For Release: IMMEDIATELY |
Contact: | Stephen F. Carman, VP/Treasurer | (609) 631-6222 or carmans@ynb.com |
| ||
| Patrick M. Ryan, President and CEO | (609) 631-6177 |
| ||
| Leonardo G. Zangani | (908) 788-9660 or office@zangani.com | |||
| YNB’s website | www.ynb.com |
| ||
YARDVILLE NATIONAL BANCORP CITES DEPOSIT GROWTH AND RETAIL EXPANSION IN THIRD QUARTER EARNINGS
Hamilton, N.J.- October 20, 2005- Successful execution of its retail banking strategy helped Yardville National Bancorp (NASDAQ: YANB) surpass $3 billion in total assets this quarter, as the company announced solid growth in both net income and earnings per share for the first nine months of 2005. YNB’s net income increased to $16.6 million for the first nine months of 2005, up 20.4 percent from the $13.8 million earned for the same period of 2004. Earnings per share for the first nine months were also up, increasing 18.9 percent to $1.51 per diluted share from $1.27 per diluted share for the first nine months of 2004.
A combination of factors affected YNB’s results for the third quarter. While net interest income rose 12.8 percent, this improvement was partially offset by decreases in net securities gains and by an increase in non-interest expenses. These expenses primarily supported YNB’s retail growth and regulatory compliance efforts. Net income for the third quarter of 2005 was $5.35 million, compared to $5.45 million for the third quarter of 2004, a slight decrease of 1.8 percent or $97,000. Earnings per share on a diluted basis for the third quarter of 2005 were $0.48 compared to $0.50 for the third quarter of last year.
“The combination of a flattening yield curve and increased competition for commercial loans and retail deposits caused a compression of our net interest margin in the third quarter,” explained YNB President and CEO Patrick M. Ryan. “As a result, our tax equivalent net interest margin for the quarter was down six basis points from the second quarter of 2005. Year to year, however, our net interest margin increased 25 basis points to 3.03 percent,” Mr. Ryan said.
Retail banking continued to fuel YNB’s growth. In keeping with the bank’s retail banking focus, YNB saw total deposits increase 13.4 percent to $2.01 billion at September 30, 2005, compared to $1.78 billion at September 30, 2004. Much of the deposit growth can be attributed to YNB’s successes with several products, including the “Simply Better Savings” account and an enhanced menu of business checking services. In addition, YNB has opened two new branches this year to bring its total to 25, with two more planned to open before year end.
“Expansion of YNB’s footprint to support our core Mercer County presence and to further penetrate the attractive markets in contiguous counties is proving to be a successful strategy,” noted F. Kevin Tylus, YNB Senior Executive Vice President and Chief Operating Officer. “We have just opened a branch on Olden Avenue in Ewing, Mercer County, and our 26th branch at Quakerbridge West in Mercer is scheduled to open in November,” he added. “We recently received regulatory approval for our next new branch, in Morrisville, Bucks County, Pennsylvania, and we are anticipating approval for our first Ocean County, New Jersey branch shortly,” he said. “Our strategic objective is to increase our branch presence in Middlesex County, New Jersey next year, and we are looking into other opportunities for ongoing branch growth in 2006 and beyond,” Mr. Tylus concluded.
YNB’s growth is not limited to the retail sector, as commercial loans continued to grow in the third quarter despite a highly competitive market. At September 30, 2005, total loans outstanding, led by commercial loans, increased 15.9 percent, reaching $1.97 billion compared with $1.70 billion at the same date in 2004. Total non-performing loans increased to $14.0 million, or 0.47 percent of total assets at September 30, 2005, compared to $9.4 million or 0.34 percent of total assets at September 30, 2004, primarily due to the movement of three commercial loan relationships to nonperforming status in the quarter. YNB’s allowance for loan losses to total loans was 1.15 percent of total loans and covered 162.00 percent of total nonperforming loans at September 30, 2005. Net loan chargeoffs dropped to $3.1 million for the first nine months of 2005 compared to $4.5 million for the same period last year, and YNB believes overall credit quality remains sound.
YNB’s Executive Vice President and Chief Financial Officer Stephen F. Carman provided further explanation of YNB’s third quarter results as well as guidance for the remainder of the year. “Net interest margin compression, increased nonperforming asset levels, and higher-than-projected non-interest expenses associated with our regulatory compliance efforts resulted in lower than expected third quarter results,” Mr. Carman said. “Based on the third quarter, we expect our net interest margin to range between 3.00 and 3.05 percent in the fourth quarter and loan growth for 2005 to be in the area of 9-12 percent. We believe that we can achieve solid earnings growth of 17-20 percent for 2005, although this is below our earlier earnings guidance of 25 percent,” he concluded.
At September 30, 2005, YNB’s total risk-based capital was 11.2 percent, Tier 1 capital to risk-weighted assets was 10.1 percent, and Tier 1 capital to average assets was 7.9 percent. In the first three quarters of 2005, YNB paid total cash dividends of $0.345 per share. The third quarter of 2005 marks the 47th consecutive period in which YNB has paid shareholders a cash dividend.
YNB had $3.01 billion in assets as of September 30, 2005, with 25 branches serving individuals and businesses in Mercer, Hunterdon, Burlington, Middlesex and Somerset counties in New Jersey and Bucks County in Pennsylvania. Located in the corridor between New York City and Philadelphia, YNB offers a broad range of lending, deposit and other financial products and services to business and individual banking customers throughout the region.
Note regarding forward-looking statements
This press release and other statements made from time to time by our management contain express and implied statements relating to our future financial condition, results of operations, plans, objectives, performance, and business, which are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These may include statements that relate to, among other things, profitability, liquidity, loan loss reserve adequacy, plans for growth, interest rate sensitivity, market risk, regulatory compliance, and financial and other goals. Actual results may differ materially from those expected or implied as a result of certain risks and uncertainties, including, but not limited to, the results of our efforts to implement our retail strategy, adverse changes in our loan portfolio and the resulting credit risk-related losses and expenses, interest rate fluctuations and other economic conditions, our ability to attract core deposits, continued relationships with major customers, competition in product offerings and product pricing, adverse changes in the economy that could increase credit-related losses and expenses, compliance with laws and regulatory requirements of federal and state agencies, other risks and uncertainties detailed from time to time in our filings with the SEC, as well as other risks and uncertainties detailed from time to time in statements made by our management.
Yardville National Bancorp | ||||||||||||
Summary of Financial Information | ||||||||||||
(Unaudited) | ||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||
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| September 30, |
| September 30, | ||||||||
(in thousands, except per share amounts) |
| 2005 |
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| 2004 |
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| 2005 |
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| 2004 |
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Stock Information: |
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Weighted average shares outstanding: |
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Basic |
| 10,602 |
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| 10,464 |
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| 10,558 |
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| 10,445 |
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Diluted |
| 11,050 |
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| 10,842 |
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| 11,011 |
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| 10,847 |
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Shares outstanding end of period |
| 10,572 |
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| 10,492 |
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Earnings per share: |
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Basic | $ | 0.50 |
| $ | 0.52 |
| $ | 1.57 |
| $ | 1.32 |
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Diluted |
| 0.48 |
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| 0.50 |
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| 1.51 |
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| 1.27 |
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Dividends paid per share |
| 0.115 |
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| 0.115 |
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| 0.345 |
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| 0.345 |
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Book value per share |
| 15.97 |
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| 14.84 |
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Tangible book value per share |
| 15.81 |
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| 14.66 |
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Closing price per share |
| 35.25 |
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| 29.10 |
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Closing price to tangible book value |
| 222.96 | % |
| 198.50 | % |
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Key Ratios: |
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Return on average assets |
| 0.73 | % |
| 0.80 | % |
| 0.77 | % |
| 0.70 | % |
Return on average stockholders' equity |
| 12.61 |
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| 14.57 |
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| 13.41 |
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| 12.52 |
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Net interest margin |
| 2.94 |
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| 2.82 |
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| 2.96 |
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| 2.72 |
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Net interest margin (tax equivalent) (1) |
| 3.01 |
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| 2.89 |
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| 3.03 |
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| 2.78 |
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Efficiency ratio |
| 56.40 |
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| 51.03 |
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| 55.13 |
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| 54.66 |
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Equity-to-assets at period end |
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| 5.62 |
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| 5.64 |
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Tier 1 leverage ratio (2) |
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| 7.91 |
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| 7.59 |
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Asset Quality Data: |
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Net loan charge-offs | $ | 1,148 |
| $ | 1,363 |
| $ | 3,144 |
| $ | 4,539 |
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Nonperforming assets as a percentage of total assets |
| 0.47 | % |
| 0.34 | % |
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Allowance for loan losses at period end as a |
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percent of: |
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Total loans |
| 1.15 |
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| 1.15 |
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Nonperforming loans |
| 162.00 |
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| 208.82 |
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Nonperforming assets at period end: |
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Nonperforming loans | $ | 13,995 |
| $ | 9,377 |
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Other real estate |
| - |
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| - |
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Total nonperforming assets | $ | 13,995 |
| $ | 9,377 |
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(1) The net interest margin is equal to net interest income divided by average interest earning assets. In order to present pre-tax income and resultant yields | ||||||||||||
on tax-exempt investments and loans on a basis comparable to those on taxable investments and loans, a tax equivalent adjustment is made to interest | ||||||||||||
income. The tax equivalent adjustment has been computed using a Federal income tax rate of 35% and has the effect of increasing interest income | ||||||||||||
by $503,000 and $453,000 for the three months and $1,461,000 and $1,251,000 for the nine month periods ended September 30, 2005 and 2004, respectively. | ||||||||||||
(2) Tier 1 leverage ratio is Tier 1 capital to adjusted quarterly average assets. |
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Yardville National Bancorp and Subsidiaries | ||||||||
Consolidated Statements of Income | ||||||||
(Unaudited) | ||||||||
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| Three Months Ended |
| Nine Months Ended | ||||
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| September 30, |
| September 30, | ||||
(in thousands, except per share amounts) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
INTEREST INCOME: |
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Interest and fees on loans | $ | 32,785 | $ | 25,754 | $ | 92,704 | $ | 73,002 |
Interest on deposits with banks |
| 397 |
| 95 |
| 748 |
| 205 |
Interest on securities available for sale |
| 9,315 |
| 9,262 |
| 27,485 |
| 26,058 |
Interest on investment securities: |
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Taxable |
| 26 |
| 29 |
| 82 |
| 104 |
Exempt from Federal income tax |
| 957 |
| 806 |
| 2,761 |
| 2,370 |
Interest on Federal funds sold |
| 274 |
| 102 |
| 576 |
| 228 |
Total Interest Income |
| 43,754 |
| 36,048 |
| 124,356 |
| 101,967 |
INTEREST EXPENSE: |
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Interest on savings account deposits |
| 5,632 |
| 3,502 |
| 15,082 |
| 9,054 |
Interest on certificates of deposit of $100,000 or more | 1,983 |
| 1,063 |
| 4,576 |
| 3,020 | |
Interest on other time deposits |
| 4,296 |
| 2,879 |
| 11,182 |
| 9,172 |
Interest on borrowed funds |
| 9,737 |
| 9,081 |
| 28,557 |
| 26,834 |
Interest on subordinated debentures |
| 1,217 |
| 1,004 |
| 3,480 |
| 2,654 |
Total Interest Expense |
| 22,865 |
| 17,529 |
| 62,877 |
| 50,734 |
Net Interest Income |
| 20,889 |
| 18,519 |
| 61,479 |
| 51,233 |
Less provision for loan losses |
| 2,100 |
| 2,400 |
| 5,700 |
| 6,825 |
Net Interest Income After Provision for Loan Losses | 18,789 |
| 16,119 |
| 55,779 |
| 44,408 | |
NON-INTEREST INCOME: |
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Service charges on deposit accounts |
| 762 |
| 750 |
| 2,110 |
| 2,400 |
Securities gains, net |
| 274 |
| 618 |
| 750 |
| 1,204 |
Income on bank owned life insurance |
| 451 |
| 480 |
| 1,255 |
| 1,457 |
Other non-interest income |
| 555 |
| 448 |
| 1,571 |
| 1,325 |
Total Non-Interest Income |
| 2,042 |
| 2,296 |
| 5,686 |
| 6,386 |
NON-INTEREST EXPENSE: |
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Salaries and employee benefits |
| 7,439 |
| 6,169 |
| 21,302 |
| 17,644 |
Occupancy expense, net |
| 1,175 |
| 1,072 |
| 3,550 |
| 3,239 |
Equipment expense |
| 820 |
| 749 |
| 2,353 |
| 2,359 |
Other non-interest expense |
| 3,499 |
| 2,632 |
| 9,826 |
| 8,250 |
Total Non-Interest Expense |
| 12,933 |
| 10,622 |
| 37,031 |
| 31,492 |
Income before income tax expense |
| 7,898 |
| 7,793 |
| 24,434 |
| 19,302 |
Income tax expense |
| 2,546 |
| 2,344 |
| 7,833 |
| 5,513 |
Net Income | $ | 5,352 | $ | 5,449 | $ | 16,601 | $ | 13,789 |
EARNINGS PER SHARE: |
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Basic | $ | 0.50 | $ | 0.52 | $ | 1.57 | $ | 1.32 |
Diluted |
| 0.48 |
| 0.50 |
| 1.51 |
| 1.27 |
Weighted average shares outstanding: |
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Basic |
| 10,602 |
| 10,464 |
| 10,558 |
| 10,445 |
Diluted |
| 11,050 |
| 10,842 |
| 11,011 |
| 10,847 |
Yardville National Bancorp and Subsidiaries |
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Consolidated Statements of Condition |
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(Unaudited) |
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| September 30, |
| December 31, |
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(in thousands) |
| 2005 |
| 2004 |
| 2004 |
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Assets: |
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Cash and due from banks | $ | 39,645 | $ | 25,784 | $ | 32,115 |
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Federal funds sold |
| 14,200 |
| 11,775 |
| 6,769 |
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Cash and Cash Equivalents |
| 53,845 |
| 37,559 |
| 38,884 |
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Interest bearing deposits with banks |
| 22,835 |
| 45,712 |
| 41,297 |
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Securities available for sale |
| 795,107 |
| 830,430 |
| 802,525 |
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Investment securities |
| 87,817 |
| 74,684 |
| 78,257 |
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Loans |
| 1,974,155 |
| 1,702,610 |
| 1,782,592 |
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Less: Allowance for loan losses |
| (22,672) |
| (19,581) |
| (20,116) |
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Loans, net |
| 1,951,483 |
| 1,683,029 |
| 1,762,476 |
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Bank premises and equipment, net |
| 11,193 |
| 10,574 |
| 10,431 |
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Bank owned life insurance |
| 45,756 |
| 44,221 |
| 44,501 |
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Other assets |
| 37,474 |
| 29,401 |
| 27,546 |
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Total Assets | $ | 3,005,510 | $ | 2,755,610 | $ | 2,805,917 |
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Liabilities and Stockholders' Equity: |
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Deposits |
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Non-interest bearing | $ | 240,148 | $ | 202,975 | $ | 202,196 |
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Interest bearing |
| 1,774,097 |
| 1,573,488 |
| 1,607,808 |
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Total Deposits |
| 2,014,245 |
| 1,776,463 |
| 1,810,004 |
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Borrowed funds |
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Securities sold under agreements to repurchase |
| 10,000 |
| 10,000 |
| 10,000 |
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Federal Home Loan Bank advances |
| 724,000 |
| 726,000 |
| 742,000 |
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Subordinated debentures |
| 62,892 |
| 62,892 |
| 62,892 |
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Obligation for Employee Stock Ownership Plan (ESOP) | 94 |
| 472 |
| 377 |
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Other |
| 1,271 |
| 978 |
| 753 |
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Total Borrowed Funds |
| 798,257 |
| 800,342 |
| 816,022 |
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Other liabilities |
| 24,204 |
| 23,403 |
| 19,733 |
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Total Liabilities | $ | 2,836,706 | $ | 2,600,208 | $ | 2,645,759 |
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Stockholders' equity: |
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Common stock: no par value |
| 93,755 |
| 91,105 |
| 91,658 |
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Surplus |
| 2,205 |
| 2,205 |
| 2,205 |
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Undivided profits |
| 82,816 |
| 66,332 |
| 69,860 |
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Treasury stock, at cost |
| (3,160) |
| (3,160) |
| (3,160) |
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Unallocated ESOP shares |
| (94) |
| (472) |
| (377) |
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Accumulated other comprehensive loss |
| (6,718) |
| (608) |
| (28) |
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Total Stockholders' Equity |
| 168,804 |
| 155,402 |
| 160,158 |
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Total Liabilities and Stockholders' Equity | $ | 3,005,510 | $ | 2,755,610 | $ | 2,805,917 |
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Financial Summary | ||||||||||||
Average Balances, Yields and Costs | ||||||||||||
(Unaudited) | ||||||||||||
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| Three Months Ended |
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| Three Months Ended | ||||||||
| September 30, 2005 |
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| September 30, 2004 | ||||||||
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| Average |
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| Average |
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| Average |
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| Yield / |
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| Average |
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| Yield / |
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(in thousands) |
| Balance |
| Interest | Cost |
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| Balance |
| Interest | Cost |
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INTEREST EARNING ASSETS: |
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Interest bearing deposits with banks | $ | 44,856 | $ | 397 | 3.54 | % | $ | 25,070 | $ | 95 | 1.52 | % |
Federal funds sold |
| 31,730 |
| 274 | 3.45 |
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| 29,295 |
| 102 | 1.39 |
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Securities |
| 865,708 |
| 10,298 | 4.76 |
|
| 899,156 |
| 10,097 | 4.49 |
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Loans (1) |
| 1,897,451 |
| 32,785 | 6.91 |
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| 1,672,321 |
| 25,754 | 6.16 |
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Total interest earning assets | $ | 2,839,745 | $ | 43,754 | 6.16 | % | $ | 2,625,842 | $ | 36,048 | 5.49 | % |
NON-INTEREST EARNING ASSETS: |
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Cash and due from banks | $ | 32,582 |
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| $ | 29,277 |
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Allowance for loan losses |
| (21,992) |
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| (19,193) |
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Premises and equipment, net |
| 10,495 |
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| 10,808 |
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Other assets |
| 77,729 |
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| 72,734 |
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Total non-interest earning assets |
| 98,814 |
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| 93,626 |
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Total assets | $ | 2,938,559 |
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| $ | 2,719,468 |
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INTEREST BEARING LIABILITIES: |
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Deposits: |
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Savings, money markets, and interest bearing demand | $ | 1,007,863 | $ | 5,632 | 2.24 | % | $ | 927,276 | $ | 3,502 | 1.51 | % |
Certificates of deposit of $100,000 or more |
| 229,898 |
| 1,983 | 3.45 |
|
| 164,437 |
| 1,063 | 2.59 |
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Other time deposits |
| 496,127 |
| 4,296 | 3.46 |
|
| 460,936 |
| 2,879 | 2.50 |
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Total interest bearing deposits |
| 1,733,888 |
| 11,911 | 2.75 |
|
| 1,552,649 |
| 7,444 | 1.92 |
|
Borrowed funds |
| 740,330 |
| 9,737 | 5.26 |
|
| 740,418 |
| 9,081 | 4.91 |
|
Subordinated debentures |
| 62,892 |
| 1,217 | 7.74 |
|
| 62,892 |
| 1,004 | 6.39 |
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Total interest bearing liabilities | $ | 2,537,110 | $ | 22,865 | 3.60 | % | $ | 2,355,959 | $ | 17,529 | 2.98 | % |
NON-INTEREST BEARING LIABILITIES: |
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Demand deposits | $ | 210,439 |
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| $ | 193,957 |
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Other liabilities |
| 21,304 |
|
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|
|
| 20,002 |
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Stockholders' equity |
| 169,706 |
|
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|
|
| 149,550 |
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Total non-interest bearing liabilities and |
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stockholders' equity | $ | 401,449 |
|
|
|
| $ | 363,509 |
|
|
|
|
Total liabilities and stockholders' equity | $ | 2,938,559 |
|
|
|
| $ | 2,719,468 |
|
|
|
|
Interest rate spread (2) |
|
|
|
| 2.56 | % |
|
|
|
| 2.51 | % |
Net interest income and margin (3) |
|
| $ | 20,889 | 2.94 | % |
|
| $ | 18,519 | 2.82 | % |
Net interest income and margin |
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|
|
|
|
|
|
|
|
|
|
|
(tax equivalent basis)(4) |
|
| $ | 21,392 | 3.01 | % |
|
| $ | 18,972 | 2.89 | % |
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances |
| |||||||||||
include nonaccrual loans with no related interest income. |
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| ||
(2) The interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. | ||||||||||||
(3) The net interest margin is equal to net interest income divided by average interest earning assets. |
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(4) In order to present pre-tax income and resultant yields on tax-exempt investments and loans on a basis comparable to those on taxable investments | ||||||||||||
and loans, a tax equivalent adjustment is made to interest income. The tax equivalent adjustment has been computed using a Federal income tax |
| |||||||||||
rate of 35% and has the effect of increasing interest income by $503,000 and $453,000 for the three month periods ended September 30, 2005 |
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and 2004 respectively. |
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Financial Summary | ||||||||||||
Average Balances, Yields and Costs | ||||||||||||
(Unaudited) | ||||||||||||
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| Nine Months Ended |
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| Nine Months Ended | ||||||||
| September 30, 2005 |
|
| September 30, 2004 | ||||||||
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| Average |
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|
|
| Average |
|
|
| Average |
|
| Yield / |
|
| Average |
|
| Yield / |
|
(in thousands) |
| Balance |
| Interest | Cost |
|
| Balance |
| Interest | Cost |
|
INTEREST EARNING ASSETS: |
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|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks | $ | 31,821 | $ | 748 | 3.13 | % | $ | 23,538 | $ | 205 | 1.16 | % |
Federal funds sold |
| 25,651 |
| 576 | 2.99 |
|
| 26,974 |
| 228 | 1.13 |
|
Securities |
| 858,144 |
| 30,328 | 4.71 |
|
| 875,480 |
| 28,532 | 4.35 |
|
Loans (1) |
| 1,852,123 |
| 92,704 | 6.67 |
|
| 1,589,647 |
| 73,002 | 6.12 |
|
Total interest earning assets | $ | 2,767,739 | $ | 124,356 | 5.99 | % | $ | 2,515,639 | $ | 101,967 | 5.40 | % |
NON-INTEREST EARNING ASSETS: |
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|
|
|
|
|
|
|
|
|
Cash and due from banks | $ | 31,779 |
|
|
|
| $ | 28,147 |
|
|
|
|
Allowance for loan losses |
| (21,280) |
|
|
|
|
| (18,446) |
|
|
|
|
Premises and equipment, net |
| 10,443 |
|
|
|
|
| 11,434 |
|
|
|
|
Other assets |
| 76,663 |
|
|
|
|
| 73,038 |
|
|
|
|
Total non-interest earning assets |
| 97,605 |
|
|
|
|
| 94,173 |
|
|
|
|
Total assets | $ | 2,865,344 |
|
|
|
| $ | 2,609,812 |
|
|
|
|
INTEREST BEARING LIABILITIES: |
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|
|
|
|
|
|
|
|
|
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Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings, money markets, and interest bearing demand | $ | 991,206 | $ | 15,082 | 2.03 | % | $ | 856,543 | $ | 9,054 | 1.41 | % |
Certificates of deposit of $100,000 or more |
| 193,123 |
| 4,576 | 3.16 |
|
| 157,881 |
| 3,020 | 2.55 |
|
Other time deposits |
| 481,918 |
| 11,182 | 3.09 |
|
| 456,262 |
| 9,172 | 2.68 |
|
Total interest bearing deposits |
| 1,666,247 |
| 30,840 | 2.47 |
|
| 1,470,686 |
| 21,246 | 1.93 |
|
Borrowed funds |
| 743,801 |
| 28,557 | 5.12 |
|
| 738,439 |
| 26,834 | 4.85 |
|
Subordinated debentures |
| 62,892 |
| 3,480 | 7.38 |
|
| 53,327 |
| 2,654 | 6.64 |
|
Total interest bearing liabilities | $ | 2,472,940 | $ | 62,877 | 3.39 | % | $ | 2,262,452 | $ | 50,734 | 2.99 | % |
NON-INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | $ | 205,088 |
|
|
|
| $ | 179,887 |
|
|
|
|
Other liabilities |
| 22,251 |
|
|
|
|
| 20,595 |
|
|
|
|
Stockholders' equity |
| 165,065 |
|
|
|
|
| 146,878 |
|
|
|
|
Total non-interest bearing liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity | $ | 392,404 |
|
|
|
| $ | 347,360 |
|
|
|
|
Total liabilities and stockholders' equity | $ | 2,865,344 |
|
|
|
| $ | 2,609,812 |
|
|
|
|
Interest rate spread (2) |
|
|
|
| 2.60 | % |
|
|
|
| 2.41 | % |
Net interest income and margin (3) |
|
| $ | 61,479 | 2.96 | % |
|
| $ | 51,233 | 2.72 | % |
Net interest income and margin |
|
|
|
|
|
|
|
|
|
|
|
|
(tax equivalent basis)(4) |
|
| $ | 62,940 | 3.03 | % |
|
| $ | 52,488 | 2.78 | % |
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances |
| |||||||||||
include nonaccrual loans with no related interest income. |
|
|
|
|
|
|
|
|
|
| ||
(2) The interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. | ||||||||||||
(3) The net interest margin is equal to net interest income divided by average interest earning assets. |
|
|
|
|
|
|
| |||||
(4) In order to present pre-tax income and resultant yields on tax-exempt investments and loans on a basis comparable to those on taxable investments | ||||||||||||
and loans, a tax equivalent adjustment is made to interest income. The tax equivalent adjustment has been computed using a Federal income tax rate | ||||||||||||
of 35% and has the effect of increasing interest income by $1,461,000 and $1,255,000 for the nine month periods ended September 30, 2005 |
| |||||||||||
and 2004, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|