Exhibit 99.1
| | | |
Shareholder Relations | | NEWS RELEASE |
| 288 Union Street, Rockland, MA 02370 | | Contact: |
Chris Oddleifson
President and
Chief Executive Officer
(781) 982-6660
Denis K. Sheahan
Chief Financial Officer
(781) 982-6341
INDEPENDENT BANK CORP. REPORTS THIRD QUARTER 2006 EARNINGS
Rockland, Massachusetts (October 19, 2006). Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced that earnings on a diluted earnings per share basis increased $0.02, or 3.6%, to $0.58 for the quarter ended September 30, 2006 as compared to the $0.56 reported in the same period last year. Net income for the quarter was $8.6 million, a decrease of (1.5%) from the $8.7 million reported for the quarter ended September 30, 2005. For the nine months ended September 30, 2006, diluted earnings per share increased $0.04, or 2.5%, to $1.63 and net income of $24.7 million increased by $107,000 as compared to the nine months ended September 30, 2005.
Certain non-core items, such as the after-tax impact of gains and losses on the sale of securities and the receipt of Bank Owned Life Insurance (“BOLI”) proceeds, are included in the computation of earnings in accordance with generally accepted accounting principles (“GAAP”) in both 2006 and 2005 as indicated by the following table:
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| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | September 30, |
| Dollars in Thousands, Except Per Share Data | | 2006 | | 2005 | | 2006 | | 2005 |
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION | | | | | | | | |
NET INCOME (GAAP) | | $ | 8,556 | | | $ | 8,687 | | | $ | 24,749 | | | $ | 24,642 | |
| Add — Net Loss on Sale of Securities, net of tax | | | — | | | | — | | | | 1,150 | | | | — | |
| Less — Net Gain on Sale of Securities, net of tax | | | — | | | | — | | | | — | | | | (400 | ) |
| Less — BOLI Benefit Proceeds | | | — | | | | — | | | | (1,316 | ) | | | — | |
| | | | | |
NET OPERATING EARNINGS (NON-GAAP) | | $ | 8,556 | | | $ | 8,687 | | | $ | 24,583 | | | $ | 24,242 | |
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Diluted Operating Earnings Per Share | | $ | 0.58 | | | $ | 0.56 | | | $ | 1.62 | | | $ | 1.56 | |
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Net operating earnings on a per diluted share basis, for the quarter and nine months ending September 30, 2006 were $0.58 and $1.62, respectively, an increase of $0.02, or 3.6%, and $0.06, or 3.9%, from the comparable periods last year. Net operating earnings for the quarter and nine months ended September 30, 2006 were $8.6 million and $24.6 million, respectively, a decrease of (1.5%) and an increase of 1.4%, from the same periods in 2005.
Comparing the three months ending September 30, 2006 to the same period last year, net interest income decreased $890,000 or (3.3%) attributable to a higher cost of deposits and a smaller balance sheet, while net interest income for the nine months ended September 30, 2006 decreased $988,000, or (1.3%) from the nine months ended September 30, 2005. The net interest margin for both the three and nine months ended September 30, 2006 was 3.89% as compared to 3.93% and 3.87% for the three and nine months ended September 30, 2005, respectively.
The net interest margin in the third quarter of 2006 was positively impacted by the recognition of the Federal Home Loan Bank of Boston’s (“FHLBB”) dividend received during the third quarter which was paid out on a six month basis to adjust for lack of a dividend in the second quarter. This additional dividend positively impacted net interest income and pre-tax earnings by $342,000.
The Company’s allowance for loan losses as a percentage of loans was maintained at 1.31%, remaining unchanged from December 31, 2005. The provision for loan losses decreased by $540,000, or (50.5%), for the quarter ended September 30, 2006 as compared to the same period in 2005. Provision for loan losses for the nine months ending September 30, 2006 was $1.6 million, a decrease of $1.5 million compared to the same period in 2005, and covered net charge-offs by 1.1 times.
Non-interest income decreased by $88,000, or (1.2%), and increased by $195,000, or 1.0%, during the three and nine months ended September 30, 2006, respectively, as compared to the same periods in the prior year. Excluding losses and gains on the sale of securities and BOLI benefit proceeds, non-interest income grew by $1.3 million, or 6.4%, for the nine months ended September 30, 2006, as compared to the same period in the prior year. See table below for reconciliation of non-interest income as adjusted.
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| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | September 30, |
| Dollars in Thousands | | 2006 | | 2005 | | 2006 | | 2005 |
Non-Interest Income GAAP | | $ | 7,049 | | | $ | 7,137 | | | $ | 20,691 | | | $ | 20,496 | |
| Add — Net Loss on Sale of Securities | | | — | | | | — | | | | 1,769 | | | | — | |
| Less — Net Gain on Sale of Securities | | | — | | | | — | | | | — | | | | (616 | ) |
| Less — BOLI Benefit Proceeds | | | — | | | | — | | | | (1,316 | ) | | | — | |
| | | | | |
Non-Interest Income as Adjusted | | $ | 7,049 | | | $ | 7,137 | | | $ | 21,144 | | | $ | 19,880 | |
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| | Ø | | Service charges on deposit accounts increased by $207,000, or 6.0%, and by $1.0 million, or 10.8%, for the three and nine months ended September 30, 2006, as compared to the same periods in 2005, primarily reflecting increased overdraft fees and debit card interchange revenue. |
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| | Ø | | Investment management revenue increased by $90,000, or 6.7%, and $498,000, or 12.5%, for the three and nine months ended September 30, 2006, as compared to the same periods in 2005 due to growth in managed assets. Assets under administration at September 30, 2006 were $744.2 million, an increase of $92.3 million, or 14.2%, as compared to September 30, 2005. |
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| | Ø | | Mortgage banking income decreased by $542,000, or (50.8%), and by $586,000, or (22.7%), for the three and nine months ended September 30, 2006, as compared to the same periods in 2005. The decrease in the three and nine month periods ending September 30, 2006 is primarily attributable to a lower volume of mortgage sales in 2006 as compared to 2005. The balance of the mortgage servicing asset is $2.6 million and loans serviced amounted to $303.9 million as of September 30, 2006. |
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| | Ø | | There were no gains or losses on the sale of securities in the third quarter of 2006 and 2005. Net losses of $1.8 million were recorded in the nine months ended September 30, 2006 on the sale of securities and a gain of $616,000 was recorded in the nine months ended September 30, 2005. |
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| | Ø | | Other non-interest income increased by $140,000, or 17.6%, and by $258,000, or 11.1%, for the three and nine months ended September 30, 2006, as compared to the same periods in 2005. The quarter to date increase is primarily due to a gain on the sale of other real estate owned and unrealized gains on trading assets. The year to date increase is primarily a result of improved checkbook revenue and commercial loan late charge fees. |
Non-interest expense decreased by $269,000, or (1.3%), and increased by $659,000, or 1.1%, for the three and nine months ended September 30, 2006, as compared to the same periods in 2005.
| | Ø | | Salaries and employee benefits increased by $284,000, or 2.4%, and by $266,000, or 0.7%, for the three and nine months ended September 30, 2006, as compared to the same periods in 2005. The increases are largely attributable to the increased cost of retirement and medical benefits. |
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| | Ø | | Occupancy and equipment related expense increased by $105,000, or 4.6%, and by $153,000, or 2.1%, for the quarter and year to date ending September 30, 2006, as compared to the same periods in 2005. |
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| | Ø | | Data processing and facilities management expense has increased $96,000, or 9.0%, and by $239,000, or 7.9%, for the three and nine months ended September 30, 2006, compared to the same periods in 2005, largely as a result of contractual increases. |
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| | Ø | | Other non-interest expense decreased by $754,000, or (14.8%), for the three months ended September 30, 2006, and was essentially flat for the nine months ended September 30, 2006, as compared to the same periods in the prior year. The decrease from the comparative three month period is primarily attributable to decreases in advertising and debit card and ATM processing expense. |
Total assets decreased by $107.4 million, or (3.5%), from December 31, 2005 to $2.9 billion at September 30, 2006. This decrease is due to intentional decreases in the Company’s security portfolio and certain loan categories due to a combination of the flat yield curve environment and the profitability characteristics of these asset classes.
| | Ø | | Fed funds sold and short-term investments decreased by $15.2 million, or (23.8%), during the nine months ending September 30, 2006. |
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| | Ø | | Securities decreased by $99.7 million, or (13.9%), during the nine months ending September 30, 2006. This decrease resulted mainly from the sale of $31.4 million of lower coupon securities in the first quarter of 2006 and the decision not to reinvest normal year to date runoff on the portfolio in the current rate environment. The ratio of securities to total assets as of September 30, 2006 was 21.0%, as compared to 23.6% at December 31, 2005 and 24.8% at September 30, 2005. |
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| | Ø | | Total loans increased by $10.5 million, or 0.5%, during the nine months ended September 30, 2006. Total commercial loans increased by $50.1 million, or 5.1%, with commercial real estate comprising most of the increase with an increase of $47.0 million, or 6.9%. Consumer loans decreased $20.7 million, or (3.6%), with the auto loan portfolio decreasing by $45.6 million, or (17.3%), partially offset by a $27.0 million, or 10.7%, increase in home equity lending. Business banking loans totaled $57.5 million, an increase of $6.1 million, or 12.0%, and residential loans decreased $25.0 million, or (5.7%), during the first nine months of 2006. |
Total deposits of $2.2 billion at September 30, 2006 decreased $24.9 million, or (1.1%), compared to December 31, 2005. For the quarter ending September 30, 2006, deposits increased $3.2 million, or 0.2%.
Borrowings decreased by $78.0 million, or (13.3%), during the nine months ending September 30, 2006 as excess cash flow from the securities portfolio and certain loan categories were used to decrease wholesale borrowing.
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Stockholders’ equity at September 30, 2006 totaled $222.3 million, as compared to $228.2 million at December 31, 2005. The Tier 1 leverage capital ratio at September 30, 2006 was 7.78%, maintaining the Company’s well-capitalized position.
As previously announced on January 19, 2006, the Company’s Board of Directors approved a common stock repurchase program. Under the program, the Company was authorized to repurchase up to 800,000 shares of the Company’s outstanding common stock. During the third quarter ending September 30, 2006, the Company completed its repurchase plan with a total of 800,000 shares of common stock repurchased at a weighted average share price of $31.04.
The allowance for loan losses increased to $26.8 million at September 30, 2006 compared to $26.6 million at December 31, 2005. Nonperforming assets totaled $7.0 million at September 30, 2006 (0.24% of total assets), as compared to $3.3 million (0.11% of total assets) reported at December 31, 2005.
Christopher Oddleifson, President and Chief Executive Officer, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss third quarter earnings at 10:00 a.m. Eastern Time on Friday, October 20, 2006. Internet access to the call is available on the Company’s website athttp://www.RocklandTrust.com or by telephonic access by dial-in at 1-877-407-9205 reference: INDB. A replay of the call will be available by calling 1-877-660-6853, Account Number: 286, Conference ID: 215562. The webcast replay will be available until October 25, 2006 and the telephone replay will be available until January 20, 2007.
Independent Bank Corp.’s sole bank subsidiary, Rockland Trust Company, currently has $2.9 billion in assets. Rockland Trust Company is a full-service community bank serving southeastern Massachusetts and Cape Cod. To find out more about the products and services available at Rockland Trust Company, please visit our website atwww.RocklandTrust.com .
This press release contains certain “forward-looking statements” with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities gains. Because these gains and losses and their impact on the Company’s performance are difficult to predict, management believes that presentations of adjusted financial measures excluding the impact of these gains and losses provide useful information that is essential for a proper understanding of the operating results of the Company. These
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disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
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INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited — Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | September 30, 2006 vs. | | |
| | | September 30, | | December 31, | | $ | | % | | June 30, | | June 30, 2006 | | % |
| CONSOLIDATED BALANCE SHEETS | | 2006 | | 2005 | | Variance | | Change | | 2006 | | Variance | | Change |
| | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and Due From Banks | | $ | 64,403 | | | $ | 66,289 | | | | (1,886 | ) | | | -2.85 | % | | $ | 75,337 | | | | (10,934 | ) | | | -14.51 | % |
| Fed Funds Sold and Short Term Investments | | | 48,500 | | | | 63,662 | | | | (15,162 | ) | | | -23.82 | % | | | 15,045 | | | | 33,455 | | | | 222.37 | % |
| Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Trading Assets | | | 1,588 | | | | 1,557 | | | | 31 | | | | 1.99 | % | | | 1,533 | | | | 55 | | | | 3.59 | % |
| Securities Available for Sale | | | 494,422 | | | | 581,516 | | | | (87,094 | ) | | | -14.98 | % | | | 503,417 | | | | (8,995 | ) | | | -1.79 | % |
| Securities Held to Maturity | | | 98,236 | | | | 104,268 | | | | (6,032 | ) | | | -5.79 | % | | | 99,998 | | | | (1,762 | ) | | | -1.76 | % |
| Federal Home Loan Bank Stock | | | 22,634 | | | | 29,287 | | | | (6,653 | ) | | | -22.72 | % | | | 22,634 | | | | — | | | | 0.00 | % |
| | | | | | | | | |
| Total Securities | | | 616,880 | | | | 716,628 | | | | (99,748 | ) | | | -13.92 | % | | | 627,582 | | | | (10,702 | ) | | | -1.71 | % |
| | | | | | | | | |
| Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial and Industrial | | | 170,389 | | | | 155,081 | | | | 15,308 | | | | 9.87 | % | | | 165,976 | | | | 4,413 | | | | 2.66 | % |
| Commercial Real Estate | | | 730,213 | | | | 683,240 | | | | 46,973 | | | | 6.88 | % | | | 709,230 | | | | 20,983 | | | | 2.96 | % |
| Commercial Construction | | | 128,469 | | | | 140,643 | | | | (12,174 | ) | | | -8.66 | % | | | 127,891 | | | | 578 | | | | 0.45 | % |
| Business Banking | | | 57,522 | | | | 51,373 | | | | 6,149 | | | | 11.97 | % | | | 56,288 | | | | 1,234 | | | | 2.19 | % |
| Residential Real Estate | | | 396,564 | | | | 428,343 | | | | (31,779 | ) | | | -7.42 | % | | | 410,468 | | | | (13,904 | ) | | | -3.39 | % |
| Residential Construction | | | 9,122 | | | | 8,316 | | | | 806 | | | | 9.69 | % | | | 8,038 | | | | 1,084 | | | | 13.49 | % |
| Residential Loans Held for Sale | | | 10,954 | | | | 5,021 | | | | 5,933 | | | | 118.16 | % | | | 8,690 | | | | 2,264 | | | | 26.05 | % |
| Consumer — Home Equity | | | 278,879 | | | | 251,852 | | | | 27,027 | | | | 10.73 | % | | | 273,752 | | | | 5,127 | | | | 1.87 | % |
| Consumer — Auto | | | 217,629 | | | | 263,179 | | | | (45,550 | ) | | | -17.31 | % | | | 233,955 | | | | (16,326 | ) | | | -6.98 | % |
| Consumer — Other | | | 51,554 | | | | 53,760 | | | | (2,206 | ) | | | -4.10 | % | | | 52,913 | | | | (1,359 | ) | | | -2.57 | % |
| | | | | | | | | |
| Total Loans | | | 2,051,295 | | | | 2,040,808 | | | | 10,487 | | | | 0.51 | % | | | 2,047,201 | | | | 4,094 | | | | 0.20 | % |
| Less — Allowance for Loan Losses | | | (26,814 | ) | | | (26,639 | ) | | | (175 | ) | | | 0.66 | % | | | (26,811 | ) | | | (3 | ) | | | 0.01 | % |
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| Net Loans | | | 2,024,481 | | | | 2,014,169 | | | | 10,312 | | | | 0.51 | % | | | 2,020,390 | | | | 4,091 | | | | 0.20 | % |
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| Bank Premises and Equipment | | | 37,110 | | | | 37,431 | | | | (321 | ) | | | -0.86 | % | | | 37,157 | | | | (47 | ) | | | -0.13 | % |
| Goodwill and Core Deposit Intangible | | | 56,616 | | | | 56,858 | | | | (242 | ) | | | -0.43 | % | | | 56,697 | | | | (81 | ) | | | -0.14 | % |
| Other Assets | | | 86,338 | | | | 86,648 | | | | (310 | ) | | | -0.36 | % | | | 89,719 | | | | (3,381 | ) | | | -3.77 | % |
| | | | | | | | | |
| Total Assets | | $ | 2,934,328 | | | $ | 3,041,685 | | | | (107,357 | ) | | | -3.53 | % | | $ | 2,921,927 | | | | 12,401 | | | | 0.42 | % |
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Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand Deposits | | $ | 509,518 | | | $ | 511,920 | | | | (2,402 | ) | | | -0.47 | % | | $ | 516,644 | | | | (7,126 | ) | | | -1.38 | % |
| Savings and Interest Checking Accounts | | | 571,227 | | | | 613,840 | | | | (42,613 | ) | | | -6.94 | % | | | 565,201 | | | | 6,026 | | | | 1.07 | % |
| Money Market | | | 508,865 | | | | 550,677 | | | | (41,812 | ) | | | -7.59 | % | | | 526,429 | | | | (17,564 | ) | | | -3.34 | % |
| Time Certificates of Deposit | | | 591,000 | | | | 529,057 | | | | 61,943 | | | | 11.71 | % | | | 569,087 | | | | 21,913 | | | | 3.85 | % |
| | | | | | | | | |
| Total Deposits | | | 2,180,610 | | | | 2,205,494 | | | | (24,884 | ) | | | -1.13 | % | | | 2,177,361 | | | | 3,249 | | | | 0.15 | % |
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| Borrowings | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal Home Loan Bank Borrowings | | | 340,389 | | | | 417,477 | | | | (77,088 | ) | | | -18.47 | % | | | 340,419 | | | | (30 | ) | | | -0.01 | % |
| Fed Funds Purchased and Assets Sold Under Repurchase Agreements | | | 116,242 | | | | 113,335 | | | | 2,907 | | | | 2.56 | % | | | 114,767 | | | | 1,475 | | | | 1.29 | % |
| Junior Subordinated Debentures | | | 51,546 | | | | 51,546 | | | | — | | | | 0.00 | % | | | 51,546 | | | | — | | | | 0.00 | % |
| Treasury Tax and Loan Notes | | | 1,606 | | | | 5,452 | | | | (3,846 | ) | | | -70.54 | % | | | 2,344 | | | | (738 | ) | | | -31.48 | % |
| | | | | | | | | |
| Total Borrowings | | | 509,783 | | | | 587,810 | | | | (78,027 | ) | | | -13.27 | % | | | 509,076 | | | | 707 | | | | 0.14 | % |
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| Total Deposits and Borrowings | | | 2,690,393 | | | | 2,793,304 | | | | (102,911 | ) | | | -3.68 | % | | | 2,686,437 | | | | 3,956 | | | | 0.15 | % |
| Other Liabilities | | | 21,591 | | | | 20,229 | | | | 1,362 | | | | 6.73 | % | | | 19,255 | | | | 2,336 | | | | 12.13 | % |
| Stockholders’ Equity | | | 222,344 | | | | 228,152 | | | | (5,808 | ) | | | -2.55 | % | | | 216,235 | | | | 6,109 | | | | 2.83 | % |
| | | | | | | | | |
| Total Liabilities and Stockholders’ Equity | | $ | 2,934,328 | | | $ | 3,041,685 | | | | (107,357 | ) | | | -3.53 | % | | $ | 2,921,927 | | | | 12,401 | | | | 0.42 | % |
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INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited — Dollars in Thousands, Except Per Share Data)
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| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | | | | | % | | September 30, | | | | | | % |
| CONSOLIDATED STATEMENTS OF INCOME | | 2006 | | 2005 | | Variance | | Change | | 2006 | | 2005 | | Variance | | Change |
| |
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest on Fed Funds Sold and Short Term Investments | | $ | 577 | | | $ | 71 | | | | 506 | | | | 712.68 | % | | $ | 729 | | | $ | 137 | | | | 592 | | | | 432.12 | % |
| Interest and Dividends on Securities | | | 7,500 | | | | 8,160 | | | | (660 | ) | | | -8.09 | % | | | 22,471 | | | | 25,799 | | | | (3,328 | ) | | | -12.90 | % |
| Interest on Loans | | | 34,732 | | | | 30,994 | | | | 3,738 | | | | 12.06 | % | | | 101,517 | | | | 88,891 | | | | 12,626 | | | | 14.20 | % |
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| Total Interest Income | | | 42,809 | | | | 39,225 | | | | 3,584 | | | | 9.14 | % | | | 124,717 | | | | 114,827 | | | | 9,890 | | | | 8.61 | % |
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INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest on Deposits | | | 11,229 | | | | 6,616 | | | | 4,613 | | | | 69.72 | % | | | 29,093 | | | | 17,949 | | | | 11,144 | | | | 62.09 | % |
| Interest on Borrowed Funds | | | 5,751 | | | | 5,890 | | | | (139 | ) | | | -2.36 | % | | | 17,680 | | | | 17,946 | | | | (266 | ) | | | -1.48 | % |
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| Total Interest Expense | | | 16,980 | | | | 12,506 | | | | 4,474 | | | | 35.77 | % | | | 46,773 | | | | 35,895 | | | | 10,878 | | | | 30.31 | % |
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| Net Interest Income | | | 25,829 | | | | 26,719 | | | | (890 | ) | | | -3.33 | % | | | 77,944 | | | | 78,932 | | | | (988 | ) | | | -1.25 | % |
| Less — Provision for Loan Losses | | | 530 | | | | 1,070 | | | | (540 | ) | | | -50.47 | % | | | 1,630 | | | | 3,105 | | | | (1,475 | ) | | | -47.50 | % |
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| Net Interest Income after Provision for Loan Losses | | | 25,299 | | | | 25,649 | | | | (350 | ) | | | -1.36 | % | | | 76,314 | | | | 75,827 | | | | 487 | | | | 0.64 | % |
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NON-INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service Charges on Deposit Accounts | | | 3,669 | | | | 3,462 | | | | 207 | | | | 5.98 | % | | | 10,652 | | | | 9,611 | | | | 1,041 | | | | 10.83 | % |
| Investment Management Services Income | | | 1,438 | | | | 1,348 | | | | 90 | | | | 6.68 | % | | | 4,497 | | | | 3,999 | | | | 498 | | | | 12.45 | % |
| Mortgage Banking Income | | | 526 | | | | 1,068 | | | | (542 | ) | | | -50.75 | % | | | 1,994 | | | | 2,580 | | | | (586 | ) | | | -22.71 | % |
| BOLI Income | | | 479 | | | | 462 | | | | 17 | | | | 3.68 | % | | | 2,729 | | | | 1,360 | | | | 1,369 | | | | 100.66 | % |
| Net Loss/Gain on Sale of Securities | | | — | | | | — | | | | — | | | | — | | | | (1,769 | ) | | | 616 | | | | (2,385 | ) | | | -387.18 | % |
| Other Non-Interest Income | | | 937 | | | | 797 | | | | 140 | | | | 17.57 | % | | | 2,588 | | | | 2,330 | | | | 258 | | | | 11.07 | % |
| | | | | |
| Total Non-Interest Income | | | 7,049 | | | | 7,137 | | | | (88 | ) | | | -1.23 | % | | | 20,691 | | | | 20,496 | | | | 195 | | | | 0.95 | % |
| | | | | |
NON-INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and Employee Benefits | | | 12,088 | | | | 11,804 | | | | 284 | | | | 2.41 | % | | | 36,024 | | | | 35,758 | | | | 266 | | | | 0.74 | % |
| Occupancy and Equipment Expenses | | | 2,378 | | | | 2,273 | | | | 105 | | | | 4.62 | % | | | 7,618 | | | | 7,465 | | | | 153 | | | | 2.05 | % |
| Data Processing and Facilities Management | | | 1,166 | | | | 1,070 | | | | 96 | | | | 8.97 | % | | | 3,262 | | | | 3,023 | | | | 239 | | | | 7.91 | % |
| Other Non-Interest Expense | | | 4,341 | | | | 5,095 | | | | (754 | ) | | | -14.80 | % | | | 14,187 | | | | 14,186 | | | | 1 | | | | 0.01 | % |
| | | | | |
| Total Non-Interest Expense | | | 19,973 | | | | 20,242 | | | | (269 | ) | | | -1.33 | % | | | 61,091 | | | | 60,432 | | | | 659 | | | | 1.09 | % |
| | | | | |
| INCOME BEFORE INCOME TAXES | | | 12,375 | | | | 12,544 | | | | (169 | ) | | | -1.35 | % | | | 35,914 | | | | 35,891 | | | | 23 | | | | 0.06 | % |
| | | | | |
| PROVISION FOR INCOME TAXES | | | 3,819 | | | | 3,857 | | | | (38 | ) | | | -0.99 | % | | | 11,165 | | | | 11,249 | | | | (84 | ) | | | -0.75 | % |
| | | | | |
| NET INCOME | | $ | 8,556 | | | $ | 8,687 | | | | (131 | ) | | | -1.51 | % | | $ | 24,749 | | | $ | 24,642 | | | | 107 | | | | 0.43 | % |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| BASIC EARNINGS PER SHARE | | $ | 0.58 | | | $ | 0.56 | | | | | | | | 3.57 | % | | $ | 1.65 | | | $ | 1.60 | | | | | | | | 3.13 | % |
| DILUTED EARNINGS PER SHARE | | $ | 0.58 | | | $ | 0.56 | | | | | | | | 3.57 | % | | $ | 1.63 | | | $ | 1.59 | | | | | | | | 2.52 | % |
| BASIC AVERAGE SHARES | | | 14,696,065 | | | | 15,391,937 | | | | | | | | -4.52 | % | | | 15,014,292 | | | | 15,370,226 | | | | | | | | -2.32 | % |
| DILUTED AVERAGE SHARES | | | 14,874,498 | | | | 15,537,621 | | | | | | | | -4.27 | % | | | 15,180,017 | | | | 15,518,039 | | | | | | | | -2.18 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PERFORMANCE RATIOS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin (FTE) | | | 3.89 | % | | | 3.93 | % | | | | | | | -1.02 | % | | | 3.89 | % | | | 3.87 | % | | | | | | | 0.52 | % |
| Return on Average Assets | | | 1.17 | % | | | 1.17 | % | | | | | | | 0.00 | % | | | 1.13 | % | | | 1.10 | % | | | | | | | 2.73 | % |
| Return on Average Equity | | | 15.56 | % | | | 15.49 | % | | | | | | | 0.45 | % | | | 14.72 | % | | | 15.07 | % | | | | | | | -2.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RECONCILIATION TABLE — NON-GAAP FINANCIAL INFORMATION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET INCOME (GAAP) | | $ | 8,556 | | | $ | 8,687 | | | | (131 | ) | | | -1.51 | % | | $ | 24,749 | | | $ | 24,642 | | | | 107 | | | | 0.43 | % |
| Add — Net Loss on Sale of Securities, net of tax | | | — | | | | — | | | | — | | | | 0.00 | % | | | 1,150 | | | | — | | | | 1,150 | | | | 100.00 | % |
| Less — Net Gain on Sale of Securities, net of tax | | | — | | | | — | | | | — | | | | 0.00 | % | | | — | | | | (400 | ) | | | 400 | | | | 100.00 | % |
| Less — BOLI Benefit Proceeds | | | — | | | | — | | | | — | | | | 0.00 | % | | | (1,316 | ) | | | — | | | | (1,316 | ) | | | -100.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET OPERATING EARNINGS | | $ | 8,556 | | | $ | 8,687 | | | | (131 | ) | | | -1.51 | % | | $ | 24,583 | | | $ | 24,242 | | | | 341 | | | | 1.41 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Diluted Earnings Per Share (GAAP) | | $ | 0.58 | | | $ | 0.56 | | | | | | | | 3.57 | % | | $ | 1.63 | | | $ | 1.59 | | | | | | | | 2.52 | % |
| Add — Effects of Net Loss on Sale of Securities, net of tax | | | — | | | | — | | | | | | | | | | | | 0.08 | | | | — | | | | | | | | | |
| Less — Effects of Net Gain on Sale of Securities, net of tax | | | — | | | | — | | | | | | | | | | | | — | | | | (0.03 | ) | | | | | | | | |
| Less — Effects of BOLI Benefit Proceeds | | | — | | | | — | | | | | | | | | | | | (0.09 | ) | | | — | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Diluted Earnings Per Share, on an Operating Basis | | $ | 0.58 | | | $ | 0.56 | | | | | | | | 3.57 | % | | $ | 1.62 | | | $ | 1.56 | | | | | | | | 3.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
8
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited — Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Three Months Ended September 30, |
| | | | | | | 2006 | 2005 |
| | | | | | | | | | | Interest | | | | | | | | | | Interest | | |
| | | Ending | | Average | | Earned/ | | Yield/ | | Average | | Earned/ | | Yield/ |
| | | Balance | | Balance | | Paid | | Rate | | Balance | | Paid | | Rate |
| |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal Funds Sold and Short Term Investments | | $ | 48,500 | | | $ | 44,168 | | | $ | 577 | | | | 5.23 | % | | $ | 8,437 | | | $ | 71 | | | | 3.37 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Trading Assets | | | 1,588 | | | | 1,534 | | | | 12 | | | | 3.13 | % | | | 1,539 | | | | 11 | | | | 2.86 | % |
| Taxable Investment Securities | | | 559,625 | | | | 564,393 | | | | 6,884 | | | | 4.88 | % | | | 688,230 | | | | 7,481 | | | | 4.35 | % |
| Non-taxable Investment Securities (1) | | | 55,667 | | | | 56,266 | | | | 929 | | | | 6.60 | % | | | 61,924 | | | | 1,028 | | | | 6.64 | % |
| | | | | | | | | | | | | |
| Total Securities: | | | 616,880 | | | | 622,193 | | | | 7,825 | | | | 5.03 | % | | | 751,693 | | | | 8,520 | | | | 4.53 | % |
| Loans (1) | | | 2,051,295 | | | | 2,038,194 | | | | 34,846 | | | | 6.84 | % | | | 2,004,389 | | | | 31,086 | | | | 6.20 | % |
| | | | | | | | | | | | | |
Total Interest-Earning Assets | | $ | 2,716,675 | | | $ | 2,704,555 | | | $ | 43,248 | | | | 6.40 | % | | $ | 2,764,519 | | | $ | 39,677 | | | | 5.74 | % |
| | | | | | | | | | | | | |
| Cash and Due from Banks | | | 64,403 | | | | 59,846 | | | | | | | | | | | | 68,481 | | | | | | | | | |
| Other Assets | | | 153,250 | | | | 152,524 | | | | | | | | | | | | 143,538 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 2,934,328 | | | $ | 2,916,925 | | | | | | | | | | | $ | 2,976,538 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and Interest Checking Accounts | | $ | 571,227 | | | $ | 555,666 | | | $ | 1,326 | | | | 0.95 | % | | $ | 593,464 | | | $ | 712 | | | | 0.48 | % |
| Money Market | | | 508,865 | | | | 520,632 | | | | 4,055 | | | | 3.12 | % | | | 513,681 | | | | 2,432 | | | | 1.89 | % |
| Time Deposits | | | 591,000 | | | | 582,526 | | | | 5,848 | | | | 4.02 | % | | | 512,092 | | | | 3,472 | | | | 2.71 | % |
| | | | | | | | | | | | | |
| Total interest-bearing deposits: | | | 1,671,092 | | | | 1,658,824 | | | | 11,229 | | | | 2.71 | % | | | 1,619,237 | | | | 6,616 | | | | 1.63 | % |
| Borrowings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal Home Loan Bank Borrowings | | $ | 340,389 | | | $ | 340,400 | | | $ | 3,700 | | | | 4.35 | % | | $ | 445,716 | | | $ | 4,362 | | | | 3.91 | % |
| Federal Funds Purchased and Assets Sold Under Repurchase Agreement | | | 116,242 | | | | 122,842 | | | | 926 | | | | 3.02 | % | | | 86,750 | | | | 399 | | | | 1.84 | % |
| Junior Subordinated Debentures | | | 51,546 | | | | 51,546 | | | | 1,117 | | | | 8.67 | % | | | 51,546 | | | | 1,117 | | | | 8.67 | % |
| Treasury Tax and Loan Notes | | | 1,606 | | | | 708 | | | | 8 | | | | 4.52 | % | | | 1,452 | | | | 12 | | | | 3.31 | % |
| | | | | | | | | | | | | |
| Total Borrowings: | | | 509,783 | | | | 515,496 | | | | 5,751 | | | | 4.46 | % | | | 585,464 | | | | 5,890 | | | | 4.02 | % |
| | | | | | | | | | | | | |
Total Interest-Bearing Liabilities | | $ | 2,180,875 | | | $ | 2,174,320 | | | $ | 16,980 | | | | 3.12 | % | | $ | 2,204,701 | | | $ | 12,506 | | | | 2.27 | % |
| | | | | | | | | | | | | |
| Demand Deposits | | | 509,518 | | | | 505,134 | | | | | | | | | | | | 530,115 | | | | | | | | | |
| |
| Other Liabilities | | | 21,591 | | | | 17,473 | | | | | | | | | | | | 17,369 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | $ | 2,711,984 | | | $ | 2,696,927 | | | | | | | | | | | $ | 2,752,185 | | | | | | | | | |
| Stockholders’ Equity | | | 222,344 | | | | 219,998 | | | | | | | | | | | | 224,353 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 2,934,328 | | | $ | 2,916,925 | | | | | | | | | | | $ | 2,976,538 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income | | | | | | | | | | $ | 26,268 | | | | | | | | | | | $ | 27,171 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Rate Spread (2) | | | | | | | | | | | | | | | 3.28 | % | | | | | | | | | | | 3.47 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin (2) | | | | | | | | | | | | | | | 3.89 | % | | | | | | | | | | | 3.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental Information: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Deposits, including Demand Deposits | | $ | 2,180,610 | | | $ | 2,163,958 | | | $ | 11,229 | | | | | | | $ | 2,149,352 | | | $ | 6,616 | | | | | |
| Cost of Total Deposits | | | | | | | | | | | | | | | 2.08 | % | | | | | | | | | | | 1.23 | % |
| Total Funding Liabilities, including Demand Deposits | | $ | 2,690,393 | | | $ | 2,679,454 | | | $ | 16,980 | | | | | | | $ | 2,734,816 | | | $ | 12,506 | | | | | |
| Cost of Total Funding Liabilities | | | | | | | | | | | | | | | 2.53 | % | | | | | | | | | | | 1.83 | % |
| | |
| (1) | | The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $439 for the three months ended September 30, 2006 and $452 for the three months ended September 30, 2005. |
| |
| (2) | | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
9
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited — Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Nine Months Ended September 30, |
| | | | | | | 2006 | 2005 |
| | | | | | | | | | | Interest | | | | | | | | | | Interest | | |
| | | Ending | | Average | | Earned/ | | Yield/ | | Average | | Earned/ | | Yield/ |
| | | Balance | | Balance | | Paid | | Rate | | Balance | | Paid | | Rate |
| |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal Funds Sold and Short Term Investments | | $ | 48,500 | | | $ | 19,469 | | | $ | 729 | | | | 4.99 | % | | $ | 6,130 | | | $ | 137 | | | | 2.98 | % |
| Securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Trading Assets | | | 1,588 | | | | 1,562 | | | | 31 | | | | 2.65 | % | | | 1,546 | | | | 27 | | | | 2.33 | % |
| Taxable Investment Securities | | | 559,625 | | | | 595,510 | | | | 20,504 | | | | 4.59 | % | | | 723,031 | | | | 23,765 | | | | 4.38 | % |
| Non-taxable Investment Securities (1) | | | 55,667 | | | | 58,594 | | | | 2,978 | | | | 6.78 | % | | | 62,339 | | | | 3,088 | | | | 6.60 | % |
| | | | | | | | | | | | | |
| Total Securities: | | | 616,880 | | | | 655,666 | | | | 23,513 | | | | 4.78 | % | | | 786,916 | | | | 26,880 | | | | 4.55 | % |
| Loans (1) | | | 2,051,295 | | | | 2,044,053 | | | | 101,820 | | | | 6.64 | % | | | 1,973,697 | | | | 89,156 | | | | 6.02 | % |
| | | | | | | | | | | | | |
Total Interest-Earning Assets | | $ | 2,716,675 | | | $ | 2,719,188 | | | $ | 126,062 | | | | 6.18 | % | | $ | 2,766,743 | | | $ | 116,173 | | | | 5.60 | % |
| | | | | | | | | | | | | |
| Cash and Due from Banks | | | 64,403 | | | | 59,842 | | | | | | | | | | | | 65,145 | | | | | | | | | |
| Other Assets | | | 153,250 | | | | 151,815 | | | | | | | | | | | | 142,989 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 2,934,328 | | | $ | 2,930,845 | | | | | | | | | | | $ | 2,974,877 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings and Interest Checking Accounts | | $ | 571,227 | | | $ | 563,270 | | | $ | 3,234 | | | | 0.77 | % | | $ | 596,458 | | | $ | 2,032 | | | | 0.45 | % |
| Money Market | | | 508,865 | | | | 528,893 | | | | 10,906 | | | | 2.75 | % | | | 515,623 | | | | 6,596 | | | | 1.71 | % |
| Time Deposits | | | 591,000 | | | | 556,514 | | | | 14,953 | | | | 3.58 | % | | | 504,108 | | | | 9,321 | | | | 2.47 | % |
| | | | | | | | | | | | | |
| Total interest-bearing deposits: | | | 1,671,092 | | | | 1,648,677 | | | | 29,093 | | | | 2.35 | % | | | 1,616,189 | | | | 17,949 | | | | 1.48 | % |
| Borrowings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal Home Loan Bank Borrowings | | $ | 340,389 | | | $ | 379,621 | | | $ | 12,031 | | | | 4.23 | % | | $ | 485,418 | | | $ | 13,704 | | | | 3.76 | % |
| Federal Funds Purchased and Assets Sold Under Repurchase Agreement | | | 116,242 | | | | 112,726 | | | | 2,261 | | | | 2.67 | % | | | 73,902 | | | | 862 | | | | 1.56 | % |
| Junior Subordinated Debentures | | | 51,546 | | | | 51,546 | | | | 3,352 | | | | 8.67 | % | | | 51,546 | | | | 3,352 | | | | 8.67 | % |
| Treasury Tax and Loan Notes | | | 1,606 | | | | 1,120 | | | | 36 | | | | 4.29 | % | | | 1,714 | | | | 28 | | | | 2.18 | % |
| | | | | | | | | | | | | |
| Total Borrowings: | | | 509,783 | | | | 545,013 | | | | 17,680 | | | | 4.33 | % | | | 612,580 | | | | 17,946 | | | | 3.91 | % |
| | | | | | | | | | | | | |
Total Interest-Bearing Liabilities | | $ | 2,180,875 | | | $ | 2,193,690 | | | $ | 46,773 | | | | 2.84 | % | | $ | 2,228,769 | | | $ | 35,895 | | | | 2.15 | % |
| | | | | | | | | | | | | |
| Demand Deposits | | | 509,518 | | | | 494,762 | | | | | | | | | | | | 510,839 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other Liabilities | | | 21,591 | | | | 18,182 | | | | | | | | | | | | 17,267 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Liabilities | | $ | 2,711,984 | | | $ | 2,706,634 | | | | | | | | | | | $ | 2,756,875 | | | | | | | | | |
| Stockholders’ Equity | | | 222,344 | | | | 224,211 | | | | | | | | | | | | 218,002 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 2,934,328 | | | $ | 2,930,845 | | | | | | | | | | | $ | 2,974,877 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income | | | | | | | | | | $ | 79,289 | | | | | | | | | | | $ | 80,278 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Rate Spread (2) | | | | | | | | | | | | | | | 3.34 | % | | | | | | | | | | | 3.45 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin (2) | | | | | | | | | | | | | | | 3.89 | % | | | | | | | | | | | 3.87 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Supplemental Information: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Deposits, including Demand Deposits | | $ | 2,180,610 | | | $ | 2,143,439 | | | $ | 29,093 | | | | | | | $ | 2,127,028 | | | $ | 17,949 | | | | | |
| Cost of Total Deposits | | | | | | | | | | | | | | | 1.81 | % | | | | | | | | | | | 1.13 | % |
| Total Funding Liabilities, including Demand Deposits | | $ | 2,690,393 | | | $ | 2,688,452 | | | $ | 46,773 | | | | | | | $ | 2,739,608 | | | $ | 35,895 | | | | | |
| Cost of Total Funding Liabilities | | | | | | | | | | | | | | | 2.32 | % | | | | | | | | | | | 1.75 | % |
| | |
| (1) | | The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $1,345 for the nine months ended September 30, 2006 and $1,346 for the nine months ended September 30, 2005. |
| |
| (2) | | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
10
| | | | | | | | | | | | | |
| | | As Of | | |
| | | September 30, | | December 31, | | June 30, |
| | | 2006 | | 2005 | | 2006 |
| | | (Dollars in Thousands, Except Per Share Data) |
Asset Quality | | | | | | | | | | | | |
| Nonperforming Loans | | | | | | | | | | | | |
| Commercial & Industrial Loans | | $ | 642 | | | $ | 245 | | | $ | 322 | |
| Business Banking Loans | | $ | 117 | | | $ | 47 | | | $ | 80 | |
| Commercial Real Estate Loans | | $ | 3,004 | | | $ | 313 | | | $ | 2,801 | |
| Residential Real Estate Loans | | $ | 1,838 | | | $ | 1,876 | | | $ | 918 | |
| Installment Loans — Home Equity | | $ | 406 | | | | — | | | $ | 16 | |
| Installment Loans — Auto | | $ | 791 | | | $ | 674 | | | $ | 691 | |
| Installment Loans — Other | | $ | 60 | | | $ | 184 | | | $ | 99 | |
| | | | | | | | | | | | | |
| Total Nonperforming Loans | | $ | 6,858 | | | $ | 3,339 | | | $ | 4,927 | |
| | | | | | | | | | | | | |
| Other Real Estate Owned | | $ | 190 | | | | — | | | | — | |
| Nonperforming Assets | | $ | 7,048 | | | $ | 3,339 | | | $ | 4,927 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net charge-offs (year to date) | | $ | 1,454 | | | $ | 2,733 | | | $ | 927 | |
| Net charge-offs to average loans (annualized) | | | 0.09 | % | | | 0.14 | % | | | 0.09 | % |
| | | | | | | | | | | | | |
| Nonperforming Loans/Gross Loans | | | 0.33 | % | | | 0.16 | % | | | 0.24 | % |
| Allowance for Loan Losses/Nonperforming Loans | | | 390.99 | % | | | 797.81 | % | | | 544.16 | % |
| Loans/Total Deposits | | | 94.07 | % | | | 92.53 | % | | | 94.02 | % |
| Allowance for Loan Losses/Total Loans | | | 1.31 | % | | | 1.31 | % | | | 1.31 | % |
| | | | | | | | | | | | | |
Financial Ratios | | | | | | | | | | | | |
| Book Value per Share | | $ | 15.15 | | | $ | 14.81 | | | $ | 14.65 | |
| Tangible Capital/Tangible Asset | | | 5.76 | % | | | 5.74 | % | | | 5.57 | % |
| Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill) | | | 6.26 | % | | | 6.23 | % | | | 6.07 | % |
| Tangible Book Value per Share | | $ | 11.29 | | | $ | 11.12 | | | $ | 10.81 | |
| Tangible Book Value per Share (proforma to include the deductibility of goodwill) | | $ | 12.28 | | | $ | 12.06 | | | $ | 11.80 | |
| | | | | | | | | | | | | |
Capital Adequacy | | | | | | | | | | | | |
| Tier one leverage capital ratio (1) | | | 7.78 | % | | | 7.71 | % | | | 7.67 | % |
| | |
| (1) | | Estimated number for September 30, 2006 |
Certain amounts in prior year financial statements have been reclassified to conform to the current year’s presentation.
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