GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
1 of 13
| July 26, 2010 | GERMAN AMERICAN BANCORP, INC. (GABC) |
| REPORTS RECORD SECOND QUARTER AND 2010 | |
| YEAR-TO-DATE EARNINGS |
Summary
German American Bancorp reported today that it achieved a record level of 2010 earnings for the second quarter and year-to-date through June 30th. The Company’s second quarter net income totaled $3,408,000, or $0.31 per share, representing the highest level of quarterly earnings in the Company’s history. This record earnings performance was an increase of approximately 23%, from the $2,764,000, or $0.25 per share, recorded during the same quarter last year. On a year-to-date basis, 2010 earnings were also a record, increasing to $6,659,000, or $0.60 per share, as compared to $5,706,000, or $0.52 per share for the first six months of 2009. The improvement in year-to-date earnings represented an increase of approximately 17%.
The record quarterly earnings performance was primarily reflective of an improvement in the level of the Company’s core operating results, and, to a lesser extent, the previously reported purchase of two branch bank locations in the Evansville (Indiana) banking market in May of this year. As compared to the same quarter in 2009, current quarter net income was enhanced by an increase in the Company’s net interest income of approximately $800,000. This improvement in net interest income was directly attributable to over $100 million or 9% growth in the Company’s average earning assets, as compared to the second quarter of the prior year, with over three-fourths of the growth in average earning assets coming from the Company’s existing banking markets and approximately one-fourth of the growth related to the branch purchase.
Mark A. Schroeder, Chairman & CEO of German American, commenting on the second quarter and year-to-date record results stated, “We are very pleased that our trend, over the course of the past several years, of strong earnings, solid loan quality, and the maintenance of a well-capitalized regulatory capital position has culminated in the achievement of this highest level of first half and second quarter earnings performance ever experienced in the history of our Company. Further, our second quarter net income for the current year increased by approximately 5% over the first quarter results. As I have previously stated, our exceptional performance throughout the recent economic downturn is a testament to our staff, our clients, and the economic viability of our Southern Indiana market area.”
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
2 of 13
Schroeder continued, “We will strive to build upon this record performance level as we continue to grow our new market presence in Evansville, while also continuing to enhance our existing market position in other Southern Indiana markets. German American is clearly the provider of choice throughout our market area in terms of our full offering of financial products and services within banking, insurance, and investments.”
The Company also announced that its Board of Directors declared its regular quarterly cash dividend of $0.14 per share which will be payable on August 20, 2010 to shareholders of record as of August 10, 2010.
Balance Sheet Highlights
End-of-period investment securities increased approximately $38 million or 57% on an annualized basis during the second quarter of 2010 compared with the period ended March 31, 2010. The increase was largely attributable to an increase in the Company’s core deposit base.
End-of-period loans outstanding increased approximately $47 million or 22% on an annualized basis during the second quarter of 2010 compared with the period ended March 31, 2010. The overall increase in the loan portfolio was largely driven by the May 2010 acquisition of two branch office locations in the Evansville (Indiana) banking market. The Company acquired approximately $44 million in loans as a part of the transaction.
| Annualized | ||||||||||||||||
| End of Period Loan Balances | 06/30/10 | 03/31/2010 | $ Change | % Change | ||||||||||||
| Commercial & Industrial Loans | $ | 226,876 | $ | 197,490 | $ | 29,386 | 60 | % | ||||||||
| Commercial Real Estate Loans | 340,229 | 328,565 | 11,664 | 14 | % | |||||||||||
| Agricultural Loans | 150,462 | 144,396 | 6,066 | 17 | % | |||||||||||
| Consumer Loans | 115,553 | 113,640 | 1,913 | 7 | % | |||||||||||
| Residential Mortgage Loans | 81,547 | 83,550 | (2,003 | ) | -10 | % | ||||||||||
| $ | 914,667 | $ | 867,641 | $ | 47,026 | 22 | % | |||||||||
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
3 of 13
Non-performing assets totaled $10.6 million at June 30, 2010 compared to $11.0 million of non-performing assets at March 31, 2010. Non-performing assets represented 0.79% of total assets at June 30, 2010 compared to 0.87% at March 31, 2010. Non-performing loans totaled $8.8 million at June 30, 2010 compared to $9.3 million of non-performing loans at March 31, 2010. Non-performing loans represented 0.96% of total outstanding loans at June 30, 2010 compared with 1.08% of total loans outstanding at March 31, 2010. The decline was the result of the Company’s continued aggressive collection efforts for non-performing credit relationships.
The Company’s allowance for loan losses totaled $10.8 million at June 30, 2010. This level of allowance represents a modest increase of $100,000 or 1% from March 31, 2010. The allowance for loan losses represented 1.18% of period-end loans at June 30, 2010 compared with 1.24% at March 31, 2010. The modest decline in allowance for loan loss as a percentage of total loans was due to the loans acquired as a part of the branch acquisition that were acquired at fair value which included a credit risk component. The allowance for loan losses represented 123% of period-end non-performing loans at June 30, 2010 and 115% of period-end non-performing loans at March 31, 2010.
End-of-period deposits increased approximately $77 million or 32% on an annualized basis during the second quarter of 2010 compared with the period ended March 31, 2010. The increase was partially attributable to the previously-discussed branch acquisition with approximately $51 million of deposits acquired in early May 2010 as a part of the transaction, of which a majority were core deposits.
| Annualized | ||||||||||||||||
End of Period Deposit Balances | 06/30/10 | 03/31/10 | $ Change | % Change | ||||||||||||
| Non-interest-bearing Demand Deposits | $ | 166,922 | $ | 158,163 | $ | 8,759 | 22 | % | ||||||||
Interest-bearing Demand, Savings, & Money Market Accounts | 522,438 | 473,278 | 49,160 | 42 | % | |||||||||||
| Time Deposits < $100,000 | 274,603 | 261,095 | 13,508 | 21 | % | |||||||||||
Time Deposits of $100,000 or more & Brokered Deposits | 85,893 | 80,459 | 5,434 | 27 | % | |||||||||||
| $ | 1,049,856 | $ | 972,995 | $ | 76,861 | 32 | % | |||||||||
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
4 of 13
Results of Operations Highlights
Quarter ended June 30, 2010 compared to quarter ended June 30, 2009
Net income for the quarter ended June 30, 2010 totaled $3,408,000, an increase of $644,000 or 23% from the quarter ended June 30, 2009 net income of $2,764,000.
Summary Average Balance Sheet
(Tax-equivalent basis / $ in thousands)
Quarter Ended June 30, 2010 | Quarter Ended June 30, 2009 | |||||||||||||||||||||||
| Principal | Income/ | Yield/ | Principal | Income/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Federal Funds Sold and Other Short-term Investments | $ | 52,008 | $ | 27 | 0.21 | % | $ | 30,495 | $ | 22 | 0.29 | % | ||||||||||||
| Securities | 274,969 | 2,852 | 4.15 | % | 213,397 | 2,570 | 4.82 | % | ||||||||||||||||
| Loans and Leases | 901,856 | 13,264 | 5.90 | % | 882,554 | 13,528 | 6.15 | % | ||||||||||||||||
| Total Interest-Earning Assets | $ | 1,228,833 | $ | 16,143 | 5.27 | % | $ | 1,126,446 | $ | 16,120 | 5.73 | % | ||||||||||||
Liabilities | ||||||||||||||||||||||||
| Demand Deposit Accounts | $ | 163,227 | $ | 148,214 | ||||||||||||||||||||
| Interest-bearing Demand, Savings, and Money Market Accounts | $ | 512,680 | $ | 461 | 0.36 | % | $ | 458,394 | $ | 819 | 0.72 | % | ||||||||||||
| Time Deposits | 353,577 | 2,225 | 2.52 | % | 337,352 | 2,516 | 2.99 | % | ||||||||||||||||
| FHLB Advances and Other Borrowings | 154,884 | 1,340 | 3.47 | % | 139,959 | 1,471 | 4.22 | % | ||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 1,021,141 | $ | 4,026 | 1.58 | % | $ | 935,705 | $ | 4,806 | 2.06 | % | ||||||||||||
| Cost of Funds | 1.32 | % | 1.71 | % | ||||||||||||||||||||
Net Interest Income | $ | 12,117 | $ | 11,314 | ||||||||||||||||||||
Net Interest Margin | 3.95 | % | 4.02 | % | ||||||||||||||||||||
During the quarter ended June 30, 2010, net interest income totaled $11,915,000 representing an increase of $798,000 or 7% from the second quarter of 2009. The tax equivalent net interest margin for the second quarter of 2010 was 3.95% compared to 4.02% in the second quarter of 2009. The increased net interest income was largely the result of a higher level of earning assets driven by growth in the Company’s core deposit base, both internally and as augmented by the deposits acquired in the branch acquisition.
The provision for loan loss totaled $1,000,000 during both the quarter ended June 30, 2010, and the quarter ended June 30, 2009. During the second quarter of 2010, the provision for loan loss represented approximately 44 basis points of average loans while net charge-offs represented approximately 40 basis points of average loans.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
5 of 13
During the quarter ended June 30, 2010, non-interest income declined approximately 1% from the second quarter of 2009.
| Qtr. Ended | Qtr Ended | |||||||||||||||
| Non-interest Income | 06/30/10 | 06/30/09 | $ Change | % Change | ||||||||||||
| Trust and Investment Product Fees | $ | 395 | $ | 457 | $ | (62 | ) | -14 | % | |||||||
| Service Charges on Deposit Accounts | 1,075 | 1,080 | (5 | ) | 0 | % | ||||||||||
| Insurance Revenues | 1,083 | 1,290 | (207 | ) | -16 | % | ||||||||||
| Company Owned Life Insurance | 186 | 200 | (14 | ) | -7 | % | ||||||||||
| Other Operating Income | 553 | 368 | 185 | 50 | % | |||||||||||
| Subtotal | 3,292 | 3,395 | (103 | ) | -3 | % | ||||||||||
| Net Gains on Sales of Loans | 499 | 461 | 38 | 8 | % | |||||||||||
| Net Gain (Loss) on Securities | — | (34 | ) | 34 | n/m | |||||||||||
| Total Non-interest Income | $ | 3,791 | $ | 3,822 | $ | (31 | ) | -1 | % | |||||||
Trust and investment product fees declined by 14% during the second quarter of 2010 compared with the second quarter of 2009 due primarily to lower retail brokerage revenues. Insurance revenues decreased 16% during the quarter ended June 30, 2010, compared with 2009 due in part to a change in the accounting method for direct bill customers during the second quarter of 2010 to better reconcile with our agency management system. Other operating income increased $185,000 or 50% during the second quarter of 2010 compared with the same period of 2009 due primarily to a higher level of write-downs on other real estate owned properties in the second quarter of 2009 compared with the same period of 2010.
During the quarter ended June 30, 2010, non-interest expense declined approximately 3% compared with the quarter ended June 30, 2009.
| Qtr. Ended | Qtr. Ended | |||||||||||||||
| Non-interest Expense | 06/30/10 | 06/30/09 | $ Change | % Change | ||||||||||||
| Salaries and Employee Benefits | $ | 5,288 | $ | 5,515 | $ | (227 | ) | -4 | % | |||||||
| Occupancy, Furniture and Equipment Expense | 1,435 | 1,470 | (35 | ) | -2 | % | ||||||||||
| FDIC Premiums | 336 | 885 | (549 | ) | -62 | % | ||||||||||
| Data Processing Fees | 365 | 344 | 21 | 6 | % | |||||||||||
| Professional Fees | 524 | 405 | 119 | 29 | % | |||||||||||
| Advertising and Promotion | 273 | 199 | 74 | 37 | % | |||||||||||
| Intangible Amortization | 247 | 221 | 26 | 12 | % | |||||||||||
| Other Operating Expenses | 1,434 | 1,194 | 240 | 20 | % | |||||||||||
| Total Non-interest Expense | $ | 9,902 | $ | 10,233 | $ | (331 | ) | -3 | % | |||||||
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
6 of 13
Salaries and benefits expense declined approximately 4% during the second quarter of 2010 compared with the second quarter of 2009. The decrease was primarily the result of lower costs associated with the Company’s partially self-insured health insurance plan.
The Company’s FDIC deposit insurance assessments decreased $549,000, or 62%, during the second quarter of 2010 compared with the second quarter of 2009. This decrease was due to an industry-wide special assessment in the second quarter of 2009 of approximately $550,000 which represented 5 basis points of the Company’s subsidiary bank’s total assets less Tier 1 Capital.
Professional fees increased 29% during the quarter ended June 30, 2010 compared with the same quarter of 2009 primarily as a result of professional fees associated with the acquisition of two branch offices during 2010. Other operating expenses increased by 20% during the quarter ended June 30, 2010 compared with 2009. The increase was largely attributable to costs associated with the Company’s common identity initiative.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
7 of 13
Quarter ended June 30, 2010 compared to quarter ended March 31, 2010
Net income for the quarter ended June 30, 2010 totaled $3,408,000, an increase of $157,000 or 5% from first quarter 2010 net income of $3,251,000.
Summary Average Balance Sheet
(Tax-equivalent basis / $ in thousands)
| Quarter Ended June 30, 2010 | Quarter Ended March 31, 2010 | |||||||||||||||||||||||
| Principal | Income/ | Yield/ | Principal | Income/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
| Federal Funds Sold and Other Short-term Investments | $ | 52,008 | $ | 27 | 0.21 | % | $ | 25,257 | $ | 9 | 0.15 | % | ||||||||||||
| Securities | 274,969 | 2,852 | 4.15 | % | 264,801 | 2,875 | 4.34 | % | ||||||||||||||||
| Loans and Leases | 901,856 | 13,264 | 5.90 | % | 877,629 | 12,906 | 5.96 | % | ||||||||||||||||
| Total Interest Earning Assets | $ | 1,228,833 | $ | 16,143 | 5.27 | % | $ | 1,167,687 | $ | 15,790 | 5.46 | % | ||||||||||||
Liabilities | ||||||||||||||||||||||||
| Demand Deposit Accounts | $ | 163,227 | $ | 154,219 | ||||||||||||||||||||
| Interest-bearing Demand, Savings, and Money Market Accounts | $ | 512,680 | $ | 461 | 0.36 | % | $ | 476,246 | $ | 426 | 0.36 | % | ||||||||||||
| Time Deposits | 353,577 | 2,225 | 2.52 | % | 342,488 | 2,186 | 2.59 | % | ||||||||||||||||
FHLB Advances and Other Borrowings | 154,884 | 1,340 | 3.47 | % | 151,318 | 1,322 | 3.54 | % | ||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 1,021,141 | $ | 4,026 | 1.58 | % | $ | 970,052 | $ | 3,934 | 1.64 | % | ||||||||||||
| Cost of Funds | 1.32 | % | 1.36 | % | ||||||||||||||||||||
| Net Interest Income | $ | 12,117 | $ | 11,856 | ||||||||||||||||||||
| Net Interest Margin | 3.95 | % | 4.10 | % | ||||||||||||||||||||
During the quarter ended June 30, 2010, net interest income totaled $11,915,000 representing an increase of $266,000 or 2% from the first quarter of 2010. The increased net interest income was largely the result of a higher level of earning assets driven by growth in the Company’s core deposit base, both internally and as augmented by the deposits acquired in the branch acquisition. The tax equivalent net interest margin for the second quarter of 2010 was 3.95% compared to 4.10% in the first quarter of 2010. The reduced net interest margin was largely attributable to a higher level of federal funds sold and other short-term investments during the second quarter.
During the quarter ended June 30, 2010, non-interest income declined 17% compared to the first quarter of 2010.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
8 of 13
| Qtr Ended | Qtr Ended | |||||||||||||||
| Non-interest Income | 06/30/10 | 03/31/10 | $ Change | % Change | ||||||||||||
| Trust and Investment Product Fees | $ | 395 | $ | 391 | $ | 4 | 1 | % | ||||||||
| Service Charges on Deposit Accounts | 1,075 | 946 | 129 | 14 | % | |||||||||||
| Insurance Revenues | 1,083 | 1,686 | (603 | ) | -36 | % | ||||||||||
| Company Owned Life Insurance | 186 | 202 | (16 | ) | -8 | % | ||||||||||
| Other Operating Income | 553 | 1,036 | (483 | ) | -47 | % | ||||||||||
| Subtotal | 3,292 | 4,261 | (969 | ) | -23 | % | ||||||||||
| Net Gains on Sales of Loans | 499 | 318 | 181 | 57 | % | |||||||||||
| Net Gain (Loss) on Securities | — | — | — | 0 | % | |||||||||||
| Total Non-interest Income | $ | 3,791 | $ | 4,579 | $ | (788 | ) | -17 | % | |||||||
Deposit service charges and fees increased by 14% during the second quarter of 2010 compared with the first quarter of 2010 due to increased customer utilization of the Company’s overdraft protection program and a cyclical increase in overdraft fees that historically occurs during the second quarter of the year compared with the first quarter of the year. Insurance revenues declined 36% during the quarter ended June 30, 2010 compared with the three months ended March 31, 2010. The decline was largely attributable to annual contingency revenue recognized in the quarter ended March 31, 2010.
Other operating income declined 47% during the second quarter of 2010 compared with the first quarter of 2010. The decline was attributable to the gain on sale of an other real estate owned property during the first quarter of 2010 and a gain from the sale of a former operations office facility of the Company in the first quarter of 2010 which were not recurring items in the second quarter of 2010.
The net gain of sales of loans increased 57% due to increased residential mortgage loan production that has been sold in the secondary market or is being held for sale in the secondary market. The increase in loan production was largely attributable to a decline in mortgage loan interest rates, an increase in refinance activity, and an increase in purchase activity resulting from tax incentive programs.
During the quarter ended June 30, 2010, non-interest expense decreased approximately 4% compared with the first quarter of 2010.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
9 of 13
| Qtr Ended | Qtr Ended | |||||||||||||||
| Non-interest Expense | 06/30/10 | 03/31/10 | $ Change | % Change | ||||||||||||
| Salaries and Employee Benefits | $ | 5,288 | $ | 5,549 | $ | (261 | ) | -5 | % | |||||||
Occupancy, Furniture and Equipment Expense | 1,435 | 1,539 | (104 | ) | -7 | % | ||||||||||
| FDIC Premiums | 336 | 352 | (16 | ) | -5 | % | ||||||||||
| Data Processing Fees | 365 | 359 | 6 | 2 | % | |||||||||||
| Professional Fees | 524 | 521 | 3 | 1 | % | |||||||||||
| Advertising and Promotion | 273 | 269 | 4 | 1 | % | |||||||||||
| Intangible Amortization | 247 | 218 | 29 | 13 | % | |||||||||||
| Other Operating Expenses | 1,434 | 1,459 | (25 | ) | -2 | % | ||||||||||
| Total Non-interest Expense | $ | 9,902 | $ | 10,266 | $ | (364 | ) | -4 | % | |||||||
Salaries and benefits expense decreased approximately 5% during the second quarter of 2010 compared with the first quarter of 2010. The decline was largely attributable to lower costs associated with the Company’s health insurance plan during the second quarter of 2010 compared with the first quarter of 2010.
Occupancy, furniture and equipment expense declined 7% in the quarter ended June 30, 2010, compared with the first quarter of 2010. The decrease was attributable to lower levels of real and personal property tax expense and a cyclically lower utility expense level.
German American Bancorp, Inc. is a NASDAQ-traded (symbol GABC) financial services holding company. German American, through its principal banking subsidiary German American Bancorp, operates 30 retail banking offices in 12 contiguous southern Indiana. counties. The company also owns a trust, brokerage and financial planning subsidiary, operated from its banking offices, and a full service property and casualty insurance agency with seven offices throughout its banking market area.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
10 of 13
Forward Looking Statements
The Company's statements in this press release regarding the Company’s intentions to strive to build upon its growth in its Southern Indiana banking markets (including the new Evansville banking market) are "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in the press release. Factors that could cause actual experience to differ from the expectations implied in this press release include changes in interest rates; changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; continued deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration and dampened loan demand; actions of the Federal Reserve Board; changes in accounting principles and interpretations; and actions of federal regulatory agencies under the Federal Deposit Insurance Act, the U.S. financial reform legislation, and other legislative and regulatory actions and reforms. These forward-looking statements speak only as of the date of this press release and German American undertakes no obligation to update any such forward-looking statement to reflect events or circumstances that occur after the date hereof.
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
| June 30, | March 31, | June 30, | ||||||||||
| 2010 | 2010 | 2009 | ||||||||||
| ASSETS | ||||||||||||
| Cash and Due from Banks | $ | 17,110 | $ | 15,480 | $ | 19,064 | ||||||
| Short-term Investments | 19,399 | 29,919 | 24,183 | |||||||||
| Investment Securities | 300,441 | 262,833 | 202,190 | |||||||||
| Loans Held-for-Sale | 10,768 | 5,270 | 12,170 | |||||||||
| Loans, Net of Unearned Income | 912,938 | 866,018 | 895,527 | |||||||||
| Allowance for Loan Losses | (10,813 | ) | (10,713 | ) | (10,295 | ) | ||||||
| Net Loans | 902,125 | 855,305 | 885,232 | |||||||||
| Stock in FHLB and Other Restricted Stock | 10,621 | 10,621 | 10,621 | |||||||||
| Premises and Equipment | 26,182 | 21,122 | 22,225 | |||||||||
| Goodwill and Other Intangible Assets | 12,891 | 12,055 | 12,740 | |||||||||
| Other Assets | 41,391 | 41,407 | 36,067 | |||||||||
| TOTAL ASSETS | $ | 1,340,928 | $ | 1,254,012 | $ | 1,224,492 | ||||||
| LIABILITIES | ||||||||||||
| Non-interest-bearing Demand Deposits | $ | 166,922 | $ | 158,163 | $ | 147,049 | ||||||
| Interest-bearing Demand, Savings, and Money Market Accounts | 522,438 | 473,278 | 474,323 | |||||||||
| Time Deposits | 360,496 | 341,554 | 334,377 | |||||||||
| Total Deposits | 1,049,856 | 972,995 | 955,749 | |||||||||
| Borrowings | 157,861 | 151,647 | 147,832 | |||||||||
| Other Liabilities | 13,054 | 13,121 | 12,194 | |||||||||
| TOTAL LIABILITIES | 1,220,771 | 1,137,763 | 1,115,775 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Common Stock and Surplus | 80,125 | 79,994 | 79,641 | |||||||||
| Retained Earnings | 32,595 | 30,741 | 25,631 | |||||||||
| Accumulated Other Comprehensive Income | 7,437 | 5,514 | 3,445 | |||||||||
| TOTAL SHAREHOLDERS' EQUITY | 120,157 | 116,249 | 108,717 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,340,928 | $ | 1,254,012 | $ | 1,224,492 | ||||||
| END OF PERIOD SHARES OUTSTANDING | 11,104,918 | 11,101,560 | 11,074,718 | |||||||||
| BOOK VALUE PER SHARE | $ | 10.82 | $ | 10.47 | $ | 9.82 | ||||||
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Interest and Fees on Loans | $ | 13,194 | $ | 12,839 | $ | 13,473 | $ | 26,033 | $ | 26,867 | ||||||||||
| Interest on Short-term Investments | 27 | 9 | 22 | 36 | 39 | |||||||||||||||
| Interest and Dividends on Investment Securities | 2,720 | 2,735 | 2,428 | 5,455 | 4,874 | |||||||||||||||
| TOTAL INTEREST INCOME | 15,941 | 15,583 | 15,923 | 31,524 | 31,780 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest on Deposits | 2,686 | 2,612 | 3,335 | 5,298 | 7,340 | |||||||||||||||
| Interest on Borrowings | 1,340 | 1,322 | 1,471 | 2,662 | 2,682 | |||||||||||||||
| TOTAL INTEREST EXPENSE | 4,026 | 3,934 | 4,806 | 7,960 | 10,022 | |||||||||||||||
| NET INTEREST INCOME | 11,915 | 11,649 | 11,117 | 23,564 | 21,758 | |||||||||||||||
| Provision for Loan Losses | 1,000 | 1,500 | 1,000 | 2,500 | 1,750 | |||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,915 | 10,149 | 10,117 | 21,064 | 20,008 | |||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||
| Net Gain on Sales of Loans | 499 | 318 | 461 | 817 | 1,026 | |||||||||||||||
| Net Gain (Loss) on Securities | - | - | (34 | ) | - | (34 | ) | |||||||||||||
| Other Non-interest Income | 3,292 | 4,261 | 3,395 | 7,553 | 7,074 | |||||||||||||||
| TOTAL NON-INTEREST INCOME | 3,791 | 4,579 | 3,822 | 8,370 | 8,066 | |||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Salaries and Benefits | 5,288 | 5,549 | 5,515 | 10,837 | 11,129 | |||||||||||||||
| Other Non-interest Expenses | 4,614 | 4,717 | 4,718 | 9,331 | 9,185 | |||||||||||||||
| TOTAL NON-INTEREST EXPENSE | 9,902 | 10,266 | 10,233 | 20,168 | 20,314 | |||||||||||||||
| Income before Income Taxes | 4,804 | 4,462 | 3,706 | 9,266 | 7,760 | |||||||||||||||
| Income Tax Expense | 1,396 | 1,211 | 942 | 2,607 | 2,054 | |||||||||||||||
| NET INCOME | $ | 3,408 | $ | 3,251 | $ | 2,764 | $ | 6,659 | $ | 5,706 | ||||||||||
| EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE | $ | 0.31 | $ | 0.29 | $ | 0.25 | $ | 0.60 | $ | 0.52 | ||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | 11,103,095 | 11,081,680 | 11,073,081 | 11,092,447 | 11,055,111 | |||||||||||||||
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 11,108,160 | 11,088,387 | 11,073,575 | 11,097,343 | 11,055,111 | |||||||||||||||
(unaudited, dollars in thousands except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| EARNINGS PERFORMANCE RATIOS | ||||||||||||||||||||
| Annualized Return on Average Assets | 1.04 | % | 1.04 | % | 0.92 | % | 1.04 | % | 0.95 | % | ||||||||||
| Annualized Return on Average Equity | 11.57 | % | 11.28 | % | 10.13 | % | 11.43 | % | 10.58 | % | ||||||||||
| Net Interest Margin | 3.95 | % | 4.10 | % | 4.02 | % | 4.02 | % | 3.97 | % | ||||||||||
Efficiency Ratio (1) | 62.24 | % | 62.47 | % | 67.61 | % | 62.36 | % | 67.24 | % | ||||||||||
Net Overhead Expense to Average Earning Assets (2) | 1.99 | % | 1.95 | % | 2.28 | % | 1.97 | % | 2.19 | % | ||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||
| Annualized Net Charge-offs to Average Loans | 0.40 | % | 0.82 | % | 0.34 | % | 0.61 | % | 0.22 | % | ||||||||||
| Allowance for Loan Losses to Period End Loans | 1.18 | % | 1.24 | % | 1.15 | % | ||||||||||||||
| Non-performing Assets to Period End Assets | 0.79 | % | 0.87 | % | 0.80 | % | ||||||||||||||
| Non-performing Loans to Period End Loans | 0.96 | % | 1.08 | % | 0.82 | % | ||||||||||||||
| Loans 30-89 Days Past Due to Period End Loans | 0.86 | % | 0.69 | % | 0.54 | % | ||||||||||||||
| SELECTED BALANCE SHEET & OTHER FINANCIAL DATA | ||||||||||||||||||||
| Average Assets | $ | 1,314,847 | $ | 1,252,897 | $ | 1,207,413 | $ | 1,284,043 | $ | 1,201,932 | ||||||||||
| Average Earning Assets | $ | 1,228,833 | $ | 1,167,687 | $ | 1,126,446 | $ | 1,198,429 | $ | 1,120,259 | ||||||||||
| Average Total Loans | $ | 901,856 | $ | 877,629 | $ | 882,554 | $ | 889,810 | $ | 885,217 | ||||||||||
| Average Demand Deposits | $ | 163,227 | $ | 154,219 | $ | 148,214 | $ | 158,748 | $ | 147,266 | ||||||||||
| Average Interest Bearing Liabilities | $ | 1,021,141 | $ | 970,052 | $ | 935,705 | $ | 995,738 | $ | 933,316 | ||||||||||
| Average Equity | $ | 117,801 | $ | 115,235 | $ | 109,119 | $ | 116,525 | $ | 107,846 | ||||||||||
Period End Non-performing Assets (3) | $ | 10,629 | $ | 10,972 | $ | 9,815 | ||||||||||||||
Period End Non-performing Loans (4) | $ | 8,807 | $ | 9,333 | $ | 7,364 | ||||||||||||||
Period End Loans 30-89 Days Past Due (5) | $ | 7,866 | $ | 5,955 | $ | 4,841 | ||||||||||||||
| Tax Equivalent Net Interest Income | $ | 12,117 | $ | 11,856 | $ | 11,314 | $ | 23,973 | $ | 22,143 | ||||||||||
| Net Charge-offs during Period | $ | 900 | $ | 1,803 | $ | 749 | $ | 2,703 | $ | 977 | ||||||||||
(1) | Efficiency Ratio is defined as Non-interest Expense divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-interest Income. |
| (2) | Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income. |
| (3) | Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, Restructured Loans, and Other Real Estate Owned. |
| (4) | Non-performing loans are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Restructured Loans. |
| (5) | Loans 30-89 days past due and still accruing. |