 2004.
HIGHLIGHTS FOR THE SECOND QUARTER OF 2004
• Organic loan growth was $100.7 million.
• Our net interest margin increased to 5.61% for the second quarter of 2004 from 5.17% for the first quarter of 2004.
• Deposit cost reached an all-time low at 0.34% for the second quarter of 2004 compared to 0.36% and 0.40% for the first quarter of 2004 and the fourth quarter of 2003.
• Demand deposits totaled $952.9 million and represented 44% of total deposits at quarter end.
• Credit quality remains strong. The ratio of nonaccrual loans to net loans was 0.44% at June 30, 2004, compared to 0.45% at March 31, 2004, and 0.46% at December 31, 2003.
• We completed the Harbor National Bank acquisition on April 16, 2004, adding $173 million in assets and three banking locations in Orange County, California. We paid $35.5 million for all the outstanding common stock and options of Harbor National Bank.
Matt Wagner, President and Chief Executive Officer, stated, “We’re very pleased with our second quarter results. Our loan growth in the second quarter alone surpassed the total organic growth of $95 million achieved in the preceding two quarters combined. Our deposit growth was also notable, as we increased total deposits by over $201 million since the end of 2003, including $157 million of acquired deposits, and increased our demand deposits to 44% of total deposits. We accomplished this organic growth in addition to completing our acquisition of Harbor National Bank during the quarter, adding three banking offices to our footprint in Orange County. Through the acquisitions of Harbor and FC Financial, we continued to build on the First Community Bancorp platform to increase franchise value, enhance our base for organic growth, and augment our earnings. We accomplished this growth while still maintaining our focus on credit quality. While our loan portfolio has increased $354 million since the end of 2003, our ratio of nonaccrual loans to total loans has remained very low.”
Vic Santoro, Executive Vice President and Chief Financial Officer, also commented, “Last quarter, our net interest margin – one of our key performance measures - increased for the first time in almost one and one-half years. This quarter our margin improved even more, increasing 44 basis points from the first quarter to 5.61%. We also were able to improve our efficiency ratio during this quarter, reducing it to 57.4% from 58.8% in the first quarter. We continue to monitor and manage our overhead costs to maximize the earnings impact of our increasing margin and organic loan growth.”
2
SECOND QUARTER RESULTS
Dollars in millions, except per share |
| Second |
| First |
| % |
| Second Quarter |
| % |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
Diluted Earnings per share |
| $ | 0.55 |
| $ | 0.47 |
| 17.0 |
| $ | 0.55 |
| — |
|
Net Earnings |
| $ | 8.8 |
| $ | 7.5 |
| 17.3 |
| $ | 8.6 |
| 2.3 |
|
Return on Average Assets (“ROA”) |
| 1.32 | % | 1.23 | % | 7.3 |
| 1.60 | % | (17.5 | ) | |||
Return on Average Equity (“ROE”) |
| 10.3 | % | 8.9 | % | 15.7 |
| 10.7 | % | (3.7 | ) | |||
Efficiency Ratio |
| 57.4 | % | 58.8 | % | (2.4 | ) | 52.0 | % | 10.4 |
|
The increases in net earnings, ROA, and ROE for the second quarter of 2004 compared to the first quarter of 2004 were due to our organic loan growth and the FC Financial and Harbor National Bank acquisitions. Second quarter 2003 net earnings included after-tax securities gains of $1.0 million, or $0.06 per diluted share, resulting from a restructuring of securities portfolios of acquired banks; there were no such gains in the 2004 period.
YEAR TO DATE RESULTS
Dollars in millions, except per share |
| Six Months Ended June 30, |
| ||||||
data |
| 2004 |
| 2003 |
| % Change |
| ||
|
|
|
|
|
|
|
| ||
Diluted Earnings per share |
| $ | 1.02 |
| $ | 1.01 |
| 1.0 |
|
Net Earnings |
| $ | 16.3 |
| $ | 15.9 |
| 2.5 |
|
ROA |
| 1.28 | % | 1.47 | % | (12.9 | ) | ||
ROE |
| 9.6 | % | 10.0 | % | (4.0 | ) | ||
Efficiency Ratio |
| 58.0 | % | 54.3 | % | 6.8 |
|
Comparisons of net earnings, ROA and ROE for the six months ended June 30, 2004, and 2003 are affected by securities gains. Net earnings for the first half of 2003 included after tax securities gains of $1.0 million, or $0.06 per diluted share. After tax securities gains included in net earnings for the first half of 2004 totaled $17,000.
BALANCE SHEET GROWTH
Total assets increased 12% from year end 2003 to $2.7 billion at June 30, 2004, with gross loans totaling $2.0 billion. Second quarter 2004 net loan growth was $234.5 million, resulting from organic loan growth of $100.7 million and loans acquired in acquisitions of $133.8 million. Organic loan growth since year end 2003 totaled $145.7 million. Deposits increased $201.6 million, or 10%, from year end 2003 to $2.2 billion at June 30, 2004, with noninterest-bearing deposit balances totaling $952.9 million, or 44% of total deposits. The Harbor National Bank acquisition added $156.8 million in deposits.
In early February 2004, we issued $60.0 million in trust preferred securities used to fund the FC Financial and Harbor National Bank acquisitions. Following the acquisition of FC Financial, we repaid $60.7 million of FC Financial debt from the proceeds of sales of
3
investment securities. In early June 2004, we locked in a six-month, $55.0 million borrowing from the Federal Home Loan Bank at a fixed rate of 1.59% per annum in order to meet loan demand.
NET INTEREST INCOME CONTINUES TO EXPAND
Net interest income increased 28% to $31.3 million for the second quarter of 2004, compared to $24.4 million for the same period of 2003. The year-over-year increase was due primarily to the Company adding interest-earning assets from organic loan growth and acquisitions. Interest income increased by $7.2 million, or 26%, while interest expense increased by $278,000, or 9%, for the second quarter of 2004 when compared to the same period of 2003. Interest expense on deposits decreased by $707,000, or 28%, for the second quarter of 2004 when compared to the same period of 2003. The decline in interest expense on deposits was largely the result of the declining interest rate environment during that twelve-month period.
Net interest income increased $8.8 million, or 18%, for the six months ended June 30, 2004, when compared to the same period of 2003. This growth was the result of the $325.7 million increase in average earning assets for the first six months of 2004, when compared to the same period of 2003, in addition to the effect of both the declining interest rate environment and the increasing ratio of DDA deposits to total deposits on our interest-bearing liabilities costs. The cost of our interest-bearing liabilities declined to 1.00% for the six months ended June 30, 2004, from 1.18% for the six months ended June 30, 2003.
NET INTEREST MARGIN INCREASES SIGNIFICANTLY
The Company’s net interest margin for the second quarter of 2004 was 5.61%, an increase of 19 basis points when compared to the same period of 2003 and an increase of 44 basis points when compared to the first quarter of 2004 net interest margin of 5.17%. Yields on average earning assets were 6.22% and 6.11% for the second quarter of 2004 and 2003, respectively, and 5.78% for the first quarter of 2004. The increase in the yield on average earning assets and the increase in the net interest margin for the second quarter of 2004 when compared to the same period of 2003 and the first quarter of 2004 are attributable to a combination of organic loan growth and the loans from the FC Financial acquisition. The FC Financial loans yielded 14.2% for the second quarter 2004 on an average balance of approximately $75 million. The average cost of deposits was 0.34% for the second quarter of 2004 compared to 0.57% and 0.36% for the second quarter of 2003 and the first quarter of 2004. The overall cost of interest-bearing liabilities decreased to 1.01% for the second quarter of 2004 compared to 1.12% for the same period of 2003 and increased from 0.99% for the first quarter of 2004. The slight increase from the first quarter of 2004 is the result of a full quarter’s impact of the subordinated debentures issued during the first quarter of 2004.
4
NONINTEREST INCOME BEFORE SECURITIES GAINS IS RELATIVELY FLAT
Noninterest income for the second quarter of 2004 totaled $4.1 million, representing a decrease of $2.0 million from the same period of 2003. The decrease is largely the result of no securities gains in the 2004 period compared to $1.8 million in the 2003 period. During the second quarter of 2003, we restructured the securities portfolios of acquired banks through sales that resulted in the gains. Noninterest income remained unchanged from the first quarter of 2004. Noninterest income for the six months ended June 30, 2004, totaled $8.2 million, a decrease of $2.0 million from the same period of 2003. The decrease is related to the securities gains mentioned previously.
NONINTEREST EXPENSE TRACKS GROWTH
Noninterest expense for the second quarter of 2004 totaled $20.3 million compared to $15.9 million and $17.9 million for the second quarter of 2003 and the first quarter of 2004. The increases in noninterest expense from both the second quarter of 2003 and the first quarter of 2004 were primarily due to increases in staff and premises expenses associated with the three acquisitions consummated since June 30, 2003. The increase in salaries and employee benefits expense, or compensation, for the first six months of 2004 compared to the same period in 2003 is largely the result of an increased number of employees due to acquisitions and expanded business activity, in addition to the amortization of restricted and performance stock awarded after June 30, 2003. Compensation increased by $1.3 million to $11.0 million for the second quarter of 2004 from $9.7 million for the first quarter of 2004. Approximately $700,000 of this increase resulted from increased headcount. The remaining $600,000 of the increase resulted from deferred and incentive compensation accruals. In June 2004, we awarded 56,080 shares of restricted stock to senior employees who elected to receive restricted stock vesting over 3 years in lieu of cash bonuses to be earned in 2004. We expect that the next two quarters will each include deferred compensation expense and restricted stock amortization expense of approximately $2.0 million. Premises expenses increased due to the banking and lending offices acquired and to a $295,000 leasehold improvements write-off related to the relocation of a branch office. Intangible asset amortization increased during all periods because of the core deposit and customer relationship intangibles added by the Verdugo, FC Financial, and Harbor acquisitions.
Noninterest expense for the second quarter of 2004 includes the following noncash items totaling $2.4 million:
• Core deposit and customer relationship intangible amortization of $826,000 resulting from the Company’s multiple acquisitions.
• Stock compensation of $1.3 million related to 575,080 shares of our common stock underlying restricted stock and performance stock awards made to employees during the latter half of 2003 and the first six months of 2004. There was no stock compensation expense during the second quarter of 2003.
• Leasehold improvements write-off totaling $295,000.
5
CREDIT QUALITY REMAINS VERY HIGH
The ratio of nonperforming assets to total loans and OREO declined to 0.44% at June 30, 2004, from 0.45% at March 31, 2004, 0.46% at December 31, 2003, and 0.69% at June 30, 2003. Nonperforming assets were $8.6 million at June 30, 2004, $7.7 million at March 31, 2004, and $7.4 million at December 31, 2003. Nonperforming assets were $9.9 million at June 30, 2003.
Annualized net charge-offs as a percentage of average loans were 0.05% for the first six months of 2004 compared to 0.18% for the same period of 2003. The allowance for loan losses totaled $30.3 million at June 30, 2004, or 1.56% of loans, net of deferred fees and costs. During the second quarter of 2004, the allowance increased $2.3 million as a result of net recoveries, the Harbor National Bank acquisition, and a provision of $200,000. The provision was made in consideration of loan growth and the risk inherent in the portfolio.
REGULATORY CAPITAL MEASURES ARE ABOVE THE WELL-CAPITALIZED MINIMUMS
The Company and the Banks remained well capitalized at June 30, 2004. Regulatory capital ratios are as follows:
|
| First |
| Pacific |
| Consolidated |
|
Tier 1 leverage capital ratio |
| 9.68 | % | 8.20 | % | 8.63 | % |
Tier 1 risk-based capital ratio |
| 10.22 | % | 8.98 | % | 9.26 | % |
Total risked-based capital ratio |
| 11.48 | % | 10.09 | % | 10.53 | % |
We have issued and have outstanding trust preferred securities totaling $118.0 million, a portion of which is treated as regulatory capital for purposes of determining the Company’s Tier I capital ratios. The Board of Governors of the Federal Reserve System, which is the Company’s banking regulator, has proposed to modify its rule on the amount of trust preferred securities that may be included in regulatory capital. As the final ruling has not been issued, it is not possible to estimate the effect, if any, such final rule would have on the Company’s Tier I regulatory capital.
ABOUT FIRST COMMUNITY BANCORP
First Community Bancorp is a bank holding company with $2.7 billion in assets as of June 30, 2004, with two wholly-owned banking subsidiaries, Pacific Western National Bank and First National Bank. Through the Banks’ 35 full-service community banking branches, First Community provides commercial banking services, including real estate, construction and commercial loans, to small and medium-sized businesses. Pacific Western has 22 branches throughout Los Angeles, Orange, Riverside and San Bernardino Counties, and First National Bank has 13 branches across San Diego County. Through its subsidiary FC Financial, First National Bank provides working capital financing to growing companies located throughout the Southwest, primarily in the states of Arizona, California and Texas. Additional information regarding First Community Bancorp is available on the Internet at www.firstcommunitybancorp.com. Information regarding Pacific Western National Bank
6
and First National Bank is also available on the Internet at www.pacificwesternbank.com and www.banksandiego.com, respectively.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about First Community that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of First Community. First Community cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: the possibility that personnel changes will not proceed as planned; planned acquisitions and relative cost savings cannot be realized or realized within the expected time frame; revenues are lower than expected; competitive pressure among depository institutions increases significantly; the integration of acquired businesses costs more, takes longer or is less successful than expected; the cost of additional capital is more than expected; a change in the interest rate environment reduces interest margins; general economic conditions, either nationally or in the market areas in which First Community operates, are less favorable than expected; legislative or regulatory requirements or changes that adversely affect First Community’s business or regulatory capital requirements, or that alter the regulatory capital treatment of the Company’s trust preferred securities; changes in the securities markets and other risks that are described in First Community’s public filings with the U.S. Securities and Exchange Commission (the “SEC”). If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, First Community’s results could differ materially from those expressed in, implied or projected by, such forward-looking statements. First Community assumes no obligation to update such forward-looking statements.
For a more complete discussion of risks and uncertainties, investors and security holders are urged to read First Community Bancorp’s annual report on Form 10-K for the year ended December 31, 2003 and other documents filed by the Company with the Securities and Exchange Commission. The documents filed by First Community with the Commission may be obtained at First Community Bancorp’s website at www.firstcommunitybancorp.com or at the Commission’s website at www.sec.gov. These documents may also be obtained free of charge from First Community by directing a request to: First Community Bancorp c/o Pacific Western Bank, 275 North Brea Boulevard, Brea, CA 92821. Attention: Investor Relations. Telephone 714-671-6800.
7
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
| June 30, |
| December 31, |
| ||
|
| (Dollars in thousands, except per share data) |
| ||||
Assets: |
|
|
|
|
| ||
Cash and due from banks |
| $ | 115,809 |
| $ | 101,968 |
|
Federal funds sold |
| 7,500 |
| 2,600 |
| ||
Total cash and cash equivalents |
| 123,309 |
| 104,568 |
| ||
|
|
|
|
|
| ||
Interest-bearing deposits in financial institutions |
| 2,295 |
| 311 |
| ||
|
|
|
|
|
| ||
Federal Reserve Bank and Federal Home Loan Bank stock, at cost |
| 19,842 |
| 14,662 |
| ||
Securities available-for-sale |
| 281,244 |
| 417,656 |
| ||
Total securities |
| 301,086 |
| 432,318 |
| ||
|
|
|
|
|
| ||
Gross loans |
| 1,956,784 |
| 1,600,606 |
| ||
Deferred fees and costs |
| (6,683 | ) | (4,769 | ) | ||
Loans, net of deferred fees and costs |
| 1,950,101 |
| 1,595,837 |
| ||
Allowance for loan losses |
| (30,349 | ) | (25,752 | ) | ||
Net loans |
| 1,919,752 |
| 1,570,085 |
| ||
Premises and equipment, net |
| 15,028 |
| 14,004 |
| ||
Intangible assets |
| 270,153 |
| 221,956 |
| ||
Cash surrender value of life insurance |
| 51,411 |
| 50,287 |
| ||
Other assets |
| 38,776 |
| 28,798 |
| ||
Total Assets |
| $ | 2,721,810 |
| $ | 2,422,327 |
|
|
|
|
|
|
| ||
Liabilities and Shareholders’ Equity: |
|
|
|
|
| ||
Liabilities: |
|
|
|
|
| ||
Noninterest-bearing deposits |
| $ | 952,903 |
| $ | 814,365 |
|
Interest-bearing deposits |
| 1,198,403 |
| 1,135,304 |
| ||
Total deposits |
| 2,151,306 |
| 1,949,669 |
| ||
|
|
|
|
|
| ||
Accrued interest payable and other liabilities |
| 30,050 |
| 21,597 |
| ||
Short-term borrowings |
| 69,600 |
| 53,700 |
| ||
Subordinated debentures |
| 121,654 |
| 59,798 |
| ||
Total Liabilities |
| 2,372,610 |
| 2,084,764 |
| ||
|
|
|
|
|
| ||
Shareholders’ Equity: |
|
|
|
|
| ||
Common stock |
| 314,162 |
| 308,336 |
| ||
Retained earnings |
| 54,733 |
| 44,706 |
| ||
Unearned equity compensation |
| (16,003 | ) | (13,811 | ) | ||
Accumulated other comprehensive income: |
|
|
|
|
| ||
Unrealized loss on securities available-for-sale, net |
| (3,692 | ) | (1,668 | ) | ||
Total Shareholders’ Equity |
| 349,200 |
| 337,563 |
| ||
Total Liabilities and Shareholders’ Equity |
| $ | 2,721,810 |
| $ | 2,422,327 |
|
|
|
|
|
|
| ||
Shares outstanding (includes 575,080 shares at June 30, 2004, and 460,000 shares at December 31, 2003, underlying restricted stock awards) |
| 16,087,643 |
| 15,893,141 |
| ||
Book value per share |
| $ | 21.71 |
| $ | 21.24 |
|
8
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
|
| (In thousands, except per share data) |
| ||||||||||
Interest income: |
|
|
|
|
|
|
|
|
| ||||
Interest and fees on loans |
| $ | 32,356 |
| $ | 25,356 |
| $ | 58,581 |
| $ | 50,967 |
|
Interest on interest-bearing deposits in financial institutions |
| 15 |
| 6 |
| 17 |
| 9 |
| ||||
Interest on investment securities |
| 2,363 |
| 2,046 |
| 5,484 |
| 4,363 |
| ||||
Interest on federal funds sold |
| 67 |
| 211 |
| 141 |
| 278 |
| ||||
Total interest income |
| 34,801 |
| 27,619 |
| 64,223 |
| 55,617 |
| ||||
Interest expense: |
|
|
|
|
|
|
|
|
| ||||
Interest expense on deposits |
| 1,812 |
| 2,519 |
| 3,583 |
| 5,400 |
| ||||
Interest expense on short-term borrowings |
| 145 |
| 11 |
| 213 |
| 33 |
| ||||
Interest expense on subordinated debentures |
| 1,503 |
| 652 |
| 2,752 |
| 1,306 |
| ||||
Total interest expense |
| 3,460 |
| 3,182 |
| 6,548 |
| 6,739 |
| ||||
Net interest income |
| 31,341 |
| 24,437 |
| 57,675 |
| 48,878 |
| ||||
Provision for loan losses |
| 200 |
| 180 |
| 200 |
| 300 |
| ||||
Net interest income after provision for loan losses |
| 31,141 |
| 24,257 |
| 57,475 |
| 48,578 |
| ||||
Noninterest income: |
|
|
|
|
|
|
|
|
| ||||
Service charges and fees on deposit accounts |
| 2,126 |
| 2,279 |
| 4,425 |
| 4,413 |
| ||||
Other commissions and fees |
| 981 |
| 884 |
| 1,840 |
| 1,948 |
| ||||
Gain on sale of loans |
| 135 |
| 448 |
| 306 |
| 586 |
| ||||
Gain on sale of securities |
| — |
| 1,756 |
| 30 |
| 1,756 |
| ||||
Increase in cash surrender value of life insurance |
| 489 |
| 510 |
| 996 |
| 822 |
| ||||
Other income |
| 348 |
| 227 |
| 559 |
| 655 |
| ||||
Total noninterest income |
| 4,079 |
| 6,104 |
| 8,156 |
| 10,180 |
| ||||
Noninterest expense: |
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
| 11,016 |
| 8,050 |
| 20,741 |
| 16,059 |
| ||||
Occupancy |
| 2,851 |
| 2,093 |
| 5,165 |
| 4,437 |
| ||||
Furniture and equipment |
| 748 |
| 815 |
| 1,487 |
| 1,587 |
| ||||
Data processing |
| 1,146 |
| 1,204 |
| 2,171 |
| 2,497 |
| ||||
Other professional services |
| 792 |
| 554 |
| 1,464 |
| 1,099 |
| ||||
Business development |
| 301 |
| 221 |
| 566 |
| 421 |
| ||||
Communications |
| 528 |
| 519 |
| 1,025 |
| 1,059 |
| ||||
Insurance and assessments |
| 414 |
| 400 |
| 793 |
| 727 |
| ||||
Cost of real estate owned |
| — |
| 11 |
| — |
| 168 |
| ||||
Intangible asset amortization |
| 826 |
| 587 |
| 1,517 |
| 1,175 |
| ||||
Other |
| 1,720 |
| 1,415 |
| 3,278 |
| 2,840 |
| ||||
Total noninterest expense |
| 20,342 |
| 15,869 |
| 38,207 |
| 32,069 |
| ||||
Earnings before income taxes |
| 14,878 |
| 14,492 |
| 27,424 |
| 26,689 |
| ||||
Income taxes |
| 6,040 |
| 5,849 |
| 11,086 |
| 10,813 |
| ||||
Net earnings |
| $ | 8,838 |
| $ | 8,643 |
| $ | 16,338 |
| $ | 15,876 |
|
Per share information: |
|
|
|
|
|
|
|
|
| ||||
Number of shares (weighted average) |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 15,489.7 |
| 15,370.1 |
| 15,470.7 |
| 15,350.1 |
| ||||
Diluted |
| 15,955.4 |
| 15,785.1 |
| 15,956.7 |
| 15,778.4 |
| ||||
Net earnings per share |
|
|
|
|
|
|
|
|
| ||||
Basic |
| $ | 0.57 |
| $ | 0.56 |
| $ | 1.06 |
| $ | 1.03 |
|
Diluted |
| $ | 0.55 |
| $ | 0.55 |
| $ | 1.02 |
| $ | 1.01 |
|
9
UNAUDITED AVERAGE BALANCE SHEETS
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
|
| (Dollars in thousands) |
| ||||||||||
Average Assets: |
|
|
|
|
|
|
|
|
| ||||
Loans, net of deferred fees and costs |
| $ | 1,896,606 |
| $ | 1,453,974 |
| $ | 1,755,080 |
| $ | 1,468,145 |
|
Investment securities |
| 320,074 |
| 286,088 |
| 362,241 |
| 305,332 |
| ||||
Federal funds sold |
| 29,189 |
| 70,441 |
| 29,617 |
| 47,472 |
| ||||
Interest-bearing deposits in financial institutions |
| 2,696 |
| 1,663 |
| 1,595 |
| 1,847 |
| ||||
Average earning assets |
| 2,248,565 |
| 1,812,166 |
| 2,148,533 |
| 1,822,796 |
| ||||
Other assets |
| 450,661 |
| 360,292 |
| 426,602 |
| 353,944 |
| ||||
Average total assets |
| $ | 2,699,226 |
| $ | 2,172,458 |
| $ | 2,575,135 |
| $ | 2,176,740 |
|
|
|
|
|
|
|
|
|
|
| ||||
Average Liabilities and Shareholders’ Equity: |
|
|
|
|
|
|
|
|
| ||||
Average Liabilities: |
|
|
|
|
|
|
|
|
| ||||
Noninterest-bearing deposits |
| $ | 938,913 |
| $ | 691,906 |
| $ | 882,407 |
| $ | 681,495 |
|
Interest-bearing deposits |
| 1,223,170 |
| 1,088,704 |
| 1,180,837 |
| 1,103,577 |
| ||||
Average deposits |
| 2,162,083 |
| 1,780,610 |
| 2,063,244 |
| 1,785,072 |
| ||||
Other interest-bearing liabilities |
| 154,925 |
| 40,126 |
| 132,828 |
| 41,864 |
| ||||
Other liabilities |
| 36,507 |
| 27,825 |
| 36,246 |
| 28,801 |
| ||||
Average liabilities |
| 2,353,515 |
| 1,848,561 |
| 2,232,318 |
| 1,855,737 |
| ||||
Average equity |
| 345,711 |
| 323,897 |
| 342,817 |
| 321,003 |
| ||||
Average liabilities and shareholders’ equity |
| $ | 2,699,226 |
| $ | 2,172,458 |
| $ | 2,575,135 |
| $ | 2,176,740 |
|
|
|
|
|
|
|
|
|
|
| ||||
Yield Analysis: |
|
|
|
|
|
|
|
|
| ||||
Average earning assets |
| $ | 2,248,565 |
| $ | 1,812,166 |
| $ | 2,148,533 |
| $ | 1,822,796 |
|
Yield |
| 6.22 | % | 6.11 | % | 6.01 | % | 6.15 | % | ||||
Average interest-bearing deposits |
| $ | 1,223,170 |
| $ | 1,088,704 |
| $ | 1,180,837 |
| $ | 1,103,577 |
|
Cost |
| 0.60 | % | 0.93 | % | 0.61 | % | 0.99 | % | ||||
Average deposits |
| $ | 2,162,083 |
| $ | 1,780,610 |
| $ | 2,063,244 |
| $ | 1,785,072 |
|
Cost |
| 0.34 | % | 0.57 | % | 0.35 | % | 0.61 | % | ||||
Average interest-bearing liabilities |
| $ | 1,378,095 |
| $ | 1,128,830 |
| $ | 1,313,665 |
| $ | 1,145,441 |
|
Cost |
| 1.01 | % | 1.12 | % | 1.00 | % | 1.18 | % | ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest spread |
| 5.21 | % | 4.99 | % | 5.01 | % | 4.97 | % | ||||
Net interest margin |
| 5.61 | % | 5.42 | % | 5.40 | % | 5.41 | % | ||||
|
|
|
|
|
|
|
|
|
| ||||
Average interest sensitive liabilities |
| $ | 2,317,008 |
| $ | 1,820,736 |
| $ | 2,196,072 |
| $ | 1,826,936 |
|
Cost |
| 0.60 | % | 0.69 | % | 0.60 | % | 0.74 | % |
LOAN CONCENTRATION
|
| As of the Dates Indicated |
| |||||||||||||
|
| 06/30/04 |
| 03/31/04 |
| 12/31/03 |
| 9/30/03 |
| 6/30/03 |
| |||||
|
| (Dollars in thousands) |
| |||||||||||||
Loan Category: |
|
|
|
|
|
|
|
|
|
|
| |||||
Domestic: |
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial |
| $ | 542,052 |
| $ | 494,394 |
| $ | 426,796 |
| $ | 411,648 |
| $ | 382,636 |
|
Real estate–construction |
| 429,652 |
| 358,212 |
| 347,321 |
| 343,235 |
| 342,487 |
| |||||
Commercial real estate–mortgage |
| 855,447 |
| 749,875 |
| 712,390 |
| 680,783 |
| 611,527 |
| |||||
Consumer |
| 41,087 |
| 31,503 |
| 31,383 |
| 34,030 |
| 20,245 |
| |||||
Foreign: |
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial |
| 74,191 |
| 71,993 |
| 67,821 |
| 66,944 |
| 61,873 |
| |||||
Other |
| 14,355 |
| 15,553 |
| 14,895 |
| 14,082 |
| 17,090 |
| |||||
Gross Loans |
| 1,956,784 |
| 1,721,530 |
| 1,600,606 |
| 1,550,722 |
| 1,435,858 |
| |||||
Less deferred fees and costs |
| (6,683 | ) | (5,925 | ) | (4,769 | ) | (4,058 | ) | (3,435 | ) | |||||
Less allowance for loan losses |
| (30,349 | ) | (28,058 | ) | (25,752 | ) | (25,768 | ) | (23,881 | ) | |||||
Total Loans |
| $ | 1,919,752 |
| $ | 1,687,547 |
| $ | 1,570,085 |
| $ | 1,520,896 |
| $ | 1,408,542 |
|
10
CREDIT QUALITY MEASURES
|
| As of or For the Periods Ended |
| |||||||||||||
|
| 6 Months |
| 3 Months |
| Year |
| 9 Months |
| 6 Months |
| |||||
|
| (Dollars in thousands) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans past due 90 days or more and still accruing |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
Nonaccrual loans and leases |
| 8,559 |
| 7,678 |
| 7,411 |
| 9,509 |
| 9,725 |
| |||||
Other real estate owned |
| — |
| — |
| — |
| — |
| 136 |
| |||||
Nonperforming assets |
| $ | 8,559 |
| $ | 7,678 |
| $ | 7,411 |
| $ | 9,509 |
| $ | 9,861 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Impaired loans, gross |
| $ | 8,559 |
| $ | 7,678 |
| $ | 7,411 |
| $ | 9,509 |
| $ | 9,725 |
|
Allocated allowance for loan losses |
| (1,772 | ) | (1,668 | ) | (2,267 | ) | (2,358 | ) | (1,791 | ) | |||||
Net investment in impaired loans |
| $ | 6,787 |
| $ | 6,010 |
| $ | 5,144 |
| $ | 7,151 |
| $ | 7,934 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Charged-off loans year-to-date |
| $ | (1,794 | ) | $ | (1,525 | ) | $ | (4,476 | ) | $ | (4,142 | ) | (3,192 | ) | |
Recoveries year-to-date |
| 1,372 |
| 573 |
| 3,005 |
| 2,687 |
| 1,846 |
| |||||
Net charge-offs |
| $ | (422 | ) | $ | (952 | ) | $ | (1,471 | ) | $ | (1,455 | ) | $ | (1,346 | ) |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance for loan losses to loans, net of deferred fees and costs |
| 1.56 | % | 1.64 | % | 1.61 | % | 1.67 | % | 1.67 | % | |||||
Allowance for loan losses to nonaccrual loans and leases |
| 354.6 | % | 365.4 | % | 347.5 | % | 271.0 | % | 245.6 | % | |||||
Allowance for loan losses to nonperforming assets |
| 354.6 | % | 365.4 | % | 347.5 | % | 271.0 | % | 242.2 | % | |||||
Nonperforming assets to loans and OREO |
| 0.44 | % | 0.45 | % | 0.46 | % | 0.61 | % | 0.69 | % | |||||
Annualized net charge-offs to average loans |
| (0.05 | )% | (0.24 | )% | (0.10 | )% | (0.13 | )% | (0.18 | )% | |||||
Nonaccrual loans to loans, net of deferred fees and costs |
| 0.44 | % | 0.45 | % | 0.46 | % | 0.61 | % | 0.68 | % |
ALLOWANCE FOR LOAN LOSSES
|
| For the Periods Ended |
| |||||||||||||
|
| 6 Months |
| 3 Months |
| Year |
| 9 Months |
| 6 Months |
| |||||
|
| (Dollars in thousands) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Balance at beginning of period |
| $ | 25,752 |
| $ | 25,752 |
| $ | 24,294 |
| $ | 24,294 |
| $ | 24,294 |
|
Loans charged-off: |
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial |
| (1,218 | ) | (1,013 | ) | (3,331 | ) | (3,226 | ) | (2,484 | ) | |||||
Real estate – construction |
| — |
| — |
| — |
| — |
| — |
| |||||
Real estate – mortgage |
| (30 | ) | — |
| — |
| — |
| — |
| |||||
Consumer |
| (202 | ) | (171 | ) | (1,145 | ) | (916 | ) | (708 | ) | |||||
Foreign |
| (344 | ) | (341 | ) | — |
| — |
| — |
| |||||
Total loans charged-off |
| (1,794 | ) | (1,525 | ) | (4,476 | ) | (4,142 | ) | (3,192 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Recoveries on loans charged-off: |
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial |
| 1,149 |
| 461 |
| 2,453 |
| 2,214 |
| 1,455 |
| |||||
Real estate – construction |
| — |
| — |
| — |
| — |
| — |
| |||||
Real estate – mortgage |
| 45 |
| 5 |
| 84 |
| 81 |
| 65 |
| |||||
Consumer |
| 163 |
| 92 |
| 468 |
| 392 |
| 326 |
| |||||
Foreign |
| 15 |
| 15 |
| — |
| — |
| — |
| |||||
Total recoveries on loans charged-off |
| 1,372 |
| 573 |
| 3,005 |
| 2,687 |
| 1,846 |
| |||||
Net loans charged-off |
| (422 | ) | (952 | ) | (1,471 | ) | (1,455 | ) | (1,346 | ) | |||||
Provision for loan losses |
| 200 |
| — |
| 300 |
| 300 |
| 300 |
| |||||
Additions due to acquisitions |
| 4,819 |
| 3,258 |
| 2,629 |
| 2,629 |
| 633 |
| |||||
Balance at end of period |
| $ | 30,349 |
| $ | 28,058 |
| $ | 25,752 |
| $ | 25,768 |
| $ | 23,881 |
|
11