Center Bancorp, Inc. Reports Third Quarter 2009 Earnings
Union, NJ -- (GLOBE NEWSWIRE) -- 10/28/2009 -- Center Bancorp, Inc. (NASDAQ: CNBC), parent company of Union Center National Bank (UCNB or the Bank), today reported operating results for the third quarter ended September 30, 2009. Net income amounted to $1.5 million, or $0.11 per fully diluted common share, for the quarter ended September 30, 2009, as compared with earnings of $1.5 million, or $0.12 per fully diluted common share, for the quarter ended September 30, 2008.
For the nine months ended September 30, 2009, net income amounted to $3.5 million, or $0.24 per fully diluted common share, as compared to $4.1 million, or $0.32 per fully diluted common share, for the same period in 2008.
President & CEO’s Remarks
Anthony C. Weagley, CEO, commented: “We improved core earnings during the quarter which helped to fortify our existing capital position. Our net income of $1.5 million in the quarter reflected the strong earnings base of the company, specifically on a core analysis with improved asset mix and solid margins. This translates into overall improved balance sheet trends. Loans continued to reflect growth with commercial and commercial real estate demand comprising the principal areas of growth. As we move forward, our focus will remain on preserving and growing our core business, and providing sound, prudent management of the Corporation with emphasis on credit quality."
In looking at the outlook for Center, Mr. Weagley remarked: "While we continue to see an improvement in balance sheet strength and core earnings performance, we are still concerned with the credit stability of the broader markets. We are not yet certain when the economy will stabilize and credit trends will show signs of improvement, and therefore have continued to take steps to strengthen the balance sheet through our capital position and underlying core earnings power. These core competencies along with the organic growth in our franchise that is occurring should enable us to continue to invest in our businesses, building sustained shareholder value.”
“Certain credit quality indicators moderated during the period, reflected in reduced net charge-offs and other real estate owned (OREO) compared to the previous quarter in 2009. At September 30, 2009, non-performing assets totaled $13.9 million, or 1.03% of total assets, as compared with $10.8 million, or 0.80%, at June 30, 2009 and $0.7 million, or 0.06%, at September 30, 2008. We remain cautiously optimistic on market trends and resulting challenges in the months ahead.”
“As previously announced, we are also pleased to report that in October, Center Bancorp successfully raised total gross proceeds of approximately $11 million in its rights offering and private placement with its standby purchaser. The Corporation intends to use the net proceeds of the rights offering to commence repurchase of the preferred stock and warrants to purchase common stock that the Corporation issued to the U.S. Department of Treasury in January 2009 under the TARP Capital Purchase Program,” added Mr. Weagley.
Key items for the quarter include:
§ | Net income of $1,535,000 for the third quarter of 2009 compared with net income of $1,201,000 for the second quarter of 2009 and $1.5 million for the third quarter of 2008. |
§ | EPS of $0.11 per fully diluted common share compared with $0.08 per fully diluted common share for the second quarter of 2009 and $0.12 per fully diluted common share for the comparable third quarter period of 2008. Dividends and accretion relating to the preferred stock and warrants issued to the U.S. Treasury reduced earnings by approximately $0.01 per fully diluted common share during the third quarter of 2009. |
§ | Other real estate expense amounted to $30,000 for the third quarter of 2009. The Corporation sold the residential real estate condominium project in Union County, New Jersey, which was carried as other real estate owned. |
§ | FDIC insurance expense increased $292,000 over the same quarter last year due to higher FDIC assessments resulting from changes in the premium rates. |
§ | Overall credit quality in the Bank’s portfolio remains high, even though the economic weakness has impacted several potential problem loans. Non-performing assets amounted to 1.03% of total assets at September 30, 2009 compared to 0.80% at June 30, 2009 and 0.06% at September 30, 2008. |
§ | Strong Tier 1 capital leverage ratio of 6.74% at September 30, 2009, 7.52% at June 30, 2009, and 7.78% at September 30, 2008. |
§ | An expansion in annualized net interest margin by 6 basis points to 2.79% compared to 2.73% for the second quarter of 2009 and down 30 basis points as compared to the comparable quarter of 2008, as a high level of uninvested excess cash has been accumulated due to strong deposit growth experienced during the quarter when compared to the same period last year. |
§ | An increase in deposits to $961.2 million at September 30, 2009 from $955.1 million at June 30, 2009 and $677.1 million at September 30, 2008, reflecting inflows in core savings deposits and Certificate of Deposit Account Registry Service (CDARS) Reciprocal deposits, as customers’ desires for safety and liquidity became paramount in light of the financial crisis. |
§ | Book value per common share amounting to $6.35 at September 30, 2009 compared to $6.14 at June 30, 2009 and $6.21 at September 30, 2008. Tangible book value per common share was $5.04 at September 30, 2009 compared to $4.83 at June 30, 2009 and $4.89 at September 30, 2008. |
Selected financial ratios (annualized where applicable)
As of or for the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Return on average assets | 0.46 | % | 0.40 | % | 0.30 | % | 0.66 | % | 0.60 | % | 0.57 | % | ||||||||||||
Return on average equity | 6.77 | % | 5.35 | % | 3.52 | % | 8.38 | % | 7.55 | % | 6.69 | % | ||||||||||||
Net interest margin (tax equivalent basis) | 2.79 | % | 2.73 | % | 2.81 | % | 3.01 | % | 3.09 | % | 3.00 | % | ||||||||||||
Loan/Deposit ratio | 74.50 | % | 72.68 | % | 88.24 | % | 102.53 | % | 97.64 | % | 101.61 | % | ||||||||||||
Stockholders' equity/total assets | 6.83 | % | 6.67 | % | 7.98 | % | 7.99 | % | 7.73 | % | 8.15 | % | ||||||||||||
Efficiency ratio | 62.0 | % | 96.3 | % | 72.5 | % | 59.7 | % | 55.4 | % | 67.7 | % | ||||||||||||
Book value per common share | $ | 6.35 | $ | 6.14 | $ | 6.15 | $ | 6.29 | $ | 6.21 | $ | 6.18 | ||||||||||||
Return on average tangible stockholders' equity | 8.33 | % | 6.61 | % | 4.33 | % | 10.62 | % | 9.60 | % | 8.41 | % | ||||||||||||
Tangible common stockholders' equity/tangible assets | 4.92 | % | 4.74 | % | 5.69 | % | 6.42 | % | 6.19 | % | 6.52 | % | ||||||||||||
Tangible book value per common share | $ | 5.04 | $ | 4.83 | $ | 4.83 | $ | 4.97 | $ | 4.89 | $ | 4.86 |
Capital and Liquidity
Center remained well capitalized with strong liquidity in the third quarter of 2009. Total stockholders' equity amounted to $92.2 million, or 6.83% of total assets, at September 30, 2009. Tangible common stockholders' equity was $65.6 million, or 4.92% of tangible assets. Book value per common share was $6.35 at September 30, 2009, compared to $6.21 at September 30, 2008. Tangible book value per common share was $5.04 at September 30, 2009 compared to $4.89 at September 30, 2008.
At September 30, 2009, the Corporation’s Tier 1 Capital Leverage ratio was 6.74%, the Corporation’s total Tier 1 Risk Based Capital ratio was 10.23% and the Corporation’s Total Risk Based Capital ratio was 11.04%. Total Tier 1 capital increased to approximately $89.6 million at September 30, 2009 from $78.2 million at December 31, 2008, reflecting the Corporation’s participation in the TARP Capital Purchase Program. At September 30, 2009, the Corporation’s capital ratios continued to exceed each of the minimum Federal requirements for a bank holding company, and Union Center National Bank’s capital ratios continued to exceed each of the minimum levels required for classification as a “well capitalized institution” under the Federal Deposit Insurance Corporation Improvement Act.
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Asset Quality
At September 30, 2009, non-performing assets totaled $13.9 million, or 1.03% of total assets, as compared with $10.8 million, or 0.80%, at June 30, 2009 and $0.7 million, or 0.06%, at September 30, 2008.
While overall credit quality in the Bank’s portfolio remains high, continued economic weakness has impacted several problem loans in the portfolio, which have been previously disclosed. Non-accrual loans increased from $5.0 million at June 30, 2009 to $11.4 million at September 30, 2009; this increase was due primarily to the addition of three credits, all of which are well secured. Troubled debt restructurings remained relatively unchanged at $1.0 million from June 30, 2009 to September 30, 2009. Loans past due 90 days or more and still accruing increased from $1.3 million at June 30, 2009 to $1.5 million at September 30, 2009. These loans are secured and in the process of collection. With respect to the $4.0 million industrial warehouse project placed into non-accrual during the first quarter of 2009, which was paid down to $3.7 million at September 30, 2009, the Bank is currently working with the borrowers and the participating bank that is involved with the project, in an effort to sell or lease the remaining industrial warehouse units. “Proceeds from the current units under contract, as well as the remaining units, will be used to make further principal reductions to our loan,” remarked Mr. Weagley.
The OREO balance decreased from $3.5 million at June 30, 2009 to $0.00 at September 30, 2009. This decrease was related to the sale of the residential condominium project that was taken into OREO during the fourth quarter of 2008.
At September 30, 2009, the total allowance for loan losses amounted to approximately $7.1 million, or 1.00% of total loans. The allowance for loan losses as a percent of total non-performing loans amounted to 51.4% at September 30, 2009 as compared to 94.8% at June 30, 2009 and 929.7% at September 30, 2008.
Selected credit quality ratios (unaudited) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
As of or for the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Non-accrual loans | $ | 11,448 | $ | 5,058 | $ | 4,566 | $ | 541 | $ | 541 | $ | 265 | ||||||||||||
Troubled debt restructuring | 970 | 975 | 91 | 93 | 95 | 97 | ||||||||||||||||||
Past due loans 90 days or more and still accruing interest | 1,477 | 1,260 | - | 139 | 18 | - | ||||||||||||||||||
Total non performing loans | 13,895 | 7,293 | 4,657 | 773 | 654 | 362 | ||||||||||||||||||
Other real estate owned (“OREO”) | - | 3,500 | 4,426 | 3,949 | - | - | ||||||||||||||||||
Total non performing assets | $ | 13,895 | $ | 10,793 | $ | 9,083 | $ | 4,722 | $ | 654 | $ | 362 | ||||||||||||
Non performing assets as a percentage of total assets | 1.03 | % | 0.80 | % | 0.81 | % | 0.46 | % | 0.06 | % | 0.04 | % | ||||||||||||
Non performing loans as a percentage of total loans | 1.94 | % | 1.05 | % | 0.69 | % | 0.11 | % | 0.10 | % | 0.06 | % | ||||||||||||
Net charge-offs | $ | 55 | $ | 8 | $ | 906 | $ | 251 | $ | 45 | $ | 106 | ||||||||||||
Net charge-offs as a percentage of average loans for the period (annualized) | 0.03 | % | 0.00 | % | 0.53 | % | 0.15 | % | 0.03 | % | 0.07 | % | ||||||||||||
Allowance for loan losses as a percentage of period end loans | 1.00 | % | 1.00 | % | 1.00 | % | 0.92 | % | 0.92 | % | 0.90 | % | ||||||||||||
Allowance for loan losses as a percentage of non-performing loans | 51.4 | % | 94.8 | % | 145.4 | % | 809.1 | % | 929.7 | % | 1,563.5 | % | ||||||||||||
Total Assets | $ | 1,349,516 | $ | 1,341,603 | $ | 1,121,013 | $ | 1,023,293 | $ | 1,042,778 | $ | 986,436 | ||||||||||||
Total Loans | 716,100 | 694,214 | 678,017 | 676,203 | 661,157 | 631,221 | ||||||||||||||||||
Average loans for the quarter | 693,670 | 686,675 | 679,953 | 670,212 | 651,766 | 601,655 | ||||||||||||||||||
Allowance for loan losses | 7,142 | 6,917 | 6,769 | 6,254 | 6,080 | 5,660 |
Net Interest Income and Margin
On a linked sequential quarter basis from the second quarter of 2009 to the third quarter of 2009, the net interest spread and margin increased by 19 basis points and by 6 basis points, respectively. The Corporation’s net interest margin has been impacted by the high level of uninvested excess cash, which accumulated due to deposit growth and retention experienced during most of 2009.
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The Corporation recorded net interest income on a fully taxable equivalent basis of $7.5 million for the three months ended September 30, 2009 as compared to $7.1 million for the comparable quarter in 2008. Interest income increased by $0.6 million and interest expense increased by $0.2 million from the same period last year. Compared to the third quarter of 2008, for the third quarter of 2009 average interest earning assets increased by $153.8 million while the net interest spread and net interest margin improved by 13 basis points and decreased by 30 basis points, respectively
For the nine months ended September 30, 2009, net interest income on a fully taxable equivalent basis amounted to $20.8 million as compared to $20.0 million for the same period in 2008. Interest income increased by $0.2 million while interest expense decreased by $0.6 million from the same period last year. Compared to the same period in 2008, for the nine months ended September 30, 2009, average interest earning assets increased $95.0 million while net interest spread and margin increased by 17 basis points and decreased by 18 basis points, respectively. The Corporation’s net interest margin was impacted by the high level of uninvested excess cash, which accumulated due to strong deposit growth experienced during the first nine months.
Quarterly Condensed Consolidated Income Statements (unaudited) | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Net interest income | $ | 7,441 | $ | 6,627 | $ | 6,379 | $ | 6,823 | $ | 6,860 | $ | 6,429 | ||||||||||||
Provision for loan losses | 280 | 156 | 1,421 | 425 | 465 | 521 | ||||||||||||||||||
Net interest income after provision for loan losses | 7,161 | 6,471 | 4,958 | 6,398 | 6,395 | 5,908 | ||||||||||||||||||
Other income | 311 | 2,551 | 1,384 | 615 | 47 | 1,116 | ||||||||||||||||||
Other expense | (5,186 | ) | (7,314 | ) | (5,319 | ) | (4,754 | ) | (4,578 | ) | (5,188 | ) | ||||||||||||
Income before income tax | 2,286 | 1,708 | 1,023 | 2,259 | 1,864 | 1,836 | ||||||||||||||||||
Income tax expense | 751 | 507 | 224 | 560 | 346 | 428 | ||||||||||||||||||
Net income | 1,535 | 1,201 | 799 | 1,699 | 1,518 | 1,408 | ||||||||||||||||||
Net income available to common stockholders | $ | 1,387 | $ | 1,053 | $ | 670 | $ | 1,699 | $ | 1,518 | $ | 1,408 | ||||||||||||
Earnings per common share: | ||||||||||||||||||||||||
Basic | $ | 0.11 | $ | 0.08 | $ | 0.05 | $ | 0.13 | $ | 0.12 | $ | 0.11 | ||||||||||||
Diluted | $ | 0.11 | $ | 0.08 | $ | 0.05 | $ | 0.13 | $ | 0.12 | $ | 0.11 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 13,000,601 | 12,994,429 | 12,991,312 | 12,989,304 | 12,990,441 | 13,070,868 | ||||||||||||||||||
Diluted | 13,005,101 | 12,996,544 | 12,993,185 | 12,995,134 | 13,003,954 | 13,083,558 |
Other Income
Total other income increased $264,000 for the third quarter of 2009 compared with the comparable quarter of 2008, primarily as a result of lower net investment securities losses. On a sequential linked basis in 2009, total other income decreased $2.2 million principally due to net investment securities transactions. During the third quarter of 2009, the Corporation recorded net investment securities losses of $511,000 as compared to $1.1 million for the same period last year. Investment securities losses in the third quarter of 2009 included $889,000 of net gains on the sale of securities, offset by a $1.4 million other-than-temporary impairment charge related to a pooled trust preferred security. During the third quarter of 2008, the Corporation recorded a $1.2 million other-than-temporary impairment charge related to its Lehman Brothers corporate bond. Excluding net securities losses, the Corporation recorded other income of $822,000 for the three months ended September 30, 2009 compared to $841,000 on a sequential linked basis and $1,122,000 for the three months ended September 30, 2008. During the third quarter of 2008, the Corporation recognized $230,000 in tax-free proceeds in excess of contract value on the Corporation’s bank owned life insurance (BOLI) due to the death of one insured participant.
For the nine months ended September 30, 2009, total other income increased $2.2 million compared to the same period in 2008, primarily as a result of net securities gains. Excluding net securities gains, the Corporation recorded other income of $2.4 million for the nine months ended September 30, 2009 compared to $2.9 million for the comparable period in 2008, a decrease of $432,000 or 15.0%. This decrease was primarily attributable to the $230,000 in tax-free proceeds in excess of contract value on the Corporation’s BOLI due to the death of one insured participant, which was recorded in the third quarter of 2008.
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Quarterly Consolidated Non-Interest Income (unaudited) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Service charges on deposit accounts | $ | 350 | $ | 324 | $ | 343 | $ | 376 | $ | 360 | $ | 383 | ||||||||||||
Commissions from mortgage broker activities | 4 | - | 2 | 7 | 6 | 17 | ||||||||||||||||||
Loan related fees (LOC) | 35 | 45 | 30 | 53 | 46 | 37 | ||||||||||||||||||
Commissions from sale of mutual funds and annuities | 17 | 45 | 40 | 22 | 35 | 38 | ||||||||||||||||||
Debit card and ATM fees | 114 | 116 | 106 | 113 | 124 | 130 | ||||||||||||||||||
Bank owned life insurance | 273 | 257 | 218 | 247 | 507 | 228 | ||||||||||||||||||
Net securities gains (losses) | (511 | ) | 1,710 | 600 | (256 | ) | (1,075 | ) | 225 | |||||||||||||||
Other service charges and fees | 29 | 54 | 45 | 53 | 44 | 58 | ||||||||||||||||||
Total other income | $ | 311 | $ | 2,551 | $ | 1,384 | $ | 615 | $ | 47 | $ | 1,116 |
Other Expense
Other expense for the third quarter of 2009 totaled $5.2 million, an increase of $0.6 million, or 13.3%, from the comparable period in 2008. For the nine months ended September 30, 2009, other expense totaled $17.8 million, an increase of $3.1 million, or 21.1%. In May 2009, the FDIC adopted a final rule on the special assessment that assessed the industry 5 basis points on total assets less Tier 1 capital. The Corporation was required to accrue the charge during the second quarter of 2009, which amounted to approximately $630,000, even though the FDIC collected the fee at the end of the third quarter when the regular quarterly assessments for the second quarter were collected. Additionally, in December 2008, the FDIC adopted a final rule increasing risk-based assessment rates beginning in the first quarter of 2009. As a result of these changes coupled with one-time assessment credits recognized in 2008, FDIC insurance expense increased $292,000 and $1.6 million for the three months and nine months ended September 30, 2009, respectively, over the comparable periods in 2008. OREO expense for the third quarter of 2009 and nine months ended September 30, 2009 increased by $74,000 and $1.4 million compared to the same quarter and nine month period last year, respectively, due primarily to the recognition of a $926,000 write-down coupled with the build out costs relating to the residential real estate condominium project in Union County, New Jersey. The building was sold during the third quarter of 2009 for a gain of $19,000.
The efficiency ratio for the third quarter of 2009 was 62.0% as compared to 55.4% in the third quarter of 2008. For the nine months ended September 30, 2009, the efficiency ratio was 76.5% as compared to 64.2% in the same period of 2008. This increase was due primarily to the increase in FDIC insurance expense and OREO expense.
Quarterly Consolidated Non-Interest Expense (unaudited) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Employee salaries and wages | $ | 1,981 | $ | 1,946 | $ | 1,861 | $ | 1,777 | $ | 1,752 | $ | 2,013 | ||||||||||||
Employee stock option expense | 17 | 25 | 22 | 23 | 23 | 36 | ||||||||||||||||||
Health insurance and other employee benefits | 361 | 362 | 309 | (246 | ) | (32 | ) | 285 | ||||||||||||||||
Payroll taxes | 159 | 166 | 194 | 139 | 167 | 182 | ||||||||||||||||||
Other employee related expenses | 11 | 8 | 7 | 17 | 9 | 8 | ||||||||||||||||||
Total salaries and employee benefits | $ | 2,529 | $ | 2,507 | $ | 2,393 | $ | 1,710 | $ | 1,919 | $ | 2,524 | ||||||||||||
Occupancy, net | 539 | 583 | 797 | 983 | 803 | 734 | ||||||||||||||||||
Premises and equipment | 323 | 319 | 321 | 362 | 352 | 356 | ||||||||||||||||||
Professional and consulting | 190 | 236 | 212 | 152 | 189 | 190 | ||||||||||||||||||
Stationery and printing | 81 | 102 | 70 | 97 | 87 | 118 | ||||||||||||||||||
FDIC Insurance | 320 | 940 | 365 | 149 | 28 | 20 | ||||||||||||||||||
Marketing and advertising | 75 | 141 | 130 | 144 | 145 | 188 | ||||||||||||||||||
Computer expense | 220 | 228 | 214 | 229 | 238 | 226 | ||||||||||||||||||
Bank regulatory related expenses | 63 | 60 | 60 | 55 | 54 | 55 | ||||||||||||||||||
Postage and delivery | 72 | 64 | 46 | 69 | 67 | 65 | ||||||||||||||||||
ATM related expenses | 63 | 61 | 61 | 59 | 61 | 62 | ||||||||||||||||||
OREO expense (benefit) | 30 | 1,375 | 33 | - | (44 | ) | 31 | |||||||||||||||||
Amortization of core deposit intangible | 19 | 22 | 22 | 23 | 23 | 24 | ||||||||||||||||||
Other expenses | 662 | 676 | 595 | 722 | 656 | 595 | ||||||||||||||||||
Total other expense | $ | 5,186 | $ | 7,314 | $ | 5,319 | $ | 4,754 | $ | 4, 578 | $ | 5,188 |
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Key Balance Sheet Changes at September 30, 2009
§ | The Corporation had total loans of $716.1 million at September 30, 2009, a $39.9 million, or 5.9%, increase from December 31, 2008 and a $54.9 million, or 8.3%, increase from September 30, 2008. |
§ | Loan growth continued during the quarter in the Corporation’s commercial related segment of the portfolio. Total gross loans booked for the quarter included $56.3 million of new loans and $14.7 million in advances principally offset by payoffs and principal payments of $49.4 million. |
§ | At September 30, 2009, the Corporation had $22.2 million in overall undispersed loan commitments, which are expected to fund over the next 90 days. |
§ | Loan originations and pipelines for the quarter increased in the commercial sectors of the portfolio inclusive of commercial and commercial real estate loans. |
Loan Mix: | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
At quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Real estate loans | ||||||||||||||||||||||||
Residential | $ | 200,533 | $ | 218,340 | $ | 229,903 | $ | 240,316 | $ | 249,258 | $ | 255,817 | ||||||||||||
Commercial | 291,133 | 262,676 | 256,885 | 256,527 | 246,089 | 224,990 | ||||||||||||||||||
Construction | 57,898 | 54,105 | 41,242 | 42,075 | 47,722 | 50,638 | ||||||||||||||||||
Total real estate loans | 549,564 | 535,121 | 528,030 | 538,918 | 543,069 | 531,445 | ||||||||||||||||||
Commercial loans | 165,173 | 157,621 | 148,444 | 135,232 | 116,891 | 98,845 | ||||||||||||||||||
Consumer and other loans | 952 | 921 | 928 | 1,481 | 672 | 339 | ||||||||||||||||||
Total loans before unearned fees and costs | 715,689 | 693,663 | 677,402 | 675,631 | 660,632 | 630,629 | ||||||||||||||||||
Unearned costs, net | 411 | 551 | 615 | 572 | 525 | 592 | ||||||||||||||||||
Total loans | $ | 716,100 | $ | 694,214 | $ | 678,017 | $ | 676,203 | $ | 661,157 | $ | 631,221 |
§ | Investment securities increased by $133.4 at September 30, 2009 compared to December 31, 2008 and increased by $91.7 million when compared to September 30, 2008. |
§ | Deposits totaled $961.2 million at September 30, 2009, an increase of $301.6 million from December 31, 2008 and an increase of $284.0 million from September 30, 2008. |
§ | Total deposit funding sources, including overnight repurchase agreements (which agreements are part of the demand deposit base), amounted to $1.0 billion at September 30, 2009, an increase of $323.6 million from December 31, 2008, which reflected inflows in core savings deposits and CDARS Reciprocal deposits, as customers’ needs for safety and more liquidity became paramount in light of the financial crisis. |
§ | Time certificates of deposit of $100,000 and over increased $165.5 million as compared to December 31, 2008 due primarily to an increase in CDARS Reciprocal deposits, which has become an attractive product for customers who are sensitive to obtaining full FDIC insurance for their time deposits. |
§ | The Corporation expects its deposit gathering efforts to remain strong, supported in part by the recent actions by the FDIC in temporarily raising the deposit insurance limits. The Corporation is a participant in the FDIC’s Transaction Account Guarantee Program. Under this program, all non-interest bearing deposit transaction accounts are fully guaranteed by the FDIC, regardless of dollar amount, through June 30, 2010, with increased fees. |
§ | Borrowings totaled $280.5 million at September 30, 2009, reflecting an increase of $6.9 million from December 31, 2008, primarily reflecting short term purchase agreements. |
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The following table reflects the Corporation’s deposits for the periods specified.
Deposit Mix (unaudited) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
At quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Checking accounts | ||||||||||||||||||||||||
Non interest bearing | $ | 126,205 | $ | 130,115 | $ | 114,607 | $ | 113,319 | $ | 114,631 | $ | 110,891 | ||||||||||||
Interest bearing | 136,070 | 137,578 | 132,682 | 139,349 | 129,070 | 124,469 | ||||||||||||||||||
Savings deposits | 215,275 | 185,074 | 137,197 | 66,359 | 61,623 | 63,918 | ||||||||||||||||||
Money market accounts | 132,395 | 129,756 | 114,363 | 111,308 | 140,533 | 147,202 | ||||||||||||||||||
Time deposits | 351,212 | 372,619 | 269,530 | 229,202 | 231,287 | 174,710 | ||||||||||||||||||
Total Deposits | $ | 961,157 | $ | 955,142 | $ | 768,379 | $ | 659,537 | $ | 677,144 | $ | 621,190 |
On September 30, 2009, the FDIC proposed a rule that would require insured institutions to prepay their estimated quarterly assessments through December 31, 2012 to strengthen the cash position of the Deposit Insurance Fund. Once final, the rule would require the cash prepayment on December 30, 2009. Management believes the prepayment (estimated to be approximately $4.5 million) will not have a significant impact on our future cash position or operations.
Additional Information for the Third Quarter 2009 -
§ | Total assets amounted to $1.35 billion at September 30, 2009, which positions the Corporation as one of the largest New Jersey headquartered financial institutions. |
§ | Continued improvement in earning asset mix from the same quarter last year, as average loans increased by $41.9 million while average investment securities, including federal fund sold, increased by $111.9 million |
Quarterly Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands) | ||||||||||||||||||||||||
At quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Cash and due from banks | $ | 172,401 | $ | 176,784 | $ | 90,634 | $ | 15,031 | $ | 15,952 | $ | 16,172 | ||||||||||||
Fed funds and money market funds | - | - | - | - | - | - | ||||||||||||||||||
Investments | 376,097 | 378,895 | 266,032 | 242,714 | 284,349 | 253,780 | ||||||||||||||||||
Loans | 716,100 | 694,214 | 678,017 | 676,203 | 661,157 | 631,221 | ||||||||||||||||||
Allowance for loan losses | (7,142 | ) | (6,917 | ) | (6,769 | ) | (6,254 | ) | (6,080 | ) | (5,660 | ) | ||||||||||||
Restricted investment in bank stocks, at cost | 10,673 | 10,675 | 10,228 | 10,230 | 10,277 | 10,325 | ||||||||||||||||||
Premises and equipment, net | 18,155 | 18,430 | 18,313 | 18,488 | 18,545 | 18,203 | ||||||||||||||||||
Goodwill | 16,804 | 16,804 | 16,804 | 16,804 | 16,804 | 16,804 | ||||||||||||||||||
Core deposit intangible | 243 | 262 | 283 | 306 | 328 | 350 | ||||||||||||||||||
Bank owned life insurance | 26,162 | 25,888 | 23,156 | 22,938 | 22,690 | 22,710 | ||||||||||||||||||
Other real estate owned | - | 3,500 | 4,426 | 3,949 | - | - | ||||||||||||||||||
Other assets | 20,023 | 23,068 | 19,889 | 22,884 | 18,756 | 22,531 | ||||||||||||||||||
TOTAL ASSETS | $ | 1,349,516 | $ | 1,341,603 | $ | 1,121,013 | $ | 1,023,293 | $ | 1,042,778 | $ | 986,436 | ||||||||||||
Deposits | $ | 961,157 | $ | 955,142 | $ | 768,379 | $ | 659,537 | $ | 677,144 | $ | 621,190 | ||||||||||||
Borrowings | 280,509 | 252,498 | 255,365 | 273,595 | 281,046 | 279,585 | ||||||||||||||||||
Other liabilities | 15,642 | 44,505 | 7,840 | 8,448 | 3,964 | 5,268 | ||||||||||||||||||
Stockholders' equity | 92,208 | 89,458 | 89,429 | 81,713 | 80,624 | 80,393 | ||||||||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | $ | 1,349,516 | $ | 1,341,603 | $ | 1,121,013 | $ | 1,023,293 | $ | 1,042,778 | $ | 986,436 |
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Condensed Consolidated Average Balance Sheets (unaudited) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Investments, Fed funds, and other | $ | 385,270 | $ | 304,482 | $ | 253,445 | $ | 272,507 | $ | 273,337 | $ | 301,118 | ||||||||||||
Loans | 693,670 | 686,675 | 679,953 | 670,212 | 651,766 | 601,655 | ||||||||||||||||||
Allowance for loan losses | (6,978 | ) | (6,891 | ) | (6,384 | ) | (6,235 | ) | (5,840 | ) | (5,404 | ) | ||||||||||||
All other assets | 274,103 | 211,495 | 131,861 | 95,514 | 93,535 | 91,631 | ||||||||||||||||||
TOTAL ASSETS | $ | 1,346,065 | $ | 1,195,761 | $ | 1,058,875 | $ | 1,031,998 | $ | 1,012,798 | $ | 989,000 | ||||||||||||
Deposits-interest bearing | $ | 845,504 | $ | 716,243 | $ | 588,599 | $ | 554,652 | $ | 521,459 | $ | 499,342 | ||||||||||||
Deposits-non interest bearing | 129,592 | 121,482 | 115,541 | 112,936 | 118,623 | 114,744 | ||||||||||||||||||
Borrowings | 266,825 | 253,310 | 255,269 | 278,524 | 288,002 | 284,264 | ||||||||||||||||||
Other liabilities | 13,411 | 14,921 | 8,567 | 4,798 | 4,321 | 6,508 | ||||||||||||||||||
Stockholders’ equity | 90,733 | 89,805 | 90,899 | 81,088 | 80,393 | 84,142 | ||||||||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | $ | 1,346,065 | $ | 1,195,761 | $ | 1,058,875 | $ | 1,031,998 | $ | 1,012,798 | $ | 989,000 |
About Center Bancorp
Center Bancorp, Inc. is a financial services holding company and operates Union Center National Bank, its main subsidiary. Chartered in 1923, Union Center National Bank is one of the oldest national banks headquartered in the state of New Jersey and currently the largest commercial bank headquartered in Union County. Its primary market niche is its commercial banking business. The Bank focuses its lending activities on commercial lending to small and medium sized businesses, real estate developers and high net worth individuals.
The Bank, through its Private Wealth Management Division which includes its wholly owned subsidiary, Center Financial Group LLC, provides financial services, including brokerage services, insurance and annuities, mutual funds, financial planning, estate and tax planning, trust, elder care and benefit plan administration. Center additionally offers title insurance services in connection with the closing of real estate transactions, through two subsidiaries, Union Title Company and Center Title Company.
The Bank currently operates 13 banking locations in Union and Morris counties in New Jersey. Banking centers are located in Union Township (6 locations), Berkeley Heights, Boonton/Mountain Lakes, Madison, Millburn/Vauxhall, Morristown, Springfield, and Summit, New Jersey. The Bank also operates remote ATM locations in the Chatham and Madison New Jersey Transit train stations, and the Boys and Girls Club of Union.
While the Bank’s primary market area is comprised of Morris and Union Counties, New Jersey, the Corporation has expanded to northern and central New Jersey. At September 30, 2009, the Corporation had total assets of $1.3 billion, total deposit funding sources, which includes overnight repurchase agreements, of $1.0 billion and stockholders’ equity of $92.2 million. For further information regarding Center Bancorp, Inc., call 1-(800)-862-3683. For information regarding Union Center National Bank, visit our web site at http://www.centerbancorp.com
Non-GAAP Financial Measures
“Return on average tangible stockholders’ equity” is a non-GAAP financial measure and is defined as net income as a percentage of tangible stockholders’ equity. This measure may be important to investors that are interested in analyzing our return on equity exclusive of the effect of changes in intangible assets on equity. The following table presents a reconciliation of return on average stockholders’ equity and return on average tangible stockholders’ equity for the periods presented:
(Dollars in thousands) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Net income | $ | 1,535 | $ | 1,201 | $ | 799 | $ | 1,699 | $ | 1,518 | $ | 1,408 | ||||||||||||
Average stockholders’ equity | $ | 90,733 | $ | 89,805 | $ | 90,899 | $ | 81,088 | $ | 80,393 | $ | 84,142 | ||||||||||||
Less: Average goodwill and other intangible assets | 17,058 | 17,078 | 17,101 | 17,123 | 17,145 | 17,169 | ||||||||||||||||||
Average tangible stockholders’ equity | $ | 73,675 | $ | 72,727 | $ | 73,798 | $ | 63,965 | $ | 63,248 | $ | 66,973 | ||||||||||||
Return on average stockholders’ equity | 6.77 | % | 5.35 | % | 3.52 | % | 8.38 | % | 7.55 | % | 6.69 | % | ||||||||||||
Add: Average goodwill and other intangible assets | 1.56 | 1.26 | 0.81 | 2.24 | 2.05 | 1.72 | ||||||||||||||||||
Return on average tangible stockholders’ equity | 8.33 | % | 6.61 | % | 4.33 | % | 10.62 | % | 9.60 | % | 8.41 | % |
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“Tangible book value per common share” is also a non-GAAP financial measure and represents tangible stockholders’ equity (or tangible book value) calculated on a per common share basis. The Corporation believes that a disclosure of tangible book value per common share may be helpful for those investors who seek to evaluate the Corporation’s book value per common share without giving effect to goodwill and other intangible assets. The following table presents a reconciliation of total book value per common share to tangible book value per common share as of the dates presented:
(Dollars in thousands) | ||||||||||||||||||||||||
At quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Common shares outstanding | 13,000,601 | 13,000,601 | 12,991,312 | 12,991,312 | 12,988,284 | 13,016,075 | ||||||||||||||||||
Stockholders’ equity | $ | 92,208 | $ | 89,458 | $ | 89,429 | $ | 81,713 | $ | 80,624 | $ | 80,393 | ||||||||||||
Less: Preferred stock | 9,599 | 9,578 | 9,557 | - | - | - | ||||||||||||||||||
Less: Goodwill and other intangible assets | 17,047 | 17,066 | 17,087 | 17,110 | 17,132 | 17,154 | ||||||||||||||||||
Tangible common stockholders’ equity | $ | 65,562 | $ | 62,814 | $ | 62,785 | $ | 64,603 | $ | 63,492 | $ | 63,239 | ||||||||||||
Book value per common share | $ | 6.35 | $ | 6.14 | $ | 6.15 | $ | 6.29 | $ | 6.21 | $ | 6.18 | ||||||||||||
Less: Goodwill and other intangible assets | 1.31 | 1.31 | 1.32 | 1.32 | 1.32 | 1.32 | ||||||||||||||||||
Tangible book value per common share | $ | 5.04 | $ | 4.83 | $ | 4.83 | $ | 4.97 | $ | 4.89 | $ | 4.86 |
"Tangible common stockholders' equity/tangible assets" is a non-GAAP financial measure and is defined as tangible common stockholders' equity as a percentage of total assets minus goodwill and other intangible assets. This measure may be important to investors that are interested in analyzing the financial condition of the Corporation without consideration for intangible assets, inasmuch as tangible common stockholders' equity and tangible assets both back out goodwill and other intangible assets. The following table presents a reconciliation of total assets to tangible assets and then presents a reconciliation of total stockholders' equity/total assets to tangible common stockholders' equity/tangible assets as of the dates presented:
(Dollars in thousands) | ||||||||||||||||||||||||
At quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Total assets | $ | 1,349,516 | $ | 1,341,603 | $ | 1,121,013 | $ | 1,023,293 | $ | 1,042,778 | $ | 986,436 | ||||||||||||
Less: Goodwill and other intangible assets | 17,047 | 17,066 | 17,087 | 17,110 | 17,132 | 17,154 | ||||||||||||||||||
Tangible assets | $ | 1,332,469 | $ | 1,324,537 | $ | 1,103,926 | $ | 1,006,183 | $ | 1,025,646 | $ | 969,282 | ||||||||||||
Total stockholders' equity/total assets | 6.83 | % | 6.67 | % | 7.98 | % | 7.99 | % | 7.73 | % | 8.15 | % | ||||||||||||
Tangible common stockholders' equity/tangible assets | 4.92 | % | 4.74 | % | 5.69 | % | 6.42 | % | 6.19 | % | 6.52 | % |
Total non-interest income is presented both including and excluding net securities gains (losses). We believe that many investors desire to evaluate non-interest income without regard for securities transactions. The following table presents a reconciliation of total non-interest (or other) income with total non-interest (or other) income excluding the impact of securities transactions.
(Dollars in thousands) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Total non-interest income | $ | 311 | $ | 2,551 | $ | 1,384 | $ | 615 | $ | 47 | $ | 1,116 | ||||||||||||
Net securities gains (losses) | (511 | ) | 1,710 | 600 | (256 | ) | (1,075 | ) | 225 | |||||||||||||||
Total non-interest income, excluding net securities gains (losses) | $ | 822 | $ | 841 | $ | 784 | $ | 871 | $ | 1,122 | $ | 891 |
“Efficiency ratio” is a non-GAAP financial measure and is defined as non-interest expense as a percentage of net interest income on a tax equivalent basis plus non-interest income, excluding net securities gains (losses), as follows:
(Dollars in thousands) | ||||||||||||||||||||||||
For the quarter ended: | 9/30/09 | 6/30/09 | 3/31/09 | 12/31/08 | 9/30/08 | 6/30/08 | ||||||||||||||||||
Other expense | $ | 5,186 | $ | 7,314 | $ | 5,319 | $ | 4,754 | $ | 4,578 | $ | 5,188 | ||||||||||||
Net interest income (tax equivalent basis) | $ | 7,536 | $ | 6,753 | $ | 6,556 | $ | 7,086 | $ | 7,148 | $ | 6,776 | ||||||||||||
Other income, excluding net securities gains (losses) | 822 | 841 | 784 | 871 | 1,122 | 891 | ||||||||||||||||||
$ | 8,358 | $ | 7,594 | $ | 7,340 | $ | 7,957 | $ | 8,270 | $ | 7,667 | |||||||||||||
Efficiency ratio | 62.0 | % | 96.3 | % | 72.5 | % | 59.7 | % | 55.4 | % | 67.7 | % |
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Forward-Looking Statements
All non-historical statements in this press release (including statements regarding the Corporation’s outlook, credit trends, future growth and the timing of funding of undisbursed commitments) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may use such forward-looking terminology such as "expect," "look," "believe," "plan," "anticipate," "may," "will" or similar statements or variations of such terms or otherwise express views concerning trends and the future. Such forward-looking statements involve certain risks and uncertainties. These include, but are not limited to, the direction of interest rates, continued levels of loan quality and origination volume, continued relationships with major customers including sources for loans, as well as the effects of international, national, regional and local economic conditions and legal and regulatory barriers and structure, including those relating to the current global financial crisis and the deregulation of the financial services industry, and other risks cited in reports filed by the Corporation with the Securities and Exchange Commission. Actual results may differ materially from such forward-looking statements. Center Bancorp, Inc. assumes no obligation for updating any such forward-looking statement at any time.
Investor Inquiries:
Anthony C. Weagley
President & Chief Executive Officer
(908) 206-2886
Joseph Gangemi
Investor Relations
(908) 206-2886
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CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited)
(Dollars in Thousands, Except Per Share Data) | September 30, 2009 | December 31, 2008 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 172,401 | $ | 15,031 | ||||
Investment securities available-for sale | 376,097 | 242,714 | ||||||
Loans | 716,100 | 676,203 | ||||||
Less — Allowance for loan losses | 7,142 | 6,254 | ||||||
Net loans | 708,958 | 669,949 | ||||||
Restricted investment in bank stocks, at cost | 10,673 | 10,230 | ||||||
Premises and equipment, net | 18,155 | 18,488 | ||||||
Accrued interest receivable | 4,642 | 4,154 | ||||||
Bank owned life insurance | 26,162 | 22,938 | ||||||
Other real estate owned | — | 3,949 | ||||||
Goodwill and other intangible assets | 17,047 | 17,110 | ||||||
Other assets | 15,381 | 18,730 | ||||||
Total assets | $ | 1,349,516 | $ | 1,023,293 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 126,205 | $ | 113,319 | ||||
Interest-bearing | ||||||||
Time deposits $100 and over | 265,999 | 100,493 | ||||||
Interest-bearing transactions, savings and time deposits $100 and less | 568,953 | 445,725 | ||||||
Total deposits | 961,157 | 659,537 | ||||||
Short-term borrowings | 52,171 | 45,143 | ||||||
Long-term borrowings | 223,183 | 223,297 | ||||||
Subordinated debentures | 5,155 | 5,155 | ||||||
Accounts payable and accrued liabilities | 9,208 | 8,448 | ||||||
Due to brokers for investment securities | 6,434 | — | ||||||
Total liabilities | 1,257,308 | 941,580 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock, $1,000 liquidation value per share: | ||||||||
Authorized 5,000,000 shares; issued 10,000 shares in 2009 and none in 2008 | 9,599 | — | ||||||
Common stock, no par value: | ||||||||
Authorized 20,000,000 shares; issued 15,190,984 shares in 2009 and 2008; outstanding 13,000,601 in 2009 and 12,991,312 shares in 2008 | 86,908 | 86,908 | ||||||
Additional paid in capital | 5,652 | 5,204 | ||||||
Retained earnings | 17,440 | 16,309 | ||||||
Treasury stock, at cost (2,190,383 in 2009 and 2,199,672 shares in 2008) | (17,720 | (17,796 | ) | |||||
Accumulated other comprehensive loss | (9,671 | ) | (8,912 | ) | ||||
Total stockholders’ equity | 92,208 | ) | 81,713 | |||||
Total liabilities and stockholders’ equity | $ | 1,349,516 | $ | 1,023,293 |
-11-
CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in Thousands, Except Per Share Data) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 9,255 | $ | 9,427 | $ | 27,568 | $ | 26,575 | ||||||||
Interest and dividends on investment securities: | ||||||||||||||||
Taxable interest income | 3,874 | 2,514 | 9,333 | 7,914 | ||||||||||||
Non-taxable interest income | 185 | 559 | 773 | 2,036 | ||||||||||||
Dividends | 177 | 189 | 465 | 645 | ||||||||||||
Interest on Federal funds sold and securities purchased under agreement to resell | — | — | — | 109 | ||||||||||||
Total interest income | 13,491 | 12,689 | 38,139 | 37,279 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on certificates of deposit $100 or more | 1,077 | 618 | 2,844 | 1,830 | ||||||||||||
Interest on other deposits | 2,974 | 2,434 | 7,803 | 8,302 | ||||||||||||
Interest on borrowings | 1,999 | 2,777 | 7,045 | 8,171 | ||||||||||||
Total interest expense | 6,050 | 5,829 | 17,692 | 18,303 | ||||||||||||
Net interest income | 7,441 | 6,860 | 20,447 | 18,976 | ||||||||||||
Provision for loan losses | 280 | 465 | 1,857 | 1,136 | ||||||||||||
Net interest income after provision for loan losses | 7,161 | 6,395 | 18,590 | 17,840 | ||||||||||||
Other income: | ||||||||||||||||
Service charges, commissions and fees | 464 | 484 | 1,353 | 1,526 | ||||||||||||
Annuity and insurance | 17 | 35 | 102 | 90 | ||||||||||||
Bank owned life insurance | 273 | 507 | 748 | 956 | ||||||||||||
Other | 68 | 96 | 244 | 307 | ||||||||||||
Total other-than-temporary impairment losses | (1,878 | ) | (1,200 | ) | (2,018 | ) | (1,391 | ) | ||||||||
Less: Portion of loss recognized in other comprehensive income (before taxes) | 478 | — | 478 | — | ||||||||||||
Net other-than-temporary impairment losses | (1,400 | ) | (1,200 | ) | (1,540 | ) | (1,391 | ) | ||||||||
Net gains on sale of investment securities | 889 | 125 | 3,339 | 541 | ||||||||||||
Net investment securities gains (losses) | (511 | ) | (1,075 | ) | 1,799 | (850 | ) | |||||||||
Total other income | 311 | 47 | 4,246 | 2,029 | ||||||||||||
Other expense: | ||||||||||||||||
Salaries and employee benefits | 2,529 | 1,919 | 7,429 | 6,795 | ||||||||||||
Occupancy, net | 539 | 803 | 1,919 | 2,296 | ||||||||||||
Premises and equipment | 323 | 352 | 963 | 1,074 | ||||||||||||
FDIC insurance | 320 | 28 | 1,625 | 68 | ||||||||||||
Professional and consulting | 190 | 189 | 638 | 551 | ||||||||||||
Stationery and printing | 81 | 87 | 253 | 300 | ||||||||||||
Marketing and advertising | 75 | 145 | 346 | 493 | ||||||||||||
Computer expense | 220 | 238 | 662 | 605 | ||||||||||||
OREO expense (benefit), net | 30 | (44 | ) | 1,438 | 20 | |||||||||||
Other | 879 | 861 | 2,546 | 2,517 | ||||||||||||
Total other expense | 5,186 | 4,578 | 17,819 | 14,719 | ||||||||||||
Income before income tax expense | 2,286 | 1,864 | 5,017 | 5,150 | ||||||||||||
Income tax expense | 751 | 346 | 1,482 | 1,007 | ||||||||||||
Net income | 1,535 | 1,518 | 3,535 | 4,143 | ||||||||||||
Preferred stock dividends and accretion | 148 | — | 425 | — | ||||||||||||
Net income available to common stockholders | $ | 1,387 | $ | 1,518 | $ | 3,110 | $ | 4,143 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.12 | $ | 0.24 | $ | 0.32 | ||||||||
Diluted | $ | 0.11 | $ | 0.12 | $ | 0.24 | $ | 0.32 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 13,000,601 | 12,990,441 | 12,995,481 | 13,068,400 | ||||||||||||
Diluted | 13,005,101 | 13,003,954 | 12,998,211 | 13,083,112 |
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SUMMARY SELECTED QUARTERLY STATISTICAL INFORMATION AND FINANCIAL DATA
(Dollars in Thousands, Except per Share Data)
Three Months Ended | ||||||||||||
9/30/2009 | 6/30/2009 | 9/30/2008 | ||||||||||
Statements of Income Data: | ||||||||||||
Interest income | $ | 13,491 | $ | 12,706 | $ | 12,689 | ||||||
Interest expense | 6,050 | 6,079 | 5,829 | |||||||||
Net interest income | 7,441 | 6,627 | 6,860 | |||||||||
Provision for loan losses | 280 | 156 | 465 | |||||||||
Net interest income after provision for loan losses | 7,161 | 6,471 | 6,395 | |||||||||
Other income | 311 | 2,551 | 47 | |||||||||
Other expense | 5,186 | 7,314 | 4,578 | |||||||||
Income before income tax expense | 2,286 | 1,708 | 1,864 | |||||||||
Income tax expense | 751 | 507 | 346 | |||||||||
Net income | 1,535 | 1,201 | 1,518 | |||||||||
Net income available to common stockholders | $ | 1,387 | $ | 1,053 | $ | 1,518 | ||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.11 | $ | 0.08 | $ | 0.12 | ||||||
Diluted | $ | 0.11 | $ | 0.08 | $ | 0.12 | ||||||
Statements of Condition Data (Period End): | ||||||||||||
Investments | 376,097 | $ | 378,895 | $ | 284,349 | |||||||
Total loans | 716,100 | 694,214 | 661,157 | |||||||||
Goodwill and other intangibles | 17,047 | 17,066 | 17,132 | |||||||||
Total assets | 1,349,516 | 1,341,603 | 1,042,778 | |||||||||
Deposits | 961,157 | 955,142 | 677,144 | |||||||||
Borrowings | 280,509 | 252,498 | 281,046 | |||||||||
Stockholders' equity | $ | 92,208 | $ | 89,458 | $ | 80,624 | ||||||
Dividend Data on Common Shares: | ||||||||||||
Cash dividends | $ | 390 | $ | 390 | $ | 1,169 | ||||||
Dividend payout ratio | 28.14 | % | 37.04 | % | 77.01 | % | ||||||
Cash dividends per share | $ | 0.03 | $ | 0.03 | $ | 0.09 | ||||||
Weighted Average Common Shares Outstanding: | ||||||||||||
Basic | 13,000,601 | 12,994,429 | 12,990,441 | |||||||||
Diluted | 13,005,101 | 12,996,544 | 13,003,954 | |||||||||
Operating Ratios: | ||||||||||||
Return on average assets | 0.46 | % | 0.40 | % | 0.60 | % | ||||||
Average stockholders' equity to average assets | 6.74 | % | 7.51 | % | 7.94 | % | ||||||
Return on average equity | 6.77 | % | 5.35 | % | 7.55 | % | ||||||
Return on average tangible stockholders’ equity | 8.33 | % | 6.61 | % | 9.60 | % | ||||||
Book value per common share | $ | 6.35 | $ | 6.14 | $ | 6.21 | ||||||
Tangible book value per common share | $ | 5.04 | $ | 4.83 | $ | 4.89 | ||||||
Non-Financial Information (Period End): | ||||||||||||
Common stockholders of record | 617 | 627 | 649 | |||||||||
Staff-full time equivalent | 165 | 155 | 156 |
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