Exhibit 99.1
PLACER SIERRA BANCSHARES
PRESS RELEASE
FOR IMMEDIATE RELEASE
For more information contact:
AT THE COMPANY: | AT FINANCIAL RELATIONS BOARD: | |
Ronald W. Bachli, Chairman & CEO | Tony Rossi | |
David E. Hooston, Chief Financial Officer | (310) 854-8317 | |
(916) 554-4750 |
PLACER SIERRA BANCSHARES REPORTS NET INCOME OF $6.9 MILLION
A 54% INCREASE FROM THE FOURTH QUARTER OF 2004
Sacramento, California – February 6, 2006 - Placer Sierra Bancshares (NASDAQ: PLSB), a $1.9 billion commercial banking company serving the Northern, Central and Southern California markets, today announced financial results for the fourth quarter ended December 31, 2005.
FINANCIAL HIGHLIGHTS – FOURTH QUARTER 2005 VS. FOURTH QUARTER 2004
• | An increase of 53.6% in quarterly GAAP net income to $6.9 million from $4.5 million |
• | An increase of 50.0% in fully diluted GAAP earnings per share to $0.45 from $0.30 |
• | GAAP return on average assets of 1.45% and return on average equity of 13.31%, compared to 1.12% and 9.49%, respectively |
• | Return on average tangible assets of 1.62% and average tangible equity of 29.60%, compared to 1.25% and 17.06%, respectively |
• | Net interest margin of 5.31%, compared to 4.77% |
• | Cost of deposits increased to 1.04% from 0.66% |
• | Yield on average earning assets increased to 6.56% from 5.58% |
• | The efficiency ratio improved to 56.87% from 63.39% |
• | Average loans and leases held for investment, net of deferred fees and costs, grew by $248.1 million, or 22.3%, to $1.358 billion |
• | Average deposits increased by $254.3 million, or 19.1%, to $1.588 billion |
EARNINGS HIGHLIGHTS
Net income for the three months ended December 31, 2005 was $6.9 million, a 53.6% increase over the $4.5 million reported for the same period of 2004. Earnings per diluted share for the three months ended December 31, 2005 was $0.45, an increase of 50.0% over $0.30 per diluted share for the same period of 2004. Net income in the fourth quarter of 2005 was negatively impacted by two charges totaling $164,000 after taxes, or $0.01 per diluted share, associated with an acquisition in Southern California which the Company ceased pursuing in early December and the secondary offering of 5,000,000 shares held by California Community Financial Institutions Fund Limited Partnership.
Net income for the twelve months ended December 31, 2005 was $24.8 million, a 90.5% increase over net income of $13.0 million reported for the prior year. Net income totaled $1.63 per diluted share for the twelve months ended December 31, 2005, compared to $0.90 per diluted share for the twelve months ended December 31, 2004.
Commenting on the fourth quarter and the year, Ron Bachli, Chairman and Chief Executive Officer of Placer Sierra Bancshares, said, “We are very pleased with our earnings results. In the fourth quarter we were able to maintain our asset-sensitive position and realize meaningful increases in our net interest margin which grew to 5.31% from 4.77% in the fourth
quarter of 2004. And, we are particularly pleased with the increased earnings power realized from our 2004 acquisitions of Bank of Orange County and Bank of Lodi, which exceeded our expectations and improved our return on average equity to 13.31% in the fourth quarter of 2005 from 9.49% during the same period of 2004. We are also encouraged by the level of new loans funded during 2005. While net loan growth year-over-year was modest, I congratulate Randy Reynoso, President and Chief Operating Officer, and his team for their efforts as they overcame significant early loan payoffs and amortization and achieved total loan fundings of approximately $500 million.”
INCOME STATEMENT
The acquisition of Southland Capital Co. and its subsidiary Bank of Orange County in 2004 was accounted for as an “as if” pooling of interests, and accordingly the loss from restructuring the Bank of Orange County’s investment securities portfolio as well as merger costs were recorded as reductions of net income. Our net income as adjusted for these items is referred to below as operating earnings. Operating earnings for the twelve months ended December 31, 2005 was $24.8 million, or $1.63 per diluted share, representing a 47.9% increase over operating earnings of $16.8 million, or $1.16 per diluted share, for the twelve months ended December 31, 2004.
We believe that the presentation of our 2004 earnings exclusive of merger related costs is important to gaining an understanding of the financial performance of our core banking operations. Accordingly, the following table presents our key performance indicators on both a GAAP basis and operating earnings basis, which is a non-GAAP basis presentation, for the three and twelve months ended December 31, 2005 and 2004:
For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
($ in thousands, except per share data) | ||||||||||||||||
Net income | $ | 6,885 | $ | 4,481 | $ | 24,802 | $ | 13,019 | ||||||||
Acquisition related: | ||||||||||||||||
Merger expenses, net of tax effect | — | (11 | ) | — | 1,539 | |||||||||||
Investment security restructuring loss, net of tax effect | — | — | — | 2,210 | ||||||||||||
Operating earnings | $ | 6,885 | $ | 4,470 | $ | 24,802 | $ | 16,768 | ||||||||
GAAP earnings per share – basic | $ | 0.46 | $ | 0.30 | $ | 1.66 | $ | 0.92 | ||||||||
GAAP earnings per share – diluted | $ | 0.45 | $ | 0.30 | $ | 1.63 | $ | 0.90 | ||||||||
GAAP return on average assets | 1.45 | % | 1.12 | % | 1.34 | % | 0.89 | % | ||||||||
GAAP return on average shareholders’ equity | 13.31 | % | 9.49 | % | 12.51 | % | 7.41 | % | ||||||||
GAAP efficiency ratio | 56.87 | % | 63.39 | % | 59.09 | % | 70.86 | % | ||||||||
Net interest margin | 5.31 | % | 4.77 | % | 5.23 | % | 4.92 | % | ||||||||
Operating earnings per share – basic | $ | 0.46 | $ | 0.30 | $ | 1.66 | $ | 1.19 | ||||||||
Operating earnings per share – diluted | $ | 0.45 | $ | 0.30 | $ | 1.63 | $ | 1.16 | ||||||||
Operating return on average assets | 1.45 | % | 1.12 | % | 1.34 | % | 1.15 | % | ||||||||
Operating return on average shareholders’ equity | 13.31 | % | 9.46 | % | 12.51 | % | 9.55 | % | ||||||||
Operating efficiency ratio | 56.87 | % | 63.48 | % | 59.09 | % | 64.75 | % |
Net interest income for the fourth quarter of 2005 was $21.9 million, an increase of 31.0% over net interest income of $16.7 million in the same period of 2004. The increase in net interest income reflects the acquisition of First Financial Bancorp and its subsidiary Bank of Lodi on December 10, 2004, as well as the positive effect of the asset sensitive nature of our balance sheet during a period of rising interest rates.
Net interest margin for the fourth quarter of 2005 was 5.31%, an increase of 54 basis points over the fourth quarter of 2004. During the fourth quarter of 2005 the yield on loans and leases held for investment, net of deferred fees and costs, increased 77 basis points to 7.01% from 6.24% during the fourth quarter of 2004. The cost of deposits in the fourth quarter of 2005 increased 38 basis points to 1.04% from 0.66% in the fourth quarter of 2004. The increase in the yield on earning assets principally reflects the impact of loans tied to indexes associated with the rising prime rate and the reinvestment of liquidity into higher yielding assets at the end of the fourth quarter of 2004. The increase in the cost of deposits principally reflects the increased cost of certificates of deposit. Certificates of deposit were the Company’s principal interest rate sensitive deposit product during 2005, with all other deposit products showing only moderate price sensitivity.
Total non-interest income for the fourth quarter of 2005 totaled $4.4 million, compared with $3.3 million for the fourth quarter of 2004. The growth in non-interest income over the fourth quarter of 2004 was primarily attributable to a 23.9% increase in service charges and fees on deposit accounts, resulting from the Company’s acquisition of First Financial Bancorp, along with a 41.4% increase in referral and other loan-related fees due to an increase in real estate loans referred to third parties.
Total non-interest expense for the fourth quarter of 2005 was $14.9 million, compared with $12.7 million for the fourth quarter of 2004. The increase is principally attributable to the Company’s acquisition of First Financial Bancorp, but was also impacted by the $283,000 pre-tax charges associated with the abandoned acquisition and secondary share offering described earlier.
The Company’s efficiency ratio for the fourth quarter of 2005 improved to 56.87%, compared to 63.39% in the fourth quarter of 2004, principally due to strong growth in revenues in 2005.
BALANCE SHEET
As of December 31, 2005, total assets were $1.860 billion, compared to $1.779 billion at December 31, 2004. Average assets for the fourth quarter of 2005 were $1.880 billion, compared with $1.589 billion for the same quarter of 2004, an increase of $291.2 million, or 18.3%. The increase during the three and twelve months ended December 31, 2005 is principally attributable to the Company’s acquisition of First Financial Bancorp.
Total loans and leases held for investment, net of deferred fees and costs, were $1.375 billion at December 31, 2005, compared with $1.294 billion at December 31, 2004, representing growth of 6.3%. Average loans and leases held for investment for the fourth quarter of 2005 were $1.358 billion, compared with $1.110 billion for the same quarter of 2004, an increase of $248.1 million, or 22.3%. The increase is principally attributable to the Company’s acquisition of First Financial Bancorp. While the Company booked $197.2 million of new commitments during the three months ended December 31, 2005, the Company also experienced early loan payoffs of $90.6 million.
Total deposits increased by $72.8 million, or 4.9%, to $1.573 billion at December 31, 2005, from $1.500 billion at December 31, 2004. Average deposits for the fourth quarter of 2005 were $1.588 billion, compared with $1.334 billion for the same quarter of 2004, an increase of $254.3 million, or 19.1%, principally attributable to the Company’s acquisition of First Financial Bancorp.
Total shareholders’ equity was $209.3 million at December 31, 2005, compared with $191.6 million at December 31, 2004. Average shareholders’ equity for the fourth quarter of 2005 was $205.2 million, compared with $187.9 million for the same quarter of 2004, an increase of $17.3 million, or 9.2%.
CREDIT QUALITY
The Company’s overall credit quality remained strong during the fourth quarter, resulting in the determination by management that no provision for the allowance for loan and lease losses was required.
Non-performing loans to total loans and leases held for investment was 0.22% at December 31, 2005 and 2004.
Net loan and lease recoveries were $478,000 in the fourth quarter of 2005, representing an annualized rate of 0.14% of average loans and leases held for investment, net of deferred fees and costs. Net loan and lease recoveries for the year ended December 31, 2005 of $514,000 were 0.04% of average loans and leases held for investment, net of deferred fees and costs, compared with net charge-offs of 0.15% for the year ended December 31, 2004. The allowance for loan and lease losses totaled $16.7 million at December 31, 2005 and represented 1.22% of loans and leases held for investment, net of deferred fees and costs, and 545.67% of non-performing loans and leases as of that date.
REGULATORY CAPITAL
Placer Sierra Bancshares’ regulatory capital ratios at December 31, 2005 are as follows:
Leverage Ratio | |||
Placer Sierra Bancshares | 8.7 | % | |
Minimum regulatory requirement | 4.0 | % | |
Tier 1 Risk-Based Capital Ratio | |||
Placer Sierra Bancshares | 10.4 | % | |
Minimum regulatory requirement | 4.0 | % | |
Total Risk-Based Capital Ratio | |||
Placer Sierra Bancshares | 11.6 | % | |
Minimum regulatory requirement | 8.0 | % |
OUTLOOK
For the year ending December 31, 2006, the Company expects GAAP fully diluted earnings per share to range from $1.80 to $1.83.
The 2006 fully diluted earnings per share estimate includes the effect of FASB Statement No. 123 (revised 2004) (“FAS 123 (R)”),Share-Based Payments, which is effective for the Company in January 2006 and requires all entities to recognize compensation expense in an amount equal to the fair value of share-based payments, such as stock options granted to employees. Accordingly, the 2006 estimate includes, as compensation expense, the cost of previously granted unvested options that were outstanding on January 1, 2006 and will vest during the year and an estimate of the cost of future options that may be granted and will vest during 2006. Together, the Company estimates this compensation expense will have an impact of approximately $0.03 per fully diluted share. In prior periods, the Company’s GAAP financial results were not required to, and did not, include expenses associated with stock-based compensation.
Commenting on the outlook for Placer Sierra Bancshares, Mr. Bachli said, “We believe we have excellent growth opportunities throughout our footprint, and during 2006 we will be opening, renovating or relocating a number of branches and expanding our business relationship management teams to help us further penetrate our markets. Given the significant investments we are making to support our future growth, we expect that our expense levels in the first half of 2006 will be elevated until the new branches and relationship managers become sufficiently productive. Despite the increased spending, we believe we will still generate double-digit earnings growth and continue to improve our return on equity and return on assets.”
ABOUT PLACER SIERRA BANCSHARES
Placer Sierra Bancshares is a Northern California-based bank holding company for Placer Sierra Bank with 40 branches operating throughout California as of December 31, 2005. The bank has 31 branches in an eight-county area of Northern California, including Placer, Sacramento, El Dorado, Sierra, Nevada, Amador, San Joaquin and Calaveras counties and nine branches in Southern California’s Orange and Los Angeles counties. Placer Sierra Bank and its divisions, Sacramento Commercial Bank, Bank of Orange County and Bank of Lodi, offer customers the resources of a large financial institution and 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 retail customers. These products include electronic banking, cash management services, electronic bill payment and investment services with an emphasis on relationship banking. Placer Sierra Bank also 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. For more information, please visitwww.placersierrabank.com.
Placer Sierra Bancshares is publicly traded on NASDAQ under the stock symbol PLSB. For more information about Placer Sierra Bancshares, please visitwww.placersierrabancshares.com.
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. The Company 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; growth may be inhibited if the Company cannot attract deposits; 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 areas in which the Company does business, are less favorable than expected; legislation or regulatory requirements or changes adversely affect the Company’s business; changes that may occur in the securities markets; the Company may suffer an interruption of services from third-party service providers that could adversely affect the Company’s business; the Company may not be able to maintain an effective system of internal and disclosure controls; and other risks that are described in the Company’s Securities and Exchange Commission filings. If any of these uncertainties materializes or any of these assumptions proves incorrect, the Company’s results could differ materially from the Company’s expectations as set forth in these statements. Placer Sierra assumes no obligation to update such forward-looking statements.
UNAUDITED CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share data)
December 31, 2005 | December 31, 2004 | ||||||
Assets: | |||||||
Cash and due from banks | $ | 55,768 | $ | 39,255 | |||
Federal funds sold | 1,500 | 361 | |||||
Cash and cash equivalents | 57,268 | 39,616 | |||||
Interest bearing deposits with other banks | — | 125 | |||||
Investment securities available-for-sale | 228,379 | 249,916 | |||||
Federal Reserve Bank and Federal Home Loan Bank stock | 14,385 | 10,430 | |||||
Loans and leases held for investment, net of allowance for loan and lease losses of $16,714 in 2005 and $16,200 in 2004 | 1,358,772 | 1,278,064 | |||||
Premises and equipment, net | 25,288 | 27,645 | |||||
Cash surrender value of life insurance | 44,330 | 42,390 | |||||
Other real estate | — | 657 | |||||
Goodwill | 103,260 | 101,329 | |||||
Other intangible assets | 11,589 | 14,172 | |||||
Other assets | 17,110 | 15,071 | |||||
Total assets | $ | 1,860,381 | $ | 1,779,415 | |||
Liabilities and shareholders’ equity: | |||||||
Liabilities: | |||||||
Non-interest bearing deposits | $ | 502,387 | $ | 485,193 | |||
Interest bearing deposits | 1,070,495 | 1,014,866 | |||||
Total deposits | 1,572,882 | 1,500,059 | |||||
Short-term borrowings | 11,369 | 16,265 | |||||
Accrued interest payable and other liabilities | 13,238 | 17,839 | |||||
Junior subordinated deferrable interest debentures | 53,611 | 53,611 | |||||
Total liabilities | 1,651,100 | 1,587,774 | |||||
Shareholders’ equity: | |||||||
Common stock | 160,596 | 157,834 | |||||
Retained earnings | 50,948 | 33,323 | |||||
Accumulated other comprehensive (loss) income | (2,263 | ) | 484 | ||||
Total shareholders’ equity | 209,281 | 191,641 | |||||
Total liabilities and shareholders’ equity | $ | 1,860,381 | $ | 1,779,415 | |||
Shares outstanding | 15,042,981 | 14,877,056 | |||||
Book value per share | $ | 13.91 | $ | 12.88 | |||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans and leases held for investment | $ | 23,983 | $ | 17,411 | $ | 89,331 | $ | 63,193 | |||||||
Interest on loans held for sale | — | 1 | — | 9 | |||||||||||
Interest on deposits with other banks | — | 1 | 2 | 1 | |||||||||||
Interest and dividends on investment securities: | |||||||||||||||
Taxable | 2,535 | 1,452 | 10,028 | 6,949 | |||||||||||
Tax-exempt | 182 | 135 | 717 | 529 | |||||||||||
Interest on federal funds sold | 335 | 564 | 953 | 1,150 | |||||||||||
Total interest income | 27,035 | 19,564 | 101,031 | 71,831 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 4,153 | 2,234 | 13,946 | 7,303 | |||||||||||
Interest on short-term borrowings | 31 | 25 | 111 | 167 | |||||||||||
Interest on junior subordinated deferrable interest debentures | 963 | 592 | 3,457 | 1,974 | |||||||||||
Total interest expense | 5,147 | 2,851 | 17,514 | 9,444 | |||||||||||
Net interest income | 21,888 | 16,713 | 83,517 | 62,387 | |||||||||||
Provision for the allowance for loan and lease losses | — | — | — | 560 | |||||||||||
Net interest income after provision for the allowance for loan and lease losses | 21,888 | 16,713 | 83,517 | 61,827 | |||||||||||
Non-interest income: | |||||||||||||||
Service charges and fees on deposit accounts | 1,962 | 1,583 | 7,763 | 6,293 | |||||||||||
Referral and other loan-related fees | 1,107 | 783 | 3,941 | 2,914 | |||||||||||
Loan servicing income | 70 | 67 | 410 | 310 | |||||||||||
Gain on sale of loans, net | — | 6 | — | 185 | |||||||||||
Revenues from sales of non-deposit investment products | 257 | 199 | 827 | 695 | |||||||||||
Loss on sale of investment securities available-for-sale, net | — | — | (56 | ) | (3,335 | ) | |||||||||
Increase in cash surrender value of life insurance | 420 | 291 | 1,660 | 1,210 | |||||||||||
Debit card and merchant discount fees | 322 | 258 | 1,223 | 902 | |||||||||||
Other | 213 | 86 | 621 | 1,441 | |||||||||||
Total non-interest income | 4,351 | 3,273 | 16,389 | 10,615 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and employee benefits | 7,299 | 6,633 | 29,768 | 25,423 | |||||||||||
Occupancy and equipment | 2,036 | 1,862 | 8,066 | 7,031 | |||||||||||
Merger | — | (19 | ) | — | 2,300 | ||||||||||
Other | 5,588 | 4,193 | 21,204 | 16,976 | |||||||||||
Total non-interest expense | 14,923 | 12,669 | 59,038 | 51,730 | |||||||||||
Income before provision for income taxes | 11,316 | 7,317 | 40,868 | 20,712 | |||||||||||
Provision for income taxes | 4,431 | 2,836 | 16,066 | 7,693 | |||||||||||
Net income | $ | 6,885 | $ | 4,481 | $ | 24,802 | $ | 13,019 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.46 | $ | 0.30 | $ | 1.66 | $ | 0.92 | |||||||
Diluted | $ | 0.45 | $ | 0.30 | $ | 1.63 | $ | 0.90 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 15,008,485 | 14,790,697 | 14,943,874 | 14,123,894 | |||||||||||
Diluted | 15,290,600 | 15,135,063 | 15,257,539 | 14,414,735 | |||||||||||
Cash dividends declared per share | $ | 0.12 | $ | 0.05 | $ | 0.48 | $ | 0.05 | |||||||
UNAUDITED CONSOLIDATED AVERAGE BALANCE SHEETS
($ in thousands)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Average assets: | ||||||||||||||||
Loans and leases, held for investment | $ | 1,358,155 | $ | 1,110,071 | $ | 1,323,467 | $ | 1,021,151 | ||||||||
Loans and leases held for sale | — | 62 | — | 215 | ||||||||||||
Investment securities available-for-sale | 228,612 | 146,942 | 231,650 | 152,096 | ||||||||||||
Federal funds sold | 33,548 | 127,463 | 29,721 | 84,483 | ||||||||||||
Interest bearing deposits with other banks | 14 | 125 | 97 | 63 | ||||||||||||
Other earning assets | 14,493 | 9,423 | 13,170 | 8,832 | ||||||||||||
Average earning assets | 1,634,822 | 1,394,086 | 1,598,105 | 1,266,840 | ||||||||||||
Other assets | 245,407 | 194,979 | 250,884 | 194,809 | ||||||||||||
Average total assets | $ | 1,880,229 | $ | 1,589,065 | $ | 1,848,989 | $ | 1,461,649 | ||||||||
Average liabilities and shareholders’ equity: | ||||||||||||||||
Average liabilities: | ||||||||||||||||
Non-interest bearing deposits | $ | 510,454 | $ | 451,319 | $ | 498,419 | $ | 409,333 | ||||||||
Interest bearing deposits | 1,077,912 | 882,750 | 1,065,468 | 803,925 | ||||||||||||
Average deposits | 1,588,366 | 1,334,069 | 1,563,887 | 1,213,258 | ||||||||||||
Other interest bearing liabilities | 67,064 | 57,080 | 66,953 | 59,211 | ||||||||||||
Other liabilities | 19,590 | 9,991 | 19,823 | 13,566 | ||||||||||||
Average liabilities | 1,675,020 | 1,401,140 | 1,650,663 | 1,286,035 | ||||||||||||
Average shareholders’ equity | 205,209 | 187,925 | 198,326 | 175,614 | ||||||||||||
Average liabilities and shareholders’ equity | $ | 1,880,229 | $ | 1,589,065 | $ | 1,848,989 | $ | 1,461,649 | ||||||||
YIELD ANALYSIS: | ||||||||||||||||
Average loans and leases held for investment | $ | 1,358,155 | $ | 1,110,071 | $ | 1,323,467 | $ | 1,021,151 | ||||||||
Yield | 7.01 | % | 6.24 | % | 6.75 | % | 6.19 | % | ||||||||
Average earning assets | $ | 1,634,822 | $ | 1,394,086 | $ | 1,598,105 | $ | 1,266,840 | ||||||||
Yield | 6.56 | % | 5.58 | % | 6.32 | % | 5.67 | % | ||||||||
Average interest bearing deposits | $ | 1,077,912 | $ | 882,750 | $ | 1,065,468 | $ | 803,925 | ||||||||
Cost | 1.53 | % | 1.01 | % | 1.31 | % | 0.91 | % | ||||||||
Average deposits | $ | 1,588,366 | $ | 1,334,069 | $ | 1,563,887 | $ | 1,213,258 | ||||||||
Cost | 1.04 | % | 0.66 | % | 0.89 | % | 0.60 | % | ||||||||
Average interest bearing liabilities | $ | 1,144,976 | $ | 939,830 | $ | 1,132,421 | $ | 863,136 | ||||||||
Cost | 1.78 | % | 1.21 | % | 1.55 | % | 1.09 | % | ||||||||
Interest spread | 4.78 | % | 4.37 | % | 4.77 | % | 4.58 | % | ||||||||
Net interest margin | 5.31 | % | 4.77 | % | 5.23 | % | 4.92 | % |
CREDIT QUALITY MEASURES
loans and leases held for investment, net of deferred fees and costs | 0.22 | % | 0.13 | % | 0.24 | % | 0.24 | % | 0.22 | % | |||||
Non-performing assets to total assets | 0.16 | % | 0.09 | % | 0.17 | % | 0.20 | % | 0.20 | % | |||||
Allowance for loan and lease losses to total loans and leases held for investment, net of deferred fees and costs | 1.22 | % | 1.20 | % | 1.24 | % | 1.29 | % | 1.25 | % | |||||
Allowance for loan and lease losses to non-performing loans and leases | 545.67 | % | 948.36 | % | 527.20 | % | 549.51 | % | 558.81 | % | |||||
Allowance for loan and lease losses to non-performing assets | 545.67 | % | 948.36 | % | 527.20 | % | 452.01 | % | 455.57 | % | |||||
Net recoveries/(charge-offs) to average loans and leases held for investment (1) | 0.04 | % | 0.00 | % | 0.04 | % | 0.17 | % | (0.15 | )% |
(1) | The ratios for interim periods are presented on an annualized basis. |
LOANS
($ in thousands)
Balance at 12/31/05 | Balance at 09/30/05 | Balance at 06/30/05 | Balance at 03/31/05 | Balance at 12/31/04 | ||||||||||||||||
Loans and leases held for investment: | ||||||||||||||||||||
Real estate - mortgage | $ | 990,362 | $ | 966,523 | $ | 949,131 | $ | 901,956 | $ | 892,136 | ||||||||||
Real estate - construction | 207,078 | 197,975 | 183,886 | 191,834 | 184,317 | |||||||||||||||
Commercial | 147,830 | 153,172 | 155,938 | 155,478 | 167,035 | |||||||||||||||
Agricultural | 5,779 | 8,363 | 7,652 | 14,539 | 17,423 | |||||||||||||||
Consumer | 11,703 | 10,910 | 10,950 | 9,961 | 11,110 | |||||||||||||||
Leases receivable and other | 15,431 | 17,475 | 20,477 | 22,784 | 24,575 | |||||||||||||||
Total gross loans and leases held for investment | 1,378,183 | 1,354,418 | 1,328,034 | 1,296,552 | 1,296,596 | |||||||||||||||
Less: Allowance for loan and lease losses | (16,714 | ) | (16,236 | ) | (16,475 | ) | (16,738 | ) | (16,200 | ) | ||||||||||
Deferred loan and lease fees, net | (2,697 | ) | (2,567 | ) | (2,172 | ) | (2,233 | ) | (2,332 | ) | ||||||||||
Total net loans and leases held for investment | $ | 1,358,772 | $ | 1,335,615 | $ | 1,309,387 | $ | 1,277,581 | $ | 1,278,064 | ||||||||||
Total loans and leases held for investment, net of deferred fees and costs | $ | 1,375,486 | $ | 1,351,851 | $ | 1,325,862 | $ | 1,294,319 | $ | 1,294,264 | ||||||||||
Percent of gross loans and leases held for investment: | ||||||||||||||||||||
Real estate - mortgage | 71.9 | % | 71.4 | % | 71.5 | % | 69.5 | % | 68.8 | % | ||||||||||
Real estate - construction | 15.0 | % | 14.6 | % | 13.9 | % | 14.8 | % | 14.2 | % | ||||||||||
Commercial | 10.7 | % | 11.3 | % | 11.7 | % | 12.0 | % | 12.9 | % | ||||||||||
Agricultural | 0.4 | % | 0.6 | % | 0.6 | % | 1.1 | % | 1.3 | % | ||||||||||
Consumer | 0.8 | % | 0.8 | % | 0.8 | % | 0.8 | % | 0.9 | % | ||||||||||
Leases receivable and other | 1.2 | % | 1.3 | % | 1.5 | % | 1.8 | % | 1.9 | % | ||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
DEPOSITS
($ in thousands)
Balance at 12/31/05 | Balance at 09/30/05 | Balance at 06/30/05 | Balance at 03/31/05 | Balance at 12/31/04 | ||||||||||||||||
Non-interest bearing deposits | $ | 502,387 | $ | 496,787 | $ | 501,492 | $ | 491,667 | $ | 485,193 | ||||||||||
Interest bearing deposits: | ||||||||||||||||||||
Interest bearing demand | 223,932 | 248,013 | 248,653 | 246,475 | 256,650 | |||||||||||||||
Money market | 289,497 | 292,154 | 285,149 | 281,347 | 262,957 | |||||||||||||||
Savings | 164,123 | 173,138 | 181,797 | 178,953 | 179,578 | |||||||||||||||
Time, under $100,000 | 211,029 | 197,177 | 196,076 | 193,325 | 176,026 | |||||||||||||||
Time, $100,000 or more | 181,914 | 168,478 | 170,012 | 163,043 | 139,655 | |||||||||||||||
Total interest bearing deposits | 1,070,495 | 1,078,960 | 1,081,687 | 1,063,143 | 1,014,866 | |||||||||||||||
Total deposits | $ | 1,572,882 | $ | 1,575,747 | $ | 1,583,179 | $ | 1,554,810 | $ | 1,500,059 | ||||||||||
Percent of total deposits: | ||||||||||||||||||||
Non-interest bearing deposits | 31.9 | % | 31.5 | % | 31.7 | % | 31.6 | % | 32.3 | % | ||||||||||
Interest bearing deposits: | ||||||||||||||||||||
Interest bearing demand | 14.2 | % | 15.7 | % | 15.7 | % | 15.9 | % | 17.1 | % | ||||||||||
Money market | 18.5 | % | 18.6 | % | 18.0 | % | 18.1 | % | 17.5 | % | ||||||||||
Savings | 10.4 | % | 11.0 | % | 11.5 | % | 11.5 | % | 12.0 | % | ||||||||||
Time, under $100,000 | 13.4 | % | 12.5 | % | 12.4 | % | 12.4 | % | 11.8 | % | ||||||||||
Time, $100,000 or more | 11.6 | % | 10.7 | % | 10.7 | % | 10.5 | % | 9.3 | % | ||||||||||
Total interest bearing deposits | 68.1 | % | 68.5 | % | 68.3 | % | 68.4 | % | 67.7 | % | ||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||