FOR IMMEDIATE RELEASE
| Date: | | October 28, 2010 | | |
| | | | | |
| Contacts: | | Kevin T. Bottomley | | L. Mark Panella |
| | | President and CEO | | Executive Vice President and CFO |
| | | | | |
| Phone: | | (978) 739-0263 | | (978) 739-0217 |
| Email: | | kevin.bottomley@danversbank.com | | mark.panella@danversbank.com |
Danvers Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2010
DANVERS, MASSACHUSETTS (October 28, 2010): Danvers Bancorp, Inc. (the “Company”) (NASDAQ: DNBK), the holding company for Danversbank, today reported net income of $4.2 million for the quarter ended September 30, 2010 compared to net income of $1.2 million for the same quarter in 2009. Net income for the comparable nine-month periods in 2010 and 2009 was $13.3 million and $2.7 million, respectively. The combination of the acquisition of Beverly National Corporation (“Beverly”), organic growth, particularly within the loan portfolio, and the overall improvement of the Company’s net interest margin resulted in a significant increase in net interest income and, to a lesser extent, an increase in non-interest income. These increases were partially offset by increased salaries an d benefits expense, occupancy, equipment and other operating expenses. Most notably, net interest income for the three and nine months ended September 30, 2010 improved by $6.6 million, or 46.8% and $23.0 million, or 58.0%, respectively, compared to the same periods in 2009.
Compared to the quarter ended June 30, 2010, net income decreased by $791,000, or 16.0%. A slight decline in net interest income and non-interest income, directly related to a reduction in securities gains, somewhat offset decreases in the provision for loan losses and income taxes between the comparable periods.
2010 third quarter financial highlights include:
| | · | 22% annualized growth in total loans during the third quarter; |
| | · | 22% annualized growth in total deposits during the third quarter; |
| | · | Non-performing assets to total assets of 0.73% compared to 0.73% for Q3 ‘09 and 0.81% for Q2 ‘10; |
| | · | Net interest margin of 3.49% compared to 3.23% for Q3 ‘09 and 3.66% for Q2 ‘10; |
| | · | Net interest income increased 46.8% compared to Q3 ‘09 and decreased 1.8% compared to Q2 ‘10; and |
| | · | Non-interest income increased 67.7% compared to Q3 ‘09 and decreased 31.4% compared to Q2 ‘10. |
“Our loan portfolio growth trended closer to historic levels during the third quarter, which was also marked by continued robust growth in deposits,” noted Kevin T. Bottomley, President and CEO.
Earnings per share basic and diluted for the third quarter of 2010 and 2009 were $0.21 and $0.07, respectively. Earnings per share basic and diluted for the quarter ended June 30, 2010 were $0.24. Earnings per share basic and diluted for the nine months ended September 30, 2010 and 2009 were $0.66 and $0.17, respectively.
2010 Earnings Summary
The Company’s net interest income increased $6.6 million, or 46.8%, during the third quarter of 2010 compared to the same period in 2009. For the comparable nine-month periods ended September 30, 2010 and 2009, net interest income increased $23.0 million, or 58.0%. These increases are attributable to the overall growth of the Company and in particular, the growth of the loan portfolio and the improvement in the Company’s net interest margin (“NIM”). The Company’s NIM improved by 26 basis points from 3.23% for the third quarter of 2009 to 3.49% for the third quarter of 2010 mainly due to the increase in average loan balances of $452.4 million and a 72 basis point decline in overall funding costs.
The Company’s third quarter net interest income decreased $376,000, or 1.8%, compared to the second quarter of 2010 mainly due to the decrease in yield on interest-earning assets. We experienced a 16 basis point decrease in the yield on earning assets, while the yield on cost of interest-bearing liabilities remained unchanged. As a result, the Company’s NIM declined from 3.66% to 3.49%, respectively, between the second and third quarters of 2010. The competition, especially from some of the larger institutions, and related pricing for new loan originations has become extremely competitive in the Company’s primary market area in 2010. “We expect this pressure to our NIM to continue,” mentioned Bottomley.
Non-interest income for the third quarter of 2010 totaled $2.8 million, an increase of $1.1 million, or 67.7%, compared to the third quarter of 2009. The improvement was primarily due to an increase of $379,000 in net gain on sales of loans, $362,000 in trust services fees, $260,000 in additional deposit account service fees and a $115,000 increase in the cash surrender value of bank-owned life insurance. For the nine months ended September 30, 2010, non-interest income increased $4.4 million, or 84.05%, compared to the same period in 2009. Net gain on sales of securities, trust services revenue and service charges on deposits were the largest contributors to the increase.
Non-interest income for the third quarter of 2010 decreased $1.3 million, or 31.4%, compared to the second quarter of 2010. This decrease was primarily due to a $1.1 million decrease in net gain on sales of securities. During the second quarter of 2010, management elected to sell approximately $30 million in available for sale securities and in the process somewhat shortened the duration of the overall investment portfolio. While the Company’s general levels of non-interest revenues have shown incremental improvement, developing additional and meaningful sources of non-interest income remains a significant challenge.
Non-interest expense increased $4.5 million, or 34.5%, between the quarters ended September 30, 2010 and 2009, respectively, due primarily to increases in salaries and employee benefits, occupancy and equipment expense as a result of the additional personnel and branches related to the Beverly acquisition and the overall expansion of the Company’s branch network. Other operating expense increased $899,000, or 40.5%, due primarily to the amortization of the core deposit intangible related to the Beverly acquisition. For the nine month period ended September 30, 2010, non-interest expense increased $13.9 million, or 36.2%, from the comparable period in 2009. Salaries and benefits, occupancy and general other operating expense, related to operating the larger combined franchise, were the primar y reasons for the increase in non-interest expense.
Non-interest expense increased slightly by $262,000, or 1.5%, for the third quarter of 2010 compared to the second quarter of 2010. An increase in salaries and benefits expense was the primary reason for the increase.
Since the fully taxable components of the Company’s revenues have increased as a result of the Beverly acquisition and organic growth of the franchise, the Company’s 2010 effective tax rate has increased when compared to the comparable three and nine month periods in 2009.
Balance Sheet Summary
Total assets increased by $131.2 million, or 5.2%, during the nine months ended September 30, 2010. Net loans (including loans held for sale) increased $74.9 million, or 4.5%, securities, in aggregate, increased by $59.2 million, or 9.8%, and cash and cash equivalents decreased $5.4 million, or 7.5%, during the first nine months of the year. On the liability side, deposit balances increased by $273.8 million, or 15.5%, for the nine months ended September 30, 2010. After experiencing very strong loan, deposit and overall balance sheet growth in 2008 and 2009, the Company’s growth pattern for the first nine months of 2010 has been more modest. While the Company has experienced a constant inflow of deposits during the first nine months, it is only during the most recent quarter that the Co mpany’s loan balances and origination activities have demonstrated a meaningful increase. The Company continues to focus much of its lending resources on commercial and industrial (“C&I”) and selected permanent commercial real estate opportunities.
The Company experienced some improvement in its asset quality metrics for the quarter ended September 30, 2010. Total non-performing assets (“NPA’s”) totaled $19.2 million at September 30, 2010 compared to $20.4 million at June 30, 2010 and $19.2 million at December 31, 2009. NPA’s, as a percentage of total assets, decreased to 73 basis points at the end of the current quarter. This compares to NPA metrics of 81 basis points and 77 basis points for the quarters ended June 30, 2010 and December 31, 2009, respectively. At September 30, 2010, total NPA’s consisted of $12.3 million in loans considered impaired and on non-accrual, $6.1 million in performing troubled debt restructures and $832,000 in other real estate owned (“OREO”). The number o f problem credits being resolved continues to be offset by an equal number of new problem credits from quarter to quarter. The vast majority of the Company’s existing problem credits have migrated from the pre-merger Danversbank loan portfolio. The OREO balance consists of two properties.
“A persistent level of delinquencies in our residential lending portfolio (owner-occupied) continued in the third quarter. In that sense, many of the issues in our local markets are more revenue-driven than credit-driven as individuals have become unemployed and experienced difficulty returning to work. We believe that ultimately any losses in this portfolio will be modest,” stated Bottomley.
Despite continuing concerns with the current economic and employment conditions, the Company’s asset quality metrics and delinquency trends continue to be stable and favorable when compared to many industry peers. The third quarter provision for loan losses was $900,000 compared to $1.4 million for the same period in 2009 and $1.3 million for the second quarter of 2010, as management continued to augment the allowance during the quarter in response to some relatively strong loan growth. The allowance for loan losses increased $1.8 million, or 12.3%, for the first nine months of 2010 and represents 0.94% of total loans at September 30, 2010. The acquisition of Beverly in the fourth quarter of 2009 and the related “purchase accounting” considerations are the reasons that the allowance re presents a lower percentage of gross loans than in quarters prior to the acquisition. Net charge-offs for the quarter and nine months ended September 30, 2010 were $634,000 and $1.6 million, respectively. By comparison, net charge-offs were $241,000 and $1.6 million for the comparable periods in 2009. The allowance represents 89.9% of non-performing loans at September 30, 2010 compared to 82.5% at December 31, 2009.
Deposits increased by $273.8 million, or 15.5%, to $2.0 billion at September 30, 2010 compared to $1.8 billion at December 31, 2009. During the first nine months of 2010, the Company experienced increases in all deposit categories with the exception of a slight decline in other term certificates. This growth is attributable to the Company’s expanded retail branch presence and online banking initiatives. The Company opened its Cambridge and Waltham locations in 2009, its first Boston retail location in the first quarter of 2010 and its Needham location in the third quarter of 2010. These branches have already attracted $109.7 million in new deposit balances. The previously announced Lexington branch is slated to open during the first quarter of 2011. Despite the low levels of short-term interest rates, the Company has experienced success in raising core deposit balances.
“We continue to be pleased with the results from the expansion of our branch network and, in addition to the location at 50 Milk Street, we look forward to future locations at 218 Cambridge Street and 176 Federal Street in Boston,” mentioned Bottomley.
Short-term FHLB advances and repurchase agreements decreased by $120.0 million, or 100.0% and $15.0 million, or 28.5%, respectively, at September 30, 2010 compared to December 31, 2009. As a result, the Company had no overnight borrowings with the FHLB at September 30, 2010. Management continues to replace short and long-term borrowing with the aforementioned deposit inflows and in the process has lessened the Company’s reliance on any single funding source. The Company had approximately $206.2 million in various FHLB term advances outstanding and an additional $37.8 million in short-term borrowings at September 30, 2010. The Company’s short-term borrowings consist of overnight customer repurchase agreements. From a funding and liquidity perspective, the Company has rea dy access to a number of large, stable and well-diversified short-term funding sources and these alternatives are available at competitive rates given the current rate environment.
Company Profile
Danvers Bancorp, Inc., the holding company for Danversbank, is headquartered in Danvers, Massachusetts. The Company has grown to $2.6 billion in assets through acquisitions and internal growth, including de novo branching. We conduct business from our main office located at One Conant Street, Danvers, Massachusetts, and our 27 other branch offices located in Andover, Beverly, Boston, Cambridge, Chelsea, Danvers, Hamilton, Malden, Manchester, Middleton, Needham, Peabody, Reading, Revere, Salem, Saugus, Topsfield, Waltham, Wilmington and Woburn, Massachusetts. Our business consists primarily of making loans to our customers, including C&I loans, commercial real estate loans, owner-occupied residential mortgages and consumer loans and investing i n a variety of investment securities. We fund these lending and investment activities with deposits from our customers, funds generated from operations and selected borrowings. We also provide wealth management and trust services, treasury management, debit and credit card products and online banking services. Additional information about the Company and its subsidiaries is available at www.danversbank.com.
Forward Looking Statements
Certain statements herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the beliefs and expectations of management, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like & #8220;believe,” “expect,” “anticipate,” “estimate,” “project,” “seek,” “plan” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the risk factors described in the Company’s December 31, 2009 Form 10-K, issued March 16, 2010, as updated by our Quarterly Reports on Form 10-Q, that adversely affect the business in which Danvers Bancorp, Inc. is engaged and changes in the securities market. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and the associated conference call. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | September 30, | | | December 31, | |
| | | 2010 | | | 2009 | |
| | | (In thousands) | |
| ASSETS | |
| Cash and cash equivalents | | $ | 66,388 | | | $ | 71,757 | |
| Certificates of deposit | | | - | | | | 10,679 | |
| Securities available for sale, at fair value | | | 514,942 | | | | 481,100 | |
| Securities held to maturity, at cost | | | 146,974 | | | | 110,932 | |
| Loans held for sale | | | 3,750 | | | | 1,948 | |
| Loans | | | 1,741,116 | | | | 1,666,164 | |
| Less allowance for loan losses | | | (16,510 | ) | | | (14,699 | ) |
| Loans, net | | | 1,724,606 | | | | 1,651,465 | |
| | | | | | | | | |
| Restricted stock, at cost | | | 18,172 | | | | 18,726 | |
| Premises and equipment, net | | | 39,476 | | | | 36,764 | |
| Bank-owned life insurance | | | 33,904 | | | | 32,900 | |
| Other real estate owned | | | 832 | | | | 1,427 | |
| Accrued interest receivable | | | 8,982 | | | | 9,998 | |
| Deferred tax asset, net | | | 8,445 | | | | 9,619 | |
| Goodwill and intangibles assets | | | 33,428 | | | | 35,094 | |
| Prepaid FDIC assessment | | | 6,723 | | | | 8,515 | |
| Prepaid taxes | | | 4,850 | | | | 6,348 | |
| Other assets | | | 19,496 | | | | 12,477 | |
| | | $ | 2,630,968 | | | $ | 2,499,749 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| Deposits: | | | | | | | | |
| Demand deposits | | $ | 241,410 | | | $ | 224,776 | |
| Savings and NOW accounts | | | 445,380 | | | | 376,975 | |
| Money market accounts | | | 802,055 | | | | 621,683 | |
| Term certificates over $100,000 | | | 327,770 | | | | 314,097 | |
| Other term certificates | | | 222,968 | | | | 228,272 | |
| Total deposits | | | 2,039,583 | | | | 1,765,803 | |
| Short-term borrowings | | | 37,783 | | | | 172,829 | |
| Long-term debt | | | 206,155 | | | | 218,475 | |
| Subordinated debt | | | 29,965 | | | | 29,965 | |
| Accrued expenses and other liabilities | | | 23,992 | | | | 27,011 | |
| Total liabilities | | | 2,337,478 | | | | 2,214,083 | |
| | | | | | | | | |
| Commitments and contingencies | | | | | | | | |
| | | | | | | | | |
| Stockholders' equity: | | | | | | | | |
| Preferred stock; $0.01 par value, 10,000,000 shares authorized; | | | | | | | | |
| none issued | | | - | | | | - | |
| Common stock; $0.01 par value, 60,000,000 shares authorized; 22,316,125 shares | | | | | | | | |
| issued | | | 223 | | | | 223 | |
| Additional paid-in capital | | | 238,758 | | | | 237,577 | |
| Retained earnings | | | 83,997 | | | | 71,864 | |
| Accumulated other comprehensive income | | | 7,270 | | | | 3,650 | |
| Unearned restricted shares - 545,558 and 639,807 shares at September 30, 2010 | | | | | | | | |
| and December 31, 2009, respectively | | | (5,930 | ) | | | (6,793 | ) |
| Unearned compensation - ESOP; 1,231,133 and 1,284,660 shares at | | | | | | | | |
| September 30, 2010 and December 31, 2009, respectively | | | (12,311 | ) | | | (12,846 | ) |
| Treasury stock, at cost; 1,318,039 and 610,593 shares at September 30, 2010 and | | | | | | | | |
| December 31, 2009, respectively | | | (18,517 | ) | | | (8,009 | ) |
| Total stockholders' equity | | | 293,490 | | | | 285,666 | |
| | | $ | 2,630,968 | | | $ | 2,499,749 | |
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (Dollars in thousands, except per share amounts) | |
| Interest and dividend income: | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 23,563 | | | $ | 17,448 | | | $ | 71,158 | | | $ | 49,767 | |
| Interest on debt securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 5,441 | | | | 5,262 | | | | 15,797 | | | | 15,780 | |
| Non-taxable | | | 310 | | | | 235 | | | | 757 | | | | 658 | |
| Dividends on equity securities | | | 8 | | | | - | | | | 12 | | | | 1 | |
| Interest on cash equivalents and certificates of deposit | | | 30 | | | | 97 | | | | 105 | | | | 292 | |
| Total interest and dividend income | | | 29,352 | | | | 23,042 | | | | 87,829 | | | | 66,498 | |
| | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Interest on deposits: | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | | 1,403 | | | | 647 | | | | 3,671 | | | | 1,842 | |
| Money market accounts | | | 2,563 | | | | 2,828 | | | | 7,195 | | | | 8,711 | |
| Term certificates | | | 2,206 | | | | 3,069 | | | | 7,251 | | | | 9,100 | |
| Interest on short-term borrowings | | | 41 | | | | 62 | | | | 180 | | | | 269 | |
| Interest on long-term debt and subordinated debt | | | 2,377 | | | | 2,291 | | | | 6,851 | | | | 6,916 | |
| Total interest expense | | | 8,590 | | | | 8,897 | | | | 25,148 | | | | 26,838 | |
| Net interest income | | | 20,762 | | | | 14,145 | | | | 62,681 | | | | 39,660 | |
| Provision for loan losses | | | 900 | | | | 1,400 | | | | 3,400 | | | | 3,360 | |
| Net interest income, after provision for loan losses | | | 19,862 | | | | 12,745 | | | | 59,281 | | | | 36,300 | |
| | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | |
| Service charges on deposits | | | 1,129 | | | | 869 | | | | 3,436 | | | | 2,503 | |
| Loan servicing fees | | | 34 | | | | 34 | | | | 160 | | | | 63 | |
| Net gain on sales of loans | | | 466 | | | | 87 | | | | 709 | | | | 772 | |
| Net gain on sales of securities, net of impairment write-down | | | 67 | | | | 4 | | | | 1,330 | | | | 4 | |
| Increase in cash surrender value of bank-owned life insurance | | | 346 | | | | 231 | | | | 1,004 | | | | 553 | |
| Trust services | | | 362 | | | | - | | | | 1,198 | | | | - | |
| Other operating income | | | 392 | | | | 442 | | | | 1,695 | | | | 1,284 | |
| Total non-interest income | | | 2,796 | | | | 1,667 | | | | 9,532 | | | | 5,179 | |
| | | | | | | | | | | | | | | | | |
| Non-interest expenses: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 9,787 | | | | 7,397 | | | | 28,992 | | | | 21,618 | |
| Occupancy | | | 1,936 | | | | 1,372 | | | | 6,004 | | | | 4,254 | |
| Equipment | | | 1,055 | | | | 877 | | | | 3,109 | | | | 2,464 | |
| Outside services | | | 474 | | | | 328 | | | | 1,546 | | | | 1,140 | |
| Other real estate owned expense | | | 276 | | | | 159 | | | | 651 | | | | 426 | |
| Deposit insurance expense | | | 683 | | | | 415 | | | | 1,964 | | | | 2,115 | |
| Advertising expense | | | 214 | | | | 277 | | | | 856 | | | | 597 | |
| Other operating expense | | | 3,118 | | | | 2,219 | | | | 9,188 | | | | 5,801 | |
| Total non-interest expenses | | | 17,543 | | | | 13,044 | | | | 52,310 | | | | 38,415 | |
| Income before income taxes | | | 5,115 | | | | 1,368 | | | | 16,503 | | | | 3,064 | |
| Provision for income taxes | | | 963 | | | | 205 | | | | 3,157 | | | | 383 | |
| Net income | | $ | 4,152 | | | $ | 1,163 | | | $ | 13,346 | | | $ | 2,681 | |
| | | | | | | | | | | | | | | | | |
| Weighted-average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 19,871,405 | | | | 16,302,603 | | | | 20,194,817 | | | | 16,256,081 | |
| Diluted | | | 19,902,305 | | | | 16,302,603 | | | | 20,210,095 | | | | 16,256,081 | |
| | | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.21 | | | $ | 0.07 | | | $ | 0.66 | | | $ | 0.17 | |
| Diluted | | $ | 0.21 | | | $ | 0.07 | | | $ | 0.66 | | | $ | 0.17 | |
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | Three Months Ended | |
| | | September 30, | | | June 30, | |
| | | 2010 | | | 2010 | |
| | | (Dollars in thousands, | |
| | | except per share amounts) | |
| Interest and dividend income: | | | | | | |
| Interest and fees on loans | | $ | 23,563 | | | $ | 24,206 | |
| Interest on debt securities: | | | | | | | | |
| Taxable | | | 5,441 | | | | 4,975 | |
| Non-taxable | | | 310 | | | | 205 | |
| Dividends on equity securities | | | 8 | | | | 4 | |
| Interest on cash equivalents and certificates of deposit | | | 30 | | | | 28 | |
| Total interest and dividend income | | | 29,352 | | | | 29,418 | |
| | | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits: | | | | | | | | |
| Savings and NOW accounts | | | 1,403 | | | | 1,215 | |
| Money market accounts | | | 2,563 | | | | 2,377 | |
| Term certificates | | | 2,206 | | | | 2,448 | |
| Interest on short-term borrowings | | | 41 | | | | 43 | |
| Interest on long-term debt and subordinated debt | | | 2,377 | | | | 2,197 | |
| Total interest expense | | | 8,590 | | | | 8,280 | |
| Net interest income | | | 20,762 | | | | 21,138 | |
| Provision for loan losses | | | 900 | | | | 1,300 | |
| Net interest income, after provision for loan losses | | | 19,862 | | | | 19,838 | |
| | | | | | | | | |
| Non-interest income: | | | | | | | | |
| Service charges on deposits | | | 1,129 | | | | 1,223 | |
| Loan servicing fees | | | 34 | | | | 68 | |
| Net gain on sales of loans | | | 466 | | | | 144 | |
| Net gain on sales of securities, net of impairment write-down | | | 67 | | | | 1,192 | |
| Increase in cash surrender value of bank-owned life insurance | | | 346 | | | | 342 | |
| Trust services | | | 362 | | | | 443 | |
| Other operating income | | | 392 | | | | 662 | |
| Total non-interest income | | | 2,796 | | | | 4,074 | |
| | | | | | | | | |
| Non-interest expenses: | | | | | | | | |
| Salaries and employee benefits | | | 9,787 | | | | 9,349 | |
| Occupancy | | | 1,936 | | | | 1,979 | |
| Equipment | | | 1,055 | | | | 1,034 | |
| Outside services | | | 474 | | | | 526 | |
| Other real estate owned expense | | | 276 | | | | 189 | |
| Deposit insurance expense | | | 683 | | | | 699 | |
| Advertising expense | | | 214 | | | | 433 | |
| Other operating expense | | | 3,118 | | | | 3,072 | |
| Total non-interest expenses | | | 17,543 | | | | 17,281 | |
| Income before income taxes | | | 5,115 | | | | 6,631 | |
| Provision for income taxes | | | 963 | | | | 1,688 | |
| Net income | | $ | 4,152 | | | $ | 4,943 | |
| | | | | | | | | |
| Weighted-average shares outstanding: | | | | | | | | |
| Basic | | | 19,871,405 | | | | 20,295,687 | |
| Diluted | | | 19,902,305 | | | | 20,310,621 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic | | $ | 0.21 | | | $ | 0.24 | |
| Diluted | | $ | 0.21 | | | $ | 0.24 | |
NET INTEREST INCOME ANALYSIS
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | |
| | | 2010 | | | 2009 | |
| | | Average | | | Interest | | | Average | | | Average | | | Interest | | | Average | |
| | | Outstanding | | | Earned/ | | | Yield/ | | | Outstanding | | | Earned/ | | | Yield/ | |
| | | Balance | | | Paid | | | Rate (1) | | | Balance | | | Paid | | | Rate (1) | |
| | | (Dollars in thousands) | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning cash equivalents and | | | | | | | | | | | | | | | | | | |
| certificates of deposit | | $ | 45,395 | | | $ | 30 | | | | 0.26 | % | | $ | 60,633 | | | $ | 97 | | | | 0.64 | % |
| Debt securities: (2) | | | | | | | | | | | | | | | | | | | | | | | | |
| Gov't-sponsored enterprises | | | 325,286 | | | | 2,741 | | | | 3.37 | | | | 187,896 | | | | 2,241 | | | | 4.77 | |
| Mortgage-backed | | | 276,293 | | | | 2,540 | | | | 3.68 | | | | 246,167 | | | | 2,823 | | | | 4.59 | |
| Municipal bonds | | | 32,050 | | | | 310 | | | | 3.87 | | | | 23,071 | | | | 235 | | | | 4.07 | |
| Other | | | 9,326 | | | | 160 | | | | 6.86 | | | | 7,454 | | | | 198 | | | | 10.63 | |
| Restricted stock | | | 23,067 | | | | 8 | | | | 0.14 | | | | 14,626 | | | | - | | | | - | |
| Real estate mortgages (3) | | | 880,169 | | | | 12,353 | | | | 5.61 | | | | 664,082 | | | | 9,537 | | | | 5.74 | |
| C&I loans (3) | | | 639,855 | | | | 9,475 | | | | 5.92 | | | | 456,742 | | | | 6,748 | | | | 5.91 | |
| IRBs (3) | | | 142,668 | | | | 1,686 | | | | 4.73 | | | | 89,087 | | | | 1,073 | | | | 4.82 | |
| Consumer loans (3) | | | 3,517 | | | | 49 | | | | 5.57 | | | | 3,877 | | | | 90 | | | | 9.29 | |
| Total interest-earning assets | | | 2,377,626 | | | | 29,352 | | | | 4.94 | | | | 1,753,635 | | | | 23,042 | | | | 5.26 | |
| Allowance for loan losses | | | (16,325 | ) | | | | | | | | | | | (12,939 | ) | | | | | | | | |
| Total earning assets less allowance | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 2,361,301 | | | | | | | | | | | | 1,740,696 | | | | | | | | | |
| Non-interest-earning assets | | | 222,869 | | | | | | | | | | | | 105,848 | | | | | | | | | |
| Total assets | | $ | 2,584,170 | | | | | | | | | | | $ | 1,846,544 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | $ | 435,559 | | | | 1,403 | | | | 1.29 | | | $ | 210,558 | | | | 647 | | | | 1.23 | |
| Money market accounts | | | 769,254 | | | | 2,563 | | | | 1.33 | | | | 553,428 | | | | 2,828 | | | | 2.04 | |
| Term certificates | | | 546,500 | | | | 2,206 | | | | 1.61 | | | | 459,363 | | | | 3,069 | | | | 2.67 | |
| Total deposits | | | 1,751,313 | | | | 6,172 | | | | 1.41 | | | | 1,223,349 | | | | 6,544 | | | | 2.14 | |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 40,102 | | | | 41 | | | | 0.41 | | | | 63,215 | | | | 62 | | | | 0.39 | |
| Long-term debt | | | 207,606 | | | | 1,809 | | | | 3.49 | | | | 162,006 | | | | 1,823 | | | | 4.50 | |
| Subordinated debt | | | 30,481 | | | | 568 | | | | 7.45 | | | | 29,965 | | | | 468 | | | | 6.25 | |
| Total interest-bearing liabilities | | | 2,029,502 | | | | 8,590 | | | | 1.69 | | | | 1,478,535 | | | | 8,897 | | | | 2.41 | |
| Non-interest-bearing deposits | | | 242,240 | | | | | | | | | | | | 131,408 | | | | | | | | | |
| Other non-interest-bearing liabilities | | | 20,258 | | | | | | | | | | | | 14,677 | | | | | | | | | |
| Total non-interest-bearing liabilities | | | 262,498 | | | | | | | | | | | | 146,085 | | | | | | | | | |
| Total liabilities | | | 2,292,000 | | | | | | | | | | | | 1,624,620 | | | | | | | | | |
| Stockholders' equity | | | 292,170 | | | | | | | | | | | | 221,924 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,584,170 | | | | | | | | | | | $ | 1,846,544 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 20,762 | | | | | | | | | | | $ | 14,145 | | | | | |
| Net interest rate spread (4) | | | | | | | | | | | 3.25 | % | | | | | | | | | | | 2.85 | % |
| Net interest-earning assets (5) | | $ | 348,124 | | | | | | | | | | | $ | 275,100 | | | | | | | | | |
| Net interest margin (6) | | | | | | | | | | | 3.49 | % | | | | | | | | | | | 3.23 | % |
| Ratio of interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| to total interest-bearing liabilities | | | 1.17 | x | | | | | | | | | | | 1.19 | x | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Yields are annualized. | |
| (2) Average balances are presented at average amortized cost. | |
| (3) Average loans include non-accrual loans and are net of average deferred loan fees/costs. | |
| (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | |
| (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | |
| (6) Net interest margin represents net interest income divided by average total interest-earning assets. | |
NET INTEREST INCOME ANALYSIS
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, | |
| | | 2010 | | | 2009 | |
| | | Average | | | Interest | | | Average | | | Average | | | Interest | | | Average | |
| | | Outstanding | | | Earned/ | | | Yield/ | | | Outstanding | | | Earned/ | | | Yield/ | |
| | | Balance | | | Paid | | | Rate (1) | | | Balance | | | Paid | | | Rate (1) | |
| | | (Dollars in thousands) | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning cash equivalents and | | | | | | | | | | | | | | | | | | |
| certificates of deposit | | $ | 62,792 | | | $ | 105 | | | | 0.22 | % | | $ | 43,678 | | | $ | 292 | | | | 0.89 | % |
| Debt securities: (2) | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government | | | 6,300 | | | | 8 | | | | 0.17 | | | | 681 | | | | 13 | | | | 2.55 | |
| Gov't-sponsored enterprises | | | 265,774 | | | | 6,890 | | | | 3.46 | | | | 191,469 | | | | 6,991 | | | | 4.87 | |
| Mortgage-backed | | | 285,872 | | | | 8,132 | | | | 3.79 | | | | 241,350 | | | | 8,574 | | | | 4.74 | |
| Municipal bonds | | | 28,012 | | | | 757 | | | | 3.60 | | | | 21,583 | | | | 658 | | | | 4.06 | |
| Other | | | 9,995 | | | | 767 | | | | 10.23 | | | | 2,668 | | | | 202 | | | | 10.09 | |
| Restricted stock | | | 18,948 | | | | 12 | | | | 0.08 | | | | 14,626 | | | | 1 | | | | 0.01 | |
| Real estate mortgages (3) | | | 919,449 | | | | 39,692 | | | | 5.76 | | | | 637,778 | | | | 26,983 | | | | 5.64 | |
| C&I loans (3) | | | 607,395 | | | | 26,658 | | | | 5.85 | | | | 445,032 | | | | 19,571 | | | | 5.86 | |
| IRBs (3) | | | 130,969 | | | | 4,660 | | | | 4.74 | | | | 81,684 | | | | 2,930 | | | | 4.78 | |
| Consumer loans (3) | | | 3,477 | | | | 148 | | | | 5.68 | | | | 4,394 | | | | 283 | | | | 8.59 | |
| Total interest-earning assets | | | 2,338,983 | | | | 87,829 | | | | 5.01 | | | | 1,684,943 | | | | 66,498 | | | | 5.26 | |
| Allowance for loan losses | | | (15,757 | ) | | | | | | | | | | | (12,623 | ) | | | | | | | | |
| Total earning assets less allowance | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 2,323,226 | | | | | | | | | | | | 1,672,320 | | | | | | | | | |
| Non-interest-earning assets | | | 189,898 | | | | | | | | | | | | 103,532 | | | | | | | | | |
| Total assets | | $ | 2,513,124 | | | | | | | | | | | $ | 1,775,852 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | $ | 417,034 | | | | 3,671 | | | | 1.17 | | | $ | 201,511 | | | | 1,842 | | | | 1.22 | |
| Money market accounts | | | 705,443 | | | | 7,195 | | | | 1.36 | | | | 504,418 | | | | 8,711 | | | | 2.30 | |
| Term certificates | | | 558,508 | | | | 7,251 | | | | 1.73 | | | | 419,597 | | | | 9,100 | | | | 2.89 | |
| Total deposits | | | 1,680,985 | | | | 18,117 | | | | 1.44 | | | | 1,125,526 | | | | 19,653 | | | | 2.33 | |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 55,804 | | | | 180 | | | | 0.43 | | | | 90,414 | | | | 269 | | | | 0.40 | |
| Long-term debt | | | 211,452 | | | | 5,457 | | | | 3.44 | | | | 162,391 | | | | 5,417 | | | | 4.45 | |
| Subordinated debt | | | 29,965 | | | | 1,394 | | | | 6.20 | | | | 29,965 | | | | 1,499 | | | | 6.67 | |
| Total interest-bearing liabilities | | | 1,978,206 | | | | 25,148 | | | | 1.70 | | | | 1,408,296 | | | | 26,838 | | | | 2.54 | |
| Non-interest-bearing deposits | | | 226,488 | | | | | | | | | | | | 128,132 | | | | | | | | | |
| Other non-interest-bearing liabilities | | | 18,025 | | | | | | | | | | | | 13,923 | | | | | | | | | |
| Total non-interest-bearing liabilities | | | 244,513 | | | | | | | | | | | | 142,055 | | | | | | | | | |
| Total liabilities | | | 2,222,719 | | | | | | | | | | | | 1,550,351 | | | | | | | | | |
| Stockholders' equity | | | 290,405 | | | | | | | | | | | | 225,501 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,513,124 | | | | | | | | | | | $ | 1,775,852 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 62,681 | | | | | | | | | | | $ | 39,660 | | | | | |
| Net interest rate spread (4) | | | | | | | | | | | 3.31 | % | | | | | | | | | | | 2.72 | % |
| Net interest-earning assets (5) | | $ | 360,777 | | | | | | | | | | | $ | 276,647 | | | | | | | | | |
| Net interest margin (6) | | | | | | | | | | | 3.57 | % | | | | | | | | | | | 3.14 | % |
| Ratio of interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| to total interest-bearing liabilities | | | 1.18 | x | | | | | | | | | | | 1.20 | x | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Yields are annualized. | |
| (2) Average balances are presented at average amortized cost. | |
| (3) Average loans include non-accrual loans and are net of average deferred loan fees/costs. | |
| (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | |
| (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | |
| (6) Net interest margin represents net interest income divided by average total interest-earning assets. | |
NET INTEREST INCOME ANALYSIS
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | September 30, 2010 | | | June 30, 2010 | |
| | | Average | | | Interest | | | Average | | | Average | | | Interest | | | Average | |
| | | Outstanding | | | Earned/ | | | Yield/ | | | Outstanding | | | Earned/ | | | Yield/ | |
| | | Balance | | | Paid | | | Rate (1) | | | Balance | | | Paid | | | Rate (1) | |
| | | (Dollars in thousands) | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning cash equivalents and | | | | | | | | | | | | | | | | | | |
| certificates of deposit | | $ | 45,395 | | | $ | 30 | | | | 0.26 | % | | $ | 49,979 | | | $ | 28 | | | | 0.22 | % |
| Debt securities: (2) | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government | | | - | | | | - | | | | - | | | | 3,616 | | | | 1 | | | | 0.11 | |
| Gov't-sponsored enterprises | | | 325,286 | | | | 2,741 | | | | 3.37 | | | | 252,143 | | | | 2,207 | | | | 3.50 | |
| Mortgage-backed | | | 276,293 | | | | 2,540 | | | | 3.68 | | | | 287,398 | | | | 2,464 | | | | 3.43 | |
| Municipal bonds | | | 32,050 | | | | 310 | | | | 3.87 | | | | 27,530 | | | | 205 | | | | 2.98 | |
| Other | | | 9,326 | | | | 160 | | | | 6.86 | | | | 10,336 | | | | 303 | | | | 11.73 | |
| Restricted stock | | | 23,067 | | | | 8 | | | | 0.14 | | | | 22,047 | | | | 4 | | | | 0.07 | |
| Real estate mortgages (3) | | | 880,169 | | | | 12,353 | | | | 5.61 | | | | 911,286 | | | | 13,689 | | | | 6.01 | |
| C&I loans (3) | | | 639,855 | | | | 9,475 | | | | 5.92 | | | | 614,753 | | | | 8,968 | | | | 5.84 | |
| IRBs (3) | | | 142,668 | | | | 1,686 | | | | 4.73 | | | | 125,408 | | | | 1,506 | | | | 4.80 | |
| Consumer loans (3) | | | 3,517 | | | | 49 | | | | 5.57 | | | | 3,487 | | | | 43 | | | | 4.93 | |
| Total interest-earning assets | | | 2,377,626 | | | | 29,352 | | | | 4.94 | | | | 2,307,983 | | | | 29,418 | | | | 5.10 | |
| Allowance for loan losses | | | (16,325 | ) | | | | | | | | | | | (15,849 | ) | | | | | | | | |
| Total earning assets less allowance | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 2,361,301 | | | | | | | | | | | | 2,292,134 | | | | | | | | | |
| Non-interest-earning assets | | | 222,869 | | | | | | | | | | | | 205,784 | | | | | | | | | |
| Total assets | | $ | 2,584,170 | | | | | | | | | | | $ | 2,497,918 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | $ | 435,559 | | | | 1,403 | | | | 1.29 | | | $ | 418,564 | | | | 1,215 | | | | 1.16 | |
| Money market accounts | | | 769,254 | | | | 2,563 | | | | 1.33 | | | | 693,127 | | | | 2,377 | | | | 1.37 | |
| Term certificates | | | 546,500 | | | | 2,206 | | | | 1.61 | | | | 570,550 | | | | 2,448 | | | | 1.72 | |
| Total deposits | | | 1,751,313 | | | | 6,172 | | | | 1.41 | | | | 1,682,241 | | | | 6,040 | | | | 1.44 | |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 40,102 | | | | 41 | | | | 0.41 | | | | 41,308 | | | | 43 | | | | 0.42 | |
| Long-term debt | | | 207,606 | | | | 1,809 | | | | 3.49 | | | | 209,849 | | | | 1,813 | | | | 3.46 | |
| Subordinated debt | | | 30,481 | | | | 568 | | | | 7.45 | | | | 29,965 | | | | 384 | | | | 5.13 | |
| Total interest-bearing liabilities | | | 2,029,502 | | | | 8,590 | | | | 1.69 | | | | 1,963,363 | | | | 8,280 | | | | 1.69 | |
| Non-interest-bearing deposits | | | 242,240 | | | | | | | | | | | | 223,340 | | | | | | | | | |
| Other non-interest-bearing liabilities | | | 20,258 | | | | | | | | | | | | 20,085 | | | | | | | | | |
| Total non-interest-bearing liabilities | | | 262,498 | | | | | | | | | | | | 243,425 | | | | | | | | | |
| Total liabilities | | | 2,292,000 | | | | | | | | | | | | 2,206,788 | | | | | | | | | |
| Stockholders' equity | | | 292,170 | | | | | | | | | | | | 291,130 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,584,170 | | | | | | | | | | | $ | 2,497,918 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 20,762 | | | | | | | | | | | $ | 21,138 | | | | | |
| Net interest rate spread (4) | | | | | | | | | | | 3.25 | % | | | | | | | | | | | 3.41 | % |
| Net interest-earning assets (5) | | $ | 348,124 | | | | | | | | | | | $ | 344,620 | | | | | | | | | |
| Net interest margin (6) | | | | | | | | | | | 3.49 | % | | | | | | | | | | | 3.66 | % |
| Ratio of interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| to total interest-bearing liabilities | | | 1.17 | x | | | | | | | | | | | 1.18 | x | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Yields are annualized. | | | | | | | | | | | | | | | | | | | | | | | | |
(2) Average balances are presented at average amortized cost. | | | | | | | | | | | | | | | | | |
(3) Average loans include non-accrual loans and are net of average deferred loan fees/costs. | | | | | | | | | |
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | |
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | | | | | | | | |
(6) Net interest margin represents net interest income divided by average total interest-earning assets. | | | | | | | | | |
SELECTED FINANCIAL RATIOS AND OTHER DATA
(Unaudited)
| | | | | | | | | | | | | | | At or For | |
| | | At or For the | | | At or For the | | | the Three | |
| | | Three Months Ended | | | Nine Months Ended | | | Months Ended | |
| | | September 30, | | | September 30, | | | June 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Return on assets (ratio of income to average total assets) (1) | | | 0.64 | % | | | 0.25 | % | | | 0.71 | % | | | 0.20 | % | | | 0.79 | % |
| Return on equity (ratio of income to average equity) (1) | | | 5.68 | % | | | 2.10 | % | | | 6.13 | % | | | 1.59 | % | | | 6.79 | % |
| Net interest rate spread (1) (2) | | | 3.25 | % | | | 2.85 | % | | | 3.31 | % | | | 2.72 | % | | | 3.41 | % |
| Net interest margin (1) (3) | | | 3.49 | % | | | 3.23 | % | | | 3.57 | % | | | 3.14 | % | | | 3.66 | % |
| Efficiency ratio (4) | | | 72.11 | % | | | 82.30 | % | | | 70.13 | % | | | 85.47 | % | | | 66.34 | % |
| Non-interest expenses to average total assets (1) | | | 2.72 | % | | | 2.83 | % | | | 2.78 | % | | | 2.88 | % | | | 2.77 | % |
| Average interest-earning assets to interest-bearing liabilities | | | 1.17 | x | | | 1.19 | x | | | 1.18 | x | | | 1.20 | x | | | 1.18 | x |
| | | | | | | | | | | | | | | | | | | | | |
| Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-performing assets to total assets | | | 0.73 | % | | | 0.73 | % | | | 0.73 | % | | | 0.73 | % | | | 0.81 | % |
| Non-performing loans to total loans | | | 1.05 | % | | | 0.96 | % | | | 1.05 | % | | | 0.96 | % | | | 1.17 | % |
| Allowance for loan losses to non-performing loans | | | 89.87 | % | | | 115.72 | % | | | 89.87 | % | | | 115.72 | % | | | 83.76 | % |
| Allowance for loan losses to total loans | | | 0.94 | % | | | 1.11 | % | | | 0.94 | % | | | 1.11 | % | | | 0.98 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Risk-based capital (to risk-weighted assets) | | | 15.83 | % | | | 18.72 | % | | | 15.83 | % | | | 18.72 | % | | | 16.70 | % |
| Tier 1 risk-based capital (to risk-weighted assets) | | | 14.95 | % | | | 17.70 | % | | | 14.95 | % | | | 17.70 | % | | | 15.79 | % |
| Tier 1 leverage capital (to average assets) | | | 11.03 | % | | | 13.14 | % | | | 11.03 | % | | | 13.14 | % | | | 11.42 | % |
| Stockholders' equity to total assets | | | 11.16 | % | | | 11.95 | % | | | 11.16 | % | | | 11.95 | % | | | 11.63 | % |
| Average stockholders' equity to average assets | | | 11.31 | % | | | 12.02 | % | | | 11.56 | % | | | 12.07 | % | | | 11.65 | % |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Ratios are annualized. | |
(2) The net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | |
| (3) The net interest margin represents net interest income as a percent of average interest-earning assets. | | | | | | | | | |
| (4) The efficiency ratio represents non-interest expense for the period minus expenses related to the amortization of intangible assets divided by the | |
| sum of net interest income (before the loan loss provision) plus non-interest income. | |
