FOR IMMEDIATE RELEASE
| | CONTACT: Robert N. Shuster
Executive Vice President and
Chief Financial Officer
#616/522-1765 |
INDEPENDENT BANK CORPORATION
REPORTS THIRD QUARTER 2007 RESULTS
IONIA,Mich., Oct. 29, 2007 — Independent Bank Corporation (NASDAQ: IBCP), a Michigan-based bank holding company, reported third quarter 2007 net income from continuing operations of $3.7 million, or $0.16 per diluted share, versus net income from continuing operations of $9.4 million, or $0.40 per diluted share, in the prior-year period. For the quarter ended September 30, 2007, the Company recorded net income of $3.7 million, or $0.16 per diluted share, compared to net income of $10.0 million, or $0.43 per diluted share, in the third quarter of 2006.
Return on average equity and return on average assets (based on net income from continuing operations) were 5.93% and 0.45%, respectively, in the third quarter of 2007, compared to 14.33% and 1.09%, respectively, in 2006.
For the nine months ended September 30, 2007, net income from continuing operations was $7.7 million, or $0.34 per diluted share, compared to $32.9 million, or $1.41 per diluted share, in the same nine-month period of 2006. Net income for the nine months ended September 30, 2007 was $7.9 million, or $0.35 per diluted share, compared to $32.9 million, or $1.41 per diluted share, in the prior-year nine-month period.
The year-on-year decline in third quarter 2007 income from continuing operations was primarily attributable to an increase in the provision for loan losses and higher non-interest expenses (including $0.6 million of one-time costs related to the Company’s bank charter consolidation).
On March 23, 2007 the Company completed the acquisition of ten branches (located in Battle Creek, Bay City and Saginaw, Michigan) from TCF National Bank. At the time of the acquisition, these ten branch locations represented approximately $241.4 million in deposits.
Michael M. Magee, President and CEO of Independent Bank Corporation, commented: “As anticipated, we completed our bank charter consolidation during the third quarter, a significant accomplishment that positions us to achieve improved cost savings, operating efficiency and strategic growth over the long term. On another positive note, our net interest margin grew on both a sequential and year-over-year basis during the period, due principally to an increase in the tax equivalent yield on average interest earning assets when compared to the prior period. In addition, non interest income grew considerably from the year-ago period, driven primarily by growth in deposit related revenues.”
“While efforts to improve credit quality remain a top priority, economic conditions throughout Michigan remain sluggish, particularly within the residential housing market where real estate values and end-market demand have further softened,” continued Magee.
Discontinued Operations
As previously reported on January 15, 2007, Mepco Finance Corporation (“Mepco”), a wholly-owned subsidiary of IBC, sold substantially all of the assets related to its insurance premium finance business to Premium Financing Specialists, Inc. Mepco continues to own and operate its warranty payment plan business. The assets, liabilities and operations of Mepco’s insurance premium finance business have been reclassified as discontinued operations and all periods presented have been restated for this reclassification.
1
Operating Results
The Company’s tax equivalent net interest income totaled $31.9 million during the third quarter of 2007, an increase of 1.0%, or $0.3 million versus the year-ago period, and down $0.2 million, or 0.6% from the second quarter of 2007. The year-over-year increase in tax equivalent net interest income primarily reflects a five basis point increase in the Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”), partially offset by an $8.6 million decrease in the balance of average interest-earning assets. The slight decline in average interest-earning assets is primarily due to a decrease in investment securities that was partially offset by growth in loans. In addition, tax equivalent net interest income in the third quarter of 2007 was reduced by $0.4 million ($0.01 per diluted share after tax) due to the write-off of accrued and unpaid interest on loans moved into non-accrual status during the quarter.
The net interest margin was 4.31% in the third quarter of 2007, compared to 4.26% in the third quarter of 2006 and 4.27% in the second quarter of 2007. The tax equivalent yield on average interest-earning assets rose to 7.75% in the third quarter of 2007 from 7.60% in the third quarter of 2006. This increase primarily reflects higher interest rates that have resulted in the repricing of variable rate loans and origination of new loans at higher rates. The increase in the tax equivalent yield on average interest-earning assets was partially offset by a 10 basis point rise, to 3.44%, in the Company’s interest expense as a percentage of average interest-earning assets (the “cost of funds”) during the third quarter of 2007, up from 3.34% during the third quarter of 2006. The increase in the Company’s cost of funds reflects generally higher interest rates that have resulted in increased rates on certain short-term and variable rate borrowings and on deposits. The recent reduction in the federal funds rate by the Federal Reserve Bank is expected to result in a modest improvement in the Company’s net interest margin in future periods.
Service charges on deposits totaled $6.6 million in the third quarter of 2007, a 24.2% increase from the comparable period in 2006. VISA check card interchange income increased by 47.9% to $1.3 million for the third quarter of 2007, up from $0.9 million in the third quarter of 2006. The increase in deposit- related revenues resulted primarily from the aforementioned branch acquisition.
Gains on the sale of real estate mortgage loans were $1.1 million in both the third quarters of 2007 and 2006. Real estate mortgage loan sales totaled $77.2 million in the third quarter of 2007 compared to $75.5 million in the third quarter of 2006. Real estate mortgage loans originated totaled $113.6 million in the third quarter of 2007 compared to $146.4 million in the comparable quarter of 2006. The decline in mortgage loan origination volume generally reflects a drop in real estate sales volumes in Michigan. Loans held for sale were $27.4 million at September 30, 2007, compared to $31.8 million at December 31, 2006.
Income from real estate mortgage loan servicing was $0.6 million in both the third quarters of 2007 and 2006. At September 30, 2007, the Company was servicing approximately $1.6 billion in real estate mortgage loans for others on which servicing rights have been capitalized. This servicing portfolio had a weighted average coupon rate of approximately 6.06%, a weighted average service fee of 25.7 basis points and an estimated fair market value of $20.6 million.
Non-interest expense totaled $28.4 million in the third quarter of 2007 which includes $0.6 million ($0.02 per diluted share after tax) of one-time expenses — primarily data processing and severance costs — associated with the Company’s bank charter consolidation that was completed on September 15, 2007. Excluding this item, non-interest expense rose by $4.5 million or 19.1% from the third quarter of 2006. This increase is principally due to increased operating costs related to the addition of staff at new branch and loan production offices and overall growth in the organization, along with associated rises in such costs as furniture and equipment, data processing and advertising. Loan and collection expenses also rose in the third quarter of 2007 primarily due to the elevated level of non-performing loans. Third quarter 2007 non-interest expenses did decline by $1.4 million, or 4.8%, from the second quarter of 2007, reflecting the Company’s on-going cost reduction initiatives that were instituted earlier this year.
Asset Quality
The increase in non-performing loans since year end 2006 is due principally to an increase in non-performing commercial loans and real estate mortgage loans. The increase in non-performing commercial loans is primarily attributable to the addition of several large credits with real estate developers becoming past due in the first nine months of 2007. These delinquencies largely reflect cash flow difficulties encountered by many real estate developers in Michigan confronting a significant decline in sales of residential real estate. The increase in non-performing real estate mortgage loans is primarily due to a rise in foreclosures reflecting both weak economic conditions and soft residential real estate values in many parts of Michigan. Other real estate and repossessed assets totaled $5.6 million at September 30, 2007, compared to $3.2 million at December 31, 2006.
2
The provision for loan losses was $10.7 million and $4.5 million in the third quarters of 2007 and 2006, respectively. The level of the provision for loan losses in each period reflects the Company’s assessment of the allowance for loan losses, taking into consideration factors such as loan mix, levels of non-performing and classified loans and loan net charge-offs. Loan net charge-offs were $6.6 million (1.05% annualized of average loans) in the third quarter of 2007, compared to $3.7 million (0.60% annualized of average loans) in the third quarter of 2006. The third quarter 2007 loan net charge-offs were divided among the following categories: commercial loans, $3.9 million; consumer, $0.9 million; and real estate mortgage, $1.8 million. The commercial loan net charge-offs in the third quarter of 2007 primarily reflects $3.2 million of charge-offs on three credits. The single largest charge-off was $2.0 million on a residential real estate development loan with a remaining balance of $1.9 million (after the charge-off). This charge-off reflects an updated appraisal obtained on the property. At September 30, 2007, the allowance for loan losses totaled $42.3 million, or 1.69% of portfolio loans, compared to $26.9 million or 1.08% of portfolio loans at December 31, 2006.
Commenting on asset quality, CEO Magee stated: “Non-performing loans increased during the third quarter above levels experienced in the second quarter 2007, due primarily to ongoing challenges within our commercial (primarily real estate development related credits) and real estate mortgage portfolios. As in many states throughout the country, the inventory of new and existing residential real estate for sale in areas of Michigan remains above historical norms, despite some price depreciation. Our increase in non-performing loans during the third quarter is closely aligned with a general slowing in the residential housing market, and the effect this slowing has had on borrowers, including several residential real estate developers who came past due on their loans in recent quarters.”
“In response to this trend, our management team has implemented a new organizational structure designed to improve loan monitoring and enhance our portfolio management function,” continued Magee. “These management and monitoring functions include the implementation of an enhanced quarterly credit quality review, the creation of a special assets group and increased oversight by our credit officers on a real-time basis.”
A breakdown of non-performing loans by loan type is as follows:
| Loan Type | 9/30/2007 | | 6/30/2007 | | 12/31/2006 |
|---|
|
|
| (Dollars in Millions) |
| Commercial(1) | | | $ | 52.0 | | $ | 32.7 | | $ | 21.6 | |
| Consumer | | | | 3.1 | | | 2.7 | | | 2.5 | |
| Real estate mortgage | | | | 21.4 | | | 18.3 | | | 13.0 | |
| Finance receivables (excludes | | |
| discontinued operations) | | | | 2.7 | | | 1.2 | | | 2.1 | |
|
|
| Total | | | $ | 79.2 | | $ | 54.9 | | $ | 39.2 | |
|
|
| Ratio of non-performing loans to | | |
| total portfolio loans | | | | 3.15 | % | | 2.20 | % | | 1.58 | % |
|
|
| Ratio of the allowance for loan | | |
| losses to non-performing loans | | | | 53.44 | % | | 69.62 | % | | 68.53 | % |
|
|
(1) The balance of non-performing commercial loans at 9/30/07 includes one relationship (consisting of three loans) totaling $8.4 million that was brought current on October 5, 2007.
3
Balance Sheet
Total assets were $3.26 billion at September 30, 2007, compared to $3.43 billion at December 31, 2006. Loans, excluding loans held for sale, were $2.51 billion at September 30, 2007 compared to $2.48 billion at December 31, 2006. Deposits totaled $2.73 billion at September 30, 2007, an increase of $122.5 million from December 31, 2006. The increase in deposits primarily reflects the aforementioned TCF branch acquisition. Brokered certificates of deposit, federal funds purchased, and other borrowings declined by $350.3 million (including $165.5 million related to discontinued operations), $84.1 million and $56.2 million, respectively, during the first nine months of 2007. These declines reflect the deployment of funds from both the sale of Mepco’s insurance premium finance business and the branch acquisition. Stockholders’ equity totaled $244.4 million at September 30, 2007, or 7.51% of total assets, representing a net book value per share of $10.79.
Magee concluded, “As one of the oldest and most well-established banking brands in Michigan, we have weathered a variety of market cycles and business trends. Although the challenging economy and resulting increase in credit costs have masked the fundamental strength of our business in recent quarters, we believe our continued commitment to the fundamentals of community banking in the communities we serve, which includes the strong dedication and efforts of our associates, will position us for improved performance in the future.”
Conference Call
Michael M. Magee, President and Chief Executive Officer, Robert N. Shuster, Chief Financial Officer and Stefanie M. Kimball, Chief Lending Officer, will review third quarter 2007 results in a conference call for investors and analysts beginning at 10 a.m. ET on Tuesday, October 30, 2007.
To participate in the live conference call, please dial 1-877-407-8031. The call can also be accessed (listen-only mode) via the Company’s website atwww.ibcp.com in the “Investor Relations” section. A playback of the call can be accessed by dialing 1-877-660-6853 (Account # 286 and Conference ID # 257338). The replay will be available through November 30, 2007.
In addition, a Power Point presentation associated with the third quarter 2007 conference call will be available on the Company’s website atwww.ibcp.com in the “Investor Relations” section under the “Presentations” tab beginning on Tuesday, October 30, 2007.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of over $3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation now operates over 100 offices across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and title services. Payment plans to purchase vehicle service contracts are also available through Mepco Finance Corporation, a wholly owned subsidiary of Independent Bank. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves. For more information, please visit our website at:www.ibcp.com.
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “believe,” “intend,” “estimate,” “project,” “may” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are predicated on management’s beliefs and assumptions based on information known to Independent Bank Corporation’s management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Independent Bank Corporation’s management for future or past operations, products or services, and forecasts of the Company’s revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, and estimates of credit quality trends. Such statements reflect the view of Independent Bank Corporation’s management as of this date with respect to future events and are not guarantees of future performance, involve assumptions and are subject to substantial risks and uncertainties, such as the changes in Independent Bank Corporation’s plans, objectives, expectations and intentions. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in interest rates, changes in the accounting treatment of any particular item, the results of regulatory examinations, changes in industries where the Company has a concentration of loans, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, and the impact of regulatory responses to any of the foregoing. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
4
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
| September 30,
2007 | | December 31,
2006 |
|---|
|
| |
| |
| (unaudited) |
|
| |
| (in thousands) |
| | | | | | | | | |
| Assets | | |
| Cash and due from banks | | | $ | 76,000 | | $ | 73,142 | |
| Federal funds sold | | | | 5,811 | |
|
| |
| |
| Cash and cash equivalents | | | | 81,811 | | | 73,142 | |
| Securities available for sale | | | | 383,559 | | | 434,785 | |
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | | | | 21,839 | | | 14,325 | |
| Loans held for sale | | | | 27,384 | | | 31,846 | |
| Loans | | |
| Commercial | | | | 1,064,976 | | | 1,083,921 | |
| Real estate mortgage | | | | 848,326 | | | 865,522 | |
| Installment | | | | 370,336 | | | 350,273 | |
| Finance receivables | | | | 227,439 | | | 183,679 | |
|
| |
| |
| Total Loans | | | | 2,511,077 | | | 2,483,395 | |
| Allowance for loan losses | | | | (42,327 | ) | | (26,879 | ) |
|
| |
| |
| Net Loans | | | | 2,468,750 | | | 2,456,516 | |
| Property and equipment, net | | | | 73,122 | | | 67,992 | |
| Bank owned life insurance | | | | 42,471 | | | 41,109 | |
| Goodwill | | | | 66,754 | | | 48,709 | |
| Other intangibles | | | | 16,196 | | | 7,854 | |
| Assets of discontinued operations | | | | 283 | | | 189,432 | |
| Accrued income and other assets | | | | 74,115 | | | 64,188 | |
|
| |
| |
| Total Assets | | | $ | 3,256,284 | | $ | 3,429,898 | |
|
| |
| |
| Liabilities and Shareholders' Equity | | |
| Deposits | | |
| Non-interest bearing | | | $ | 299,828 | | $ | 282,632 | |
| Savings and NOW | | | | 1,041,598 | | | 875,541 | |
| Time | | | | 1,383,903 | | | 1,444,618 | |
|
| |
| |
| Total Deposits | | | | 2,725,329 | | | 2,602,791 | |
| Federal funds purchased | | | | | | | 84,081 | |
| Other borrowings | | | | 107,445 | | | 163,681 | |
| Subordinated debentures | | | | 92,888 | | | 64,197 | |
| Financed premiums payable | | | | 49,512 | | | 32,767 | |
| Liabilities of discontinued operations | | | | 59 | | | 183,676 | |
| Accrued expenses and other liabilities | | | | 36,618 | | | 40,538 | |
|
| |
| |
| Total Liabilities | | | | 3,011,851 | | | 3,171,731 | |
|
| |
| |
| Shareholders' Equity | | |
| Preferred stock, no par value--200,000 shares authorized; none | | |
| outstanding | | |
| Common stock, $1.00 par value--40,000,000 shares authorized; | | |
| issued and outstanding: 22,647,056 shares at September 30, 2007 | | |
| and 22,864,587 shares at December 31, 2006 | | | | 22,599 | | | 22,865 | |
| Capital surplus | | | | 195,206 | | | 200,241 | |
| Retained earnings | | | | 25,094 | | | 31,420 | |
| Accumulated other comprehensive income | | | | 1,534 | | | 3,641 | |
|
| |
| |
| Total Shareholders' Equity | | | | 244,433 | | | 258,167 | |
|
| |
| |
| Total Liabilities and Shareholders' Equity | | | $ | 3,256,284 | | $ | 3,429,898 | |
|
| |
| |
5
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
| Three Months Ended | | Nine Months Ended |
|---|
| September 30, | | June 30, | | September 30, | | September 30, |
|---|
| 2007 | | 2007 | | 2006 | | 2007 | | 2006 |
|---|
|
| |
| |
| |
| |
| |
| (unaudited) |
|---|
|
| |
| (in thousands) |
|---|
| Interest Income | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | | $ | 50,941 | | $ | 50,576 | | $ | 49,351 | | $ | 151,470 | | $ | 143,834 | |
| Securities available for sale | | |
| Taxable | | | | 2,308 | | | 2,592 | | | 2,713 | | | 7,377 | | | 8,358 | |
| Tax-exempt | | | | 2,488 | | | 2,535 | | | 2,583 | | | 7,623 | | | 8,303 | |
| Other investments | | | | 232 | | | 464 | | | 191 | | | 1,010 | | | 613 | |
|
| |
| |
| |
| |
| |
| Total Interest Income | | | | 55,969 | | | 56,167 | | | 54,838 | | | 167,480 | | | 161,108 | |
|
| |
| |
| |
| |
| |
| Interest Expense | | |
| Deposits | | | | 22,590 | | | 23,378 | | | 20,048 | | | 68,376 | | | 52,946 | |
| Other borrowings | | | | 2,964 | | | 2,313 | | | 4,786 | | | 8,581 | | | 14,817 | |
|
| |
| |
| |
| |
| |
| Total Interest Expense | | | | 25,554 | | | 25,691 | | | 24,834 | | | 76,957 | | | 67,763 | |
|
| |
| |
| |
| |
| |
| Net Interest Income | | | | 30,415 | | | 30,476 | | | 30,004 | | | 90,523 | | | 93,345 | |
| Provision for loan losses | | | | 10,735 | | | 14,893 | | | 4,484 | | | 33,767 | | | 8,381 | |
|
| |
| |
| |
| |
| |
| Net Interest Income After Provision for Loan Losses | | | | 19,680 | | | 15,583 | | | 25,520 | | | 56,756 | | | 84,964 | |
|
| |
| |
| |
| |
| |
| Non-interest Income | | |
| Service charges on deposit accounts | | | | 6,565 | | | 6,380 | | | 5,285 | | | 17,833 | | | 14,784 | |
| Mepco litigation settlement | | | | 2,800 | |
| Net gains on assets | | |
| Real estate mortgage loans | | | | 1,094 | | | 1,238 | | | 1,115 | | | 3,413 | | | 3,329 | |
| Securities | | | | 52 | | | 128 | | | 259 | | | 171 | |
| VISA check card interchange income | | | | 1,287 | | | 1,292 | | | 870 | | | 3,529 | | | 2,532 | |
| Real estate mortgage loan servicing | | | | 633 | | | 712 | | | 561 | | | 1,872 | | | 1,835 | |
| Title insurance fees | | | | 363 | | | 430 | | | 416 | | | 1,207 | | | 1,298 | |
| Other income | | | | 2,535 | | | 2,593 | | | 2,474 | | | 7,859 | | | 7,355 | |
|
| |
| |
| |
| |
| |
| Total Non-interest Income | | | | 12,529 | | | 12,773 | | | 10,721 | | | 35,972 | | | 34,104 | |
|
| |
| |
| |
| |
| |
| Non-interest Expense | | |
| Compensation and employee benefits | | | | 13,621 | | | 14,784 | | | 11,663 | | | 42,373 | | | 37,478 | |
| Occupancy, net | | | | 2,521 | | | 2,735 | | | 2,208 | | | 7,870 | | | 7,315 | |
| Furniture, fixtures and equipment | | | | 1,798 | | | 1,991 | | | 1,667 | | | 5,689 | | | 5,183 | |
| Data processing | | | | 1,753 | | | 1,912 | | | 1,378 | | | 5,103 | | | 4,138 | |
| Advertising | | | | 1,472 | | | 1,341 | | | 1,006 | | | 3,965 | | | 3,009 | |
| Branch acquisition and conversion costs | | | | (92 | ) | | 330 | |
| Goodwill impairment | | | | 343 | | | 612 | |
| Other expenses | | | | 7,207 | | | 7,130 | | | 5,428 | | | 20,466 | | | 17,393 | |
|
| |
| |
| |
| |
| |
| Total Non-interest Expense | | | | 28,372 | | | 29,801 | | | 23,350 | | | 86,139 | | | 75,128 | |
|
| |
| |
| |
| |
| |
| Income (Loss) From Continuing Operations Before Income Tax | | | | 3,837 | | | (1,445 | ) | | 12,891 | | | 6,589 | | | 43,940 | |
| Income tax expense (benefit) | | | | 160 | | | (1,553 | ) | | 3,507 | | | (1,088 | ) | | 11,078 | |
|
| |
| |
| |
| |
| |
| Income From Continuing Operations | | | | 3,677 | | | 108 | | | 9,384 | | | 7,677 | | | 32,862 | |
| Discontinued operations, net of tax | | | | 48 | | | (151 | ) | | 567 | | | 248 | | | 34 | |
|
| |
| |
| |
| |
| |
| Net Income (Loss) | | | $ | 3,725 | | $ | (43 | ) | $ | 9,951 | | $ | 7,925 | | $ | 32,896 | |
|
| |
| |
| |
| |
| |
6
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
| Three Months Ended | | Nine Months Ended |
|---|
| September 30, | | June 30, | | September 30, | | September 30, |
|---|
| 2007 | | 2007 | | 2006 | | 2007 | | 2006 |
|---|
|
| |
| |
| |
| |
| |
| (unaudited) |
|---|
|
| |
| Per Share Data (A) | | | | | | | | | | | | | | | | | |
| Income From Continuing | | |
| Operations | | |
| Basic | | | $ | .16 | | $ | .00 | | $ | .41 | | $ | .34 | | $ | 1.43 | |
| Diluted | | | | .16 | | | .00 | | | .40 | | | .34 | | | 1.41 | |
| Net Income (Loss) (B) | | |
| Basic | | | $ | .16 | | $ | .00 | | $ | .43 | | $ | .35 | | $ | 1.44 | |
| Diluted (B) | | | | .16 | | | .00 | | | .43 | | | .35 | | | 1.41 | |
| Cash dividends declared | | | | .21 | | | .21 | | | .20 | | | .63 | | | .58 | |
| | | |
| | | |
| Selected Ratios (annualized) | | |
| As a Percent of Average Interest-Earning Assets | | |
| Tax equivalent interest income | | | | 7.75 | % | | 7.70 | % | | 7.60 | % | | 7.73 | % | | 7.56 | % |
| Interest expense | | | | 3.44 | | | 3.43 | | | 3.34 | | | 3.46 | | | 3.09 | |
| Tax equivalent net interest income | | | | 4.31 | | | 4.27 | | | 4.26 | | | 4.27 | | | 4.47 | |
| Income From Continuing Operations | | |
| Average equity | | | | 5.93 | % | | 0.17 | % | | 14.33 | % | | 4.05 | % | | 17.26 | % |
| Average assets | | | | 0.45 | | | 0.01 | | | 1.09 | | | 0.31 | | | 1.29 | |
| Net Income (Loss) to | | |
| Average equity | | | | 6.01 | % | | (0.07 | )% | | 15.20 | % | | 4.18 | % | | 17.28 | % |
| Average assets | | | | 0.46 | | | (0.01 | ) | | 1.15 | | | 0.33 | | | 1.29 | |
| | | |
| | | |
| Average Shares (A) | | |
| Basic | | | | 22,586,916 | | | 22,584,535 | | | 22,885,321 | | | 22,665,803 | | | 22,921,918 | |
| Diluted (B) | | | | 22,732,135 | | | 22,801,194 | | | 23,283,886 | | | 22,883,747 | | | 23,345,310 | |
| (A) | Average shares of common stock for basic net income per share include shares issued and outstanding during the period. Average shares of common stock for diluted net income per share include shares to be issued upon exercise of stock options and stock units for deferred compensation plan for non-employee directors. |
| (B) | For any period in which a loss is recorded, the earnings per share calculation is based on basic average shares outstanding. |
7
