FOR IMMEDIATE RELEASE
| Date: | | January 27, 2011 | | |
| | | | | |
| 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 Months and Year Ended December 31, 2010
DANVERS, MASSACHUSETTS (January 27, 2011): Danvers Bancorp, Inc. (the “Company”) (NASDAQ: DNBK), the holding company for Danversbank, today reported net income of $4.9 million for the quarter ended December 31, 2010 compared to $2.6 million for the same quarter in 2009. For the year ended December 31, 2010, net income was $18.2 million compared to $5.3 million for the same period in 2009. 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 and benefits expense, occupancy, other operating expenses and provision for income taxes. Most notably, net interest income for the quarter and year ended December 31, 2010 improved by $3.4 million, or 17.9%, and $26.5 million, or 44.9%, respectively, when compared to the same periods in 2009.
Compared to the quarter ended September 30, 2010, net income increased by $703,000, or 16.9%. An increase in net interest income and non-interest income were somewhat offset by increases in the provision for loan losses, non-interest expense and income taxes between the comparable periods.
Proposed Merger
On January 20, 2011, the Company announced that it had entered into an Agreement and Plan of Merger (the “Merger Agreement”) with People’s United Financial, Inc. (“People’s United”), a Delaware corporation. Pursuant to the Merger Agreement, People’s United will acquire the Company in a 55% stock and 45% cash merger transaction valued at approximately $493 million, based on the 10-day average closing price of People’s United’s common stock for the period ended January 19, 2011.
The Merger Agreement provides that the Company will be merged with and into People’s United (the “Merger”), with People’s United continuing as the surviving corporation. Simultaneously with the effective time of the Merger, the Company’s subsidiary bank, Danversbank, will be merged with and into People’s United subsidiary bank, People’s United Bank, with People’s United Bank continuing as the surviving entity. The Company anticipates that the Merger will close in the second quarter of 2011, subject to customary closing conditions and receipt of regulatory approvals.
Under the terms and conditions of the Merger Agreement, the Company’s stockholders have the right to elect to receive (i) $23.00 in cash or (ii) 1.624 shares of People’s United common stock for each share of Company common stock, subject to customary pro ration provisions, whereby 55% of Company shares are exchanged for stock and 45% for cash.
“I’m confident that this transaction will benefit Danvers Bancorp shareholders, customers and employees,” said Kevin T. Bottomley, Chairman, President and Chief Executive Officer of Danvers Bancorp. “People’s United brings substantial resources for increased lending, additional products and services and opportunities for professional development for our employees. When coupled with our highly experienced lending staff and extensive eastern
Massachusetts branch network, the combined organization will be well positioned to compete with the biggest players in the Greater Boston area.”
Selected 2010 fourth quarter and annual financial highlights include:
| | · | Non-performing assets to total assets of 0.52% compared to 0.77% for Q4 ‘09 and 0.73% for Q3 ‘10; |
| | · | Net interest margin of 3.53% compared to 3.57% for Q4 ‘09 and 3.49% for Q3 ‘10; |
| | · | Net interest income increased 17.9% compared to Q4 ‘09 and 9.1% compared to Q3 ‘10; |
| | · | Non-interest income increased 59.2% compared to Q4 ‘09 and 37.2% compared to Q3 ‘10; |
| | · | 7% loan growth in 2010; and |
| | · | 19% deposit growth in 2010. |
“Deposit growth was strong throughout 2010. Loan growth clearly picked up over the last six months of the year. In combination with our net interest margin, the Company’s results for the full year were extremely encouraging,” noted Mr. Bottomley.
Earnings per share basic and diluted for the fourth quarter of 2010 and 2009 were $0.25 and $0.14, respectively. Earnings per share basic and diluted for the quarter ended September 30, 2010 was $0.21. Earnings per share basic and diluted for the years ended December 31, 2010 and 2009 were $0.91 and $0.31, respectively.
Dividend Declared
The Board of Directors of the Company has declared a cash dividend on its common stock of $0.04 per share. The dividend will be paid on or after February 25, 2011 to shareholders of record as of February 11, 2011.
2010 Earnings Summary
The Company’s net interest income increased $3.4 million, or 17.9%, during the fourth quarter of 2010 compared to the same period in 2009. For the years ended December 31, 2010 and 2009, net interest income increased $26.5 million, or 44.9%. 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 29 basis points from 3.27% for the year ended December 31, 2009 to 3.56% for the year ended December 31, 2010 mainly due to a 69 basis point decline in overall funding costs.
The Company’s fourth quarter net interest income increased $1.9 million, or 9.1%, compared to the third quarter of 2010 mainly due to the decrease in the cost of interest-bearing liabilities. We experienced an 8 basis point decrease in the yield on earning assets, while the cost of interest-bearing liabilities decreased by 12 basis points. As a result, the Company’s NIM increased from 3.49% to 3.53% between the third and fourth quarters of 2010.
“Deposit funding is abundant at the moment and these balances can be acquired at a reasonable cost. The competition for new loan originations however, especially from some of the larger institutions, remains extremely challenging. We expect that the pressure on loan pricing could impact our net interest margin as we transition into 2011,” mentioned Mr. Bottomley.
Non-interest income for the fourth quarter of 2010 totaled $3.8 million, an increase of $1.4 million, or 59.2%, compared to the fourth quarter of 2009. The improvement was primarily due to an increase of $166,000 in net gain on sales of loans, $110,000 in trust services fees, $82,000 in additional deposit account service fees and a $1.1 million increase in the other operating income that was primarily related to a gain in one of the Company’s limited partnership investments. For the year ended December 31, 2010, non-interest income increased $5.8 million, or 76.2%, compared to the same period in 2009. Net gain on sales of securities, trust services fees and service charges on deposits were the largest contributors to the increase.
Non-interest income for the fourth quarter of 2010 increased $1.0 million, or 37.2%, compared to the third quarter of 2010. This increase was primarily due to a $910,000 gain on one limited partnership investment. 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 $740,000, or 4.2%, between the quarters ended December 31, 2010 and 2009, respectively, due primarily to increases in salaries and employee benefits and occupancy 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. For the year ended December 31, 2010, non-interest expense increased $14.6 million, or 26.2%, from the comparable period in 2009. Salaries and benefits, occupancy and general other operating expense, related to operating the larger combined franchise, were the primary reasons for the increase in non-interest expense.
Non-interest expense increased by $677,000, or 3.9%, for the fourth quarter of 2010 compared to the third quarter of 2010. Increases in salaries and benefits and advertising expense were the primary reasons 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 twelve month periods in 2009. As of December 31, 2010, the Company’s effective tax rate was 20.9%.
Balance Sheet Summary
Total assets increased by $353.6 million, or 14.1%, during the year ended December 31, 2010. Net loans (including loans held for sale) increased $114.3 million, or 6.9%, securities, in aggregate, increased by $273.6 million, or 45.4%, and cash and cash equivalents decreased $41.5 million, or 57.8%, during the year. On the liability side, deposit balances increased by $334.2 million, or 18.9%, for the year ended December 31, 2010. After experiencing very strong loan, deposit and overall balance sheet growth in 2008 and 2009, the Company’s growth pattern for the year ended December 31, 2010 has been more modest. While the Company has experienced a constant inflow of deposits during the year, it was only during the third and fourth quarters that the Company’s loan balances and origin ation 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 December 31, 2010. Non-performing assets (“NPAs”) totaled $14.8 million at December 31, 2010 compared to $19.2 million at September 30, 2010 and December 31, 2009. NPAs as a percentage of total assets decreased to 52 basis points at the end of the current quarter. This compares to NPA metrics of 73 basis points and 77 basis points for the quarters ended September 30, 2010 and December 31, 2009, respectively. At December 31, 2010, total NPAs consisted of $13.0 million in loans considered impaired and on non-accrual, $927,000 in performing troubled debt restructures and $832,000 in other real estate owned (“OREO”). Despite the improvement during the fourth quarter of 20 10, the number of problem credits being resolved has been offset by an equal number of new problem credits from quarter to quarter. At December 31, 2010, the OREO balance consists of two properties.
Notwithstanding 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 fourth quarter provision for loan losses for both 2010 and 2009 was $1.8 million and $900,000 for the third 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 $3.2 million, or 21.8%, for the year and represents 1.00% of total loans at December 31, 2010. Net charge-offs for the quarter and year ended December 31, 2010 were $360,000 and $1.9 million, respectively. By comparison, net charge-offs were $929,000 and $2.5 million for the comparable periods in 20 09. The allowance represents 128.5% of non-performing loans at December 31, 2010 compared to 82.5% at December 31, 2009.
Deposits increased by $334.2 million, or 18.9%, to $2.1 billion at December 31, 2010 compared to $1.8 billion at December 31, 2009. During the year, the Company experienced increases in all but one deposit category. 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 $128.1 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 raisi ng core deposit balances.
Short-term Federal Home Loan Bank (“FHLB”) advances, repurchase agreements and Federal Reserve Board (“FRB”) short-term advances increased by $48.0 million, or 40.0%, decreased by $7.5 million, or 14.2% and increased $1.0 million, or 100%, respectively, at December 31, 2010 compared to December 31, 2009. Management has selectively replaced some 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 $196.8 million in various FHLB term advances outstanding and an additional $214.3 million in short-term borrowings at December 31, 2010. The Company’s short-term borrowings consist of short-term FHLB advances, overnight customer repurchase agreem ents and FRB short-term advances. From a funding and liquidity perspective, the Company has ready 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 $2.9 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 Annual Report on Form 10-K, filed 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)
| | | | | | | |
| | | December 31, | |
| | | 2010 | | | 2009 | |
| | | (In thousands) | |
| ASSETS | |
| Cash and cash equivalents | | $ | 30,282 | | | $ | 71,757 | |
| Certificates of deposit | | | - | | | | 10,679 | |
| Securities available for sale, at fair value | | | 723,610 | | | | 481,100 | |
| Securities held to maturity, at cost | | | 152,731 | | | | 110,932 | |
| Loans held for sale | | | 2,881 | | | | 1,948 | |
| Loans | | | 1,782,741 | | | | 1,666,164 | |
| Less allowance for loan losses | | | (17,900 | ) | | | (14,699 | ) |
| Loans, net | | | 1,764,841 | | | | 1,651,465 | |
| | | | | | | | | |
| Restricted stock, at cost | | | 18,172 | | | | 18,726 | |
| Premises and equipment, net | | | 39,793 | | | | 36,764 | |
| Bank-owned life insurance | | | 34,250 | | | | 32,900 | |
| Other real estate owned | | | 832 | | | | 1,427 | |
| Accrued interest receivable | | | 9,845 | | | | 9,998 | |
| Deferred tax asset, net | | | 15,675 | | | | 9,619 | |
| Goodwill and intangible assets | | | 33,119 | | | | 35,094 | |
| Prepaid FDIC assessment | | | 6,215 | | | | 8,515 | |
| Prepaid taxes | | | 393 | | | | 6,348 | |
| Other assets | | | 20,706 | | | | 12,477 | |
| | | $ | 2,853,345 | | | $ | 2,499,749 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| Deposits: | | | | | | | | |
| Demand deposits | | $ | 246,973 | | | $ | 224,776 | |
| Savings and NOW accounts | | | 449,036 | | | | 376,975 | |
| Money market accounts | | | 837,647 | | | | 621,683 | |
| Term certificates over $100,000 | | | 344,165 | | | | 314,097 | |
| Other term certificates | | | 222,205 | | | | 228,272 | |
| Total deposits | | | 2,100,026 | | | | 1,765,803 | |
| Short-term borrowings | | | 214,330 | | | | 172,829 | |
| Long-term debt | | | 196,778 | | | | 218,475 | |
| Subordinated debt | | | 29,965 | | | | 29,965 | |
| Accrued expenses and other liabilities | | | 26,972 | | | | 27,011 | |
| Total liabilities | | | 2,568,071 | | | | 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 | | | 239,163 | | | | 237,577 | |
| Retained earnings | | | 88,067 | | | | 71,864 | |
| Accumulated other comprehensive income (loss) | | | (2,102 | ) | | | 3,650 | |
| Unearned restricted shares - 530,558 and 639,807 shares at December 31, 2010 | | | | | | | | |
| and 2009, respectively | | | (5,331 | ) | | | (6,793 | ) |
| Unearned compensation - ESOP; 1,213,290 and 1,284,660 shares at | | | | | | | | |
| December 31, 2010 and 2009, respectively | | | (12,133 | ) | | | (12,846 | ) |
| Treasury stock, at cost; 1,592,382 and 610,593 shares at December 31, 2010 | | | | | | | | |
| and 2009, respectively | | | (22,613 | ) | | | (8,009 | ) |
| Total stockholders' equity | | | 285,274 | | | | 285,666 | |
| | | $ | 2,853,345 | | | $ | 2,499,749 | |
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | Three Months Ended | | | Years Ended | |
| | | December 31, | | | December 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | (Dollars in thousands, except per share amounts) | |
| Interest and dividend income: | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 25,162 | | | $ | 21,650 | | | $ | 96,320 | | | $ | 71,417 | |
| Interest on debt securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 5,500 | | | | 5,842 | | | | 21,297 | | | | 21,622 | |
| Non-taxable | | | 498 | | | | 248 | | | | 1,255 | | | | 906 | |
| Dividends on equity securities | | | - | | | | 5 | | | | 12 | | | | 6 | |
| Interest on cash equivalents and certificates of deposit | | | 20 | | | | 114 | | | | 125 | | | | 406 | |
| Total interest and dividend income | | | 31,180 | | | | 27,859 | | | | 119,009 | | | | 94,357 | |
| | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Interest on deposits: | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | | 1,268 | | | | 875 | | | | 4,939 | | | | 2,717 | |
| Money market accounts | | | 2,433 | | | | 2,479 | | | | 9,628 | | | | 11,190 | |
| Term certificates | | | 2,510 | | | | 2,822 | | | | 9,761 | | | | 11,922 | |
| Interest on short-term borrowings | | | 64 | | | | 103 | | | | 244 | | | | 372 | |
| Interest on long-term debt and subordinated debt | | | 2,256 | | | | 2,366 | | | | 9,107 | | | | 9,282 | |
| Total interest expense | | | 8,531 | | | | 8,645 | | | | 33,679 | | | | 35,483 | |
| Net interest income | | | 22,649 | | | | 19,214 | | | | 85,330 | | | | 58,874 | |
| Provision for loan losses | | | 1,750 | | | | 1,750 | | | | 5,150 | | | | 5,110 | |
| Net interest income, after provision for loan losses | | | 20,899 | | | | 17,464 | | | | 80,180 | | | | 53,764 | |
| | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | |
| Service charges on deposits | | | 1,136 | | | | 1,054 | | | | 4,572 | | | | 3,557 | |
| Loan servicing fees | | | 35 | | | | 60 | | | | 195 | | | | 123 | |
| Net gain on sales of loans | | | 220 | | | | 54 | | | | 929 | | | | 826 | |
| Net gain on sales of securities, net of impairment write-down | | | - | | | | 2 | | | | 2,109 | | | | 6 | |
| Loss on impairment of available for sale securities | | | - | | | | - | | | | (779 | ) | | | - | |
| Gain (loss) on limited partnerships | | | 717 | | | | (3 | ) | | | 57 | | | | (99 | ) |
| Increase in cash surrender value of bank-owned life insurance | | | 346 | | | | 331 | | | | 1,350 | | | | 884 | |
| Trust services | | | 373 | | | | 263 | | | | 1,571 | | | | 263 | |
| Other operating income | | | 1,010 | | | | 649 | | | | 3,365 | | | | 2,029 | |
| Total non-interest income | | | 3,837 | | | | 2,410 | | | | 13,369 | | | | 7,589 | |
| | | | | | | | | | | | | | | | | |
| Non-interest expenses: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 10,020 | | | | 8,683 | | | | 39,012 | | | | 30,301 | |
| Occupancy | | | 2,073 | | | | 1,706 | | | | 8,077 | | | | 5,960 | |
| Equipment | | | 1,071 | | | | 1,195 | | | | 4,180 | | | | 3,659 | |
| Outside services | | | 575 | | | | 929 | | | | 2,121 | | | | 2,069 | |
| Other real estate owned expense | | | 176 | | | | 393 | | | | 827 | | | | 819 | |
| Deposit insurance expense | | | 706 | | | | 692 | | | | 2,670 | | | | 2,807 | |
| Advertising expense | | | 416 | | | | 491 | | | | 1,272 | | | | 1,088 | |
| Other operating expense | | | 3,183 | | | | 3,391 | | | | 12,371 | | | | 9,192 | |
| Total non-interest expenses | | | 18,220 | | | | 17,480 | | | | 70,530 | | | | 55,895 | |
| Income before income taxes | | | 6,516 | | | | 2,394 | | | | 23,019 | | | | 5,458 | |
| Provision (benefit) for income taxes | | | 1,661 | | | | (234 | ) | | | 4,818 | | | | 149 | |
| Net income | | $ | 4,855 | | | $ | 2,628 | | | $ | 18,201 | | | $ | 5,309 | |
| | | | | | | | | | | | | | | | | |
| Weighted-average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 19,612,520 | | | | 18,488,838 | | | | 20,048,042 | | | | 16,980,117 | |
| Diluted | | | 19,676,484 | | | | 18,600,778 | | | | 20,067,767 | | | | 16,980,117 | |
| | | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.25 | | | $ | 0.14 | | | $ | 0.91 | | | $ | 0.31 | |
| Diluted | | $ | 0.25 | | | $ | 0.14 | | | $ | 0.91 | | | $ | 0.31 | |
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | Three Months Ended | |
| | | December 31, | | | September 30, | |
| | | 2010 | | | 2010 | |
| | | (Dollars in thousands, | |
| | | except per share amounts) | |
| Interest and dividend income: | | | | | | |
| Interest and fees on loans | | $ | 25,162 | | | $ | 23,563 | |
| Interest on debt securities: | | | | | | | | |
| Taxable | | | 5,500 | | | | 5,441 | |
| Non-taxable | | | 498 | | | | 310 | |
| Dividends on equity securities | | | - | | | | 8 | |
| Interest on cash equivalents and certificates of deposit | | | 20 | | | | 30 | |
| Total interest and dividend income | | | 31,180 | | | | 29,352 | |
| | | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits: | | | | | | | | |
| Savings and NOW accounts | | | 1,268 | | | | 1,403 | |
| Money market accounts | | | 2,433 | | | | 2,563 | |
| Term certificates | | | 2,510 | | | | 2,206 | |
| Interest on short-term borrowings | | | 64 | | | | 41 | |
| Interest on long-term debt and subordinated debt | | | 2,256 | | | | 2,377 | |
| Total interest expense | | | 8,531 | | | | 8,590 | |
| Net interest income | | | 22,649 | | | | 20,762 | |
| Provision for loan losses | | | 1,750 | | | | 900 | |
| Net interest income, after provision for loan losses | | | 20,899 | | | | 19,862 | |
| | | | | | | | | |
| Non-interest income: | | | | | | | | |
| Service charges on deposits | | | 1,136 | | | | 1,129 | |
| Loan servicing fees | | | 35 | | | | 34 | |
| Net gain on sales of loans | | | 220 | | | | 466 | |
| Net gain on sales of securities, net of impairment write-down | | | - | | | | 67 | |
| Gain (loss) on limited partnerships | | | 717 | | | | (462 | ) |
| Increase in cash surrender value of bank-owned life insurance | | | 346 | | | | 346 | |
| Trust services | | | 373 | | | | 362 | |
| Other operating income | | | 1,010 | | | | 854 | |
| Total non-interest income | | | 3,837 | | | | 2,796 | |
| | | | | | | | | |
| Non-interest expenses: | | | | | | | | |
| Salaries and employee benefits | | | 10,020 | | | | 9,787 | |
| Occupancy | | | 2,073 | | | | 1,936 | |
| Equipment | | | 1,071 | | | | 1,055 | |
| Outside services | | | 575 | | | | 474 | |
| Other real estate owned expense | | | 176 | | | | 276 | |
| Deposit insurance expense | | | 706 | | | | 683 | |
| Advertising expense | | | 416 | | | | 214 | |
| Other operating expense | | | 3,183 | | | | 3,118 | |
| Total non-interest expenses | | | 18,220 | | | | 17,543 | |
| Income before income taxes | | | 6,516 | | | | 5,115 | |
| Provision for income taxes | | | 1,661 | | | | 963 | |
| Net income | | $ | 4,855 | | | $ | 4,152 | |
| | | | | | | | | |
| Weighted-average shares outstanding: | | | | | | | | |
| Basic | | | 19,612,520 | | | | 19,871,405 | |
| Diluted | | | 19,676,484 | | | | 19,902,305 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic | | $ | 0.25 | | | $ | 0.21 | |
| Diluted | | $ | 0.25 | | | $ | 0.21 | |
NET INTEREST INCOME ANALYSIS
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | |
| | | 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 | | $ | 40,567 | | | $ | 20 | | | | 0.20 | % | | $ | 64,866 | | | $ | 114 | | | | 0.70 | % |
| Debt securities: (2) | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government | | | - | | | | - | | | | - | | | | 10,326 | | | | 5 | | | | 0.19 | |
| Gov't-sponsored enterprises | | | 375,638 | | | | 2,869 | | | | 3.06 | | | | 235,645 | | | | 2,421 | | | | 4.11 | |
| Mortgage-backed | | | 298,353 | | | | 2,629 | | | | 3.52 | | | | 284,050 | | | | 3,104 | | | | 4.37 | |
| Municipal bonds | | | 47,130 | | | | 498 | | | | 4.23 | | | | 24,223 | | | | 248 | | | | 4.10 | |
| Other | | | 1,062 | | | | 2 | | | | 0.75 | | | | 10,774 | | | | 312 | | | | 11.58 | |
| Restricted stock | | | 18,172 | | | | - | | | | - | | | | 17,579 | | | | 5 | | | | 0.11 | |
| Real estate mortgages (3) | | | 913,745 | | | | 12,828 | | | | 5.62 | | | | 865,970 | | | | 12,346 | | | | 5.70 | |
| C&I loans (3) | | | 696,436 | | | | 10,426 | | | | 5.99 | | | | 510,371 | | | | 7,760 | | | | 6.08 | |
| IRBs (3) | | | 169,379 | | | | 1,867 | | | | 4.41 | | | | 121,196 | | | | 1,453 | | | | 4.80 | |
| Consumer loans (3) | | | 3,305 | | | | 41 | | | | 4.96 | | | | 5,316 | | | | 91 | | | | 6.85 | |
| Total interest-earning assets | | | 2,563,787 | | | | 31,180 | | | | 4.86 | | | | 2,150,316 | | | | 27,859 | | | | 5.18 | |
| Allowance for loan losses | | | (16,845 | ) | | | | | | | | | | | (14,003 | ) | | | | | | | | |
| Total earning assets less allowance | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 2,546,942 | | | | | | | | | | | | 2,136,313 | | | | | | | | | |
| Non-interest-earning assets | | | 193,772 | | | | | | | | | | | | 132,633 | | | | | | | | | |
| Total assets | | $ | 2,740,714 | | | | | | | | | | | $ | 2,268,946 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | $ | 450,830 | | | | 1,268 | | | | 1.13 | | | $ | 318,748 | | | | 875 | | | | 1.10 | |
| Money market accounts | | | 850,142 | | | | 2,433 | | | | 1.14 | | | | 623,484 | | | | 2,479 | | | | 1.59 | |
| Term certificates | | | 557,471 | | | | 2,510 | | | | 1.80 | | | | 510,741 | | | | 2,822 | | | | 2.21 | |
| Total deposits | | | 1,858,443 | | | | 6,211 | | | | 1.34 | | | | 1,452,973 | | | | 6,176 | | | | 1.70 | |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 74,564 | | | | 64 | | | | 0.34 | | | | 121,451 | | | | 103 | | | | 0.34 | |
| Long-term debt | | | 204,103 | | | | 1,789 | | | | 3.51 | | | | 198,440 | | | | 1,900 | | | | 3.83 | |
| Subordinated debt | | | 30,073 | | | | 467 | | | | 6.21 | | | | 29,965 | | | | 466 | | | | 6.22 | |
| Total interest-bearing liabilities | | | 2,167,183 | | | | 8,531 | | | | 1.57 | | | | 1,802,829 | | | | 8,645 | | | | 1.92 | |
| Non-interest-bearing deposits | | | 260,241 | | | | | | | | | | | | 195,679 | | | | | | | | | |
| Other non-interest-bearing liabilities | | | 22,781 | | | | | | | | | | | | 22,986 | | | | | | | | | |
| Total non-interest-bearing liabilities | | | 283,022 | | | | | | | | | | | | 218,665 | | | | | | | | | |
| Total liabilities | | | 2,450,205 | | | | | | | | | | | | 2,021,494 | | | | | | | | | |
| Stockholders' equity | | | 290,509 | | | | | | | | | | | | 247,452 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,740,714 | | | | | | | | | | | $ | 2,268,946 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 22,649 | | | | | | | | | | | $ | 19,214 | | | | | |
| Net interest rate spread (4) | | | | | | | | | | | 3.29 | % | | | | | | | | | | | 3.26 | % |
| Net interest-earning assets (5) | | $ | 396,604 | | | | | | | | | | | $ | 347,487 | | | | | | | | | |
| Net interest margin (6) | | | | | | | | | | | 3.53 | % | | | | | | | | | | | 3.57 | % |
| Ratio of interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| to total interest-bearing liabilities | | | 1.18 | 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)
| | | | | | | | | | | | | | | | | | | |
| | | Years Ended December 31, | |
| | | 2010 | | | 2009 | |
| | | Average | | | Interest | | | Average | | | Average | | | Interest | | | Average | |
| | | Outstanding | | | Earned/ | | | Yield/ | | | Outstanding | | | Earned/ | | | Yield/ | |
| | | Balance | | | Paid | | | Rate | | | Balance | | | Paid | | | Rate | |
| | | (Dollars in thousands) | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning cash equivalents and | | | | | | | | | | | | | | | | | | |
| certificates of deposit | | $ | 57,164 | | | $ | 125 | | | | 0.22 | % | | $ | 48,946 | | | $ | 406 | | | | 0.83 | % |
| Debt securities: (1) | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government | | | 4,712 | | | | 8 | | | | 0.17 | | | | 3,091 | | | | 18 | | | | 0.58 | |
| Gov't-sponsored enterprises | | | 293,546 | | | | 9,759 | | | | 3.32 | | | | 202,486 | | | | 9,412 | | | | 4.65 | |
| Mortgage-backed | | | 289,031 | | | | 10,761 | | | | 3.72 | | | | 252,042 | | | | 11,678 | | | | 4.63 | |
| Municipal bonds | | | 32,832 | | | | 1,255 | | | | 3.82 | | | | 22,248 | | | | 906 | | | | 4.07 | |
| Other | | | 7,743 | | | | 769 | | | | 9.93 | | | | 4,710 | | | | 514 | | | | 10.91 | |
| Restricted stock | | | 18,752 | | | | 12 | | | | 0.06 | | | | 14,791 | | | | 6 | | | | 0.04 | |
| Real estate mortgages (2) | | | 917,957 | | | | 52,517 | | | | 5.72 | | | | 694,412 | | | | 39,330 | | | | 5.66 | |
| C&I loans (2) | | | 629,905 | | | | 37,087 | | | | 5.89 | | | | 461,910 | | | | 27,331 | | | | 5.92 | |
| IRBs (2) | | | 140,646 | | | | 6,527 | | | | 4.64 | | | | 91,618 | | | | 4,383 | | | | 4.78 | |
| Consumer loans (2) | | | 3,434 | | | | 189 | | | | 5.50 | | | | 4,685 | | | | 373 | | | | 7.96 | |
| Total interest-earning assets | | | 2,395,722 | | | | 119,009 | | | | 4.97 | | | | 1,800,939 | | | | 94,357 | | | | 5.24 | |
| Allowance for loan losses | | | (16,031 | ) | | | | | | | | | | | (12,972 | ) | | | | | | | | |
| Total earning assets less allowance | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 2,379,691 | | | | | | | | | | | | 1,787,967 | | | | | | | | | |
| Non-interest-earning assets | | | 193,141 | | | | | | | | | | | | 109,488 | | | | | | | | | |
| Total assets | | $ | 2,572,832 | | | | | | | | | | | $ | 1,897,455 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | $ | 425,554 | | | | 4,939 | | | | 1.16 | | | $ | 230,857 | | | | 2,717 | | | | 1.18 | |
| Money market accounts | | | 741,898 | | | | 9,628 | | | | 1.30 | | | | 534,321 | | | | 11,190 | | | | 2.09 | |
| Term certificates | | | 558,238 | | | | 9,761 | | | | 1.75 | | | | 442,476 | | | | 11,922 | | | | 2.69 | |
| Total deposits | | | 1,725,690 | | | | 24,328 | | | | 1.41 | | | | 1,207,654 | | | | 25,829 | | | | 2.14 | |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 60,621 | | | | 244 | | | | 0.40 | | | | 98,152 | | | | 372 | | | | 0.38 | |
| Long-term debt | | | 209,597 | | | | 7,246 | | | | 3.46 | | | | 171,401 | | | | 7,317 | | | | 4.27 | |
| Subordinated debt | | | 29,965 | | | | 1,861 | | | | 6.21 | | | | 29,965 | | | | 1,965 | | | | 6.56 | |
| Total interest-bearing liabilities | | | 2,025,873 | | | | 33,679 | | | | 1.66 | | | | 1,507,172 | | | | 35,483 | | | | 2.35 | |
| Non-interest-bearing deposits | | | 235,001 | | | | | | | | | | | | 145,025 | | | | | | | | | |
| Other non-interest-bearing liabilities | | | 21,509 | | | | | | | | | | | | 14,359 | | | | | | | | | |
| Total non-interest-bearing liabilities | | | 256,510 | | | | | | | | | | | | 159,384 | | | | | | | | | |
| Total liabilities | | | 2,282,383 | | | | | | | | | | | | 1,666,556 | | | | | | | | | |
| Stockholders' equity | | | 290,449 | | | | | | | | | | | | 230,899 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,572,832 | | | | | | | | | | | $ | 1,897,455 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 85,330 | | | | | | | | | | | $ | 58,874 | | | | | |
| Net interest rate spread (3) | | | | | | | | | | | 3.31 | % | | | | | | | | | | | 2.89 | % |
| Net interest-earning assets (4) | | $ | 369,849 | | | | | | | | | | | $ | 293,767 | | | | | | | | | |
| Net interest margin (5) | | | | | | | | | | | 3.56 | % | | | | | | | | | | | 3.27 | % |
| Ratio of interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| to total interest-bearing liabilities | | | 1.18 | x | | | | | | | | | | | 1.19 | x | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Average balances are presented at average amortized cost. | |
| (2) Average loans include non-accrual loans and are net of average deferred loan fees/costs. | |
| (3) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing | |
| liabilities. | | | | | |
| (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | |
| (5) Net interest margin represents net interest income divided by average total interest-earning assets. | |
NET INTEREST INCOME ANALYSIS
(Unaudited)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December 31, 2010 | | | September 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 | | $ | 40,567 | | | $ | 20 | | | | 0.20 | % | | $ | 45,395 | | | $ | 30 | | | | 0.26 | % |
| Debt securities: (2) | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Government | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Gov't-sponsored enterprises | | | 375,638 | | | | 2,869 | | | | 3.06 | | | | 325,286 | | | | 2,741 | | | | 3.37 | |
| Mortgage-backed | | | 298,353 | | | | 2,629 | | | | 3.52 | | | | 276,293 | | | | 2,540 | | | | 3.68 | |
| Municipal bonds | | | 47,130 | | | | 498 | | | | 4.23 | | | | 32,050 | | | | 310 | | | | 3.87 | |
| Other | | | 1,062 | | | | 2 | | | | 0.75 | | | | 9,326 | | | | 160 | | | | 6.86 | |
| Restricted stock | | | 18,172 | | | | - | | | | - | | | | 23,067 | | | | 8 | | | | 0.14 | |
| Real estate mortgages (3) | | | 913,745 | | | | 12,828 | | | | 5.62 | | | | 880,169 | | | | 12,353 | | | | 5.61 | |
| C&I loans (3) | | | 696,436 | | | | 10,426 | | | | 5.99 | | | | 639,855 | | | | 9,475 | | | | 5.92 | |
| IRBs (3) | | | 169,379 | | | | 1,867 | | | | 4.41 | | | | 142,668 | | | | 1,686 | | | | 4.73 | |
| Consumer loans (3) | | | 3,305 | | | | 41 | | | | 4.96 | | | | 3,517 | | | | 49 | | | | 5.57 | |
| Total interest-earning assets | | | 2,563,787 | | | | 31,180 | | | | 4.86 | | | | 2,377,626 | | | | 29,352 | | | | 4.94 | |
| Allowance for loan losses | | | (16,845 | ) | | | | | | | | | | | (16,325 | ) | | | | | | | | |
| Total earning assets less allowance | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 2,546,942 | | | | | | | | | | | | 2,361,301 | | | | | | | | | |
| Non-interest-earning assets | | | 193,772 | | | | | | | | | | | | 222,869 | | | | | | | | | |
| Total assets | | $ | 2,740,714 | | | | | | | | | | | $ | 2,584,170 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and NOW accounts | | $ | 450,830 | | | | 1,268 | | | | 1.13 | | | $ | 435,559 | | | | 1,403 | | | | 1.29 | |
| Money market accounts | | | 850,142 | | | | 2,433 | | | | 1.14 | | | | 769,254 | | | | 2,563 | | | | 1.33 | |
| Term certificates | | | 557,471 | | | | 2,510 | | | | 1.80 | | | | 546,500 | | | | 2,206 | | | | 1.61 | |
| Total deposits | | | 1,858,443 | | | | 6,211 | | | | 1.34 | | | | 1,751,313 | | | | 6,172 | | | | 1.41 | |
| Borrowed funds: | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 74,564 | | | | 64 | | | | 0.34 | | | | 40,102 | | | | 41 | | | | 0.41 | |
| Long-term debt | | | 204,103 | | | | 1,789 | | | | 3.51 | | | | 207,606 | | | | 1,809 | | | | 3.49 | |
| Subordinated debt | | | 30,073 | | | | 467 | | | | 6.21 | | | | 30,481 | | | | 568 | | | | 7.45 | |
| Total interest-bearing liabilities | | | 2,167,183 | | | | 8,531 | | | | 1.57 | | | | 2,029,502 | | | | 8,590 | | | | 1.69 | |
| Non-interest-bearing deposits | | | 260,241 | | | | | | | | | | | | 242,240 | | | | | | | | | |
| Other non-interest-bearing liabilities | | | 22,781 | | | | | | | | | | | | 20,258 | | | | | | | | | |
| Total non-interest-bearing liabilities | | | 283,022 | | | | | | | | | | | | 262,498 | | | | | | | | | |
| Total liabilities | | | 2,450,205 | | | | | | | | | | | | 2,292,000 | | | | | | | | | |
| Stockholders' equity | | | 290,509 | | | | | | | | | | | | 292,170 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,740,714 | | | | | | | | | | | $ | 2,584,170 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 22,649 | | | | | | | | | | | $ | 20,762 | | | | | |
| Net interest rate spread (4) | | | | | | | | | | | 3.29 | % | | | | | | | | | | | 3.25 | % |
| Net interest-earning assets (5) | | $ | 396,604 | | | | | | | | | | | $ | 348,124 | | | | | | | | | |
| Net interest margin (6) | | | | | | | | | | | 3.53 | % | | | | | | | | | | | 3.49 | % |
| Ratio of interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| to total interest-bearing liabilities | | | 1.18 | x | | | | | | | | | | | 1.17 | 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 | | | Years Ended | | | Months Ended | |
| | | December 31, | | | December 31, | | | September 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Return on assets (ratio of income to average total assets) (1) | | | 0.71 | % | | | 0.46 | % | | | 0.71 | % | | | 0.28 | % | | | 0.64 | % |
| Return on equity (ratio of income to average equity) (1) | | | 6.68 | % | | | 4.25 | % | | | 6.27 | % | | | 2.30 | % | | | 5.68 | % |
| Net interest rate spread (1) (2) | | | 3.29 | % | | | 3.26 | % | | | 3.31 | % | | | 2.89 | % | | | 3.25 | % |
| Net interest margin (1) (3) | | | 3.53 | % | | | 3.57 | % | | | 3.56 | % | | | 3.27 | % | | | 3.49 | % |
| Efficiency ratio (4) | | | 66.83 | % | | | 81.89 | % | | | 69.24 | % | | | 83.39 | % | | | 72.11 | % |
| Non-interest expenses to average total assets (1) | | | 2.66 | % | | | 3.08 | % | | | 2.74 | % | | | 2.95 | % | | | 2.72 | % |
| Average interest-earning assets to interest-bearing liabilities | | | 1.18 | x | | | 1.19 | x | | | 1.18 | x | | | 1.19 | x | | | 1.17 | x |
| | | | | | | | | | | | | | | | | | | | | |
| Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-performing assets to total assets | | | 0.52 | % | | | 0.77 | % | | | 0.52 | % | | | 0.77 | % | | | 0.73 | % |
| Non-performing loans to total loans | | | 0.78 | % | | | 1.01 | % | | | 0.78 | % | | | 1.01 | % | | | 1.05 | % |
| Allowance for loan losses to non-performing loans | | | 128.51 | % | | | 82.49 | % | | | 128.51 | % | | | 82.49 | % | | | 89.87 | % |
| Allowance for loan losses to total loans | | | 1.00 | % | | | 0.88 | % | | | 1.00 | % | | | 0.88 | % | | | 0.94 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Risk-based capital (to risk-weighted assets) | | | 15.40 | % | | | 15.86 | % | | | 15.40 | % | | | 15.86 | % | | | 15.83 | % |
| Tier 1 risk-based capital (to risk-weighted assets) | | | 14.48 | % | | | 15.05 | % | | | 14.48 | % | | | 15.05 | % | | | 14.95 | % |
| Tier 1 leverage capital (to average assets) | | | 10.44 | % | | | 12.25 | % | | | 10.44 | % | | | 12.25 | % | | | 11.03 | % |
| Stockholders' equity to total assets | | | 10.00 | % | | | 11.43 | % | | | 10.00 | % | | | 11.43 | % | | | 11.16 | % |
| Average stockholders' equity to average assets | | | 10.60 | % | | | 10.91 | % | | | 11.29 | % | | | 12.17 | % | | | 11.31 | % |
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| (1) Ratios for the three months ended December 31, 2010 and 2009 and September 30, 2010 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. | |
