Exhibit 99.1
Old Second Bancorp, Inc. | For Immediate Release | |
(Nasdaq: OSBC) |
| January 21, 2005 |
Contact: | J. Douglas Cheatham |
| Chief Financial Officer |
| (630) 906-5484 |
Old Second Bancorp, Inc. Announces Fourth Quarter Earnings
AURORA, Illinois – Old Second Bancorp, Inc. (Nasdaq: OSBC) today announced fourth quarter earnings of $8.4 million, up $53.2% from the fourth quarter of 2003. The Company reduced the allowance for loan losses by $2.9 million in the fourth quarter of 2004. Earnings per diluted share were $0.62, up 51.2% from $0.41 in the fourth quarter of 2003. Net income was $26.3 million for the full year of 2004, an increase of $4.2 million or 18.9%. Earnings per diluted share for the year were $1.94, up $0.38 from $1.56 in 2003. In addition to the negative loan loss provision, continued loan growth contributed to the increases for both the quarter and the year.
Net interest income increased $1.2 million, or 7.4%, in the fourth quarter of 2004, and $6.0 million, or 9.6%, for the full year. These increases resulted from higher average earning assets, partially offset by a lower net interest margin. The net interest margin was 3.71% in the fourth quarter of 2004 and 3.78% for the full year of 2004, compared with 3.91% in the fourth quarter of 2003 and 3.95% for the full year of 2003. Interest costs associated with an 18.0% increase in deposits contributed to the decline in net interest margin. The increase in deposits provided funding for strong loan growth.
The Company did not make a provision for loan losses during the first nine months of 2004, and recorded a negative provision of $2.9 million in the fourth quarter of 2004. The provision for loan losses was $705,000 in the fourth quarter of 2003 and $3.3 million during the full year of 2003. The determination by management to reduce the allowance for loan losses was based on a number of factors, including the quality of the loan portfolio and favorable loan loss experience. Provisions for loan losses are made to provide for probable and estimable losses inherent in the loan portfolio. In the fourth quarter of 2004, management conducted a comprehensive review of its allowance for loan losses. As a result of slight modifications in the methodology and internal evaluations of probable and estimable losses, management determined that this adjustment was appropriate. Net recoveries in the fourth quarter of 2004 were $225,000 and net recoveries were $94,000 for the full year of 2004. Net charge-offs were $11,000 in the fourth quarter of 2003 and $719,000 for the full year of 2003.
Noninterest income was $6.6 million during the fourth quarter of 2004 and $5.9 million during the fourth quarter of 2003, an increase of $736,000, or 12.6%. Noninterest income was $25.9 million in 2004, a decrease of $3.3 million from $29.2 million in 2003. Service charges on deposits increased from $1.9 million in the fourth quarter of 2003 to $2.0 million in the fourth quarter of 2004. Service charges on deposits increased from $7.0 million in 2003 to $7.6 million in 2004. Deposit service charges for the quarter and the year have increased as a result of deposit growth. Other noninterest income increased from $1.0 million in the fourth quarter of 2003 to
1
$1.4 million in the fourth quarter of 2004 and from $4.1 million for the full year of 2003 to $5.5 million for the full year of 2004. ATM income increased $147,000 from 2003 to 2004, as a result of higher fees and expansion of the ATM network. Trust income increased to $5.8 million in 2004, an increase of $400,000 from $5.4 million in 2003. The purchase of bank owned life insurance (BOLI) during the second quarter of 2004, resulted in an increase in other income of $670,000 in 2004.
The decline in noninterest income in 2004 was primarily the result of reduced mortgage banking activity. Mortgage-related noninterest income, principally gains on sales of mortgage loans, totaled $12.6 million in 2003 and $6.5 million in 2004. The decrease in loan originations in 2004 was primarily the result of rising mortgage rates during the last half of 2003, which led to decreased mortgage refinance activity and decreased demand for home mortgages, which continued into 2004.
Noninterest expense was $14.2 million during the fourth quarter of 2004, an increase of $1.2 million, or 9.2%, from $13.0 million in the fourth quarter of 2003. Noninterest expense was $57.6 million during 2004, an increase of $3.4 million, or 6.3%, from $54.2 million in 2003. Salaries and benefits, which is the largest component of noninterest expense, decreased in 2004 by $496,000, or 1.5% from 2003. Salaries and benefits expense was $8.3 million during the fourth quarter of 2004, an increase of $290,000, or 3.6%, from $8.0 million in the fourth quarter of 2003. The full-time equivalent number of employees was 550 as of December 31, 2004, as compared with 537 one year earlier. Increased staffing, primarily related to branch expansion, and merit increases were offset in both periods by decreases in commissions and incentives tied to earnings performance for the mortgage company.
Net occupancy and furniture and equipment expenses increased $312,000, or 16.3%, from the fourth quarter of 2003 to the fourth quarter of 2004 and increased $935,000, or 12.6%, from 2003 to 2004. As the Company has expanded into and developed new markets, related facility and employee expenses have increased accordingly. There were two new branch openings in 2004, bringing the number of locations to 25 bank branches and four mortgage offices. In addition, a branch in Joliet, Illinois, opened in January 2005, and a new branch in Naperville, Illinois will open in the first quarter of 2005.
Other expense increased from $3.0 million in the fourth quarter of 2003 to $3.6 million in the fourth quarter of 2004. Other expense increased from $12.3 million in 2003 to $15.3 million in 2004. Activities relating to branch expansion and marketing, Sarbanes-Oxley compliance, and the settlement of a lawsuit in the second quarter of 2004 all contributed to the increases. As previously announced, in July of 2004, the Company reached an agreement to settle a jury verdict against one of its subsidiaries. Under the terms of the settlement, the Company paid the plaintiff $1.75 million, or $1.17 million, net of tax.
Total assets were $2.10 billion as of December 31, 2004, an increase of $263 million, or 14.3% from $1.84 billion as of December 31, 2003. Loans grew $55 million during the fourth quarter of 2004. Deposits were $1.80 billion as of December 31, 2004. Deposits declined by $50 million during the fourth quarter of 2004, but increased by $274.2 million or 18% from $1.52 billion as of December 31, 2003.
2
Total loans were $1.51 billion as of December 31, 2004, an increase of $190 million, or 14.4%, from $1.32 billion as of December 31, 2003. The largest increase was in residential real estate, which increased $105.2 million, or 25.7%. Commercial real estate and construction loans increased $55.8 million and $51.0 million, respectively. These changes reflected the continuing loan demand in the markets in which the Company operates. The loan portfolio generally reflects the profile of the communities in which the Company operates. Because the Company is located in growing areas, real estate lending (including commercial, residential, and construction) is a significant portion of the portfolio. These categories comprised 86.0% of the portfolio as of December 31, 2004 and 81.6% of the portfolio as of December 31, 2003.
Total deposits were $1.80 billion as of December 31, 2004, an increase of $274.2 million, or 18.0%, from $1.52 billion as of December 31, 2003. Demand deposits increased $35.9 million, or 16.7%, during 2004, to $250.3 million. Savings deposits increased $25.8 million, or 3.5%, from $737.8 million to $763.6 million. Time deposits increased $212.5 million from $572.4 million to $784.9 million, or 37.1%. Pricing and sales strategies targeted growth in transactional deposit accounts and customer reinvestment of maturing time deposit balances to longer-term maturities. Successful selling efforts in these areas resulted in an increase in new account relationships and core funding sources.
Non-GAAP Presentations: Management uses certain non-GAAP ratios to evaluate and measure the Company’s performance. In this report, management presents a net interest margin calculation. The net interest margin is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding balance sheet profitability. Management also presents an efficiency ratio that is non-GAAP. The efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income. Management believes this measure provides investors with information regarding the Company’s operating efficiency and how management evaluates performance internally.
Forward Looking Statements: This report may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or other indications that the particular statements are not based upon facts but are rather based upon the company’s beliefs as of the date of this release. Actual events and results may differ significantly from those described in such forward looking statements, due to changes in the economy, interest rates or other factors. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. For additional information concerning the Company and its business, including other factors that could materially affect the Company’s financial results, please review our filings with the Securities and Exchange Commission.
3
Financial Highlights (unaudited)
In thousands, except share data
|
| Quarter Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
Summary Income Statement: |
|
|
|
|
|
|
|
|
| ||||
Net interest income |
| $ | 17,560 |
| $ | 16,355 |
| $ | 68,359 |
| $ | 62,376 |
|
Provision for loan losses |
| (2,900 | ) | 705 |
| (2,900 | ) | 3,251 |
| ||||
Noninterest income |
| 6,600 |
| 5,864 |
| 25,914 |
| 29,227 |
| ||||
Noninterest expense |
| 14,246 |
| 13,039 |
| 57,608 |
| 54,175 |
| ||||
Income taxes |
| 4,406 |
| 2,985 |
| 13,278 |
| 12,069 |
| ||||
Net income |
| 8,408 |
| 5,490 |
| 26,287 |
| 22,108 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Key Ratios (annualized): |
|
|
|
|
|
|
|
|
| ||||
Return on average assets |
| 1.62 | % | 1.22 | % | 1.34 | % | 1.30 | % | ||||
Return on average equity |
| 25.26 | % | 18.91 | % | 20.86 | % | 17.65 | % | ||||
Net interest margin (tax equivalent) |
| 3.71 | % | 3.91 | % | 3.78 | % | 3.95 | % | ||||
Efficiency ratio |
| 57.61 | % | 57.60 | % | 59.86 | % | 58.17 | % | ||||
Tangible capital to assets |
| 6.29 | % | 6.19 | % | 6.29 | % | 6.19 | % | ||||
|
|
|
|
|
|
|
|
|
| ||||
Per Share Data: |
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
| $0.63 |
| $0.41 |
| $1.96 |
| $1.57 |
| ||||
Diluted earnings per share |
| $0.62 |
| $0.41 |
| $1.94 |
| $1.56 |
| ||||
Dividends declared per share |
| $0.12 |
| $0.10 |
| $0.46 |
| $0.40 |
| ||||
Book value per share |
| $10.06 |
| $8.74 |
| $10.06 |
| $8.74 |
| ||||
Tangible book value per share |
| $9.84 |
| $8.50 |
| $9.84 |
| $8.50 |
| ||||
Ending number of shares outstanding |
| 13,424,346 |
| 13,387,480 |
| 13,424,346 |
| 13,387,480 |
| ||||
Average number of shares outstanding |
| 13,421,970 |
| 13,372,400 |
| 13,413,263 |
| 14,096,244 |
| ||||
Diluted average shares outstanding |
| 13,584,022 |
| 13,519,222 |
| 13,535,881 |
| 14,213,828 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
End of Period Balances: |
|
|
|
|
|
|
|
|
| ||||
Loans |
| $ | 1,509,076 |
| $ | 1,319,538 |
| $ | 1,509,076 |
| $ | 1,319,538 |
|
Deposits |
| 1,798,849 |
| 1,524,634 |
| 1,798,849 |
| 1,524,634 |
| ||||
Stockholders’ equity |
| 134,988 |
| 116,994 |
| 134,988 |
| 116,994 |
| ||||
Total earning assets |
| 1,978,677 |
| 1,745,498 |
| 1,978,677 |
| 1,745,498 |
| ||||
Total assets |
| 2,102,266 |
| 1,838,844 |
| 2,102,266 |
| 1,838,844 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Average Balances: |
|
|
|
|
|
|
|
|
| ||||
Loans |
| $ | 1,486,627 |
| $ | 1,280,402 |
| $ | 1,421,483 |
| $ | 1,183,290 |
|
Deposits |
| 1,821,325 |
| 1,556,773 |
| 1,684,377 |
| 1,465,726 |
| ||||
Stockholders’ equity |
| 132,437 |
| 115,165 |
| 125,998 |
| 125,253 |
| ||||
Total earning assets |
| 1,946,135 |
| 1,703,230 |
| 1,858,710 |
| 1,617,848 |
| ||||
Total assets |
| 2,060,823 |
| 1,786,408 |
| 1,963,535 |
| 1,699,605 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Asset Quality: |
|
|
|
|
|
|
|
|
| ||||
Nonaccrual loans |
| $ | 5,129 |
| $ | 2,265 |
| $ | 5,129 |
| $ | 2,265 |
|
Restructured loans |
| — |
| — |
| — |
| — |
| ||||
Loans past due 90 days |
| 116 |
| 381 |
| 116 |
| 381 |
| ||||
Nonperforming loans |
| 5,245 |
| 2,646 |
| 5,245 |
| 2,646 |
| ||||
Other real estate |
| — |
| 663 |
| — |
| 663 |
| ||||
Nonperforming assets |
| 5,245 |
| 3,309 |
| 5,245 |
| 3,309 |
| ||||
Charge-offs |
| 320 |
| 308 |
| 757 |
| 1,476 |
| ||||
Recoveries |
| 545 |
| 297 |
| 851 |
| 757 |
| ||||
Net charge-offs (recoveries) |
| (225 | ) | 11 |
| (94 | ) | 719 |
| ||||
Allowance for loan losses |
| 15,495 |
| 18,301 |
| 15,495 |
| 18,301 |
| ||||
Allowance for loan losses to loans |
| 1.03 | % | 1.39 | % | 1.03 | % | 1.39 | % | ||||
4
Major Classifications of Loans as of December 31:
|
| 2004 |
| 2003 |
| ||
Commercial and industrial |
| $ | 171,058 |
| $ | 192,444 |
|
Real estate - commercial |
| 514,782 |
| 459,014 |
| ||
Real estate - construction |
| 269,537 |
| 218,519 |
| ||
Real estate - residential |
| 514,020 |
| 408,789 |
| ||
Installment |
| 42,155 |
| 44,449 |
| ||
|
| 1,511,552 |
| 1,323,215 |
| ||
Unearned origination fees |
| (2,476 | ) | (3,677 | ) | ||
|
| $ | 1,509,076 |
| $ | 1,319,538 |
|
Major Classifications of Deposits as of December 31:
|
| 2004 |
| 2003 |
| ||
Noninterest bearing |
| $ | 250,328 |
| $ | 214,439 |
|
Savings |
| 123,981 |
| 116,565 |
| ||
NOW accounts |
| 234,757 |
| 234,184 |
| ||
Money market accounts |
| 404,899 |
| 387,089 |
| ||
Certificates of deposits of less than $100,000 |
| 510,231 |
| 390,353 |
| ||
Certificates of deposits of $100,000 or more |
| 274,653 |
| 182,004 |
| ||
|
| $ | 1,798,849 |
| $ | 1,524,634 |
|
5
Old Second Bancorp, Inc.
Consolidated Balance Sheets
as of December 31
(In thousands)
|
| (Unaudited) |
|
|
| ||
|
| 2004 |
| 2003 |
| ||
Assets |
|
|
|
|
| ||
Cash and due from banks |
| $ | 58,600 |
| $ | 54,999 |
|
Interest bearing balances with banks |
| 62 |
| 169 |
| ||
Cash and cash equivalents |
| 58,662 |
| 55,168 |
| ||
Securities available for sale |
| 452,942 |
| 411,035 |
| ||
Loans held for sale |
| 16,597 |
| 14,756 |
| ||
Loans |
| 1,509,076 |
| 1,319,538 |
| ||
Allowance for loan losses |
| 15,495 |
| 18,301 |
| ||
Net loans |
| 1,493,581 |
| 1,301,237 |
| ||
Premises and equipment, net |
| 36,208 |
| 33,033 |
| ||
Other real estate owned |
| — |
| 663 |
| ||
Goodwill, net |
| 2,130 |
| 2,130 |
| ||
Core deposit intangible assets, net |
| 711 |
| 1,066 |
| ||
Accrued interest and other assets |
| 41,435 |
| 19,756 |
| ||
Total assets |
| $ | 2,102,266 |
| $ | 1,838,844 |
|
|
|
|
|
|
| ||
Liabilities |
|
|
|
|
| ||
Deposits: |
|
|
|
|
| ||
Demand |
| $ | 250,328 |
| $ | 214,439 |
|
Savings |
| 763,637 |
| 737,838 |
| ||
Time |
| 784,884 |
| 572,357 |
| ||
Total deposits |
| 1,798,849 |
| 1,524,634 |
| ||
Securities sold under repurchase agreements |
| 45,242 |
| 47,848 |
| ||
Other short-term borrowings |
| 75,786 |
| 106,046 |
| ||
Junior subordinated debentures |
| 30,267 |
| 30,216 |
| ||
Notes payable |
| 2,700 |
| 500 |
| ||
Accrued interest and other liabilities |
| 14,434 |
| 12,606 |
| ||
Total liabilities |
| 1,967,278 |
| 1,721,850 |
| ||
|
|
|
|
|
| ||
Stockholders’ Equity |
|
|
|
|
| ||
Common stock |
| 16,497 |
| 16,460 |
| ||
Additional paid-in capital |
| 12,480 |
| 11,940 |
| ||
Retained earnings |
| 156,025 |
| 135,927 |
| ||
Accumulated other comprehensive income |
| 324 |
| 3,005 |
| ||
Treasury stock |
| (50,338 | ) | (50,338 | ) | ||
Total stockholders’ equity |
| 134,988 |
| 116,994 |
| ||
Total liabilities and stockholders’ equity |
| $ | 2,102,266 |
| $ | 1,838,844 |
|
6
Old Second Bancorp, Inc.
Consolidated Statements of Income
(In thousands, except share data)
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
Interest Income |
|
|
|
|
|
|
|
|
| ||||
Loans, including fees |
| $ | 22,122 |
| $ | 19,012 |
| $ | 82,665 |
| $ | 72,176 |
|
Loans held for sale |
| 241 |
| 189 |
| 782 |
| 2,193 |
| ||||
Securities: |
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 2,654 |
| 2,817 |
| 10,624 |
| 10,883 |
| ||||
Tax-exempt |
| 961 |
| 684 |
| 3,265 |
| 2,486 |
| ||||
Federal funds sold |
| 9 |
| 15 |
| 58 |
| 105 |
| ||||
Interest bearing deposits |
| 1 |
| — |
| 4 |
| 1 |
| ||||
Total interest income |
| 25,988 |
| 22,717 |
| 97,398 |
| 87,844 |
| ||||
Interest Expense |
|
|
|
|
|
|
|
|
| ||||
Savings deposits |
| 2,032 |
| 1,451 |
| 6,421 |
| 6,266 |
| ||||
Time deposits |
| 5,432 |
| 4,082 |
| 18,602 |
| 16,967 |
| ||||
Repurchase agreements |
| 175 |
| 94 |
| 450 |
| 511 |
| ||||
Other short-term borrowings |
| 152 |
| 116 |
| 1,037 |
| 477 |
| ||||
Notes payable |
| 20 |
| 3 |
| 43 |
| 14 |
| ||||
Junior subordinated debentures |
| 617 |
| 616 |
| 2,486 |
| 1,233 |
| ||||
Total interest expense |
| 8,428 |
| 6,362 |
| 29,039 |
| 25,468 |
| ||||
Net interest income |
| 17,560 |
| 16,355 |
| 68,359 |
| 62,376 |
| ||||
Provision for loan losses |
| (2,900 | ) | 705 |
| (2,900 | ) | 3,251 |
| ||||
Net interest income after provision for loan losses |
| 20,460 |
| 15,650 |
| 71,259 |
| 59,125 |
| ||||
Noninterest Income |
|
|
|
|
|
|
|
|
| ||||
Trust income |
| 1,485 |
| 1,350 |
| 5,807 |
| 5,398 |
| ||||
Service charges on deposits |
| 2,044 |
| 1,878 |
| 7,634 |
| 6,968 |
| ||||
Secondary mortgage fees |
| 228 |
| 204 |
| 907 |
| 1,746 |
| ||||
Gain on sale of loans |
| 1,396 |
| 1,380 |
| 5,579 |
| 10,836 |
| ||||
Securities gains, net |
| 35 |
| 5 |
| 512 |
| 140 |
| ||||
Other income |
| 1,412 |
| 1,047 |
| 5,475 |
| 4,139 |
| ||||
Total noninterest income |
| 6,600 |
| 5,864 |
| 25,914 |
| 29,227 |
| ||||
Noninterest Expense |
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
| 8,290 |
| 7,999 |
| 33,603 |
| 34,099 |
| ||||
Occupancy expense, net |
| 968 |
| 858 |
| 3,780 |
| 3,376 |
| ||||
Furniture and equipment expense |
| 1,255 |
| 1,053 |
| 4,586 |
| 4,055 |
| ||||
Amortization of core deposit intangible assets |
| 89 |
| 89 |
| 355 |
| 355 |
| ||||
Litigation settlement |
| 1,750 |
| — |
| 1,750 |
| — |
| ||||
Other expense |
| 1,894 |
| 3,040 |
| 13,534 |
| 12,290 |
| ||||
Total noninterest expense |
| 14,246 |
| 13,039 |
| 57,608 |
| 54,175 |
| ||||
Income before income taxes |
| 12,814 |
| 8,475 |
| 39,565 |
| 34,177 |
| ||||
Provision for income taxes |
| 4,406 |
| 2,985 |
| 13,278 |
| 12,069 |
| ||||
Net income |
| $ | 8,408 |
| $ | 5,490 |
| $ | 26,287 |
| $ | 22,108 |
|
|
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
| $0.63 |
| $0.41 |
| $1.96 |
| $1.57 |
| ||||
Diluted earnings per share |
| 0.62 |
| 0.41 |
| 1.94 |
| 1.56 |
| ||||
7
ANALYSIS OF AVERAGE BALANCES,
TAX EQUIVALENT INTEREST AND RATES
Years ended December 31, 2004 and 2003
(Dollar amounts in thousands - Unaudited)
|
| 2004 |
| 2003 |
| ||||||||||||
|
| Average |
|
|
|
|
| Average |
|
|
|
|
| ||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| ||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest bearing deposits |
| $ | 307 |
| $ | 4 |
| 1.14 | % | $ | 576 |
| $ | 1 |
| 0.15 | % |
Federal funds sold |
| 3,967 |
| 58 |
| 1.47 |
| 9,627 |
| 105 |
| 1.09 |
| ||||
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 320,185 |
| 10,624 |
| 3.32 |
| 314,724 |
| 10,883 |
| 3.46 |
| ||||
Non-taxable (tax equivalent) |
| 97,221 |
| 5,023 |
| 5.17 |
| 64,997 |
| 3,825 |
| 5.88 |
| ||||
Total securities |
| 417,406 |
| 15,647 |
| 3.75 |
| 379,721 |
| 14,708 |
| 3.87 |
| ||||
Loans and loans held for sale |
| 1,437,030 |
| 83,653 |
| 5.82 |
| 1,227,924 |
| 74,562 |
| 6.07 |
| ||||
Total interest earning assets |
| 1,858,710 |
| 99,362 |
| 5.35 |
| 1,617,848 |
| 89,376 |
| 5.52 |
| ||||
Cash and due from banks |
| 52,228 |
| — |
| — |
| 45,993 |
| — |
| — |
| ||||
Allowance for loan losses |
| (18,295 | ) | — |
| — |
| (17,017 | ) | — |
| — |
| ||||
Other noninterest-bearing assets |
| 70,892 |
| — |
| — |
| 52,781 |
| — |
| — |
| ||||
Total assets |
| $ | 1,963,535 |
|
|
|
|
| $ | 1,699,605 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest bearing transaction accounts |
| $ | 244,806 |
| 1,018 |
| 0.42 |
| 216,859 |
| 836 |
| 0.39 |
| |||
Savings accounts |
| 515,646 |
| 5,403 |
| 1.05 |
| 508,337 |
| 5,430 |
| 1.07 |
| ||||
Time deposits |
| 696,013 |
| 18,602 |
| 2.67 |
| 541,588 |
| 16,967 |
| 3.13 |
| ||||
Interest bearing deposits |
| 1,456,465 |
| 25,023 |
| 1.72 |
| 1,266,784 |
| 23,233 |
| 1.83 |
| ||||
Repurchase agreements |
| 37,006 |
| 450 |
| 1.22 |
| 46,990 |
| 511 |
| 1.07 |
| ||||
Federal funds purchased and other borrowed funds |
| 71,515 |
| 1,037 |
| 1.45 |
| 33,369 |
| 477 |
| 1.43 |
| ||||
Trust preferred debentures |
| 30,241 |
| 2,486 |
| 8.22 |
| 15,286 |
| 1,233 |
| 8.07 |
| ||||
Notes payable |
| 1,638 |
| 43 |
| 2.63 |
| 619 |
| 14 |
| 2.23 |
| ||||
Total interest bearing liabilities |
| 1,596,865 |
| 29,039 |
| 1.82 |
| 1,363,048 |
| 25,468 |
| 1.87 |
| ||||
Noninterest bearing deposits |
| 227,912 |
| — |
| — |
| 198,942 |
| — |
| — |
| ||||
Accrued interest and other liabilities |
| 12,760 |
| — |
| — |
| 12,362 |
| — |
| — |
| ||||
Stockholders’ equity |
| 125,998 |
| — |
| — |
| 125,253 |
| — |
| — |
| ||||
Total liabilities and stockholders’ equity |
| $ | 1,963,535 |
|
|
|
|
| $ | 1,699,605 |
|
|
|
|
| ||
Net interest income (tax equivalent) |
|
|
| $ | 70,323 |
|
|
|
|
| $ | 63,908 |
|
|
| ||
Net interest income (tax equivalent) to total earning assets |
|
|
|
|
| 3.78 | % |
|
|
|
| 3.95 | % | ||||
Interest bearing liabilities to earnings assets |
| 85.91 | % |
|
|
|
| 84.25 | % |
|
|
|
| ||||
Notes: Nonaccrual loans are included in the above stated average balances.
Tax equivalent basis is calculated using a marginal tax rate of 35%.
8
The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest income (GAAP) |
| $ | 25,988 |
| $ | 22,717 |
| $ | 97,398 |
| $ | 87,844 |
|
Taxable-equivalent adjustment - Loans |
| 49 |
| 48 |
| 196 |
| 192 |
| ||||
Taxable-equivalent adjustment - Investments |
| 517 |
| 369 |
| 1,768 |
| 1,340 |
| ||||
Interest income - FTE |
| 26,554 |
| 23,134 |
| 99,362 |
| 89,376 |
| ||||
Interest expense (GAAP) |
| 8,428 |
| 6,362 |
| 29,039 |
| 25,468 |
| ||||
Net interest income - FTE |
| $ | 18,126 |
| $ | 16,772 |
| $ | 70,323 |
| $ | 63,908 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income - (GAAP) |
| $ | 17,560 |
| $ | 16,355 |
| $ | 68,359 |
| $ | 62,376 |
|
|
|
|
|
|
|
|
|
|
| ||||
Interest earning assets |
| $ | 1,946,135 |
| $ | 1,703,230 |
| $ | 1,858,710 |
| $ | 1,617,848 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest margin (GAAP) |
| 3.59 | % | 3.81 | % | 3.68 | % | 3.86 | % | ||||
Net interest margin - FTE |
| 3.71 | % | 3.91 | % | 3.78 | % | 3.95 | % | ||||
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Noninterest expense |
| $ | 14,246 |
| $ | 13,039 |
| $ | 57,608 |
| $ | 54,175 |
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest income |
| 6,600 |
| 5,864 |
| 25,914 |
| 29,227 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net interest income (GAAP) |
| 17,560 |
| 16,355 |
| 68,359 |
| 62,376 |
| ||||
Taxable-equivalent adjustment - Loans |
| 49 |
| 48 |
| 196 |
| 192 |
| ||||
Taxable-equivalent adjustment - Investments |
| 517 |
| 369 |
| 1,768 |
| 1,340 |
| ||||
Net interest income - FTE |
| 18,126 |
| 16,772 |
| 70,323 |
| 63,908 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Noninterest income plus net interest income - FTE |
| 24,726 |
| 22,636 |
| 96,237 |
| 93,135 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Efficiency ratio |
| 57.61 | % | 57.60 | % | 59.86 | % | 58.17 | % | ||||
9
