Exhibit 99.1
PLACER SIERRA BANCSHARES
PRESS RELEASE
PLACER SIERRA BANCSHARES REPORTS STRONG LOAN AND DEPOSIT GROWTH
FOR THE THIRD QUARTER OF 2004
Sacramento, California – October 27, 2004 - Placer Sierra Bancshares (NASDAQ: PLSB) today announced financial results for the third quarter ended September 30, 2004.
Net income for the three months ended September 30, 2004, was $3.9 million, or $0.27 per diluted share, which compares with net income of $4.2 million, or $0.31 per diluted share, for the three months ended September 30, 2003.
The Company’s financial results for the third quarter of 2004 were significantly impacted by a liquidity strategy put in place to facilitate the acquisition of First Financial Bancorp, as well as to restructure the securities portfolio added from the Bank of Orange County acquisition. Throughout the third quarter, the Company maintained $50 million of liquidity to fund its all cash purchase of First Financial Bancorp, which is scheduled to close in the fourth quarter of 2004. In addition, significant liquidity was added as a result of the liquidation of $72 million of long-term securities held by Bank of Orange County prior to its acquisition by the Company, which was not reinvested during the third quarter due to the uncertain direction of the Treasury market.
The Company calculates that earnings for the third quarter of 2004 were negatively impacted by approximately $0.03 per diluted share as a result of retaining approximately $103 million of excess liquidity in federal fund sold. The Company anticipates continuing to maintain a high level of liquidity through the close of the acquisition of First Financial Bancorp and may continue to delay investing additional liquidity in excess of daily requirements until the direction of interest rates becomes more clear. Overall, the Company anticipates that the First Financial Bancorp acquisition, when fully integrated in 2005, will be accretive to earnings by approximately $0.30 per share or greater on an annual basis.
“Economic conditions in our markets remain very healthy, and we continued to generate robust loan and deposit growth during the third quarter,” said Ron Bachli, Chairman and Chief Executive Officer of Placer Sierra Bancshares. “During the quarter, our total loans and deposits increased at annualized rates of 19% and 16%, respectively. Additionally, our credit quality remains exceptionally strong, which reflects the disciplined underwriting criteria we are maintaining during this period of significant growth.
“Importantly, we took a major step in our expansion efforts during the quarter with the acquisition of First Financial Bancorp. While being a highly accretive acquisition, this transaction also increases our presence in the fast growing markets south of Sacramento, and positions us for continued expansion in the attractive markets along the Highway 99 corridor,” said Mr. Bachli.
YEAR-TO-DATE FINANCIAL HIGHLIGHTS
Net income for the nine months ended September 30, 2004, was $8.5 million, or $0.60 per diluted share. This compares to net income of $10.9 million, or $0.81 per diluted share, for the nine months ended September 30, 2003.
Operating earnings for the nine months ended September 30, 2004 totaled $12.3 million, or $0.87 per diluted share, which is a $1.4 million, or a 12.6% increase over operating earnings for the nine months ended September 30, 2003, which totaled $10.9 million, or $0.81 per diluted share.
The reconciliation of net income to operating earnings for the nine months ended September 30, 2004, includes two significant items:
• | Merger expenses of $2.3 million ($1.6 million after tax) associated with the acquisition by Placer Sierra Bancshares of Southland Capital Co. and its subsidiary Bank of Orange County incurred during the second and third quarters of 2004; and |
1
• | A $3.8 million ($2.2 million after tax) loss from restructuring of Bank of Orange County’s investment securities portfolio in preparation for the merger of the banks and in contemplation of aligning their interest rate risk and liquidity profiles in the quarter ended June 30, 2004. |
The following table provides a reconciliation of net income to operating earnings (in thousands, except per share amounts):
Nine Months Ended September 30, | Three Months Ended September 30, | Three Months June 30, | Three Months Ended September 30, | |||||||||||||||||
2004 | 2003 | 2004 | 2004 | 2003 | ||||||||||||||||
Net income | $ | 8,538 | $ | 10,924 | $ | 3,887 | $ | 471 | $ | 4,189 | ||||||||||
Acquisition related: | ||||||||||||||||||||
Merger expenses, net of tax effect | 1,550 | — | 109 | 1,441 | — | |||||||||||||||
Investment security restructuring loss, net of tax effect | 2,210 | — | — | 2,210 | — | |||||||||||||||
Operating earnings | $ | 12,298 | $ | 10,924 | $ | 3,996 | $ | 4,122 | $ | 4,189 | ||||||||||
Earnings per share - basic | $ | 0.61 | $ | 0.81 | $ | 0.27 | $ | 0.03 | $ | 0.31 | ||||||||||
Earnings per share - diluted | $ | 0.60 | $ | 0.81 | $ | 0.27 | $ | 0.03 | $ | 0.31 | ||||||||||
Return on average assets | 0.80 | % | 1.04 | % | 1.05 | % | 0.14 | % | 1.16 | % | ||||||||||
Return on average shareholders’ equity | 6.65 | % | 9.32 | % | 8.75 | % | 1.11 | % | 10.51 | % | ||||||||||
Efficiency ratio | 73.68 | % | 67.14 | % | 66.13 | % | 94.60 | % | 64.02 | % | ||||||||||
Operating earnings per share - basic | $ | 0.88 | $ | 0.81 | $ | 0.28 | $ | 0.30 | $ | 0.31 | ||||||||||
Operating earnings per share - diluted | $ | 0.87 | $ | 0.81 | $ | 0.27 | $ | 0.29 | $ | 0.31 | ||||||||||
Operating return on average assets | 1.16 | % | 1.04 | % | 1.08 | % | 1.18 | % | 1.16 | % | ||||||||||
Operating return on average shareholders’ equity | 9.58 | % | 9.32 | % | 9.00 | % | 9.72 | % | 10.51 | % | ||||||||||
Operating efficiency ratio | 64.65 | % | 67.14 | % | 65.18 | % | 64.05 | % | 64.02 | % |
THIRD QUARTER EARNINGS HIGHLIGHTS
Net interest income for the third quarter of 2004 was $15.4 million, an increase of 5.3% over net interest income of $14.6 million in the same period of 2003. The increase in net interest income reflects the loan growth over the past year, partially offset by a decrease in income from the securities portfolio.
The Company’s acquisition related liquidity strategy resulted in the Company’s net interest margin declining to 4.79% in the third quarter of 2004 from 4.96% in the second quarter of 2004. Excluding the impact of this acquisition-related strategy, management estimates that the Company’s net interest margin for the third quarter would have been approximately 4.95%.
Total non-interest income for the third quarter totaled $3.2 million, compared with $4.1 million for the third quarter of 2004. The decline in total non-interest income is primarily attributable to a decrease in service charges and fees on deposit accounts resulting from the sale of five branches in the fourth quarter of 2003, as well as a decrease in gain on sales of investment securities. Service charges and fees on deposits declined slightly in the third quarter as compared to the second quarter of 2004 as a result of an increase in earnings credits on business accounts associated with an increase in short-term interest rates during the quarter.
2
Core non-interest income, which excludes non-recurring gains/losses on the sale of loans and investment securities, was $3.2 million in the third quarter of 2004, compared to $3.5 million in the same period of the prior year.
Total non-interest expense for the third quarter of 2004 was $12.2 million, compared with $12.0 million for the third quarter of 2003. The third quarter of 2004 includes merger-related expenses of $177,000, a loss from a $120,000 check kiting fraud and the write-down by $149,000 of the Company’s only OREO property. Salaries and benefits in the third quarter of 2004 declined slightly from the second quarter of 2004 principally as a result of savings from the consolidation of Bank of Orange County. However, salaries and benefits in the third quarter of 2004 increased from the third quarter of 2003 due to investments made in personnel required to support the growth of the Bank in light of the acquisitions of Bank of Orange County and First Financial Bancorp.
Non-interest expense during the third quarter did not reflect savings from the July 23, 2004, merger of Bank of Orange County with and into Placer Sierra Bank. The Company will continue the integration process of Bank of Orange County during the fourth quarter of 2004, and anticipates that cost savings resulting from this consolidation will be fully realized by the beginning of 2005. Combined with the expected increase in revenue, the Company believes this will contribute to consistent improvement in its operating efficiency in future quarters.
BALANCE SHEET
As of September 30, 2004 total assets were $1.50 billion, an increase of 17.0% on an annualized basis over total assets of $1.44 billion at June 30, 2004.
Total loans and leases held for investment were $1.05 billion at September 30, 2004, an increase of 18.6% on an annualized basis from the $1.00 billion at June 30, 2004. The increase in loans and leases is primarily attributable to strong growth in the real estate construction and commercial real estate portfolios.
Total deposits were $1.25 billion at September 30, 2004, an increase of 16.2% on an annualized basis from the $1.20 billion at June 30, 2004. Within the increase in total deposits was a 19.4% annualized increase in non-interest bearing deposits. The increase in non-interest bearing deposits is primarily attributable to aggressive new business development efforts that have attracted new transaction deposit accounts.
Increase from June 30, 2004 to September 30, 2004 | Increase from December 31, 2003 to September 30, 2004 | |||||||||||
Amount (in thousands) | Percent (annualized) | Amount (in thousands) | Percent (annualized) | |||||||||
Loans and leases held for investment | $ | 46,997 | 18.62 | % | $ | 98,201 | 13.77 | % | ||||
Core deposits | $ | 34,859 | 14.65 | % | $ | 68,092 | 9.96 | % | ||||
Total deposits | $ | 48,851 | 16.19 | % | $ | 111,794 | 13.13 | % |
Total shareholders’ equity was $185.1 million at September 30, 2004, compared with $169.8 million at June 30, 2004.
Average assets for the third quarter of 2004 were $1.47 billion, an increase of $37.4 million over the third quarter 2003 average and an increase of $72.9 million over the second quarter 2004 average. The 2003 balance includes approximately $50 million in assets and liabilities held in five branches that were sold during the fourth quarter of 2003.
3
Average federal funds sold increased by $60.9 million to $118.1 million during the third quarter from $57.2 million in the second quarter. The Company has targeted average federal funds sold of $15 million as being adequate to cover its day-to day liquidity needs. The approximate $103 million of average federal funds sold during the quarter above the Company’s targeted level of $15 million represents funds set aside for the Company’s acquisition related liquidity strategy.
CREDIT QUALITY
Growth in the Company’s loan portfolio was strong during the period. Generally, the Company would provide additional reserves for such growth, however, as the Company’s overall credit quality continued to improve during the third quarter, management determined that the allowance for loan and lease losses was adequate without adding to the allowance for loan and leases losses during the quarter. Accordingly, no provision for loan and lease losses was recorded during the third quarter of 2004.
Nonperforming assets decreased to $2.9 million at September 30, 2004 from $4.4 million at June 30, 2004. The ratio of nonperforming assets to total assets decreased to 0.19% at September 30, 2004 from 0.30% at June 30, 2004. This decrease is the result of the write-down of OREO in the third quarter of 2004 and a decrease in internally classified loans and leases. This improvement combined with third quarter loan and lease loss recoveries resulted in no provision for loan and lease losses for the three months ended September 30, 2004, as compared to $40,000 for the three months ended June 30, 2004.
Annualized net charge-offs as a percentage of average loans and leases held for investment were 0.15% for the first nine months of 2004 versus net recoveries of 0.10% for the year ended December 31, 2003. The allowance for loan and lease losses totaled $12.8 million at September 30, 2004 and represents 1.21% of loans and leases held for investment, net of deferred fees and costs, and 580.35% of nonperforming loans and leases as of that date.
REGULATORY CAPITAL
Placer Sierra Bancshares’ regulatory capital ratios at September 30, 2004 are as follows:
Leverage Ratio | |||
Placer Sierra Bancshares | 10.24 | % | |
Minimum regulatory requirement | 4.0 | % | |
Tier 1 Risk-Based Capital Ratio | |||
Placer Sierra Bancshares | 13.20 | % | |
Minimum regulatory requirement | 4.0 | % | |
Total Risk-Based Capital Ratio | |||
Placer Sierra Bancshares | 14.45 | % | |
Minimum regulatory requirement | 8.0 | % |
OUTLOOK
For the fourth quarter of 2004, the Company expects fully diluted earnings per share to range from $0.27 to $0.29. The Company anticipates that earnings per share will continue to be negatively impacted by the excess liquidity being maintained on the balance sheet until the close of the First Financial Bancorp acquisition.
Commenting on the longer range outlook for Placer Sierra Bancshares, Mr. Bachli said, “We expect to continue growing loans and deposits at the current rate for the foreseeable future. We also expect to see an improvement in our operating efficiency ratio going forward, resulting from our revenue growth and the
4
cost savings initiatives in our Bank of Orange County operations. Finally, we expect to begin seeing meaningful expansion in our net interest margin when yields increase in the short- and intermediate-term treasury market. This will result in the interest rates on many of our commercial real estate loans beginning to increase from the floors that they have hit, and will have a positive impact on our net interest income.”
ABOUT PLACER SIERRA BANCSHARES
Placer Sierra Bancshares is a California-based bank holding company for Placer Sierra Bank, a California state-chartered commercial bank. Through its 23 Northern California branches, Placer Sierra Bank serves a five county area including Placer, Sacramento and El Dorado counties, commonly known as the greater Sacramento metropolitan region, and the adjacent counties of Sierra and Nevada. Through its nine Southern California branches, Placer Sierra Bank serves both Los Angeles and Orange counties. Placer Sierra Bank provides its customers the resources of a large financial institution together with the resourcefulness and superior customer service of a community bank. Placer Sierra Bank offers a broad array of deposit products and services for both commercial and consumer customers, including electronic banking, cash management services, electronic bill payment and investment services with an emphasis on relationship banking and focus on generating low cost deposits. In addition, Placer Sierra Bank provides competitive loan products such as commercial loans and lines of credit, commercial real estate loans, Small Business Administration loans, residential mortgage loans, home equity lines of credit and construction loans.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that involve inherent risks and uncertainties. Placer Sierra Bancshares cautions readers that a number of important factors could cause actual results to differ materially from those in such forward-looking statements. All statements other than statements of historical fact are 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; changes in the interest rate environment reduces interest margins; general economic conditions, either nationally or in the market area in which Placer Sierra does business, are less favorable than expected; legislation or regulatory requirements or changes adversely affect Placer Sierra’s business; changes that may occur in the securities markets; and other risks that are described in Placer Sierra’s Securities and Exchange Commission filings. If any of these uncertainties materializes or any of these assumptions proves incorrect, Placer Sierra’s results could differ materially from Placer Sierra’s expectations as set forth in these statements. Placer Sierra assumes no obligation to update such forward-looking statements.
###
5
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2004 | December 31, 2003 | |||||
(In thousands, except share and per share data) | ||||||
Assets: | ||||||
Cash and due from banks | $ | 68,711 | $ | 55,776 | ||
Federal funds sold | 171,243 | 32,729 | ||||
Investment securities available-for-sale | 72,006 | 219,302 | ||||
Federal Reserve Bank and Federal Home Loan Bank stock | 9,343 | 7,286 | ||||
Loans held for sale | — | 67 | ||||
Loans and leases held for investment, net of allowance for loan and lease losses of $12,762 in 2004 and $13,343 in 2003. | 1,038,237 | 939,455 | ||||
Premises and equipment, net | 18,782 | 20,055 | ||||
Cash surrender value of life insurance | 27,686 | 26,834 | ||||
Other real estate | 657 | 805 | ||||
Goodwill | 72,731 | 72,639 | ||||
Other intangible assets | 7,299 | 8,760 | ||||
Other assets | 11,568 | 13,238 | ||||
Total assets | $ | 1,498,263 | $ | 1,396,946 | ||
Liabilities and shareholders’ equity: | ||||||
Liabilities: | ||||||
Noninterest-bearing deposits | $ | 424,465 | $ | 378,611 | ||
Interest-bearing deposits | 824,489 | 758,549 | ||||
Total deposits | 1,248,954 | 1,137,160 | ||||
Short-term borrowings | 13,248 | 41,221 | ||||
Accrued interest payable and other liabilities | 12,809 | 15,525 | ||||
Junior subordinated deferrable interest debentures | 38,146 | 38,146 | ||||
Total liabilities | 1,313,157 | 1,232,052 | ||||
Shareholders’ equity: | ||||||
Common stock | 154,822 | 142,777 | ||||
Retained earnings | 29,587 | 21,049 | ||||
Accumulated other comprehensive income | 697 | 1,068 | ||||
Total shareholders’ equity | 185,106 | 164,894 | ||||
Total liabilities and shareholders’ equity | $ | 1,498,263 | $ | 1,396,946 | ||
Shares outstanding | 14,667,142 | 13,683,493 | ||||
Book value per share | $ | 12.62 | $ | 12.05 |
6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||||
(In thousands, except share and per share data) | |||||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans and leases held for investment | $ | 15,780 | $ | 14,332 | $ | 45,779 | $ | 43,429 | |||||||
Interest on loans held for sale | 6 | 23 | 9 | 192 | |||||||||||
Interest and dividends on investment securities Taxable | 1,497 | 2,141 | 5,499 | 6,055 | |||||||||||
Tax-exempt | 130 | 136 | 394 | 408 | |||||||||||
Interest on federal funds sold | 388 | 308 | 586 | 951 | |||||||||||
Total interest income | 17,801 | 16,940 | 52,267 | 51,035 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 1,930 | 1,886 | 5,069 | 6,749 | |||||||||||
Interest on short-term borrowings | 25 | 24 | 142 | 70 | |||||||||||
Interest on junior subordinated deferrable interest debentures | 490 | 441 | 1,382 | 1,320 | |||||||||||
Total interest expense | 2,445 | 2,351 | 6,593 | 8,139 | |||||||||||
Net interest income | 15,356 | 14,589 | 45,674 | 42,896 | |||||||||||
Provision for (credit to) the allowance for loan and lease losses | — | (146 | ) | 560 | (216 | ) | |||||||||
Net interest income after provision for (credit to) the allowance for loan and lease losses | 15,356 | 14,735 | 45,114 | 43,112 | |||||||||||
Non-interest income: | |||||||||||||||
Service charges and fees on deposit accounts | 1,531 | 1,776 | 4,710 | 5,215 | |||||||||||
Referral and other loan-related fees | 808 | 653 | 2,132 | 1,441 | |||||||||||
Loan servicing income | 71 | 98 | 242 | 301 | |||||||||||
Gain on sale of loans, net | 3 | 118 | 179 | 563 | |||||||||||
Commissions on sales of investments products | 125 | 154 | 497 | 498 | |||||||||||
Gain (loss) on sale of investment securities available-for sale, net | 1 | 433 | (3,335 | ) | 740 | ||||||||||
Increase in cash surrender value of life insurance | 291 | 311 | 918 | 948 | |||||||||||
Other | 334 | 542 | 1,999 | 1,086 | |||||||||||
Total non-interest income | 3,164 | 4,085 | 7,342 | 10,792 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and employee benefits | 6,125 | 5,651 | 18,789 | 17,009 | |||||||||||
Occupancy and equipment | 1,747 | 1,874 | 5,169 | 5,458 | |||||||||||
Merger | 177 | — | 2,319 | — | |||||||||||
Other | 4,199 | 4,430 | 12,784 | 13,578 | |||||||||||
Total non-interest expense | 12,248 | 11,955 | 39,061 | 36,045 | |||||||||||
Income before income taxes | 6,272 | 6,865 | 13,395 | 17,859 | |||||||||||
Provision for income taxes | 2,385 | 2,676 | 4,857 | 6,935 | |||||||||||
Net income | $ | 3,887 | $ | 4,189 | $ | 8,538 | $ | 10,924 | |||||||
Per share information: | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 14,213,762 | 13,579,318 | 13,900,004 | 13,494,613 | |||||||||||
Diluted | 14,544,549 | 13,579,318 | 14,143,456 | 13,494,613 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.27 | $ | 0.31 | $ | 0.61 | $ | 0.81 | |||||||
Diluted | $ | 0.27 | $ | 0.31 | $ | 0.60 | $ | 0.81 |
7
UNAUDITED AVERAGE BALANCE SHEETS
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Average assets: | ||||||||||||||||
Loans and leases held for investment | $ | 1,022,290 | $ | 880,733 | $ | 991,294 | $ | 866,690 | ||||||||
Loans held for sale | 536 | 1,684 | 267 | 4,475 | ||||||||||||
Investment securities | 125,257 | 204,270 | 153,827 | 200,100 | ||||||||||||
Federal funds sold | 118,066 | 140,467 | 70,052 | 124,358 | ||||||||||||
Interest-bearing deposits with other banks | 125 | — | 42 | 44 | ||||||||||||
Other earning assets | 9,317 | 7,249 | 8,633 | 7,282 | ||||||||||||
Average earning assets | 1,275,591 | 1,234,403 | 1,224,115 | 1,202,949 | ||||||||||||
Other assets | 198,072 | 201,818 | 194,752 | 203,214 | ||||||||||||
Average total assets | $ | 1,473,663 | $ | 1,436,221 | $ | 1,418,867 | $ | 1,406,163 | ||||||||
Average liabilities and shareholders’ equity: | ||||||||||||||||
Average liabilities: | ||||||||||||||||
Noninterest-bearing deposits | $ | 423,639 | $ | 400,042 | $ | 395,235 | $ | 378,037 | ||||||||
Interest-bearing deposits | 806,998 | 817,197 | 777,459 | 806,709 | ||||||||||||
Average deposits | 1,230,637 | 1,217,239 | 1,172,694 | 1,184,746 | ||||||||||||
Other interest-bearing liabilities | 52,842 | 50,234 | 59,926 | 49,127 | ||||||||||||
Other liabilities | 13,503 | 10,568 | 14,766 | 15,509 | ||||||||||||
Average liabilities | 1,296,982 | 1,278,041 | 1,247,386 | 1,249,382 | ||||||||||||
Average equity | 176,681 | 158,180 | 171,481 | 156,781 | ||||||||||||
Average liabilities and shareholders’ equity | $ | 1,473,663 | $ | 1,436,221 | $ | 1,418,867 | $ | 1,406,163 | ||||||||
Yield analysis: | ||||||||||||||||
Average earning assets | $ | 1,275,591 | $ | 1,234,403 | $ | 1,224,115 | $ | 1,202,949 | ||||||||
Yield | 5.55 | % | 5.44 | % | 5.70 | % | 5.67 | % | ||||||||
Average interest-bearing deposits | $ | 806,998 | $ | 817,197 | $ | 777,459 | $ | 806,709 | ||||||||
Cost | 0.95 | % | 0.92 | % | 0.87 | % | 1.12 | % | ||||||||
Average deposits | $ | 1,230,637 | $ | 1,217,239 | $ | 1,172,694 | $ | 1,184,746 | ||||||||
Cost | 0.62 | % | 0.61 | % | 0.58 | % | 0.76 | % | ||||||||
Average interest-bearing liabilities | $ | 859,840 | $ | 867,431 | $ | 837,385 | $ | 855,836 | ||||||||
Cost | 1.13 | % | 1.08 | % | 1.05 | % | 1.27 | % | ||||||||
Interest spread | 4.42 | % | 4.36 | % | 4.65 | % | 4.40 | % | ||||||||
Net interest margin | 4.79 | % | 4.69 | % | 4.98 | % | 4.77 | % |
8
UNAUDITED CREDIT QUALITY MEASURES
Nine Months Ended 9/30/04 | Six Months Ended 6/30/04 | Three Months 3/31/04 | Year Ended 12/31/03 | Nine Months Ended 9/30/03 | |||||||||||
Non-performing loans and leases to total loans and leases held for investment | 0.21 | % | 0.35 | % | 0.17 | % | 0.31 | % | 0.15 | % | |||||
Non-performing assets to total assets | 0.19 | % | 0.30 | % | 0.18 | % | 0.27 | % | 0.15 | % | |||||
Allowance for loan and lease losses to total loans and leases held for investment | 1.21 | % | 1.31 | % | 1.32 | % | 1.40 | % | 1.46 | % | |||||
Allowance for loan and lease losses to non-performing loans and leases | 580.35 | % | 370.71 | % | 788.00 | % | 447.60 | % | 943.25 | % | |||||
Allowance for loan and lease losses to non-performing assets | 446.85 | % | 302.20 | % | 526.95 | % | 352.43 | % | 597.63 | % | |||||
Net charge-offs/(recoveries) to average loans and leases held for investment | 0.15 | % | 0.15 | % | 0.44 | % | (0.10 | )% | (0.14 | )% |
9
UNAUDITED LOAN INFORMATION
($in thousands)
Balance 09/30/04 | Balance 06/30/04 | Balance 03/31/04 | Balance 12/31/03 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Loans and leases held for investment | ||||||||||||||||
Real estate - mortgage | $ | 735,971 | $ | 725,974 | $ | 690,425 | $ | 665,738 | ||||||||
Real estate - construct ion | 153,552 | 125,943 | 115,986 | 116,052 | ||||||||||||
Commercial | 127,342 | 118,388 | 126,600 | 132,979 | ||||||||||||
Consumer | 10,688 | 10,363 | 10,692 | 11,086 | ||||||||||||
Leases receivable and other | 24,914 | 24,480 | 25,935 | 27,571 | ||||||||||||
Total gross loans and leas es held for investment | 1,052,467 | 1,005,148 | 969,638 | 953,426 | ||||||||||||
Less: allowance for loan and lease losses | (12,762 | ) | (13,164 | ) | (12,805 | ) | (13,343 | ) | ||||||||
Deferred loan and lease fees, net | (1,468 | ) | (1,146 | ) | (1,057 | ) | (628 | ) | ||||||||
Total net loans and leas es held for investment | $ | 1,038,237 | $ | 990,838 | $ | 955,776 | $ | 939,455 | ||||||||
Loans held for sale, at cost, which approximates market | $ | — | $ | 181 | $ | 555 | $ | 67 | ||||||||
Total loans and leases held for investment, net of fees and costs | $ | 1,050,999 | $ | 1,004,002 | $ | 968,581 | $ | 952,798 | ||||||||
Percent of gross loans and leases held for investment | ||||||||||||||||
Real estate - mortgage | 69.9 | % | 72.2 | % | 71.2 | % | 69.8 | % | ||||||||
Real estate - construct ion | 14.6 | % | 12.5 | % | 12.0 | % | 12.2 | % | ||||||||
Commercial | 12.1 | % | 11.8 | % | 13.1 | % | 13.9 | % | ||||||||
Consumer | 1.0 | % | 1.0 | % | 1.1 | % | 1.2 | % | ||||||||
Leases receivable and other | 2.4 | % | 2.5 | % | 2.6 | % | 2.9 | % | ||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
10
UNAUDITED DEPOSIT INFORMATION
($ in thousands)
At September 30, 2004 | At December 31, 2003 | |||||||||||
Amount | % of Deposits | Amount | % of Deposits | |||||||||
Non-interest bearing deposits | $ | 424,465 | 33.99 | % | $ | 378,611 | 33.29 | % | ||||
Interest-bearing deposits: | ||||||||||||
Interest-bearing demand | 191,129 | 15.30 | % | 192,426 | 16.90 | % | ||||||
Money market | 229,738 | 18.39 | % | 212,632 | 18.70 | % | ||||||
Savings | 135,974 | 10.89 | % | 129,545 | 11.40 | % | ||||||
Time, under $100,000 | 155,403 | 12.44 | % | 140,796 | 12.41 | % | ||||||
Time, $100,000 or more | 112,245 | 8.99 | % | 83,150 | 7.30 | % | ||||||
Total interest bearing deposits | 824,489 | 66.01 | % | 758,549 | 66.71 | % | ||||||
Total deposits | $ | 1,248,954 | 100.00 | % | $ | 1,137,160 | 100.00 | % | ||||
Core Deposits | $ | 981,306 | $ | 913,214 |
11