NEWS RELEASE
For Immediate Release
April 17, 2007
For Further Information Contact:
Charles R. Hageboeck, Chief Executive Officer and President
(304) 769-1102
City Holding Company Announces Record Earnings
Charleston, West Virginia - City Holding Company, “the Company” (NASDAQ:CHCO), a $2.5 billion bank holding company headquartered in Charleston, today announced record net income for the first quarter of $13.2 million or $0.76 per diluted share compared to $12.9 million or $0.71 per diluted share in the first quarter of 2006, or a 7.0% increase. For the first quarter of 2007, the Company achieved a return on assets of 2.10%, a return on equity of 17.1%, a net interest margin of 4.41%, and an efficiency ratio of -- 44.9%. This compares with a return on assets of 2.06%, a return on equity of 17.4%, a net interest margin of 4.71%, and an efficiency ratio of 45.3% for the comparable period of 2006.
As previously announced during the first quarter of 2007, the Company recognized a gain of $1.5 million from the sale of its existing merchant processing agreements to NOVA Information Systems, Inc. (NOVA).
Charles Hageboeck, Chief Executive Officer and President, stated, “The Company increased its earnings per share in the first quarter of 2007 as compared to the first quarter of 2006 despite a decrease of over $0.9 million in interest income associated with previously securitized loans (whose balances decreased 49%) and a decrease of $0.6 million due to lower credit card fee income as a result of the sales of the retail and merchant credit card portfolios. As compared to the quarter ended March 31, 2006, profitability as measured by our return on assets was better and our efficiency ratio improved. Excluding charge-offs related to depository overdrafts, the Company experienced net recoveries during the first quarter of 2007. The decline in our charge-offs for the quarter reflects the solid underwriting standards that the Company utilizes in commercial and retail lending as balances of loans written prior to 2002 continue to decline. Non-performing assets as a percentage of loans rose from 25 basis points at December 31, 2006 to 44 basis points at March 31, 2007 due primarily to the bankruptcy of a single residential mortgage customer during the quarter.
Overall, the Company’s asset quality remains very favorable in comparison to our peer group (bank holding companies with total assets between $1 and $5 billion) and past due loans remain at a very low level. Although 2007 looks to be a challenging year for many banks, we remain positive in our outlook for the year. During the first quarter, we announced plans to open a new branch in Princeton, West Virginia during the fourth quarter of 2007. As a result of the Company’s continued accomplishments, on February 28, 2007, our Board of Directors approved an increase of 10% in our quarterly dividends to 31 cents per share. In addition, the Company remains well positioned with a tangible equity to tangible asset ratio of 9.8% at March 31, 2007. We look forward to maintaining our solid performance for the remainder of 2007 on behalf of our shareholders despite the many challenges from the current economic environment.”
Balance Sheet Trends
As compared to December 31, 2006, loans have increased $14.3 million (0.9%) at March 31, 2007 with increases in commercial loans of $14.5 million (2.1%), home equity loans of $2.9 million (0.9%) and installment loans of $1.8 million (4.2%). These increases were partially offset by decreases in previously securitized loans of $2.9 million (see Previously Securitized Loans) and residential real estate loans of $2.1 million.
Total average depository balances increased $17.1 million, or 0.9%, from the quarter ended December 31, 2006 to the quarter ended March 31, 2007. This growth was primarily in savings and time deposits, which have increased $13.3 million and $6.9 million, respectively.
Net Interest Income
The Company’s tax equivalent net interest income decreased $1.4 million, or 5.5%, from $26.1 million during the first quarter of 2006 to $24.7 million during the first quarter of 2007. This decrease is attributable to two factors. First, during the third quarter of 2006, the Company sold its retail credit card portfolio. Average credit card loans outstanding were $14.5 million in the first quarter of 2006. This resulted in a decrease in interest income of $0.5 million from the first quarter of 2006. Secondly, the Company experienced a decrease of $0.9 million in interest income from previously securitized loans in the first quarter of 2007 as compared to the first quarter of 2006 as the average balance of these loans decreased 48.7%. The decrease in average balances was partially mitigated by an increase in the yield on these loans from 39.1% for the first quarter of 2006 to 49.5% for the first quarter of 2007 (see Previously Securitized Loans). An increase of $3.3 million in interest income from all other loans (commercial, residential, home equity, and consumer) was essentially offset by an increase of $3.2 million in interest expense on deposits.
The Company’s net interest margin was 4.41% in the first quarter of 2007 as compared to 4.71% in the first quarter of 2006. The decline in the net interest margin can be largely attributed to lower interest income from previously securitized loans and the loss of interest income due to the sale of the retail credit card portfolio. Excluding these assets, the Company’s net interest margin decreased 15 basis points from 4.33% during the first quarter of 2006 to 4.18% for the first quarter of 2007. This compression is due to increased rates paid on interest-bearing liabilities, primarily time deposits.
Credit Quality
At March 31, 2007, the Allowance for Loan Losses (“ALLL”) was $16.1 million or 0.95% of total loans outstanding and 236% of non-performing loans compared to $16.8 million or 1.04% of loans outstanding and 504% of non-performing loans at March 31, 2006, and $15.4 million or 0.92% of loans outstanding and 385% of non-performing loans at December 31, 2006. While the Company’s ALLL as a percent of outstanding loans has decreased since March 31, 2006, this decrease can be directly attributed to the sale of the bank’s retail credit card portfolio in the third quarter of 2006. In fact, after consideration of the impact of the sale of the retail credit card portfolio, the ALLL (less the portion of the allowance allocated to credit cards) was 0.94% of total loans outstanding (net of credit card loans outstanding) and 373% of non-performing loans (net of non-performing credit card loans) at March 31, 2006.
As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $0.9 million in the first quarter of 2007 compared to $1.0 million for the comparable period in 2006. The quality of the Company’s loan portfolio has continued to improve. Total past due loans have declined 43% from $10.5 million at December 31, 2006 to $6.0 million at March 31, 2007. This improvement has been primarily associated with residential real estate loans (down $2.9 million or 46%) and commercial loans (down $0.9 million or 43%) from December 31, 2006. Changes in the amount of the provision and related allowance are based on the Company’s detailed methodology and are directionally consistent with growth and changes in the composition and quality of the Company’s loan portfolio.
The Company had net charge-offs of $0.2 million for the first quarter of 2007, with depository accounts representing $0.3 million (or approximately 129%) of this total. While charge-offs on depository accounts are appropriately taken against the ALLL, the revenue associated with depository accounts is reflected in service charges and has been steadily growing as the core base of checking accounts has grown. Net charge-offs on residential loans were $0.1 million for the first quarter, while commercial loans experienced net recoveries of $0.1 million during the quarter. The decrease in net charge-offs is attributable to declines in balances of loans originated prior to 2002 (including loans acquired as part of the Classic Bancshares acquisition). At March 31, 2007, balances of loans written subsequent to 2002 comprise approximately 74% of total loan balances.
The Company’s ratio of non-performing assets to total loans and other real estate owned increased from 0.25% at December 31, 2006 to 0.44% at March 31, 2007 as a result of one residential real estate loan. Our ratio of non-performing assets to total loans compares quite favorably relative to our peer group (bank holding companies with total assets between $1 and $5 billion), which reported average non-performing assets as a percentage of loans and other real estate owned of 0.81% for the most recently reported quarter ended December 31, 2006. The composition of the Company’s loan portfolio, which is weighted more heavily toward residential mortgage loans and less towards non-real estate secured commercial loans than peers, has allowed it to maintain a lower allowance in comparison to peers. In addition, the sale of the Company’s credit card portfolio resulted in a reduction of the allowance of $1.4 million during 2006. As a result, the Company’s ALLL as a percentage of loans outstanding is 0.95% at March 31,
2007. The Company believes its methodology for determining the adequacy of its ALLL adequately provides for probable losses inherent in the loan portfolio and produces a provision and allowance for loan losses that is directionally consistent with changes in asset quality and loss experience.
Non-interest Income
Net of the gain from the sale of the Company’s merchant credit card portfolio, non-interest income increased $0.5 million to $12.9 million in the first quarter of 2007 as compared to $12.4 million in the first quarter of 2006. The largest source of non-interest income is service charges from depository accounts, which increased $0.2 million, or 2.0%, from $9.9 million during the first quarter of 2006 to $10.1 million during the first quarter of 2007. Insurance commission revenues increased $0.4 million, or 64.8% due to the hiring of additional staff by City Insurance to provide worker’s compensation insurance to West Virginia businesses. Partially off-setting these increases was a decrease in other income of $0.3 million due to lower credit card fee income due to the sale of the retail credit card portfolio during the third quarter of 2006 and the sale of the merchant credit card portfolio during the first quarter of 2007.
Non-interest Expenses
Non-interest expenses increased $0.1 million from $17.5 million in the first quarter of 2006 to $17.6 million in the first quarter of 2007. Salaries and employee benefits increased $0.4 million, or 4.9%, from the first quarter of 2006 due in part to additional staffing for new retail locations and insurance personnel to support the introduction of worker’s compensation insurance. This increase was partially offset by a $0.3 million charge in the first quarter of 2006 related to the redemption of $2.5 million of the Company’s trust preferred securities.
The Company’s efficiency ratio improved from 45.3% for the quarter ended March 31, 2006 to 44.9% for the quarter ended March 31, 2007, reflecting ongoing strength in managing expenses while increasing revenues. The average efficiency ratio for the Company’s peer group for the most recently reported quarter was 59.2%.
Previously Securitized Loans
At March 31, 2007, the Company reported “Previously Securitized Loans” of $12.7 million compared to $25.9 million and $15.6 million at March 31, 2006 and December 31, 2006, respectively, representing a decrease of 50.8% and 18.3%, respectively. The yield on the previously securitized loans was 49.5% for the quarter ended March 31, 2007, compared to 46.6% for the quarter ended December 31, 2006, and 39.1% for the quarter ended March 31, 2006. The yield on the previously securitized loans has increased due to improved cash flows as net default rates have been less than previously estimated. The default rates have decreased as a result of the Company’s assumption of the servicing of all of the pool balances during the second quarter of 2005. Subsequent to our assumption of the servicing of these loans, the Company has averaged net recoveries but does not believe that continued net recoveries can be sustained indefinitely.
Capitalization and Liquidity
One of the Company’s strengths is that it is highly profitable while maintaining strong liquidity and capital. With respect to liquidity, the Company’s loan to deposit ratio was 83.0% and the loan to asset ratio was 66.1% at March 31, 2007. The Company maintained investment securities totaling 22.9% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 43.6% of assets at March 31, 2007. Time deposits fund 36.0% of assets at March 31, 2007, but very few of these deposits are in accounts that have balances of more than $150,000, reflecting the core retail orientation of the Company.
The Company is also strongly capitalized. With respect to regulatory capital, at March 31, 2007, the Company’s Leverage Ratio is 10.68%, the Tier I Capital ratio is 15.31 %, and the Total Risk-Based Capital ratio is 16.25%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.
On February 28, 2007 the Board approved a 10% increase in the quarterly cash dividend to 31 cents per share payable April 30, 2007 to shareholders of record as of April 15, 2007. During the quarter ended March 31, 2007, the Company repurchased 274,300 common shares at a weighted average price of $39.71 as part of a one million share repurchase plan authorized by the Board of Directors in December 2006. The Company’s tangible equity ratio was 9.8% at March 31, 2007 compared with a tangible equity ratio of 10.0% at December 31, 2006. Due to the Company’s strong earnings, the Company was able to both repurchase these shares and increase its cash dividends while maintaining its tangible equity ratio.
City Holding Company is the parent company of City National Bank of West Virginia. City National operates 68 branches across West Virginia, Eastern Kentucky and Southern Ohio.
Forward-Looking Information
This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such information involves risks and uncertainties that could result in the Company's actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, (1) the Company may incur additional loan loss provision due to negative credit quality trends in the future that may lead to a deterioration of asset quality; (2) the Company may incur increased charge-offs in the future; (3) the Company may experience increases in the default rates on previously securitized loans that would result in impairment losses or lower the yield on such loans; (4) the Company may continue to benefit from strong recovery efforts on previously securitized loans resulting in improved yields on these assets; (5) the Company could have adverse legal actions of a material nature; (6) the Company may face competitive loss of customers; (7) the Company may be unable to manage its expense levels; (8) the Company may have difficulty retaining key employees; (9) changes in the interest rate environment may have results on the Company’s operations materially different from those anticipated by the Company’s market risk management functions; (10) changes in general economic conditions and increased competition could adversely affect the Company’s operating results; (11) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact the Company’s operating results; and (12) the Company may experience difficulties growing loan and deposit balances. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.
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Financial Highlights | | | | | | | |
(Unaudited) | | | | | | | |
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| | | Three Months Ended March 31 | | Percent | |
| | | 2007 | | 2006 | | Change | |
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| Earnings ($000s, except per share data): | | | | | | | |
| Net Interest Income (FTE) | | $ | 24,671 | | $ | 26,105 | | | (5.49 | )% |
| Net Income | | | 13,231 | | | 12,866 | | | 2.84 | % |
| Earnings per Basic Share | | | 0.76 | | | 0.71 | | | 7.04 | % |
| Earnings per Diluted Share | | | 0.76 | | | 0.71 | | | 7.04 | % |
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| Key Ratios (percent): | | | | | | | | | | |
| Return on Average Assets | | | 2.10 | % | | 2.06 | % | | 1.92 | % |
| Return on Average Equity | | | 17.13 | % | | 17.37 | % | | (1.42 | )% |
| Net Interest Margin | | | 4.41 | % | | 4.71 | % | | (6.36 | )% |
| Efficiency Ratio | | | 44.93 | % | | 45.28 | % | | (0.77 | )% |
| Average Shareholders' Equity to Average Assets | | | 12.27 | % | | 11.87 | % | | 3.39 | % |
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| Consolidated Risk Based Capital Ratios (a): | | | | | | | | | | |
| Tier I | | | 15.31 | % | | 14.83 | % | | 3.24 | % |
| Total | | | 16.25 | % | | 15.80 | % | | 2.85 | % |
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| Average Tangible Equity to Average Tangible Assets | | | 9.79 | % | | 9.24 | % | | 5.87 | % |
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| Common Stock Data: | | | | | | | | | | |
| Cash Dividends Declared per Share | | $ | 0.31 | | $ | 0.28 | | | 10.71 | % |
| Book Value per Share | | | 17.62 | | | 16.17 | | | 8.99 | % |
| Tangible Book Value per Share | | | 14.21 | | | 12.84 | | | 10.70 | % |
| Market Value per Share: | | | | | | | | | | |
| High | | | 41.54 | | | 37.64 | | | 10.36 | % |
| Low | | | 38.04 | | | 35.26 | | | 7.88 | % |
| End of Period | | | 40.45 | | | 36.79 | | | 9.95 | % |
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| Price/Earnings Ratio (b) | | | 13.31 | | | 12.95 | | | 2.71 | % |
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| (a) March 31, 2007 risk-based capital ratios are estimated. | | | | | | |
| (b) March 31, 2007 price/earnings ratio computed based on annualized first quarter 2007 earnings. | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | |
Financial Highlights | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | |
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Book Value and Market Price Range per Share | | | | | | | | | |
| | | | | | | | | | | Market Price | |
| | | Book Value per Share | | Range per Share | |
| | | March 31 | | June 30 | | September 30 | | December 31 | | Low | | High | |
| | | | | | | | | | | | | | |
| 2003 | | $ | 10.10 | | $ | 10.74 | | $ | 11.03 | | $ | 11.46 | | $ | 25.50 | | $ | 37.15 | |
| 2004 | | | 12.09 | | | 11.89 | | | 12.70 | | | 13.03 | | | 27.30 | | | 37.58 | |
| 2005 | | | 13.20 | | | 15.56 | | | 15.99 | | | 16.14 | | | 27.57 | | | 39.21 | |
| 2006 | | | 16.17 | | | 16.17 | | | 16.99 | | | 17.46 | | | 34.53 | | | 41.87 | |
| 2007 | | | 17.62 | | | | | | | | | | | | 38.04 | | | 41.54 | |
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Earnings per Basic Share | | | | | | | | | | | | | | | |
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| | | Quarter Ended | | | |
| | | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | Year-to-Date | | | | |
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| 2003 | | $ | 0.56 | | $ | 0.73 | | $ | 0.69 | | $ | 0.64 | | $ | 2.62 | | | | |
| 2004 | | | 0.66 | | | 0.80 | | | 0.66 | | | 0.67 | | | 2.79 | | | | |
| 2005 | | | 0.70 | | | 0.72 | | | 0.73 | | | 0.72 | | | 2.87 | | | | |
| 2006 | | | 0.71 | | | 0.78 | | | 0.78 | | | 0.74 | | | 3.00 | | | | |
| 2007 | | | 0.76 | | | | | | | | | | | | 0.76 | | | | |
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Earnings per Diluted Share | | | | | | | | | | | | | | | |
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| | | Quarter Ended | | | |
| | | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | Year-to-Date | | | | |
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| 2003 | | $ | 0.55 | | $ | 0.72 | | $ | 0.68 | | $ | 0.63 | | $ | 2.58 | | | | |
| 2004 | | | 0.65 | | | 0.79 | | | 0.65 | | | 0.66 | | | 2.75 | | | | |
| 2005 | | | 0.69 | | | 0.71 | | | 0.72 | | | 0.72 | | | 2.84 | | | | |
| 2006 | | | 0.71 | | | 0.77 | | | 0.77 | | | 0.74 | | | 2.99 | | | | |
| 2007 | | | 0.76 | | | | | | | | | | | | 0.76 | | | | |
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Consolidated Statements of Income | | | | | |
(Unaudited) ($ in 000s, except per share data) | | | | | |
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| | | Three Months Ended March 31, | |
| | | 2007 | | 2006 | |
Interest Income | | | | | |
| Interest and fees on loans | | $ | 31,464 | | $ | 29,564 | |
| Interest on investment securities: | | | | | | | |
| Taxable | | | 6,933 | | | 7,260 | |
| Tax-exempt | | | 427 | | | 467 | |
| Interest on deposits in depository institutions | | | 117 | | | 150 | |
| Interest on federal funds sold | | | 257 | | | - | |
Total Interest Income | | | 39,198 | | | 37,441 | |
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Interest Expense | | | | | | | |
| Interest on deposits | | | 12,712 | | | 9,201 | |
| Interest on short-term borrowings | | | 1,513 | | | 1,127 | |
| Interest on long-term debt | | | 531 | | | 1,260 | |
Total Interest Expense | | | 14,756 | | | 11,588 | |
Net Interest Income | | | 24,442 | | | 25,853 | |
| Provision for loan losses | | | 900 | | | 1,000 | |
Net Interest Income After Provision for Loan Losses | | | 23,542 | | | 24,853 | |
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Non-Interest Income | | | | | | | |
| Investment securities gains (losses) | | | - | | | - | |
| Service charges | | | 10,063 | | | 9,862 | |
| Insurance commissions | | | 1,012 | | | 614 | |
| Trust and investment management fee income | | | 568 | | | 566 | |
| Bank owned life insurance | | | 696 | | | 537 | |
| Gain on sale of credit card merchant agreements | | | 1,500 | | | - | |
| Other income | | | 532 | | | 810 | |
Total Non-Interest Income | | | 14,371 | | | 12,389 | |
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Non-Interest Expense | | | | | | | |
| Salaries and employee benefits | | | 9,057 | | | 8,632 | |
| Occupancy and equipment | | | 1,637 | | | 1,599 | |
| Depreciation | | | 1,070 | | | 1,050 | |
| Professional fees | | | 403 | | | 395 | |
| Postage, delivery, and statement mailings | | | 777 | | | 644 | |
| Advertising | | | 852 | | | 774 | |
| Telecommunications | | | 455 | | | 476 | |
| Bankcard expenses | | | 518 | | | 543 | |
| Insurance and regulatory | | | 385 | | | 388 | |
| Office supplies | | | 455 | | | 383 | |
| Repossessed asset (gains) losses, net of expenses | | | (14 | ) | | 4 | |
| Loss on early extinguishment of debt | | | - | | | 282 | |
| Other expenses | | | 2,021 | | | 2,327 | |
Total Non-Interest Expense | | | 17,616 | | | 17,497 | |
Income Before Income Taxes | | | 20,297 | | | 19,745 | |
| Income tax expense | | | 7,066 | | | 6,879 | |
Net Income | | $ | 13,231 | | $ | 12,866 | |
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| Basic earnings per share | | $ | 0.76 | | $ | 0.71 | |
| Diluted earnings per share | | $ | 0.76 | | $ | 0.71 | |
Average Common Shares Outstanding: | | | | | | | |
| Basic | | | 17,369 | | | 18,006 | |
| Diluted | | | 17,424 | | | 18,067 | |
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CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | |
Consolidated Statements of Changes in Stockholders' Equity | | | | | |
(Unaudited) ($ in 000s) | | | | | |
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| | | Three Months Ended | |
| | | March 31, 2007 | | March 31, 2006 | |
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Balance at January 1 | | $ | 305,307 | | $ | 292,141 | |
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| Cumulative effect of adopting FIN 48 | | | (125 | ) | | - | |
| Net income | | | 13,231 | | | 12,866 | |
| Other comprehensive income: | | | | | | | |
| Change in unrealized gain on securities available-for-sale | | | 723 | | | (917 | ) |
| Change in unrealized gain/(loss) on interest rate floors | | | 122 | | | (509 | ) |
| Cash dividends declared ($0.31/share) | | | (5,342 | ) | | - | |
| Cash dividends declared ($0.28/share) | | | - | | | (4,988 | ) |
| Issuance of stock award shares, net | | | 264 | | | 167 | |
| Exercise of 5,300 stock options | | | 82 | | | - | |
| Exercise of 26,875 stock options | | | - | | | 357 | |
| Excess tax benefits on stock compensation | | | - | | | 173 | |
| Purchase of 274,300 common shares of treasury | | | (10,908 | ) | | - | |
| Purchase of 300,572 common shares of treasury | | | - | | | (10,914 | ) |
Balance at March 31 | | $ | 303,354 | | $ | 288,376 | |
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Condensed Consolidated Quarterly Statements of Income | | | | | |
(Unaudited) ($ in 000s, except per share data) | | | | | | | |
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| | | Quarter Ended | |
| | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | March 31 | |
| | | 2007 | | 2006 | | 2006 | | 2006 | | 2006 | |
| | | | | | | | | | | | |
| Interest income | | $ | 39,198 | | $ | 39,925 | | $ | 39,747 | | $ | 39,010 | | $ | 37,441 | |
| Taxable equivalent adjustment | | | 230 | | | 228 | | | 236 | | | 246 | | | 252 | |
| Interest income (FTE) | | | 39,428 | | | 40,153 | | | 39,983 | | | 39,256 | | | 37,693 | |
| Interest expense | | | 14,756 | | | 14,820 | | | 14,233 | | | 13,085 | | | 11,588 | |
| Net interest income | | | 24,672 | | | 25,333 | | | 25,750 | | | 26,171 | | | 26,105 | |
| Provision for loan losses | | | 900 | | | 901 | | | 1,225 | | | 675 | | | 1,000 | |
| Net interest income after provision | | | | | | | | | | | | | | | | |
| for loan losses | | | 23,772 | | | 24,432 | | | 24,525 | | | 25,496 | | | 25,105 | |
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| Noninterest income | | | 14,371 | | | 13,586 | | | 14,766 | | | 13,463 | | | 12,389 | |
| Noninterest expense | | | 17,616 | | | 18,099 | | | 18,133 | | | 17,555 | | | 17,497 | |
| Income before income taxes | | | 20,527 | | | 19,919 | | | 21,158 | | | 21,404 | | | 19,997 | |
| Income tax expense | | | 7,066 | | | 6,752 | | | 7,302 | | | 7,397 | | | 6,879 | |
| Taxable equivalent adjustment | | | 230 | | | 228 | | | 236 | | | 246 | | | 252 | |
| Net income | | $ | 13,231 | | $ | 12,939 | | $ | 13,620 | | $ | 13,761 | | $ | 12,866 | |
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| Basic earnings per share | | $ | 0.76 | | $ | 0.74 | | $ | 0.78 | | $ | 0.78 | | $ | 0.71 | |
| Diluted earnings per share | | | 0.76 | | | 0.74 | | | 0.77 | | | 0.77 | | | 0.71 | |
| Cash dividends declared per share | | | 0.31 | | | 0.28 | | | 0.28 | | | 0.28 | | | 0.28 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Average Common Share (000s): | | | | | | | | | | | | | | | | |
| Outstanding | | | 17,369 | | | 17,535 | | | 17,557 | | | 17,719 | | | 18,006 | |
| Diluted | | | 17,424 | | | 17,601 | | | 17,619 | | | 17,772 | | | 18,067 | |
| | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | 4.41 | % | | 4.43 | % | | 4.51 | % | | 4.58 | % | | 4.71 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
Non-Interest Income and Non-Interest Expense | | | | | | | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Quarter Ended | |
| | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | March 31 | |
| | | 2007 | | 2006 | | 2006 | | 2006 | | 2006 | |
| | | | | | | | | | | | |
Non-Interest Income: | | | | | | | | | | | |
| Service charges | | $ | 10,063 | | $ | 10,962 | | $ | 10,833 | | $ | 10,903 | | $ | 9,862 | |
| Insurance commissions | | | 1,012 | | | 675 | | | 526 | | | 521 | | | 614 | |
| Trust and investment management fee income | | | 568 | | | 498 | | | 572 | | | 504 | | | 566 | |
| Bank owned life insurance | | | 696 | | | 576 | | | 561 | | | 678 | | | 537 | |
| Other income | | | 532 | | | 803 | | | 778 | | | 857 | | | 810 | |
Subtotal | | | 12,871 | | | 13,514 | | | 13,270 | | | 13,463 | | | 12,389 | |
| Investment security gains | | | - | | | 72 | | | (2,067 | ) | | - | | | - | |
| Gain on sale of credit card merchant agreements | | | 1,500 | | | - | | | 3,563 | | | - | | | - | |
Total Non-Interest Income | | $ | 14,371 | | $ | 13,586 | | $ | 14,766 | | $ | 13,463 | | $ | 12,389 | |
| | | | | | | | | | | | | | | | | |
Non-Interest Expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 9,057 | | $ | 8,354 | | $ | 8,733 | | $ | 8,764 | | $ | 8,632 | |
| Occupancy and equipment | | | 1,637 | | | 1,655 | | | 1,602 | | | 1,624 | | | 1,599 | |
| Depreciation | | | 1,070 | | | 1,037 | | | 1,061 | | | 1,071 | | | 1,050 | |
| Professional fees | | | 403 | | | 415 | | | 379 | | | 571 | | | 395 | |
| Postage, delivery, and statement mailings | | | 777 | | | 735 | | | 765 | | | 689 | | | 644 | |
| Advertising | | | 852 | | | 876 | | | 810 | | | 755 | | | 774 | |
| Telecommunications | | | 455 | | | 549 | | | 498 | | | 525 | | | 476 | |
| Bankcard expenses | | | 518 | | | 478 | | | 485 | | | 458 | | | 543 | |
| Insurance and regulatory | | | 385 | | | 375 | | | 384 | | | 381 | | | 388 | |
| Office supplies | | | 455 | | | 408 | | | 417 | | | 372 | | | 383 | |
| Repossessed asset (gains) losses, net of expenses | | | (14 | ) | | 6 | | | 20 | | | (129 | ) | | 4 | |
| Loss on early extinguishment of debt | | | - | | | 708 | | | 379 | | | - | | | 282 | |
| Other expenses | | | 2,021 | | | 2,503 | | | 2,600 | | | 2,474 | | | 2,327 | |
Total Non-Interest Expense | | $ | 17,616 | | $ | 18,099 | | $ | 18,133 | | $ | 17,555 | | $ | 17,497 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Employees (Full Time Equivalent) | | | 791 | | | 779 | | | 767 | | | 779 | | | 764 | |
| Branch Locations | | | 68 | | | 67 | | | 67 | | | 67 | | | 66 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
Consolidated Balance Sheets | | | | | |
($ in 000s) | | | | | |
| | | March 31 | | December 31 | |
| | | 2007 | | 2006 | |
| Assets | | (Unaudited) | | | |
| Cash and due from banks | | $ | 53,011 | | $ | 58,014 | |
| Interest-bearing deposits in depository institutions | | | 6,041 | | | 27,434 | |
| Federal funds sold | | | 20,000 | | | 25,000 | |
Cash and cash equivalents | | | 79,052 | | | 110,448 | |
| | | | | | | | |
| Investment securities available-for-sale, at fair value | | | 540,261 | | | 472,398 | |
| Investment securities held-to-maturity, at amortized cost | | | 46,396 | | | 47,500 | |
Total investment securities | | | 586,657 | | | 519,898 | |
| | | | | | | | |
| Gross Loans | | | 1,691,748 | | | 1,677,469 | |
| Allowance for loan losses | | | (16,082 | ) | | (15,405 | ) |
Net loans | | | 1,675,666 | | | 1,662,064 | |
| | | | | | | | |
| Bank owned life insurance | | | 55,687 | | | 55,195 | |
| Premises and equipment | | | 45,190 | | | 44,689 | |
| Accrued interest receivable | | | 12,371 | | | 12,337 | |
| Net deferred tax assets | | | 23,551 | | | 23,652 | |
| Intangible assets | | | 58,681 | | | 58,857 | |
| Other assets | | | 22,157 | | | 20,667 | |
Total Assets | | $ | 2,559,012 | | $ | 2,507,807 | |
| | | | | | | | |
Liabilities | | | | | | | |
| Deposits: | | | | | | | |
| Noninterest-bearing | | $ | 338,332 | | $ | 321,038 | |
| Interest-bearing: | | | | | | | |
| Demand deposits | | | 435,069 | | | 422,925 | |
| Savings deposits | | | 343,366 | | | 321,075 | |
| Time deposits | | | 922,384 | | | 920,179 | |
Total deposits | | | 2,039,151 | | | 1,985,217 | |
| Short-term borrowings | | | 156,062 | | | 136,570 | |
| Long-term debt | | | 21,940 | | | 48,069 | |
| Other liabilities | | | 38,505 | | | 32,644 | |
Total Liabilities | | | 2,255,658 | | | 2,202,500 | |
| | | | | | | | |
Stockholders' Equity | | | | | | | |
| Preferred stock, par value $25 per share: 500,000 shares authorized; none issued | | | - | | | - | |
| Common stock, par value $2.50 per share: 50,000,000 shares authorized; | | | | | | | |
| 18,499,282 shares issued at March 31, 2007 and December 31, 2006 | | | | | | | |
| less 1,278,095 and 1,009,095 shares in treasury, respectively | | | 46,249 | | | 46,249 | |
| Capital surplus | | | 103,938 | | | 104,043 | |
| Retained earnings | | | 201,977 | | | 194,213 | |
| Cost of common stock in treasury | | | (44,126 | ) | | (33,669 | ) |
| Accumulated other comprehensive (loss) income: | | | | | | | |
| Unrealized loss on securities available-for-sale | | | (1,926 | ) | | (2,649 | ) |
| Unrealized loss on derivative instruments | | | (88 | ) | | (210 | ) |
| Underfunded pension liability | | | (2,670 | ) | | (2,670 | ) |
Total Accumulated Other Comprehensive (Loss) Income | | | (4,684 | ) | | (5,529 | ) |
Total Stockholders' Equity | | | 303,354 | | | 305,307 | |
Total Liabilities and Stockholders' Equity | | $ | 2,559,012 | | $ | 2,507,807 | |
| | | | | | | | | |
Loan Portfolio | | | | | | | | | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | March 31 | | Dec 31 | | Sept 30 | | June 30 | | March 31 | | | |
| | | 2007 | | 2006 | | 2006 | | 2006 | | 2006 | | | |
| | | | | | | | | | | | | | |
| Residential real estate | | $ | 596,412 | | $ | 598,502 | | $ | 604,867 | | $ | 601,097 | | $ | 595,093 | | | | |
| Home equity | | | 324,653 | | | 321,708 | | | 318,666 | | | 313,301 | | | 304,559 | | | | |
| Commercial, financial, and agriculture | | | 713,183 | | | 698,719 | | | 713,933 | | | 668,581 | | | 643,269 | | | | |
| Installment loans to individuals | | | 44,756 | | | 42,943 | | | 41,215 | | | 42,307 | | | 54,287 | | | | |
| Previously securitized loans | | | 12,744 | | | 15,597 | | | 18,520 | | | 22,253 | | | 25,918 | | | | |
Gross Loans | | $ | 1,691,748 | | $ | 1,677,469 | | $ | 1,697,201 | | $ | 1,647,539 | | $ | 1,623,126 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | |
Previously Securitized Loans | | | | | | | | | | | | | | | | | | | |
(Unaudited) ($ in millions) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Annualized | | | Effective | | | | | | | |
| | | | | | | | | | Interest | | | Annualized | | | | | | | |
| | | Year Ended: | | | Balance (a) | | | Income (a) | | | Yield (a) | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | 2006 | | $ | 15.6 | | $ | 9.4 | | | 42 | % | | | | | | |
| | | | 2007 | | | 10.0 | | | 6.2 | | | 50 | % | | | | | | |
| | | | 2008 | | | 7.7 | | | 4.6 | | | 51 | % | | | | | | |
| | | | 2009 | | | 6.6 | | | 3.8 | | | 51 | % | | | | | | |
| | | | 2010 | | | 5.7 | | | 3.3 | | | 51 | % | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (a) - 2006 amounts are based on actual results. 2007 amounts are based on actual results through 3/31/07 and estimated amounts for the remainder of the year. 2008, 2009, and 2010 amounts are based on estimated amounts. | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Note: The amounts reflected in the table above require management to make significant assumptions based on |
| estimated future default, prepayment, and discount rates. Actual performance could be different from that |
| assumed, which could result in the actual results being materially different from the amounts estimated above. |
| | | | | | | |
Consolidated Average Balance Sheets, Yields, and Rates | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | |
| | | | | 2007 | | | | | | 2006 | | | |
| | | Average | | | | Yield/ | | Average | | | | Yield/ | |
| | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
| | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | |
| Loan portfolio: | | | | | | | | | | | | | |
| Residential real estate | | $ | 594,504 | | $ | 8,854 | | | 6.04 | % | $ | 593,131 | | $ | 8,380 | | | 5.73 | % |
| Home equity | | | 322,647 | | | 6,242 | | | 7.85 | % | | 302,265 | | | 5,594 | | | 7.51 | % |
| Commercial, financial, and agriculture | | | 716,517 | | | 13,343 | | | 7.55 | % | | 635,249 | | | 11,293 | | | 7.21 | % |
| Installment loans to individuals | | | 42,903 | | | 1,269 | | | 12.00 | % | | 56,546 | | | 1,593 | | | 11.43 | % |
| Previously securitized loans | | | 14,375 | | | 1,756 | | | 49.54 | % | | 28,051 | | | 2,704 | | | 39.09 | % |
| Total loans | | | 1,690,946 | | | 31,464 | | | 7.55 | % | | 1,615,242 | | | 29,564 | | | 7.42 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 505,585 | | | 6,933 | | | 5.56 | % | | 574,195 | | | 7,260 | | | 5.13 | % |
| Tax-exempt | | | 40,413 | | | 658 | | | 6.60 | % | | 44,303 | | | 719 | | | 6.58 | % |
| Total securities | | | 545,998 | | | 7,591 | | | 5.64 | % | | 618,498 | | | 7,979 | | | 5.23 | % |
| Deposits in depository institutions | | | 13,033 | | | 117 | | | 3.64 | % | | 14,888 | | | 150 | | | 4.09 | % |
| Federal funds sold | | | 19,533 | | | 256 | | | 5.32 | % | | - | | | - | | | 0.00 | % |
Total interest-earning assets | | | 2,269,510 | | | 39,428 | | | 7.05 | % | | 2,248,628 | | | 37,693 | | | 6.80 | % |
| Cash and due from banks | | | 50,129 | | | | | | | | | 53,252 | | | | | | | |
| Bank premises and equipment | | | 44,968 | | | | | | | | | 42,529 | | | | | | | |
| Other assets | | | 169,046 | | | | | | | | | 168,035 | | | | | | | |
| Less: Allowance for loan losses | | | (15,636 | ) | | | | | | | | (16,851 | ) | | | | | | |
Total assets | | $ | 2,518,017 | | | | | | | | $ | 2,495,593 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | | 430,201 | | | 1,332 | | | 1.26 | % | | 444,126 | | | 1,259 | | | 1.15 | % |
| Savings deposits | | | 330,023 | | | 1,307 | | | 1.61 | % | | 306,314 | | | 732 | | | 0.97 | % |
| Time deposits | | | 921,937 | | | 10,074 | | | 4.43 | % | | 830,866 | | | 7,210 | | | 3.52 | % |
| Short-term borrowings | | | 146,455 | | | 1,512 | | | 4.19 | % | | 151,728 | | | 1,127 | | | 3.01 | % |
| Long-term debt | | | 32,434 | | | 532 | | | 6.65 | % | | 95,296 | | | 1,260 | | | 5.36 | % |
Total interest-bearing liabilities | | | 1,861,050 | | | 14,757 | | | 3.22 | % | | 1,828,330 | | | 11,588 | | | 2.57 | % |
| Noninterest-bearing demand deposits | | | 316,716 | | | | | | | | | 342,482 | | | | | | | |
| Other liabilities | | | 31,234 | | | | | | | | | 28,564 | | | | | | | |
| Stockholders' equity | | | 309,017 | | | | | | | | | 296,217 | | | | | | | |
Total liabilities and | | | | | | | | | | | | | | | | | | | |
stockholders' equity | | $ | 2,518,017 | | | | | | | | $ | 2,495,593 | | | | | | | |
Net interest income | | | | | $ | 24,671 | | | | | | | | $ | 26,105 | | | | |
Net yield on earning assets | | | | | | | | | 4.41 | % | | | | | | | | 4.71 | % |
| | | | | | | | | | | | | | | | | | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | |
Analysis of Risk-Based Capital | | | | | | | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | March 31 | |
| | | 2007 (a) | | 2006 | | 2006 | | 2006 | | 2006 | |
| | | | | | | | | | | | |
| Tier I Capital: | | | | | | | | | | | |
| Stockholders' equity | | $ | 303,354 | | $ | 305,307 | | $ | 298,327 | | $ | 284,120 | | $ | 288,376 | |
| Goodwill and other intangibles | | | (58,681 | ) | | (58,857 | ) | | (59,038 | ) | | (59,219 | ) | | (59,378 | ) |
| Accumulated other comprehensive income | | | 2,014 | | | 2,859 | | | 4,109 | | | 9,762 | | | 6,265 | |
| Qualifying trust preferred stock | | | 16,000 | | | 16,000 | | | 22,000 | | | 25,500 | | | 25,500 | |
| Excess deferred tax assets | | | - | | | - | | | - | | | (4,079 | ) | | (2,254 | ) |
| Total tier I capital | | $ | 262,687 | | $ | 265,309 | | $ | 265,398 | | $ | 256,084 | | $ | 258,509 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total Risk-Based Capital: | | | | | | | | | | | | | | | | |
| Tier I capital | | $ | 262,687 | | $ | 265,309 | | $ | 265,398 | | $ | 256,084 | | $ | 258,509 | |
| Qualifying allowance for loan losses | | | 16,082 | | | 15,405 | | | 15,557 | | | 15,268 | | | 16,818 | |
| Total risk-based capital | | $ | 278,769 | | $ | 280,714 | | $ | 280,955 | | $ | 271,352 | | $ | 275,327 | |
| | | | | | | | | | | | | | | | | |
| Net risk-weighted assets | | $ | 1,715,664 | | $ | 1,734,214 | | $ | 1,770,458 | | $ | 1,757,720 | | $ | 1,743,243 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Ratios: | | | | | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | 12.27 | % | | 12.14 | % | | 11.67 | % | | 11.51 | % | | 11.87 | % |
| Tangible capital ratio | | | 9.79 | % | | 10.06 | % | | 9.69 | % | | 9.13 | % | | 9.24 | % |
| Risk-based capital ratios: | | | | | | | | | | | | | | | | |
| Tier I capital | | | 15.31 | % | | 15.30 | % | | 14.99 | % | | 14.58 | % | | 14.83 | % |
| Total risk-based capital | | | 16.25 | % | | 16.19 | % | | 15.87 | % | | 15.45 | % | | 15.80 | % |
| Leverage capital | | | 10.68 | % | | 10.79 | % | | 10.81 | % | | 10.34 | % | | 10.62 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (a) March 31, 2007 risk-based capital ratios are estimated. | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | | | | | | |
Intangibles | | | | | | | | | | | | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | As of and for the Quarter Ended |
| | | | March 31 | | | Dec 31. | | | Sept. 30 | | | June 30 | | | March 31 | |
| | | | 2007 | | | 2006 | | | 2006 | | | 2006 | | | 2006 | |
| | | | | | | | | | | | | | | | | |
| Intangibles, net | | $ | 58,681 | | $ | 58,857 | | $ | 59,038 | | $ | 59,219 | | $ | 59,378 | |
| Intangibles amortization expense | | | 176 | | | 181 | | | 181 | | | 181 | | | 181 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
Summary of Loan Loss Experience | | | | | | | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Quarter Ended | |
| | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | March 31 | |
| | | 2007 | | 2006 | | 2006 | | 2006 | | 2006 | |
| | | | | | | | | | | | |
| Balance at beginning of period | | $ | 15,405 | | $ | 15,557 | | $ | 15,268 | | $ | 16,818 | | $ | 16,790 | |
| | | | | | | | | | | | | | | | | |
| Reduction of allowance for loans sold | | | - | | | - | | | - | | | (1,368 | ) | | - | |
| | | | | | | | | | | | | | | | | |
Charge-offs: | | | | | | | | | | | | | | | | |
| Commercial, financial, and agricultural | | | 35 | | | 844 | | | 207 | | | 43 | | | 185 | |
| Real estate-mortgage | | | 111 | | | 230 | | | 177 | | | 232 | | | 296 | |
| Installment loans to individuals | | | 84 | | | 126 | | | 165 | | | 239 | | | 368 | |
| Overdraft deposit accounts | | | 860 | | | 892 | | | 1,018 | | | 955 | | | 958 | |
Total charge-offs | | | 1,090 | | | 2,092 | | | 1,567 | | | 1,469 | | | 1,807 | |
| | | | | | | | | | | | | | | | | |
Recoveries: | | | | | | | | | | | | | | | | |
| Commercial, financial, and agricultural | | | 148 | | | 101 | | | 44 | | | 33 | | | 32 | |
| Real estate-mortgage | | | 15 | | | 350 | | | 64 | | | 56 | | | 105 | |
| Installment loans to individuals | | | 132 | | | 118 | | | 131 | | | 151 | | | 198 | |
| Overdraft deposit accounts | | | 573 | | | 470 | | | 392 | | | 372 | | | 500 | |
Total recoveries | | | 868 | | | 1,039 | | | 631 | | | 612 | | | 835 | |
| | | | | | | | | | | | | | | | | |
Net charge-offs | | | 222 | | | 1,053 | | | 936 | | | 857 | | | 972 | |
| Provision for loan losses | | | 900 | | | 901 | | | 1,225 | | | 675 | | | 1,000 | |
Balance at end of period | | $ | 16,083 | | $ | 15,405 | | $ | 15,557 | | $ | 15,268 | | $ | 16,818 | |
| | | | | | | | | | | | | | | | | |
| Loans outstanding | | $ | 1,691,748 | | $ | 1,677,469 | | $ | 1,697,201 | | $ | 1,647,539 | | $ | 1,623,126 | |
| Average loans outstanding | | | 1,690,946 | | | 1,689,846 | | | 1,662,929 | | | 1,630,454 | | | 1,615,242 | |
| Allowance as a percent of loans outstanding | | | 0.95 | % | | 0.92 | % | | 0.92 | % | | 0.93 | % | | 1.04 | % |
| Allowance as a percent of non-performing loans | | | 235.75 | % | | 384.93 | % | | 408.43 | % | | 408.02 | % | | 503.53 | % |
| Net charge-offs (annualized) as a | | | | | | | | | | | | | | | | |
| percent of average loans outstanding | | | 0.05 | % | | 0.25 | % | | 0.23 | % | | 0.21 | % | | 0.24 | % |
| Net charge-offs, excluding overdraft deposit | | | | | | | | | | | | | | | | |
| accounts, (annualized) as a percent of average loans outstanding | | | (0.02 | )% | | 0.15 | % | | 0.07 | % | | 0.07 | % | | 0.13 | % |
CITY HOLDING COMPANY AND SUBSIDIARIES | | | | | | | | | | | |
Summary of Non-Performing Assets | | | | | | | | | | | |
(Unaudited) ($ in 000s) | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | March 31 | | Dec. 31 | | Sept. 30 | | June 30 | | March 31 | |
| | | 2007 | | 2006 | | 2006 | | 2006 | | 2006 | |
| | | | | | | | | | | | |
| Nonaccrual loans | | $ | 6,714 | | $ | 3,319 | | $ | 3,359 | | $ | 3,046 | | $ | 2,743 | |
| Accruing loans past due 90 days or more | | | 108 | | | 635 | | | 328 | | | 573 | | | 512 | |
| Previously securitized loans past due 90 days or more | | | - | | | 48 | | | 122 | | | 123 | | | 85 | |
Total non-performing loans | | | 6,822 | | | 4,002 | | | 3,809 | | | 3,742 | | | 3,340 | |
| Other real estate owned, excluding property associated | | | | | | | | | | | | | | | | |
| with previously securitized loans | | | 290 | | | 161 | | | 499 | | | 294 | | | 403 | |
| Other real estate owned associated with previously | | | | | | | | | | | | | | | | |
| securitized loans | | | 252 | | | 20 | | | 20 | | | 92 | | | 306 | |
Other real estate owned | | | 542 | | | 181 | | | 519 | | | 386 | | | 709 | |
Total non-performing assets | | $ | 7,364 | | $ | 4,183 | | $ | 4,328 | | $ | 4,128 | | $ | 4,049 | |
| | | | | | | | | | | | | | | | | |
| Non-performing assets as a percent of loans and | | | | | | | | | | | | | | | | |
| other real estate owned | | | 0.44 | % | | 0.25 | % | | 0.25 | % | | 0.25 | % | | 0.25 | % |
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