701 North Haven Ave., Suite 350
Ontario, CA 91764
(909) 980-4030
Press Release
For Immediate Release
Contact: D. Linn Wiley
President and CEO
(909) 980-4030
CVB Financial Corp. Reports Record Earnings
Ontario, CA, January 18, 2006-CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (“the Company”), announced record results for the year ending December 31, 2005. This included record deposits, record loans, record assets and record earnings. It was the strongest year in the history of the Company.
Net Income
Net income for the twelve months ending December 31, 2005 was $70.6 million. This represents an increase of $9.1 million, or 14.85%, when compared with net earnings of $61.5 million for the year ending December 31, 2004. Diluted earnings per share were $0.91 for the twelve months ending December 31, 2005. This was up $0.11, or 13.75%, from diluted earnings per share of $0.80 for the same period last year. These per share amounts have been adjusted to reflect the five for four stock split declared in December of 2005.
Net income for the twelve months ending December 31, 2005 produced a return on beginning equity of 22.24%, a return on average equity of 20.87% and a return on average assets of 1.45%. The efficiency ratio for the twelve-month period was 46.13%, and operating expenses as a percentage of average assets were 1.88%.
In the fourth quarter of 2005, the Company took a $2.3 million Other-Than-Temporary Impairment charge on two issues of Federal Home Loan Mortgage Corporation (“Freddie Mac”) preferred stock. In March 2004, the Company took a $6.3 million charge on the same two issues. These securities have interest rates that adjust to the three-month LIBOR rate or the 12-month LIBOR rate. While there has been no downgrade in the credit rating of Freddie Mac (it is still rated –AA), there is a perception in the marketplace that the stock may not perform well. There have also been accounting issues centered on the Other-Than-Temporary Impairment. Since these securities have no maturity, the decline in value does not have a defined period in which the fair value will return to its original par value. Therefore, by accounting definition, it is considered as Other-Than-Temporary Impairment. Although we have experienced these charges, we continue to receive a high dividend of 5.15% from a creditworthy company.
Net income before the Other-Than-Temporary Impairment charge ($2.3 million), net loss on sales of investment securities ($46,000) and income from the settlement of robbery loss ($2.6 million) was $70.4 million for the twelve months ending December 31, 2005. This represents an increase of $6.9 million, or 10.91%, when compared to net earnings before the Other-Than-Temporary Impairment charge ($6.3 million), net gains on sales of investment securities ($5.2 million), net gain on sale of real estate ($419,000) and accrual of robbery loss ($2.3 million) of $63.5 million for the same twelve-month period in 2004.
These earning results reflect a return on beginning equity of 22.18%, a return on average equity of 20.82%, and a return on average assets of 1.45%. The related efficiency ratio for the twelve-month period was 46.89%, and operating costs as a percentage of average assets were 1.93%.
The Company reported net income of $17.2 million for the fourth quarter ending December 31, 2005. This represented an increase of $0.3 million, or 1.69%, when compared with the $16.9 million in net income reported for the fourth quarter of 2004. Diluted earnings per share were $0.22 for the fourth quarter of 2005 and 2004.
Net income for the fourth quarter of 2005 produced a return on beginning equity of 20.21%, a return on average equity of 19.51% and a return on average assets of 1.32%. The efficiency ratio for the fourth quarter was 48.60%, and operating costs as a percentage of average assets were 1.87%.
Net income for the fourth quarter of 2005 before the other-than-temporary impairment charge ($2.3 million) was $18.7 million. This represents an increase of $0.2 million, or 1.28%, when compared to net income before the accrual of robbery loss ($2.3 million) of $18.5 million for the fourth quarter of 2004. These results produced a return on beginning equity of 21.99%, a return on average equity of 21.23%, and a return on average assets of 1.43%. The related efficiency ratio for the fourth quarter of 2005 was 46.50%, and operating costs as a percentage of average assets were 1.87%.
Net Interest Income and Net Interest Margin
Net interest income totaled $171.1 million for the twelve months ending December 31, 2005. This represents an increase of $19.9 million, or 13.14%, over the net interest income of $151.2 million for the same period of 2004. This increase resulted from a $50.8 million increase in interest income, partially offset by a $30.9 million increase in interest expense. The increases in interest income were primarily due to the growth in average earning assets and the increase in interest rates. The increases in interest expense were due to the increases in deposits and borrowed funds and the increase in interest rates.
Net interest income totaled $44.9 million for the fourth quarter of 2005. This represented an increase of $5.1 million, or 12.89%, over the net interest income of $39.7 million for the fourth quarter of 2004. These increases resulted from a $15.6 million increase in interest income, offset by a $10.5 million increase in interest expense.
Net interest margin (tax equivalent) declined from 3.99% for the twelve months ending December 31, 2004 to 3.89% for the twelve months ending December 31, 2005. Total average earning asset yields increased from 5.16% for 2004 to 5.60% for 2005. The cost of funds increased from 1.21% for 2004 to 1.72% for 2005. The decline in net interest margin is due to the cost of interest-bearing liabilities rising faster than the increase in yields on earning assets. This decline in net interest margin has been mitigated by the strong growth in the balance sheet. The margin compression appears to be moderating with the recent stability of interest rates. The Company has approximately $1.49 billion, or 43.53%, of its deposits in interest free demand deposits.
Net interest margin (tax equivalent) for the fourth quarter of 2005 was 3.86%. This represents a decline of 10 basis points when compared to the 3.96% for the fourth quarter of 2004. Average earning asset yields for the fourth quarter of 2005 were 5.82%, compared with asset yields of 5.23% for the fourth quarter of 2004. The cost of funds for the fourth quarter of 2005 was 1.98% compared with 1.32% for the same period last year.
Balance Sheet
The Company reported total assets of $5.42 billion at December 31, 2005. This represented an increase of $912.0 million, or 20.22%, over total assets of $4.51 billion on December 31, 2004. Earning assets totaling $5.08 billion were up $827.0 million, or 19.43%, when compared with earning assets of $4.26 billion as of December 31, 2004. Deposits of $3.42 billion grew $549.0 million, or 19.10%, from $2.88 billion for the prior year. Demand deposits of $1.49 billion jumped $168.4 million, or 12.73%, from $1.32 billion on December 31, 2004. Gross loans and leases of $2.66 billion on December 31, 2005 rose $523.8 million, or 24.48%, from $2.14 billion on December 31, 2004.
Investment Securities
Investment securities totaled $2.37 billion as of December 31, 2005. This represents an increase of $286.8 million, or 13.75%, when compared with $2.09 billion in investment securities as of December 31, 2004.
Financial Advisory Services
The Financial Advisory Services Group has over $2.7 billion in assets under administration. They provide trust, investment and brokerage related services.
Loan and Lease Quality
CVB Financial Corp reported no non-performing assets as of December 31, 2005 and $2,000 as of December 31, 2004. The allowance for loan and lease losses was $23.2 million as of December 31, 2005. This represents 0.87% of gross loans and leases. It compares with an allowance for loan and lease losses of $22.5 million, or 1.05% of gross loans and leases on December 31, 2004. The increase was due to the net charge-offs of $46,000 in 2005, offset by the allowance for loan and lease losses acquired from Granite State Bank of $756,000.
The Company has not made a provision for loan and lease losses since 2001 due to the high quality of its loan portfolio. This has been the case even though loans increased from $1.19 billion as of December 31, 2001 to $2.66 billion as of December 31, 2005. This is an increase in loans and leases of $1.47 billion, or 123.5%, over the four-year period.
Other Items in 2005
On February 25, 2005, the Company acquired 100% of the stock of Granite State Bank. The merger agreement provides for Granite State Bank to merge with and into Citizens Business Bank. Citizens Business Bank represents the continuing operation. This transaction added $103.1 million in deposits, $62.8 million in loans and $111.4 million in total assets.
On May 2, 2005, Citizens Business Bank opened its 40th business financial center in the Central Valley city of Madera, California. This increased the total number of offices to seven business financial centers in the fast growing Central Valley area of California.
Corporate Overview
CVB Financial Corp. is the holding company for Citizens Business Bank. The Bank is the largest financial institution headquartered in the Inland Empire region of Southern California. It serves 33 cities with 40 business financial centers in the Inland Empire, Los Angeles County, Orange County and the Central Valley areas of California. Its subsidiary, Golden West Financial Services, provides vehicle leasing, equipment leasing and real estate loan services.
For the third consecutive year, CVB Financial Corp. received the KBW Honor Roll award at the Annual Community Bank Investor Conference hosted by Keefe, Bruyette & Woods, Inc. in New York on July 25, 26, and 27, 2005. The Company was also recognized as a SmAll-Star by Sandler O’Neill and named on the FPK Honor Roll by Fox-Pitt, Kelton.
Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol of CVBF. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the CVB Investor tab.
Safe Harbor
This document contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected. In addition, these forward-looking statements relate to the Company’s current expectations regarding future operating results. Such issues and uncertainties include impact of changes in interest rates, a decline in economic conditions and increased competition among financial services providers. For a discussion of other factors that could cause actual results to differ, please see the publicly available Securities and Exchange Commission filings of CVB Financial Corp., including its Annual Report on Form 10-K for the year ended December 31, 2004, and particularly the discussion on risk factors within that document. The Company does not undertake any, and specifically, disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
_________________
CVB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
(unaudited)
dollars in thousands
December 31,
----------------------------------------
2005 2004
------------------ ------------------
Assets:
Investment Securities available-for-sale $ 2,371,775 $ 2,085,014
Investment in stock of Federal Home Loan Bank (FHLB) 70,770 53,565
Loans and lease finance receivables 2,663,863 2,140,074
Less allowance for credit losses (23,204) (22,494)
------------------ ------------------
Net loans and lease finance receivables 2,640,659 2,117,580
------------------ ------------------
Total earning assets 5,083,204 4,256,159
Cash and due from banks 130,141 84,400
Premises and equipment, net 40,020 33,508
Intangibles 12,474 6,136
Goodwill 28,735 19,580
Cash value of life insurance 71,811 68,233
Other assets 56,586 42,995
------------------ ------------------
TOTAL $ 5,422,971 $ 4,511,011
================== ==================
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand Deposits(noninterest-bearing) $ 1,490,613 $ 1,322,255
Investment Checking 260,484 258,636
Savings/MMDA 889,772 813,983
Time Deposits 783,177 480,165
------------------ ------------------
Total Deposits 3,424,046 2,875,039
Demand Note to U.S. Treasury 6,433 6,453
Borrowings 1,496,000 1,186,000
Junior Subordinated Debentures 82,476 82,476
Other liabilities 71,139 43,560
------------------ ------------------
Total Liabilities 5,080,094 4,193,528
Stockholders' equity:
Stockholders' equity 356,263 308,591
Accumulated other comprehensive income
(loss), net of tax (13,386) 8,892
------------------ ------------------
342,877 317,483
------------------ ------------------
TOTAL $ 5,422,971 $ 4,511,011
================== ==================
CVB FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCE SHEET
(unaudited)
dollars in thousands |
|---|
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2005
| 2004
| 2005
| 2004
|
|---|
| Assets: | | | | | | | | | | | | | | |
| Federal funds sold and reverse repos | | | $ | -- | | $ | -- | | $ | -- | | $ | 311 | |
| Investment securities trading | | | | -- | | | -- | | | -- | | | 8,761 | |
| Investment securities available-for-sale | | | | 2,283,157 | | | 2,059,264 | | | 2,209,628 | | | 1,962,123 | |
| Investment in stock of Federal Home Loan Bank (FHLB) | | | | 70,272 | | | 53,371 | | | 64,144 | | | 46,443 | |
| Loans and lease finance receivables | | | | 2,482,190 | | | 2,042,148 | | | 2,277,304 | | | 1,905,144 | |
| Less allowance for credit losses | | | | (24,031 | ) | | (23,148 | ) | | (23,851 | ) | | (22,445 | ) |
|
| |
| |
| |
| |
| Net loans and lease finance receivables | | | | 2,458,159 | | | 2,019,000 | | | 2,253,453 | | | 1,882,699 | |
|
| |
| |
| |
| |
| Total earning assets | | | | 4,811,588 | | | 4,131,635 | | | 4,527,225 | | | 3,900,337 | |
| Cash and due from banks | | | | 130,346 | | | 112,722 | | | 124,988 | | | 121,200 | |
| Premises and equipment, net | | | | 40,127 | | | 27,544 | | | 38,155 | | | 29,399 | |
| Intangibles | | | | 12,703 | | | 6,253 | | | 11,621 | | | 6,701 | |
| Goodwill | | | | 28,735 | | | 19,580 | | | 26,508 | | | 19,580 | |
| Cash value of life insurance | | | | 71,473 | | | 67,214 | | | 70,470 | | | 58,540 | |
| Other assets | | | | 83,633 | | | 55,854 | | | 70,193 | | | 56,785 | |
|
| |
| |
| |
| |
| TOTAL | | | $ | 5,178,605 | | $ | 4,420,802 | | $ | 4,869,160 | | $ | 4,192,542 | |
|
| |
| |
| |
| |
| Liabilities and Stockholders' Equity | | |
| Liabilities: | | |
| Deposits: | | |
| Noninterest-bearing | | | $ | 1,412,029 | | $ | 1,300,817 | | $ | 1,382,966 | | $ | 1,213,884 | |
| Interest-bearing | | | | 1,840,994 | | | 1,552,973 | | | 1,680,136 | | | 1,547,549 | |
|
| |
| |
| |
| |
| Total Deposits | | | | 3,253,023 | | | 2,853,790 | | | 3,063,102 | | | 2,761,433 | |
| Other borrowings | | | | 1,442,294 | | | 1,117,952 | | | 1,347,156 | | | 1,005,058 | |
| Junior Subordinated Debentures | | | | 82,476 | | | 82,476 | | | 82,476 | | | 82,476 | |
| Other liabilities | | | | 51,586 | | | 46,297 | | | 38,067 | | | 41,201 | |
|
| |
| |
| |
| |
| Total Liabilities | | | | 4,829,379 | | | 4,100,515 | | | 4,530,801 | | | 3,890,168 | |
| Stockholders' equity: | | |
| Stockholders' equity | | | | 357,622 | | | 304,895 | | | 340,027 | | | 289,053 | |
| Accumulated other comprehensive income | | |
| (loss), net of tax | | | | (8,396 | ) | | 15,392 | | | (1,668 | ) | | 13,321 | |
|
| |
| |
| |
| |
| | | | | 349,226 | | | 320,287 | | | 338,359 | | | 302,374 | |
|
| |
| |
| |
| |
| TOTAL | | | $ | 5,178,605 | | $ | 4,420,802 | | $ | 4,869,160 | | $ | 4,192,542 | |
|
| |
| |
| |
| |
CVB FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
dollar amounts in thousands, except per share |
|---|
| For the Three Months
Ended December 31, | For the Twelve Months
Ended December 31, |
|---|
| 2005
| 2004
| 2005
| 2004
|
|---|
| Interest Income: | | | | | | | | | | | | | | |
| Loans, including fees | | | $ | 42,872 | | $ | 31,095 | | $ | 149,961 | | $ | 114,543 | |
| Investment securities: | | |
| Taxable | | | | 19,980 | | | 17,859 | | | 76,573 | | | 66,109 | |
| Tax-advantaged | | | | 5,205 | | | 3,825 | | | 19,078 | | | 15,087 | |
|
| |
| |
| |
| |
| Total investment income | | | | 25,185 | | | 21,684 | | | 95,651 | | | 81,196 | |
| Dividends from FHLB Stock | | | | 810 | | | 500 | | | 2,623 | | | 1,960 | |
| Federal funds sold | | | | -- | | | -- | | | 2 | | | 3 | |
| Interest-bearing CDs with other institutions | | | | 44 | | | -- | | | 251 | | | -- | |
|
| |
| |
| |
| |
| Total interest income | | | | 68,911 | | | 53,279 | | | 248,488 | | | 197,702 | |
| Interest Expense: | | |
| Deposits | | | | 10,060 | | | 4,356 | | | 28,908 | | | 15,508 | |
| Borrowings and junior subordinated debentures | | | | 13,991 | | | 9,183 | | | 48,528 | | | 31,009 | |
|
| |
| |
| |
| |
| Total interest expense | | | | 24,051 | | | 13,539 | | | 77,436 | | | 46,517 | |
|
| |
| |
| |
| |
| Net interest income before provision for credit losses | | | | 44,860 | | | 39,740 | | | 171,052 | | | 151,185 | |
| Provision for credit losses | | | | -- | | | -- | | | -- | | | -- | |
|
| |
| |
| |
| |
| Net interest income after | | |
| provision for credit losses | | | | 44,860 | | | 39,740 | | | 171,052 | | | 151,185 | |
| Other Operating Income: | | |
| Service charges on deposit accounts | | | | 3,481 | | | 3,119 | | | 13,251 | | | 13,663 | |
| Financial Advisory Services | | | | 1,723 | | | 1,633 | | | 6,652 | | | 6,054 | |
| Gain/(Loss) on sale of investment securities | | | | -- | | | -- | | | (46 | ) | | 5,219 | |
| Other-than-temporary impairment write-down | | | | (2,270 | ) | | -- | | | (2,270 | ) | | (6,300 | ) |
| Other | | | | 2,339 | | | 2,844 | | | 9,918 | | | 9,271 | |
|
| |
| |
| |
| |
| Total other operating income | | | | 5,273 | | | 7,596 | | | 27,505 | | | 27,907 | |
| Other operating expenses: | | |
| Salaries and employee benefits | | | | 13,651 | | | 11,970 | | | 53,075 | | | 47,292 | |
| Occupancy | | | | 2,279 | | | 1,930 | | | 8,327 | | | 7,891 | |
| Equipment | | | | 1,995 | | | 2,397 | | | 7,578 | | | 8,003 | |
| Professional services | | | | 1,001 | | | 1,746 | | | 4,268 | | | 4,776 | |
| Amortization of intangible assets | | | | 588 | | | 296 | | | 2,061 | | | 1,185 | |
| Other | | | | 4,852 | | | 7,123 | | | 16,284 | | | 20,575 | |
|
| |
| |
| |
| |
| Total other operating expenses | | | | 24,366 | | | 25,462 | | | 91,593 | | | 89,722 | |
|
| |
| |
| |
| |
| Earnings before income taxes | | | | 25,767 | | | 21,874 | | | 106,964 | | | 89,370 | |
| Income taxes | | | | 8,593 | | | 4,986 | | | 36,346 | | | 27,884 | |
|
| |
| |
| |
| |
| Net earnings | | | $ | 17,174 | | $ | 16,888 | | $ | 70,618 | | $ | 61,486 | |
|
| |
| |
| |
| |
Basic earnings per common share | | | $ | 0.22 | | $ | 0.22 | | $ | 0.92 | | $ | 0.81 | |
|
| |
| |
| |
| |
| Diluted earnings per common share | | | $ | 0.22 | | $ | 0.22 | | $ | 0.91 | | $ | 0.80 | |
|
| |
| |
| |
| |
| | | | |
| Cash dividends per common share | | | $ | 0.09 | | $ | 0.11 | | $ | 0.42 | | $ | 0.48 | |
|
| |
| |
| |
| |
All per share information has been retroactively adjusted to reflect the 5 for 4 stock split declared on December 21, 2005.
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(unaudited) |
|---|
|
Three Months Ended December 31, | Twelve Months Ended December 31, |
|---|
| 2005
| 2004
| 2005
| 2004
|
|---|
| Interest income - (Tax Effective)(te) | | | $ | 70,581 | | $ | 54,507 | | $ | 254,612 | | $ | 202,549 | |
| Interest Expense | | | | 24,051 | | | 13,539 | | | 77,436 | | | 46,517 | |
|
| |
| |
| |
| |
| Net Interest income - (te) | | | $ | 46,530 | | $ | 40,968 | | $ | 177,176 | | $ | 156,032 | |
|
| |
| |
| |
| |
Other-than-temporary impairment write-down | | | $ | (2,270 | ) | $ | 0 | | $ | (2,270 | ) | $ | (6,300 | ) |
Return on average assets | | | | 1.32 | % | | 1.52 | % | | 1.45 | % | | 1.47 | % |
| Return on average equity | | | | 19.51 | % | | 20.98 | % | | 20.87 | % | | 20.33 | % |
| Efficiency ratio | | | | 48.60 | % | | 53.79 | % | | 46.13 | % | | 50.10 | % |
| Net interest margin (te) | | | | 3.86 | % | | 3.96 | % | | 3.89 | % | | 3.99 | % |
Weighted average shares outstanding | | |
| Basic | | | | 76,410,985 | | | 75,718,733 | | | 76,490,231 | | | 75,655,905 | |
| Diluted | | | | 77,048,139 | | | 76,733,508 | | | 77,192,630 | | | 76,599,030 | |
| Dividends declared | | | $ | 6,877 | | $ | 6,733 | | $ | 27,963 | | $ | 23,821 | |
| Dividend payout ratio | | | | 40.04 | % | | 39.87 | % | | 39.60 | % | | 38.74 | % |
Number of shares outstanding-EOP | | | | 76,432,524 | | | 75,835,686 | |
| Book value per share | | | $ | 4.49 | | $ | 4.19 | |
|
December 31, |
|---|
| 2005
| 2004
|
|---|
| | | | |
| Non-performing Assets (dollar amount in thousands): | | |
| Non-accrual loans | | | $ | 0 | | $ | 2 | |
| Loans past due 90 days or more | | |
| and still accruing interest | | | | -- | | | -- | |
| Restructured loans | | | | -- | | | -- | |
| Other real estate owned (OREO), net | | | | -- | | | -- | |
|
| |
| |
| Total non-performing assets | | | $ | 0 | | $ | 2 | |
|
| |
| |
| Percentage of non-performing assets | | |
| to total loans outstanding and OREO | | | | 0.00 | % | | 0.00 | % |
| Percentage of non-performing | | |
| assets to total assets | | | | 0.00 | % | | 0.00 | % |
| Non-performing assets to | | |
| allowance for loan losses | | | | 0.00 | % | | 0.01 | % |
Net Charge-off (Recovered) to Average loans | | | | (0.03 | %) | | (0.06 | %) |
Allowance for Credit Losses: | | |
| Beginning Balance | | | $ | 22,494 | | $ | 21,282 | |
| Total Loans Charged-Off | | | | (1,380 | ) | | (2,320 | ) |
| Total Loans Recovered | | | | 1,334 | | | 3,532 | |
| Acquisition of Granite State Bank | | | | 756 | | | -- | |
|
| |
| |
| Net Loans Recovery (Charged-Off) | | | | 710 | | | 1,212 | |
| Provision Charged to Operating Expense | | | | -- | | | -- | |
|
| |
| |
| Allowance for Credit Losses at End of period | | | $ | 23,204 | | $ | 22,494 | |
|
| |
| |
CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share data
(unaudited) |
|---|
Quarterly Common Stock Price |
|---|
| 2005
| 2004
| 2003
|
|---|
| Quarter End | High
| Low
| High
| Low
| High
| Low
|
|---|
| March 31, | | | | $ 21.30 | | | $ 17.60 | | | $ 17.04 | | | $ 15.13 | | | $ 18.50 | | | $ 14.10 | |
| June 30, | | | | $ 20.12 | | | $ 17.00 | | | $ 17.56 | | | $ 15.72 | | | $ 16.06 | | | $ 14.07 |
| September 30, | | | | $ 21.90 | | | $ 18.04 | | | $ 18.70 | | | $ 16.16 | | | $ 15.69 | | | $ 13.35 |
| December 31, | | | | $ 20.90 | | | $ 17.37 | | | $ 22.34 | | | $ 17.80 | | | $ 15.87 | | | $ 13.94 |
Quarterly Consolidated Statements of Income Earnings |
|---|
| | 4Q
2005
| 3Q
2005
| 2Q
2005
| 1Q
2005
| 4Q
2004
|
|---|
| Interest income | | |
| Loans, including fees | | | | | | $ | 42,872 | | $ | 38,777 | | $ | 35,619 | | $ | 32,693 | | $ | 31,095 | |
| Investment securities and federal funds sold | | | | | | | 26,039 | | | 24,732 | | | 24,454 | | | 23,303 | | | 22,184 | |
| |
| |
| |
| |
| |
| |
| | | | | | | | 68,911 | | | 63,509 | | | 60,073 | | | 55,996 | | | 53,279 | |
| Interest expense | | |
| Deposits | | | | | | | 10,060 | | | 7,539 | | | 6,247 | | | 5,061 | | | 4,356 | |
| Other borrowings | | | | | | | 13,991 | | | 12,950 | | | 11,589 | | | 9,998 | | | 9,183 | |
| |
| |
| |
| |
| |
| |
| | | | | | | | 24,051 | | | 20,489 | | | 17,836 | | | 15,059 | | | 13,539 | |
| Net interest income before | | |
| provision for credit losses | | | | | | | 44,860 | | | 43,020 | | | 42,237 | | | 40,937 | | | 39,740 | |
| Provision for credit losses | | | | | | | -- | | | -- | | | -- | | | -- | | | -- | |
| |
| |
| |
| |
| |
| |
| Net interest income after | | |
| provision for credit losses | | | | | | | 44,860 | | | 43,020 | | | 42,237 | | | 40,937 | | | 39,740 | |
| Non-interest income | | | | | | | 5,273 | | | 7,861 | | | 7,293 | | | 7,079 | | | 7,596 | |
| Non-interest expenses | | | | | | | 24,366 | | | 23,115 | | | 23,415 | | | 20,697 | | | 25,462 | |
| |
| |
| |
| |
| |
| |
| Earnings before income taxes | | | | | | | 25,767 | | | 27,766 | | | 26,115 | | | 27,319 | | | 21,874 | |
| Income taxes | | | | | | | 8,593 | | | 9,499 | | | 8,637 | | | 9,618 | | | 4,986 | |
| |
| |
| |
| |
| |
| |
| Net earnings | | | | | | $ | 17,174 | | $ | 18,267 | | $ | 17,478 | | $ | 17,701 | | $ | 16,888 | |
| |
| |
| |
| |
| |
| |
| Basic earning per common share | | | | | | $ | 0.22 | | $ | 0.24 | | $ | 0.23 | | $ | 0.23 | | $ | 0.22 | |
| Diluted earnings per common share | | | | | | $ | 0.22 | | $ | 0.23 | | $ | 0.22 | | $ | 0.23 | | $ | 0.22 | |
| Cash dividends per common share | | | | | | $ | 0.09 | | $ | 0.11 | | $ | 0.11 | | $ | 0.11 | | $ | 0.11 | |
| Dividends Declared | | | | | | $ | 6,877 | | $ | 6,722 | | $ | 6,716 | | $ | 6,775 | | $ | 6,733 | |
Financial Measures That Supplement GAAP
Our discussions sometimes contain financial information not required to be presented by generally accepted accounting principles (GAAP). We do this to better inform readers of our financial statements. The SEC requires us to present a reconciliation of GAAP.
The following table reconciles the differences in net earnings with and without the accrual/settlement of robbery loss, gain/loss on sales of securities, gain on sale of real estate, and the other-than-temporary impairment write-down in conformity with GAAP.
| Net Earnings Reconciliation (non-GAAP disclosure): | Three months ended
December 31, | Twelve months ended
December 31, |
|---|
| 2005
| 2004
| 2005
| 2004
|
|---|
| Net earnings without the accrual/settlement of robbery loss, the gains/(loss) on sales of securities, the gain on sale of real estate, and other-than-temporary impairment write-down | | | | | | | | | | | | | | |
| | | | $ | 18,687 | | $ | 18,450 | | $ | 70,430 | | $ | 63,503 | |
| | |
| Accrual/Settlement of robbery loss, net of tax | | | | 0 | | | (1,562 | ) | | 1,717 | | | (1,562 | ) |
| Gain/(Loss) on Sales of Securities, net of tax | | | | 0 | | | 0 | | | ( 30 | ) | | 3,591 | |
| Gain on Sale of Real Estate, net of tax | | | | 0 | | | 0 | | | 0 | | | 288 |
| Other-than-temporary impairment write-down, net of tax | | | | (1,513 | ) | | 0 | | | (1,499 | ) | | (4,334 | ) | |
|
| |
| |
| |
| |
| Reported net earnings | | | $ | 17,174 | | $ | 16,888 | | $ | 70,618 | | $ | 61,486 | |
|
| |
| |
| |
| |
| Accrual/Settlement of robbery loss | | | $ | 0 | | $ | (2,269 | ) | $ | 2,600 | | $ | (2,269 | ) |
| Gain/(Loss) on Sales of Securiites | | | | 0 | | | 0 | | | (46 | ) | | 5,219 | |
| Gain on Sale of Real Estate | | | | 0 | | | 0 | | | 0 | | | 419 |
| Other-than-temporary impairment write-down | | | | (2,270 | ) | | 0 | | | (2,270 | ) | | (6,300 | ) |
| Tax effect | | | | 757 | | | 707 | | | (96 | ) | | 914 | |
|
| |
| |
| |
| |
| Net of taxes | | | $ | (1,513 | ) | $ | (1,562 | ) | $ | 188 | | $ | (2,017 | ) |
|
| |
| |
| |
| |
We have presented net earnings without the accrual/settlement of robbery loss, gain/loss on sales of securities, gain on sale of real estate, and other-than-temporary impairment write-down on investment securities to show shareholders the earnings from operations unaffected by the impact of these items. We believe this presentation allows the reader to more easily assess the results of the Company's operations and business.
Ratios Reconciliation (non-GAAP disclosure):
The following table reconciles the differences in ratios with and without the accrual/settlement of robbery loss, the other-than-temporary impairment write-down on investment securities, the net gain/loss on sales of securities and the gain on sale of real estate in conformity with GAAP.
| Ratios Reconciliation
For the Three Months
Ended December 31, | Ratios Reconciliation
For the Three Months
Ended December 31, |
|---|
| 2005
| 2004
|
|---|
| Without other-than-temporary impairment write-down | Other-than-temporary impairment write-down | Reported earnings | Without the accrual of robbery loss | Accrual of robbery loss | Reported earnings |
|---|
|
| |
|
| (amounts in thousands) | (amounts in thousands) |
|---|
Other Operating Expense | | | $ | 24,366 | | $ | -- | $ | | 24,366 | | $ | 23,193 | | $ | 2,269 | | $ | 25,462 | |
|
| |
| |
| |
| |
| |
| |
| Net Revenues | | | $ | 52,403 | | $ | (2,270) | $ | | 50,133 | | $ | 47,336 | | $ | -- | | $ | 47,336 | |
|
| |
| |
| |
| |
| |
| |
| Net Earnings | | | $ | 18,687 | | $ | (1,513) | $ | | 17,174 | | $ | 18,450 | | $ | (1,562) | | $ | 16,888 | |
|
| |
| |
| |
| |
| |
| |
Return on Beginning Equity | | | | 21.99 | % | | | | | 20.21 | % | | 23.67 | % | | | | | 21.67 | % |
| Return on Average Equity | | | | 21.23 | % | | | | | 19.51 | % | | 22.92 | % | | | | | 20.98 | % |
| Return on Average Assets | | | | 1.43 | % | | | | | 1.32 | % | | 1.66 | % | | | | | 1.52 | % |
| Efficiency Ratio | | | | 46.50 | % | | | | | 48.60 | % | | 49.00 | % | | | | | 53.79 | % |
| Operating Costs as % of Average assets | | | | 1.87 | % | | | | | 1.87 | % | | 2.09 | % | | | | | 2.29 | % |
|
Ratios Reconciliation
For the Twelve Months
Ended December 31, | Ratios Reconciliation
For the Twelve Months
Ended December 31, |
|---|
| 2005
| 2004
|
|---|
| Without other-than-temporary impairment write-down, settlement of robbery loss and net loss on sales of securities | Other-than-temporary impairment write-down, settlement of robbery loss, and net loss on sales of securities | Reported earnings | Without other-than-temporary impairment write-down, net gain on sales of securities and gain on sale of real estate | Impairment write-down, net gain on sales of securities, gain on sale of real estate and accrual of robbery loss | Reported earnings |
|---|
|
| |
|
| (amounts in thousands) | (amounts in thousands) |
|---|
Other Operating Expense | | | $ | 94,193 | | $ | (2,600 | ) | $ | 91,593 | | $ | 87,453 | | $ | 2,269 | | $ | 89,722 | |
|
| |
| |
| |
| |
| |
| |
| Net Revenues | | | $ | 200,873 | | $ | (2,316 | ) | $ | 198,557 | | $ | 179,754 | | $ | (662 | ) | $ | 179,092 | |
|
| |
| |
| |
| |
| |
| |
| Net Earnings | | | $ | 70,430 | | $ | 188 | | $ | 70,618 | | $ | 63,503 | | $ | (2,017 | ) | $ | 61,486 | |
|
| |
| |
| |
| |
| |
| |
| Return on Beginning Equity | | | | 22.18 | % | | | | | 22.24 | % | | 22.15 | % | | | | | 21.44 | % |
| Return on Average Equity | | | | 20.82 | % | | | | | 20.87 | % | | 21.00 | % | | | | | 20.33 | % |
| Return on Average Assets | | | | 1.45 | % | | | | | 1.45 | % | | 1.51 | % | | | | | 1.47 | % |
| Efficiency Ratio | | | | 46.89 | % | | | | | 46.13 | % | | 48.65 | % | | | | | 50.10 | % |
| Operating Costs as % of Average assets | | | | 1.93 | % | | | | | 1.88 | % | | 2.09 | % | | | | | 2.14 | % |
We have presented ratios without the accrual/settlement of robbery loss, the other-than-temporary impairment write-down on investment securities, the net gain/loss on sales of securities and the gain on sale of real estate to show shareholders the earnings from operations unaffected by the impact of these items. We believe this presentation allows the reader to more easily assess the results of the Company's operations and business.
