| Exhibit 99.1 |
For Release: IMMEDIATELY
Contact: | Stephen F. Carman, VP/Treasurer | (609) 631-6222 or carmans@ynb.com |
| ||
| Leonardo G. Zangani | (908) 788-9660 or office@zangani.com | |||
| YNB’s website | www.ynb.com |
| ||
YNB PASSES $3 BILLION IN ASSETS;
REPORTS SECOND QUARTER EARNINGS
Hamilton, NJ ... July 27, 2006... Yardville National Bancorp (NASDAQ:YANB) today noted a number of factors affecting its earnings performance and highlighted its continued retail expansion as well as encouraging commercial loan and account growth opportunities in new markets. For the quarter ended June 30, 2006, YNB's net income was $5.1 million, compared with $5.6 million earned in the second quarter of last year. Earnings per share were $0.45 per diluted share, compared with the $0.51 per diluted share reported in the second quarter of 2005.
For the six months ended June 30, 2006, YNB’s net income was $10.2 million, compared with $11.2 million earned in the same period a year ago. Diluted earnings per share were $0.90 compared with $1.02 reported in the prior year’s first half. The results for the first half of 2006 reflected certain higher expenses, which were anticipated, and lower than expected net interest income improvement. The higher non interest expenses were from salaries and benefit expenses associated with the bank’s retail expansion and new branch openings, the costs of YNB’s proxy contest and related litigation, and a higher provision for loan losses. Margin pressure and slower than anticipated commercial loan growth have somewhat limited improvement in net interest income.
Despite vigorous competition for commercial loans and deposits, YNB’s tax-equivalent net interest margin has remained stable. For the six months ended June 30, 2006, YNB’s tax equivalent net interest margin registered 3.04 percent, the same as reported for the first six months of 2005.
“It is a challenging environment for YNB and for many other banking institutions,” commented YNB Chief Executive Officer Patrick M. Ryan. “While we are experiencing stiff competition on rates and terms both in the commercial and retail banking arena, we are retaining long-time, significant customer relationships and generating business in new markets to continue enhancing our franchise value,” he went on.
Loans increased 7.3 percent to $2.03 billion at June 30, 2006 compared to $1.90 billion at June 30, 2005. YNB believes its commercial loan pipeline remains healthy, however the timing of larger commercial loan payoffs and strong competition impacted the level of net loan growth that was experienced during the first half of 2006.
“The increased competition for commercial loan business that we have been discussing for some time continues, resulting in a slower growth trend than we are accustomed to seeing,” Mr. Ryan noted further. “Nonetheless, we continue to benefit from our established loan relationships and our reputation for accessibility and personal service at the highest levels of management, while we aggressively pursue new business opportunities. For example, our expansion with a new market team in Middlesex County has created numerous new business opportunities for YNB,” he added.
Nonperforming assets (NPAs) increased to $24.1 million or 0.80 percent of total assets at June 30, 2006, compared to $7.9 million or 0.27 percent of total assets at June 30, 2005. As YNB reported in an 8-K filing yesterday, during the second quarter, a $10 million line of credit to New Jersey real estate developer Solomon Dwek was placed on
nonperforming status. Without the Dwek addition to nonperforming assets, YNB’s NPAs would have decreased 12.7 percent on a linked quarter basis from the $16.2 million reported at March 31, 2006. This is significant, as YNB expects approximately $7.4 million of this credit will be satisfied during the third quarter. At June 30, 2006, YNB’s allowance for loan losses totaled $23.1 million, or 1.13 percent of total loans, covering 97.66 percent of total nonperforming loans. YNB’s net loan chargeoffs rose in the first half of 2006 to $3.8 million, compared to $2.0 million in net chargeoffs recorded for the same period of 2005.
YNB’s dynamic retail expansion continued, as new branches were opened in Ringoes, Hunterdon County in June and in Whitehouse Station, also in Hunterdon, on July 20th. The ongoing branch expansion, promotion of YNB’s high-yielding “Simply Better Money Market Account,” and effective product cross-selling in the branches helped deposits rise 7.0 percent to $2.05 billion at June 30, 2006 from $1.91 billion at the same date in 2005. Regulatory applications are underway for two new branches in Lawrence, Mercer County and Skillman in Somerset County, with plans for them to open by the end of 2006 or early in 2007. YNB’s Board of Directors has also approved expansion through additional branch sites into North Brunswick and Woodbridge. All of these are attractive new areas contiguous to YNB’s core marketplace.
“With the opening of branches 29 and 30, we are continuing to successfully execute our retail banking strategy,” noted YNB’s President and Chief Operating Officer F. Kevin Tylus. “These new branches and product promotions help us maximize contributions from our retail banking strategy by allowing us to replace wholesale funding with core deposits,” he said.
In response to the challenging environment, Mr. Tylus announced that the company is finalizing its PAR Program, which stands for “Profit And Revenue,” and represents a multi-faceted plan to enhance performance, improve financial metrics, and add revenue sources.
He also noted that YNB has been included in the new NASDAQ Global Select Market, a group of companies that has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. The exchange said that YNB “is an example of a company that has achieved superior listing standards,” and highlighted the company’s achievement in meeting requirements to be included in the market with the highest listing standards in the world.
YNB expressed pleasure at the listing. “YNB, which celebrated the tenth anniversary of our listing on NASDAQ just last year, is honored to be in the top tier of NASDAQ-listed companies,” said Kevin Tylus. “We are delighted to be a member of the group of distinguished companies that includes Microsoft, Yahoo, Charles Schwab, Staples and Starbucks, among others,” he added.
YNB's Executive Vice President and Chief Financial Officer Stephen F. Carman commented further on YNB's performance during the first half and the balance of 2006. “Loan growth for the first half of 2006 was slightly above 3.0 percent, below our initial expectations. Competitive pressures coupled with several commercial loan payoffs are expected to restrict loan growth for the rest of 2006,” he said. “Still, we expect loan growth to be within or slightly below the low end of our previously issued guidance.
“Lower than expected net interest income growth, resulting from limited loan growth and margin pressure, coupled with anticipated increases in non interest expenses, has pushed our efficiency ratio higher,” he explained. “We expect that our efficiency ratio should stabilize and may improve during the balance of the year, resulting in an efficiency ratio of 58 – 60 percent for 2006.
“In conclusion,” Mr. Carman added, “we believe we should be able to achieve the low end of our previously issued guidance with respect to net income growth and earnings per share growth, based on the following assumptions:
Credit quality improvement in the second half of 2006
Modest improvement in loan growth from the 3.0 percent experienced in the first half of the year
Net interest margin remaining at or improving from the 3.01 percent reported for the second quarter
Improved efficiency ratio due to reduction in proxy and related litigation costs and increased net interest income.
YNB’s capital foundation remains sound. YNB’s total capital ratio at June 30, 2006 was 11.9 percent, Tier 1 capital ratio was 10.9 percent, and the Tier 1 leverage capital ratio was 8.6 percent. Shareholders continue to benefit from YNB’s performance, as YNB paid a cash dividend for the 50th consecutive quarter on June 21, 2006.
As of June 30, 2006, YNB passed the $3 billion mark in assets, totaling $3.02 billion. Thirty YNB branches now serve individuals and businesses in Mercer, Hunterdon, Somerset, Burlington and Middlesex Counties in New Jersey, and Bucks County, Pennsylvania, and seven-day a week, twenty-four hour a day banking at www.ynb.com. Located in the dynamic business corridor between New York City and Philadelphia, YNB offers a broad range of lending, deposit and other financial products and services.
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, adequacy of the allowance for loan losses, plans for growth, interest rate sensitivity, market risk, regulatory compliance, and financial and other goals. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. 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, adverse changes in the market price of our common stock, proxy contests and litigation, compliance with laws and regulatory requirements, including our agreement with the Office of the Comptroller of the Currency and Nasdaq standards, and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, as well as other risks and uncertainties detailed from time to time in statements made by our management. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Yardville National Bancorp | ||||||||||||
Summary of Financial Information | ||||||||||||
(Unaudited) | ||||||||||||
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| Three Months Ended |
| Six Months Ended | ||||||||
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| June 30, |
| June 30, | ||||||||
(in thousands, except per share amounts) |
| 2006 |
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| 2005 |
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| 2006 |
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| 2005 |
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Stock Information: |
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Weighted average shares outstanding: |
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Basic |
| 10,938 |
|
| 10,552 |
|
| 10,911 |
|
| 10,535 |
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Diluted |
| 11,339 |
|
| 11,006 |
|
| 11,326 |
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| 10,991 |
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Shares outstanding end of period |
| 11,004 |
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| 10,572 |
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Earnings per share: |
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Basic | $ | 0.46 |
| $ | 0.53 |
| $ | 0.94 |
| $ | 1.07 |
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Diluted |
| 0.45 |
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| 0.51 |
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| 0.90 |
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| 1.02 |
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Dividends paid per share |
| 0.115 |
|
| 0.115 |
|
| 0.23 |
|
| 0.23 |
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Book value per share |
| 16.29 |
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| 16.14 |
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Tangible book value per share |
| 16.15 |
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| 15.98 |
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Closing price per share |
| 35.73 |
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| 35.75 |
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Closing price to tangible book value |
| 221.24 | % |
| 223.72 | % |
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Key Ratios: |
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Return on average assets |
| 0.68 | % |
| 0.79 | % |
| 0.69 | % |
| 0.80 | % |
Return on average stockholders' equity |
| 11.39 |
|
| 13.61 |
|
| 11.47 |
|
| 13.82 |
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Net interest margin |
| 2.93 |
|
| 3.00 |
|
| 2.96 |
|
| 2.97 |
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Net interest margin (tax equivalent) (1) |
| 3.01 |
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| 3.07 |
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| 3.04 |
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| 3.04 |
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Efficiency ratio |
| 62.71 |
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| 54.03 |
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| 60.60 |
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| 54.48 |
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Equity-to-assets at period end |
| 5.90 |
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| 5.82 |
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Tier 1 leverage ratio (2) |
| 8.65 |
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| 7.98 |
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Asset Quality Data: |
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Net loan charge-offs | $ | 1,102 |
| $ | 1,606 |
| $ | 3,763 |
| $ | 1,996 |
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Nonperforming assets as a percentage of total assets |
| 0.80 | % |
| 0.27 | % |
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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 |
| 1.13 |
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| 1.15 |
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Nonperforming loans |
| 97.66 |
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| 274.35 |
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Nonperforming assets at period end: |
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Nonperforming loans | $ | 23,643 |
| $ | 7,917 |
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Other real estate |
| 502 |
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| - |
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Total nonperforming assets | $ | 24,145 |
| $ | 7,917 |
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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 |
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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 $535,000 and $491,000 for the three month | ||||||||||||
periods and $1,070,000 and $959,000 for the six month periods ended June 30, 2006 and 2005, respectively. |
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(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 |
| Six Months Ended | ||||
|
| June 30, |
| June 30, | ||||
(in thousands, except per share amounts) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
INTEREST INCOME: |
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Interest and fees on loans | $ | 37,307 | $ | 31,117 | $ | 72,728 | $ | 59,919 |
Interest on deposits with banks |
| 336 |
| 194 |
| 566 |
| 351 |
Interest on securities available for sale |
| 8,842 |
| 9,154 |
| 17,804 |
| 18,170 |
Interest on investment securities: |
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Taxable |
| 26 |
| 30 |
| 49 |
| 56 |
Exempt from Federal income tax |
| 1,025 |
| 919 |
| 2,035 |
| 1,804 |
Interest on Federal funds sold |
| 152 |
| 155 |
| 280 |
| 302 |
Total Interest Income |
| 47,688 |
| 41,569 |
| 93,462 |
| 80,602 |
INTEREST EXPENSE: |
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Interest on savings account deposits |
| 6,974 |
| 4,995 |
| 13,121 |
| 9,450 |
Interest on certificates of deposit of $100,000 or more |
| 2,500 |
| 1,400 |
| 4,784 |
| 2,593 |
Interest on other time deposits |
| 6,443 |
| 3,692 |
| 11,963 |
| 6,886 |
Interest on borrowed funds |
| 9,392 |
| 9,600 |
| 18,696 |
| 18,820 |
Interest on subordinated debentures |
| 1,360 |
| 1,156 |
| 2,666 |
| 2,263 |
Total Interest Expense |
| 26,669 |
| 20,843 |
| 51,230 |
| 40,012 |
Net Interest Income |
| 21,019 |
| 20,726 |
| 42,232 |
| 40,590 |
Less provision for loan losses |
| 1,800 |
| 2,100 |
| 4,150 |
| 3,600 |
Net Interest Income After Provision for Loan Losses |
| 19,219 |
| 18,626 |
| 38,082 |
| 36,990 |
NON-INTEREST INCOME: |
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Service charges on deposit accounts |
| 777 |
| 687 |
| 1,436 |
| 1,348 |
Securities gains, net |
| - |
| 283 |
| - |
| 476 |
Income on bank owned life insurance |
| 440 |
| 361 |
| 861 |
| 804 |
Other non-interest income |
| 576 |
| 596 |
| 1,157 |
| 1,016 |
Total Non-Interest Income |
| 1,793 |
| 1,927 |
| 3,454 |
| 3,644 |
NON-INTEREST EXPENSE: |
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Salaries and employee benefits |
| 7,572 |
| 7,034 |
| 15,223 |
| 13,863 |
Occupancy expense, net |
| 1,368 |
| 1,186 |
| 2,795 |
| 2,375 |
Equipment expense |
| 856 |
| 757 |
| 1,652 |
| 1,533 |
Other non-interest expense |
| 4,510 |
| 3,263 |
| 8,014 |
| 6,327 |
Total Non-Interest Expense |
| 14,306 |
| 12,240 |
| 27,684 |
| 24,098 |
Income before income tax expense |
| 6,706 |
| 8,313 |
| 13,852 |
| 16,536 |
Income tax expense |
| 1,649 |
| 2,677 |
| 3,627 |
| 5,287 |
Net Income | $ | 5,057 | $ | 5,636 | $ | 10,225 | $ | 11,249 |
EARNINGS PER SHARE: |
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Basic | $ | 0.46 | $ | 0.53 | $ | 0.94 | $ | 1.07 |
Diluted |
| 0.45 |
| 0.51 |
| 0.90 |
| 1.02 |
Weighted average shares outstanding: |
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Basic |
| 10,938 |
| 10,552 |
| 10,911 |
| 10,535 |
Diluted |
| 11,339 |
| 11,006 |
| 11,326 |
| 10,991 |
Yardville National Bancorp and Subsidiaries | ||||||
Consolidated Statements of Condition | ||||||
(Unaudited) | ||||||
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| June 30, |
| Dec. 31, | ||
(in thousands) |
| 2006 |
| 2005 |
| 2005 |
Assets: |
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Cash and due from banks | $ | 35,839 | $ | 33,334 | $ | 52,686 |
Federal funds sold |
| 12,475 |
| 75,670 |
| 10,800 |
Cash and Cash Equivalents |
| 48,314 |
| 109,004 |
| 63,486 |
Interest bearing deposits with banks |
| 62,368 |
| 23,204 |
| 16,408 |
Securities available for sale |
| 701,007 |
| 751,536 |
| 741,668 |
Investment securities |
| 92,753 |
| 83,588 |
| 89,026 |
Loans |
| 2,034,781 |
| 1,895,917 |
| 1,972,840 |
Less: Allowance for loan losses |
| (23,090) |
| (21,720) |
| (22,703) |
Loans, net |
| 2,011,691 |
| 1,874,197 |
| 1,950,137 |
Bank premises and equipment, net |
| 11,578 |
| 10,318 |
| 11,697 |
Other real estate |
| 502 |
| - |
| - |
Bank owned life insurance |
| 48,713 |
| 45,306 |
| 46,152 |
Other assets |
| 46,982 |
| 33,260 |
| 38,157 |
Total Assets | $ | 3,023,908 | $ | 2,930,413 | $ | 2,956,731 |
Liabilities and Stockholders' Equity: |
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Deposits |
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Non-interest bearing | $ | 215,373 | $ | 218,042 | $ | 232,269 |
Interest bearing |
| 1,831,610 |
| 1,694,921 |
| 1,740,448 |
Total Deposits |
| 2,046,983 |
| 1,912,963 |
| 1,972,717 |
Borrowed funds |
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Securities sold under agreements to repurchase |
| 10,000 |
| 10,000 |
| 10,000 |
Federal Home Loan Bank advances |
| 694,000 |
| 750,000 |
| 704,000 |
Subordinated debentures |
| 62,892 |
| 62,892 |
| 62,892 |
Obligation for Employee Stock Ownership Plan (ESOP) |
| 1,969 |
| 189 |
| 2,250 |
Other |
| 1,296 |
| 1,311 |
| 1,870 |
Total Borrowed Funds |
| 770,157 |
| 824,392 |
| 781,012 |
Other liabilities |
| 28,293 |
| 22,390 |
| 25,544 |
Total Liabilities | $ | 2,845,433 | $ | 2,759,745 | $ | 2,779,273 |
Stockholders' equity: |
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Common stock: no par value |
| 107,096 |
| 93,078 |
| 105,122 |
Surplus |
| 2,205 |
| 2,205 |
| 2,205 |
Undivided profits |
| 93,599 |
| 78,686 |
| 85,896 |
Treasury stock, at cost |
| (3,160) |
| (3,160) |
| (3,160) |
Unallocated ESOP shares |
| (1,969) |
| (189) |
| (2,250) |
Accumulated other comprehensive (loss) income |
| (19,296) |
| 48 |
| (10,355) |
Total Stockholders' Equity |
| 178,475 |
| 170,668 |
| 177,458 |
Total Liabilities and Stockholders' Equity | $ | 3,023,908 | $ | 2,930,413 | $ | 2,956,731 |
Financial Summary | ||||||||||||
Average Balances, Yields and Costs | ||||||||||||
(Unaudited) | ||||||||||||
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| Three Months Ended |
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| Three Months Ended | ||||||||
| June 30, 2006 |
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| June 30, 2005 | ||||||||
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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 | $ | 25,899 | $ | 336 | 5.19 | % | $ | 25,177 | $ | 194 | 3.08 | % |
Federal funds sold |
| 12,280 |
| 152 | 4.95 |
|
| 21,067 |
| 155 | 2.94 |
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Securities |
| 803,661 |
| 9,893 | 4.92 |
|
| 857,958 |
| 10,103 | 4.71 |
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Loans (1) |
| 2,025,995 |
| 37,307 | 7.37 |
|
| 1,859,969 |
| 31,117 | 6.69 |
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Total interest earning assets | $ | 2,867,835 | $ | 47,688 | 6.65 | % | $ | 2,764,171 | $ | 41,569 | 6.02 | % |
NON-INTEREST EARNING ASSETS: |
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Cash and due from banks | $ | 35,143 |
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| $ | 31,868 |
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Allowance for loan losses |
| (22,842) |
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| (21,274) |
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Premises and equipment, net |
| 11,622 |
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| 10,401 |
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Other assets |
| 83,236 |
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| 76,715 |
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Total non-interest earning assets |
| 107,159 |
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| 97,710 |
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Total assets | $ | 2,974,994 |
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| $ | 2,861,881 |
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INTEREST BEARING LIABILITIES: |
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Deposits: |
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Savings, money markets, and interest bearing demand | $ | 963,732 | $ | 6,974 | 2.89 | % | $ | 987,686 | $ | 4,995 | 2.02 | % |
Certificates of deposit of $100,000 or more |
| 239,367 |
| 2,500 | 4.18 |
|
| 180,410 |
| 1,400 | 3.10 |
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Other time deposits |
| 588,335 |
| 6,443 | 4.38 |
|
| 479,910 |
| 3,692 | 3.08 |
|
Total interest bearing deposits |
| 1,791,434 |
| 15,917 | 3.55 |
|
| 1,648,006 |
| 10,087 | 2.45 |
|
Borrowed funds |
| 715,894 |
| 9,392 | 5.25 |
|
| 756,815 |
| 9,600 | 5.07 |
|
Subordinated debentures |
| 62,892 |
| 1,360 | 8.65 |
|
| 62,892 |
| 1,156 | 7.35 |
|
Total interest bearing liabilities | $ | 2,570,220 | $ | 26,669 | 4.15 | % | $ | 2,467,713 | $ | 20,843 | 3.38 | % |
NON-INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | $ | 209,379 |
|
|
|
| $ | 205,839 |
|
|
|
|
Other liabilities |
| 17,853 |
|
|
|
|
| 22,644 |
|
|
|
|
Stockholders' equity |
| 177,542 |
|
|
|
|
| 165,685 |
|
|
|
|
Total non-interest bearing liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity | $ | 404,774 |
|
|
|
| $ | 394,168 |
|
|
|
|
Total liabilities and stockholders' equity | $ | 2,974,994 |
|
|
|
| $ | 2,861,881 |
|
|
|
|
Interest rate spread (2) |
|
|
|
| 2.50 | % |
|
|
|
| 2.64 | % |
Net interest income and margin (3) |
|
| $ | 21,019 | 2.93 | % |
|
| $ | 20,726 | 3.00 | % |
Net interest income and margin |
|
|
|
|
|
|
|
|
|
|
|
|
(tax equivalent basis)(4) |
|
| $ | 21,554 | 3.01 | % |
|
| $ | 21,217 | 3.07 | % |
(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 $535,000 and $491,000 for the three month periods ended June 30, 2006 and 2005, respectively. |
|
Financial Summary | ||||||||||||
Average Balances, Yields and Costs | ||||||||||||
(Unaudited) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended |
|
| Six Months Ended | ||||||||
| June 30, 2006 |
|
| June 30, 2005 | ||||||||
|
|
|
|
| Average |
|
|
|
|
| Average |
|
|
| Average |
|
| Yield / |
|
| Average |
|
| Yield / |
|
(in thousands) |
| Balance |
| Interest | Cost |
|
| Balance |
| Interest | Cost |
|
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks | $ | 22,823 | $ | 566 | 4.96 | % | $ | 25,304 | $ | 351 | 2.77 | % |
Federal funds sold |
| 11,977 |
| 280 | 4.68 |
|
| 22,612 |
| 302 | 2.67 |
|
Securities |
| 814,604 |
| 19,888 | 4.88 |
|
| 854,363 |
| 20,030 | 4.69 |
|
Loans (1) |
| 2,000,604 |
| 72,728 | 7.27 |
|
| 1,829,458 |
| 59,919 | 6.55 |
|
Total interest earning assets | $ | 2,850,008 | $ | 93,462 | 6.56 | % | $ | 2,731,737 | $ | 80,602 | 5.90 | % |
NON-INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks | $ | 35,588 |
|
|
|
| $ | 31,378 |
|
|
|
|
Allowance for loan losses |
| (23,022) |
|
|
|
|
| (20,925) |
|
|
|
|
Premises and equipment, net |
| 11,669 |
|
|
|
|
| 10,417 |
|
|
|
|
Other assets |
| 77,157 |
|
|
|
|
| 76,130 |
|
|
|
|
Total non-interest earning assets |
| 101,392 |
|
|
|
|
| 97,000 |
|
|
|
|
Total assets | $ | 2,951,400 |
|
|
|
| $ | 2,828,737 |
|
|
|
|
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings, money markets, and interest bearing demand | $ | 960,182 | $ | 13,121 | 2.73 | % | $ | 982,877 | $ | 9,450 | 1.92 | % |
Certificates of deposit of $100,000 or more |
| 238,422 |
| 4,784 | 4.01 |
|
| 174,735 |
| 2,593 | 2.97 |
|
Other time deposits |
| 570,913 |
| 11,963 | 4.19 |
|
| 474,814 |
| 6,886 | 2.90 |
|
Total interest bearing deposits |
| 1,769,517 |
| 29,868 | 3.38 |
|
| 1,632,426 |
| 18,929 | 2.32 |
|
Borrowed funds |
| 716,785 |
| 18,696 | 5.22 |
|
| 745,537 |
| 18,820 | 5.05 |
|
Subordinated debentures |
| 62,892 |
| 2,666 | 8.48 |
|
| 62,892 |
| 2,263 | 7.20 |
|
Total interest bearing liabilities | $ | 2,549,194 | $ | 51,230 | 4.02 | % | $ | 2,440,855 | $ | 40,012 | 3.28 | % |
NON-INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits | $ | 210,077 |
|
|
|
| $ | 202,412 |
|
|
|
|
Other liabilities |
| 13,867 |
|
|
|
|
| 22,725 |
|
|
|
|
Stockholders' equity |
| 178,262 |
|
|
|
|
| 162,745 |
|
|
|
|
Total non-interest bearing liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity | $ | 402,206 |
|
|
|
| $ | 387,882 |
|
|
|
|
Total liabilities and stockholders' equity | $ | 2,951,400 |
|
|
|
| $ | 2,828,737 |
|
|
|
|
Interest rate spread (2) |
|
|
|
| 2.54 | % |
|
|
|
| 2.62 | % |
Net interest income and margin (3) |
|
| $ | 42,232 | 2.96 | % |
|
| $ | 40,590 | 2.97 | % |
Net interest income and margin |
|
|
|
|
|
|
|
|
|
|
|
|
(tax equivalent basis)(4) |
|
| $ | 43,302 | 3.04 | % |
|
| $ | 41,549 | 3.04 | % |
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include nonaccraul | ||||||||||||
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 $1,070,000 and $959,000 for the six month periods ended June 30, 2006 and 2005, respectively. |