For Immediate Release
Date: October 29, 2014
Contact: Roger S. Deacon
Chief Financial Officer
Phone: (215) 775-1435
FOX CHASE BANCORP, INC. ANNOUNCES IMPROVED EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014
(Quarterly Earnings Increase by 55%)
HATBORO, PA. October 29, 2014 – Fox Chase Bancorp, Inc. (the “Company”) (NASDAQ GM: FXCB), the holding company for Fox Chase Bank (the “Bank”), today announced net income of $1.8 million, or $0.16 per diluted share, and $6.1 million, or $0.53 per diluted share, for the three and nine months ended September 30, 2014, respectively, compared to net income of $1.2 million, or $0.10 per diluted share, and $4.0 million, or $0.35 per diluted share, for the three and nine months ended September 30, 2013, respectively.
Commenting on the performance for the quarter, Thomas M. Petro, President and Chief Executive Officer stated, “We are pleased to report continued increases in earnings in 2014, when compared to the same periods in 2013. The improved earnings were driven by continued growth in our commercial loan portfolio, increased net interest income, reduced credit-related costs and disciplined expense management. While we continue to see reductions in nonperforming assets, during the quarter one credit relationship resulted in a $2.0 million charge-off and an increase in our provision for loan losses of $1.5 million, which negatively impacted credit costs. As we look to the fourth quarter of 2014 and into 2015, we see opportunities to grow our commercial loan portfolio somewhat mitigated by challenges related to a lack of regional economic growth, increased competition and the low interest rate environment.”
Highlights for the three and nine months ended September 30, 2014 included:
| ● | Total assets were $1.07 billion at September 30, 2014 compared to $1.12 billion at December 31, 2013. Total loans were $710.2 million at September 30, 2014, a decrease of $14.3 million, or 2.0%, from $724.5 million at June 30, 2014, and a decrease of $10.3 million, or 1.4%, from $720.5 million at December 31, 2013. Total commercial loans decreased $7.1 million, or 1.2%, from $597.0 million at June 30, 2014 to $589.9 million at September 30, 2014 primarily due to decreases of $4.9 million in multi-family and commercial real estate loans and $9.5 million in commercial and industrial loans offset by an increase of $7.3 million in commercial construction loans. Total commercial loans increased $7.6 million, or 1.3%, from $582.3 million at December 31, 2013 to $589.9 million at September 30, 2014 primarily due to increases of $10.1 million in multi-family and commercial real estate loans and $25.4 million in commercial construction loans offset by a decrease of $27.9 million in commercial and industrial loans. |
| ● | Total average assets were $1.09 billion for the nine months ended September 30, 2014 and 2013. Total average commercial loans increased by $54.0 million, or 10.3%, to $577.0 million for the nine months ended September 30, 2014, compared to $523.0 million for the nine months ended September 30, 2013. |
| Total stockholders’ equity was $178.3 million at September 30, 2014, an increase of $4.8 million from $173.5 million at December 31, 2013. The increase was primarily due to an improvement in accumulated other comprehensive loss of $4.0 million. During the nine months ended September 30, 2014, the Company paid dividends totaling $5.6 million, or $0.48 per share, and repurchased 116,600 shares of Company common stock at an aggregate cost of $1.9 million. |
| Nonperforming assets totaled $5.5 million, or 0.51% of total assets, at September 30, 2014 compared to $6.2 million, or 0.56% of total assets, at June 30, 2014 and $15.0 million, or 1.35% of total assets, at December 31, 2013. |
| Return on average assets was 0.67% and 0.74% for the three and nine months ended September 30, 2014, respectively, compared to 0.42% and 0.49% for the three and nine months ended September 30, 2013, respectively. |
| Net interest income increased $1.2 million, or 5.2%, to $25.3 million for the nine months ended September 30, 2014, compared to $24.0 million for the nine months ended September 30, 2013 and increased $286,000, or 3.5%, to $8.5 million for the three months ended September 30, 2014, compared to $8.2 million for the three months ended September 30, 2013. The net interest margin was stable at 3.20% for the three months ended September 30, 2014 and for the three months ended June 30, 2014. This compares to a net interest margin of 3.06% for the three months ended September 30, 2013. |
| Credit related costs, which include (i) provision for loan losses, (ii) valuation adjustments on assets acquired through foreclosure, adjusted by (iii) net gain (loss) on sale of assets acquired through foreclosure, totaled $1.5 million and $2.0 million for the three and nine months ended September 30, 2014, respectively, compared to $1.7 million and $4.4 million, respectively, for the three month and nine months ended September 30, 2013. Net loan charge-offs totaled $2.0 million for both the three and nine months ended September 30, 2014, respectively, compared to $45,000 and $574,000 for the three and nine months ended September 30, 2013. The increase in net loan charge-offs and the level of provision for loan losses was due to a $2.0 million charge-off on one commercial and industrial loan, which defaulted during August 2014 and the remaining balance was paid off in September 2014. |
| The allowance for loan losses was $11.1 million, or 1.54% of total loans at September 30, 2014 compared to $11.6 million, or 1.57% of total loans at June 30, 2014 and $11.5 million or 1.57% of total loans at December 31, 2013. |
| Noninterest income decreased $1.6 million to $1.6 million for the nine months ended September 30, 2014 primarily due to a gain on sale of investment securities of $532,000 in 2013, a decrease of $345,000 in equity in earnings of affiliate due to lower mortgage volumes and a decrease of $620,000 in gain (loss) on sale of an assets acquired through foreclosure due to a gain of $484,000 recorded in 2013 and a loss of $136,000 recorded in 2014. |
| Noninterest expense decreased $4.4 million, or 20.8%, to $16.6 million for the nine months ended September 30, 2014, compared to $21.0 million for the nine months ended September 30, 2013. This decrease was primarily due to a decrease of $4.1 million in assets acquired through foreclosure expense as the Company recorded $282,000 in valuation adjustments on assets acquired through foreclosure during the nine months ended September 30, 2014 compared to $4.3 million for the nine months ended September 30, 2013. |
| Excluding a decrease of $4.0 million in valuation adjustments on assets acquired through foreclosure, noninterest expense decreased $352,000, or 2.1%, to $16.3 million for the nine months ended September 30, 2014 from $16.7 million for the nine months ended September 30, 2013. The efficiency ratio was 56.7% and 60.4% for the three and nine months ended September 30, 2014, respectively, compared to 63.5% and 63.6% for the three and nine months ended September 30, 2013, respectively. |
| Also, during the three months ended September 30, 2014, the Company transferred $96.9 million of mortgage related securities available-for-sale, with an unrealized loss at the time of transfer of $1.6 million, to mortgage related securities held-to-maturity. The transfer was primarily made to minimize the risk of a decline to tangible book value per share in a rising rate environment. The unrealized loss is accreted to equity over the remaining life of the transferred securities. |
The Company also announced that its Board of Directors approved a cash dividend of $0.12 per outstanding share of common stock. The dividend will be paid on or about November 26, 2014 to stockholders of record as of the close of business on November 12, 2014.
Fox Chase Bancorp, Inc. will host a conference call to discuss third quarter 2014 results on Thursday, October 30, 2014 at 9:00 am EDT. The general public can access the call by dialing (877) 507-3275. A replay of the conference call will be available through December 12, 2014 by dialing (877) 344-7529; use Conference ID: 10054309. Participants may preregister at http://dpregister.com/10054309.
Fox Chase Bancorp, Inc. is the stock holding company of Fox Chase Bank. The Bank is a Pennsylvania state-chartered savings bank originally established in 1867. The Bank offers traditional banking services and products from its main office in Hatboro, Pennsylvania and nine branch offices in Bucks, Montgomery, Chester and Philadelphia Counties in Pennsylvania and Atlantic and Cape May Counties in New Jersey. For more information, please visit the Bank’s website at www.foxchasebank.com.
This news release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends, changes in interest rates, loss of deposits and loan demand to other financial institutions, substantial changes in financial markets; changes in real estate value and the real estate market, regulatory changes, possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, the outcome of pending litigation, and market disruptions and other effects of terrorist activities. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the Securities and Exchange Commission.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| | | (Unaudited) | |
| INTEREST INCOME | | | | | | | | | |
| Interest and fees on loans | | $ | 8,375 | | | $ | 8,241 | | | $ | 24,615 | | | $ | 24,319 | |
| Interest on mortgage related securities | | | 1,633 | | | | 1,807 | | | | 5,235 | | | | 5,296 | |
| Interest and dividends on investment securities | | | 144 | | | | 92 | | | | 437 | | | | 221 | |
| Other interest income | | | 1 | | | | 1 | | | | 2 | | | | 2 | |
| Total Interest Income | | | 10,153 | | | | 10,141 | | | | 30,289 | | | | 29,838 | |
| INTEREST EXPENSE | | | | | | | | | | | | | | | | |
| Deposits | | | 760 | | | | 1,055 | | | | 2,455 | | | | 3,373 | |
| Short-term borrowings | | | 45 | | | | 45 | | | | 100 | | | | 94 | |
| Federal Home Loan Bank advances | | | 577 | | | | 555 | | | | 1,723 | | | | 1,606 | |
| Other borrowed funds | | | 253 | | | | 254 | | | | 751 | | | | 753 | |
| Total Interest Expense | | | 1,635 | | | | 1,909 | | | | 5,029 | | | | 5,826 | |
| Net Interest Income | | | 8,518 | | | | 8,232 | | | | 25,260 | | | | 24,012 | |
| Provision for loan losses | | | 1,493 | | | | 675 | | | | 1,593 | | | | 532 | |
| Net Interest Income after Provision for Loan Losses | | | 7,025 | | | | 7,557 | | | | 23,667 | | | | 23,480 | |
| NONINTEREST INCOME | | | | | | | | | | | | | | | | |
| Service charges and other fee income | | | 416 | | | | 437 | | | | 1,192 | | | | 1,260 | |
| Net (loss) gain on sale of assets acquired through foreclosure | | | (15 | ) | | | 303 | | | | (136 | ) | | | 484 | |
| Income on bank-owned life insurance | | | 121 | | | | 118 | | | | 358 | | | | 351 | |
| Equity in earnings of affiliate | | | 91 | | | | 135 | | | | 125 | | | | 470 | |
| Net gain on sale of investment securities | | | -- | | | | -- | | | | -- | | | | 532 | |
| Other | | | 29 | | | | 36 | | | | 76 | | | | 125 | |
| | | | | | | | | | | | | | | | | |
| Total Noninterest Income | | | 642 | | | | 1,029 | | | | 1,615 | | | | 3,222 | |
| NONINTEREST EXPENSE | | | | | | | | | | | | | | | | |
| Salaries, benefits and other compensation | | | 3,510 | | | | 3,644 | | | | 10,670 | | | | 10,629 | |
| Occupancy expense | | | 407 | | | | 403 | | | | 1,321 | | | | 1,243 | |
| Furniture and equipment expense | | | 93 | | | | 117 | | | | 300 | | | | 358 | |
| Data processing costs | | | 384 | | | | 390 | | | | 1,146 | | | | 1,155 | |
| Professional fees | | | 271 | | | | 474 | | | | 1,086 | | | | 1,250 | |
| Marketing expense | | | 54 | | | | 59 | | | | 156 | | | | 167 | |
| FDIC premiums | | | 136 | | | | 175 | | | | 451 | | | | 525 | |
| Assets acquired through foreclosure expense | | | 10 | | | | 1,370 | | | | 403 | | | | 4,465 | |
| Other | | | 333 | | | | 370 | | | | 1,077 | | | | 1,192 | |
| Total Noninterest Expense | | | 5,198 | | | | 7,002 | | | | 16,610 | | | | 20,984 | |
| Income Before Income Taxes | | | 2,469 | | | | 1,584 | | | | 8,672 | | | | 5,718 | |
| Income tax provision | | | 653 | | | | 411 | | | | 2,585 | | | | 1,674 | |
| Net Income | | $ | 1,816 | | | $ | 1,173 | | | $ | 6,087 | | | $ | 4,044 | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.16 | | | $ | 0.10 | | | $ | 0.54 | | | $ | 0.36 | |
| Diluted | | $ | 0.16 | | | $ | 0.10 | | | $ | 0.53 | | | $ | 0.35 | |
| | | September 30, | | | December 31, | |
| | | 2014 | | | 2013 | |
| | | (Unaudited) | | | (Audited) | |
| ASSETS | | | |
| Cash and due from banks | | $ | 1,340 | | | $ | 149 | |
| Interest-earning demand deposits in other banks | | | 6,387 | | | | 11,798 | |
| Total cash and cash equivalents | | | 7,727 | | | | 11,947 | |
| Investment securities available-for-sale | | | 8,433 | | | | 10,489 | |
| Mortgage related securities available-for-sale | | | 130,809 | | | | 246,068 | |
| Mortgage related securities held-to-maturity (fair value of $163,727 at | | | | | | | | |
| September 30, 2014 and $67,491 at December 31, 2013) | | | 165,006 | | | | 68,397 | |
| Loans, net of allowance for loan losses of $11,099 | | | | | | | | |
| at September 30, 2014 and $11,529 at December 31, 2013 | | | 710,220 | | | | 720,490 | |
| Federal Home Loan Bank stock, at cost | | | 11,152 | | | | 9,813 | |
| Bank-owned life insurance | | | 14,905 | | | | 14,547 | |
| Premises and equipment, net | | | 9,542 | | | | 9,814 | |
| Assets acquired through foreclosure | | | 1,889 | | | | 6,252 | |
| Real estate held for investment | | | 1,620 | | | | 1,620 | |
| Accrued interest receivable | | | 3,159 | | | | 3,308 | |
| Mortgage servicing rights, net | | | 126 | | | | 152 | |
| Deferred tax asset, net | | | 4,734 | | | | 8,906 | |
| Other assets | | | 5,369 | | | | 4,819 | |
| Total Assets | | $ | 1,074,691 | | | $ | 1,116,622 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| LIABILITIES | |
| Deposits | | $ | 663,728 | | | $ | 673,715 | |
| Short-term borrowings | | | 60,000 | | | | 80,500 | |
| Federal Home Loan Bank advances | | | 135,000 | | | | 150,000 | |
| Other borrowed funds | | | 30,000 | | | | 30,000 | |
| Advances from borrowers for taxes and insurance | | | 1,000 | | | | 1,525 | |
| Accrued interest payable | | | 314 | | | | 314 | |
| Accrued expenses and other liabilities | | | 6,364 | | | | 7,101 | |
| Total Liabilities | | | 896,406 | | | | 943,155 | |
| STOCKHOLDERS' EQUITY | |
| Preferred stock ($.01 par value; 1,000,000 shares authorized, | | | | | | | | |
| none issued and outstanding at September 30, 2014 and December 31, 2013) | | | -- | | | | -- | |
| Common stock ($.01 par value; 60,000,000 shares authorized, | | | | | | | | |
| 12,066,591 shares outstanding at September 30, 2014 | | | | | | | | |
| and 12,147,803 shares outstanding at December 31, 2013) | | | 147 | | | | 146 | |
| Additional paid-in capital | | | 138,663 | | | | 137,593 | |
| Treasury stock, at cost (2,584,772 shares at September 30, 2014 and | | | | | | | | |
| 2,468,172 at December 31, 2013) | | | (35,338 | ) | | | (33,436 | ) |
| Common stock acquired by benefit plans | | | (8,215 | ) | | | (9,272 | ) |
| Retained earnings | | | 83,481 | | | | 82,885 | |
| Accumulated other comprehensive loss, net | | | (453 | ) | | | (4,449 | ) |
| Total Stockholders' Equity | | | 178,285 | | | | 173,467 | |
| | | | | | | | | |
| Total Liabilities and Stockholders' Equity | | $ | 1,074,691 | | | $ | 1,116,622 | |
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
| | | September 30, | | | June 30, | | | December 31, | | | September 30, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | |
| CAPITAL RATIOS: | | | | | | | | | | | | |
| Stockholders’ equity (to total assets) (1) | | | 16.59 | % | | | 16.13 | % | | | 15.53 | % | | | 15.74 | % |
| | | | | | | | | | | | | | | | | |
| Tier 1 capital (to adjusted assets) (2) | | | 13.35 | | | | 13.18 | | | | 13.12 | | | | 13.10 | |
| Tier 1 risk –based capital (to risk-weighted assets) (2) | | | 19.18 | | | | 18.59 | | | | 18.44 | | | | 18.98 | |
| Total risk-based capital (to risk-weighted assets) (2) | | | 20.22 | | | | 19.64 | | | | 19.48 | | | | 20.02 | |
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY INDICATORS: | | | | | | | | | | | | | | | | |
| Nonperforming Assets: | | | | | | | | | | | | | | | | |
| Nonaccruing loans | | $ | 3,641 | | | $ | 4,144 | | | $ | 8,780 | | | $ | 9,057 | |
| Accruing loans past due 90 days or more | | | -- | | | | -- | | | | -- | | | | 1,640 | |
| Total nonperforming loans | | $ | 3,641 | | | $ | 4,144 | | | $ | 8,780 | | | $ | 10,697 | |
| Assets acquired through foreclosure | | | 1,889 | | | | 2,017 | | | | 6,252 | | | | 6,588 | |
| Total nonperforming assets | | $ | 5,530 | | | $ | 6,161 | | | $ | 15,032 | | | $ | 17,285 | |
| | | | | | | | | | | | | | | | | |
| Ratio of nonperforming loans to total loans | | | 0.50 | % | | | 0.56 | % | | | 1.20 | % | | | 1.50 | % |
| Ratio of nonperforming assets to total assets | | | 0.51 | | | | 0.56 | | | | 1.35 | | | | 1.56 | |
| Ratio of allowance for loan losses to total loans | | | 1.54 | | | | 1.57 | | | | 1.57 | | | | 1.56 | |
| Ratio of allowance for loan losses to nonperforming loans | | | 304.8 | | | | 279.3 | | | | 131.3 | | | | 104.0 | |
| Troubled Debt Restructurings: | | | | | | | | | | | | | | | | |
| Nonaccruing troubled debt restructurings (3) | | $ | 277 | | | $ | 282 | | | $ | 3,488 | | | $ | 9,057 | |
| Accruing troubled debt restructurings | | | 5,504 | | | | 5,324 | | | | 6,786 | | | | 7,265 | |
| Total troubled debt restructurings | | $ | 5,781 | | | $ | 5,606 | | | $ | 10,274 | | | $ | 16,322 | |
| | | | | | | | | | | | | | | | | |
| Past Due Loans: | | | | | | | | | | | | | | | | |
| 30 - 59 days | | $ | 939 | | | $ | 526 | | | $ | 413 | | | $ | 1,481 | |
| 60 - 89 days | | | 124 | | | | 10 | | | | 5 | | | | 569 | |
| Total | | $ | 1,063 | | | $ | 536 | | | $ | 418 | | | $ | 2,050 | |
(1) Represents stockholders’ equity ratio of Fox Chase Bancorp, Inc.
(2) Represents regulatory capital ratios of Fox Chase Bank.
(3) Nonaccruing troubled debt restructurings are included in total nonaccruing loans above
| | | At or for the Three Months Ended | |
| | | September 30, | | | June 30, | | | December 31, | | | September 30, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | |
PERFORMANCE RATIOS (4): | | | | | | | | | | | | |
| Return on average assets | | | 0.67 | % | | | 0.85 | % | | | 0.54 | % | | | 0.42 | % |
| Return on average equity | | | 4.07 | | | | 5.25 | | | | 3.40 | | | | 2.71 | |
| Net interest margin | | | 3.20 | | | | 3.20 | | | | 3.17 | | | | 3.06 | |
| Efficiency ratio (5) | | | 56.7 | | | | 59.8 | | | | 64.0 | | | | 63.5 | |
| OTHER: | | | | | | | | | | | | | | | | |
| Tangible book value per share - Core (6) | | $ | 14.81 | | | $ | 14.73 | | | $ | 14.65 | | | $ | 14.55 | |
| Tangible book value per share (7) | | $ | 14.78 | | | $ | 14.71 | | | $ | 14.28 | | | $ | 14.34 | |
| Employees (full-time equivalents) | | | 141 | | | | 140 | | | | 142 | | | | 142 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | At or for the Nine Months Ended | | | | | | | | | |
| | | September 30, | | | September 30, | | | | | | | | | |
| | | | 2014 | | | | 2013 | | | | | | | | | |
PERFORMANCE RATIOS (4): | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.74 | % | | | 0.49 | % | | | | | | | | |
| Return on average equity | | | 4.59 | | | | 3.04 | | | | | | | | | |
| Net interest margin | | | 3.19 | | | | 3.05 | | | | | | | | | |
| Efficiency ratio (5) | | | 60.4 | | | | 63.6 | | | | | | | | | |
| (5) | Represents noninterest expense, excluding valuation adjustments on assets acquired through foreclosure, divided by the sum of net interest income and noninterest income, excluding gains or losses on the sale of securities, premises and equipment and assets acquired through foreclosure. |
| (6) | Total stockholders’ equity, excluding the impact of accumulated other comprehensive loss, net ($453,000 at September 30, 2014, $252,000 at June 30, 2014, $4.4 million at December 31, 2013 and $2.5 million at September 30, 2013) divided by total shares outstanding. |
| (7) | Total stockholders’ equity divided by total shares outstanding. Tangible book value per share and book value per share were the same for all periods indicated. |
(Dollars in Thousands, Unaudited)
| | | Three Months Ended September 30, | |
| | | 2014 | | | 2013 | |
| | | | | | Interest | | | | | | | | | Interest | | | | |
| | | Average | | | and | | | Yield/ | | | Average | | | and | | | Yield/ | |
| | | Balance | | | Dividends | | | Cost (2) | | | Balance | | | Dividends | | | Cost (2) | |
| Assets: | | | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning demand deposits | | $ | 6,815 | | | $ | 1 | | | | 0.06 | % | | $ | 5,652 | | | $ | 1 | | | | 0.03 | % |
| Mortgage related securities | | | 302,562 | | | | 1,633 | | | | 2.16 | % | | | 334,883 | | | | 1,807 | | | | 2.16 | % |
| Investment securities | | | 19,616 | | | | 144 | | | | 2.93 | % | | | 21,012 | | | | 92 | | | | 1.74 | % |
| Loans (1) | | | 730,410 | | | | 8,375 | | | | 4.56 | % | | | 708,177 | | | | 8,241 | | | | 4.63 | % |
| Allowance for loan losses | | | (11,541 | ) | | | | | | | | | | | (10,854 | ) | | | | | | | | |
| Net loans | | | 718,869 | | | | 8,375 | | | | | | | | 697,323 | | | | 8,241 | | | | | |
| Total interest-earning assets | | | 1,047,862 | | | | 10,153 | | | | 3.85 | % | | | 1,058,870 | | | | 10,141 | | | | 3.81 | % |
| Noninterest-earning assets | | | 41,403 | | | | | | | | | | | | 50,589 | | | | | | | | | |
| Total assets | | $ | 1,089,265 | | | | | | | | | | | $ | 1,109,459 | | | | | | | | | |
| Liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 552,072 | | | $ | 760 | | | | 0.55 | % | | $ | 566,745 | | | $ | 1,055 | | | | 0.74 | % |
| Borrowings | | | 228,737 | | | | 875 | | | | 1.52 | % | | | 234,783 | | | | 854 | | | | 1.44 | % |
| Total interest-bearing liabilities | | | 780,809 | | | | 1,635 | | | | 0.83 | % | | | 801,528 | | | | 1,909 | | | | 0.94 | % |
| Noninterest-bearing deposits | | | 123,709 | | | | | | | | | | | | 128,437 | | | | | | | | | |
| Other noninterest-bearing liabilities | | | 6,407 | | | | | | | | | | | | 6,080 | | | | | | | | | |
| Total liabilities | | | 910,925 | | | | | | | | | | | | 936,045 | | | | | | | | | |
| Stockholders' equity | | | 178,984 | | | | | | | | | | | | 176,915 | | | | | | | | | |
| Accumulated comprehensive income | | | (644 | ) | | | | | | | | | | | (3,501 | ) | | | | | | | | |
| Total stockholder's equity | | | 178,340 | | | | | | | | | | | | 173,414 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 1,089,265 | | | | | | | | | | | $ | 1,109,459 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 8,518 | | | | | | | | | | | $ | 8,232 | | | | | |
| Interest rate spread | | | | | | | | | | | 3.02 | % | | | | | | | | | | | 2.87 | % |
| Net interest margin | | | | | | | | | | | 3.20 | % | | | | | | | | | | | 3.06 | % |
| (1) | Nonperforming loans are included in average balance computation. |
| (2) | Yields are not presented on a tax-equivalent basis. |
AVERAGE BALANCE SHEET
(Dollars in Thousands, Unaudited)
| | | Three Months Ended | |
| | | September 30, 2014 | | | June 30, 2014 | |
| | | | | | Interest | | | | | | | | | Interest | | | | |
| | | Average | | | and | | | Yield/ | | | Average | | | and | | | Yield/ | |
| | | Balance | | | Dividends | | | Cost (2) | | | Balance | | | Dividends | | | Cost (2) | |
| Assets: | | | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning demand deposits | | $ | 6,815 | | | $ | 1 | | | | 0.06 | % | | $ | 6,241 | | | $ | 1 | | | | 0.05 | % |
| Mortgage related securities | | | 302,562 | | | | 1,633 | | | | 2.16 | % | | | 313,939 | | | | 1,774 | | | | 2.26 | % |
| Investment securities | | | 19,616 | | | | 144 | | | | 2.93 | % | | | 19,001 | | | | 173 | | | | 3.65 | % |
| Loans (1) | | | 730,410 | | | | 8,375 | | | | 4.56 | % | | | 714,243 | | | | 8,130 | | | | 4.56 | % |
| Allowance for loan losses | | | (11,541 | ) | | | | | | | | | | | (11,553 | ) | | | | | | | | |
| Net loans | | | 718,869 | | | | 8,375 | | | | | | | | 702,690 | | | | 8,130 | | | | | |
| Total interest-earning assets | | | 1,047,862 | | | | 10,153 | | | | 3.85 | % | | | 1,041,871 | | | | 10,078 | | | | 3.88 | % |
| Noninterest-earning assets | | | 41,403 | | | | | | | | | | | | 45,628 | | | | | | | | | |
| Total assets | | $ | 1,089,265 | | | | | | | | | | | $ | 1,087,499 | | | | | | | | | |
| Liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 552,072 | | | $ | 760 | | | | 0.55 | % | | $ | 560,578 | | | $ | 797 | | | | 0.57 | % |
| Borrowings | | | 228,737 | | | | 875 | | | | 1.52 | % | | | 220,770 | | | | 856 | | | | 1.56 | % |
| Total interest-bearing liabilities | | | 780,809 | | | | 1,635 | | | | 0.83 | % | | | 781,348 | | | | 1,653 | | | | 0.85 | % |
| Noninterest-bearing deposits | | | 123,709 | | | | | | | | | | | | 122,395 | | | | | | | | | |
| Other noninterest-bearing liabilities | | | 6,407 | | | | | | | | | | | | 7,284 | | | | | | | | | |
| Total liabilities | | | 910,925 | | | | | | | | | | | | 911,027 | | | | | | | | | |
| Stockholders' equity | | | 178,984 | | | | | | | | | | | | 177,895 | | | | | | | | | |
| Accumulated comprehensive income | | | (644 | ) | | | | | | | | | | | (1,423 | ) | | | | | | | | |
| Total stockholder's equity | | | 178,340 | | | | | | | | | | | | 176,472 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 1,089,265 | | | | | | | | | | | $ | 1,087,499 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 8,518 | | | | | | | | | | | $ | 8,425 | | | | | |
| Interest rate spread | | | | | | | | | | | 3.02 | % | | | | | | | | | | | 3.03 | % |
| Net interest margin | | | | | | | | | | | 3.20 | % | | | | | | | | | | | 3.20 | % |
| (1) | Nonperforming loans are included in average balance computation. |
| (2) | Yields are not presented on a tax-equivalent basis. |
AVERAGE BALANCE SHEET
(Dollars in Thousands, Unaudited)
| | | Nine Months Ended September 30, | |
| | | 2014 | | | 2013 | |
| | | | | | Interest | | | | | | | | | Interest | | | | |
| | | Average | | | and | | | Yield/ | | | Average | | | and | | | Yield/ | |
| | | Balance | | | Dividends | | | Cost (2) | | | Balance | | | Dividends | | | Cost (2) | |
| Assets: | | | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning demand deposits | | $ | 6,794 | | | $ | 2 | | | | 0.05 | % | | $ | 5,540 | | | $ | 2 | | | | 0.04 | % |
| Mortgage related securities | | | 311,200 | | | | 5,235 | | | | 2.24 | % | | | 329,788 | | | | 5,296 | | | | 2.14 | % |
| Investment securities | | | 19,011 | | | | 437 | | | | 3.06 | % | | | 20,899 | | | | 221 | | | | 1.41 | % |
| Loans (1) | | | 719,879 | | | | 24,615 | | | | 4.57 | % | | | 695,682 | | | | 24,319 | | | | 4.67 | % |
| Allowance for loan losses | | | (11,566 | ) | | | | | | | | | | | (11,420 | ) | | | | | | | | �� |
| Net loans | | | 708,313 | | | | 24,615 | | | | | | | | 684,262 | | | | 24,319 | | | | | |
| Total interest-earning assets | | | 1,045,318 | | | | 30,289 | | | | 3.87 | % | | | 1,040,489 | | | | 29,838 | | | | 3.79 | % |
| Noninterest-earning assets | | | 44,496 | | | | | | | | | | | | 49,905 | | | | | | | | | |
| Total assets | | $ | 1,089,814 | | | | | | | | | | | $ | 1,090,394 | | | | | | | | | |
| Liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 562,000 | | | $ | 2,455 | | | | 0.58 | % | | $ | 576,054 | | | $ | 3,373 | | | | 7.80 | % |
| Borrowings | | | 221,806 | | | | 2,574 | | | | 1.55 | % | | | 207,868 | | | | 2,453 | | | | 1.58 | % |
| Total interest-bearing liabilities | | | 783,806 | | | | 5,029 | | | | 0.86 | % | | | 783,922 | | | | 5,826 | | | | 0.99 | % |
| Noninterest-bearing deposits | | | 121,770 | | | | | | | | | | | | 121,778 | | | | | | | | | |
| Other noninterest-bearing liabilities | | | 7,437 | | | | | | | | | | | | 7,115 | | | | | | | | | |
| Total liabilities | | | 913,013 | | | | | | | | | | | | 912,815 | | | | | | | | | |
| Stockholders' equity | | | 178,382 | | | | | | | | | | | | 176,893 | | | | | | | | | |
| Accumulated comprehensive income | | | (1,581 | ) | | | | | | | | | | | 686 | | | | | | | | | |
| Total stockholder's equity | | | 176,801 | | | | | | | | | | | | 177,579 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 1,089,814 | | | | | | | | | | | $ | 1,090,394 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | | | $ | 25,260 | | | | | | | | | | | $ | 24,012 | | | | | |
| Interest rate spread | | | | | | | | | | | 3.01 | % | | | | | | | | | | | 2.80 | % |
| Net interest margin | | | | | | | | | | | 3.19 | % | | | | | | | | | | | 3.05 | % |
| (1) | Nonperforming loans are included in average balance computation. |
| (2) | Yields are not presented on a tax-equivalent basis. |
