| Exhibit 99.1 |
| For Release: | IMMEDIATELY |
| Contact: | Stephen F. Carman, VP/Treasurer | (609) 631-6222 or carmans@ynb.com |
| Patrick M. Ryan, CEO | (609) 631-6177 |
| YNB’s website | www.ynb.com |
| Investor Relations website | www.zangani.com |
YARDVILLE NATIONAL BANCORP ANNOUNCES FOURTH QUARTER AND 2006 RESULTS
Hamilton, N.J.- January 30, 2007- Yardville National Bancorp (NASDAQ:YANB) today reported earnings for both the fourth quarter and full year ended December 31, 2006. The company noted that in keeping with its retail banking strategy, YNB opened five new banking offices in 2006, two of them in the fourth quarter alone, and completed a restructuring of its balance sheet as announced at the end of December.
For the fourth quarter of 2006, the balance sheet restructuring was the major contributor to YNB’s net loss of $8.7 million and diluted loss per share of $0.79. These results compare with net income of $4.3 million and $0.39 diluted earnings per share for the fourth quarter of 2005. For the full year, primarily due to the restructuring, net income decreased to $6.9 million from the $20.9 million reported in 2005. Diluted earnings per share for the full year decreased to $0.61 compared with $1.89 for the prior year.
Excluding the impact of the one-time charges associated with the restructuring, YNB would have reported fourth quarter net income of approximately $4.2 million or $0.36 per diluted share. Full year net income without the restructuring would have been approximately $19.7 million or $1.74 per diluted share.
“We took significant steps to strengthen our balance sheet at the end of the fourth quarter,” noted YNB Chief Executive Officer Patrick M. Ryan. “We restructured a portion of our balance sheet in order to enhance the company’s net interest margin and improve earnings in 2007 and beyond, which also allowed us to reduce interest rate risk and improve our liquidity position,” he added.
At December 31, 2006, total deposits were $2.00 billion, a net increase of $30.6 million from December 31, 2005. Although net deposit growth was modest in 2006, strong deposit growth in its new branches enabled YNB to substantially reduce its reliance on Federal Home Loan Bank advances and more expensive wholesale funding sources and, in turn, strengthened liquidity.
“By expanding the bank’s market presence in contiguous markets, YNB is able to establish new retail and commercial banking relationships,” explained YNB President and Chief Operating Officer F. Kevin Tylus. “While the marketplace continues to be a competitive one, our brand of high-level personal service has helped us penetrate these markets and gain additional business,” he continued. “We have successfully used our introductory product offerings to cross-sell additional products and services, and expand customer relationships,” he concluded.
In the fourth quarter, YNB opened new branches in Woodbridge, Middlesex County, and Skillman, Somerset County. YNB also opened a new branch in North Brunswick, Middlesex County, in January 2007.
YNB experienced accelerated loan payoffs and intense competition for commercial loans in 2006, both contributing factors in YNB’s flat net loan growth this past year. Total loans at December 31, 2006 held steady year over year, totaling $1.97 billion, the same as at the end of 2005. Nonperforming assets increased to $29.5 million, or 1.12 percent of total assets at December 31, 2006, compared to $20.3 million or 0.68 percent at September 30, 2006. Several credits were placed on nonaccrual status in December of 2006, resulting in the increase in nonperforming assets for the period.
Net loan chargeoffs for the twelve months ended December 31, 2006 totaled $9.5 million, compared with $7.9 million for 2005. YNB’s provision for loan losses for 2006 was $8.8 million compared to $10.5 million for 2005. The allowance for loan losses at December 31, 2006 totaled $22.1 million, or 1.12 percent of total loans, and covered 75.9 percent of total nonperforming loans.
“As many banks have, we continue to feel the effects of the sustained inverted yield curve, which presents a challenge for the financial services industry,” Mr. Ryan stated. “Stiff competition for loans and deposits continues, but as we look forward, we believe in our strength and potential for continued growth in both the commercial and retail banking sectors,” he concluded.
Due in part to the balance sheet restructure completed in December, YNB maintained its 2006 tax-equivalent net interest margin at 3.05 percent, the same as 2005. The full positive effects of the restructure will be realized in the first quarter of 2007.
“The restructuring of our balance sheet should generate higher returns in future quarters,” stated Stephen F. Carman, YNB Chief Financial Officer. “The anticipated improvement in our net interest margin, in 2007 and beyond, is particularly important in the current interest rate environment,” he said. “We anticipate the market challenges we currently face will continue in 2007,” he added, “but we plan to meet these challenges by executing our retail banking strategy and expanding our small business commercial lending efforts,” he said.
At December 31, 2006, YNB’s total risk-based capital was 12.2 percent, Tier 1 capital to risk-weighted assets was 11.2 percent, and Tier 1 capital to average assets was 8.9 percent. For the year, YNB paid cash dividends totaling $0.46 per share. YNB has paid dividends for the past 52 consecutive quarters.
With $2.62 billion in assets as of December 31, 2006, YNB serves individuals and small to mid-sized businesses in the dynamic New York City-Philadelphia corridor through a network of 32 branches in Mercer, Hunterdon, Somerset, Middlesex, Burlington, and Ocean counties in New Jersey and Bucks County in Pennsylvania. Headquartered in Mercer County, YNB offers a broad range of lending, deposit and other financial products and services to both commercial and retail banking customers.
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)
|
| Three Months Ended |
| Twelve Months Ended |
| |||||||
(in thousands, except per share amounts) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| |||
Stock Information: |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 11,002 |
|
| 10,760 |
|
| 10,948 |
|
| 10,609 |
|
Diluted |
| 11,002 |
|
| 11,199 |
|
| 11,350 |
|
| 11,057 |
|
Shares outstanding end of period |
|
|
|
|
|
|
| 11,070 |
|
| 10,915 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic | $ | (0.79 | ) | $ | 0.40 |
| $ | 0.63 |
| $ | 1.97 |
|
Diluted |
| (0.79 | ) |
| 0.39 |
|
| 0.61 |
|
| 1.89 |
|
Dividends paid per share |
| 0.115 |
|
| 0.115 |
|
| 0.46 |
|
| 0.46 |
|
Book value per share |
| 17.03 |
|
| 16.35 |
|
|
|
|
|
|
|
Tangible book value per share |
| 16.90 |
|
| 16.21 |
|
|
|
|
|
|
|
Closing price per share |
| 37.72 |
|
| 34.65 |
|
|
|
|
|
|
|
Closing price to tangible book value |
| 223.20 | % |
| 213.77 | % |
|
|
|
|
|
|
Key Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
| (1.21 | )% |
| 0.58 | % |
| 0.23 | % |
| 0.72 | % |
Return on average stockholders’ equity |
| (18.09 | ) |
| 10.13 |
|
| 3.75 |
|
| 12.57 |
|
Net interest margin |
| 3.01 |
|
| 3.03 |
|
| 2.97 |
|
| 2.98 |
|
Net interest margin (tax equivalent) (1) |
| 3.09 |
|
| 3.10 |
|
| 3.05 |
|
| 3.05 |
|
Efficiency ratio |
| 180.37 |
|
| 53.41 |
|
| 83.05 |
|
| 54.69 |
|
Equity-to-assets at period end |
| 7.16 |
|
| 6.00 |
|
|
|
|
|
|
|
Tier 1 leverage ratio (2) |
| 8.89 |
|
| 8.32 |
|
|
|
|
|
|
|
Asset Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs | $ | 2,892 |
| $ | 4,799 |
| $ | 9,490 |
| $ | 7,943 |
|
Nonperforming assets as a percentage of total assets |
| 1.12 | % |
| 0.63 | % |
|
|
|
|
|
|
Allowance for loan losses at period end as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
| 1.12 |
|
| 1.15 |
|
|
|
|
|
|
|
Nonperforming loans |
| 75.89 |
|
| 121.97 |
|
|
|
|
|
|
|
Nonperforming assets at period end: |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans | $ | 29,074 |
| $ | 18,613 |
|
|
|
|
|
|
|
Other real estate |
| 385 |
|
| — |
|
|
|
|
|
|
|
Total nonperforming assets | $ | 29,459 |
| $ | 18,613 |
|
|
|
|
|
|
|
(1) The net interest margin is equal to net interest income divided by average interest earning assets. In order to |
make 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 the appropriate Federal income tax rate for the period, |
and has the effect of increasing interest income by $540,000 and $513,000 for the three month periods and |
$2,154,000 and $1,974,000 for the twelve month periods ended December 31, 2006 and 2005, respectively. |
|
(2) Tier 1 leverage ratio is Tier 1 capital to adjusted quarterly average assets. |
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
(in thousands, except per share amounts) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
| $ | 37,400 |
| $ | 34,980 |
| $ | 148,190 |
| $ | 127,684 |
|
Interest on deposits with banks |
|
| 734 |
|
| 279 |
|
| 1,979 |
|
| 1,027 |
|
Interest on securities available for sale |
|
| 7,667 |
|
| 9,498 |
|
| 34,304 |
|
| 36,983 |
|
Interest on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 14 |
|
| 27 |
|
| 85 |
|
| 109 |
|
Exempt from Federal income tax |
|
| 1,059 |
|
| 973 |
|
| 4,138 |
|
| 3,734 |
|
Interest on Federal funds sold |
|
| 314 |
|
| 154 |
|
| 835 |
|
| 730 |
|
Total Interest Income |
|
| 47,188 |
|
| 45,911 |
|
| 189,531 |
|
| 170,267 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on savings account deposits |
|
| 7,279 |
|
| 5,675 |
|
| 27,461 |
|
| 20,757 |
|
Interest on certificates of deposit of $100,000 or more |
|
| 3,036 |
|
| 2,416 |
|
| 10,706 |
|
| 6,992 |
|
Interest on other time deposits |
|
| 7,487 |
|
| 5,250 |
|
| 26,626 |
|
| 16,432 |
|
Interest on borrowed funds |
|
| 7,244 |
|
| 9,557 |
|
| 35,117 |
|
| 38,114 |
|
Interest on subordinated debentures |
|
| 1,414 |
|
| 1,279 |
|
| 5,491 |
|
| 4,759 |
|
Total Interest Expense |
|
| 26,460 |
|
| 24,177 |
|
| 105,401 |
|
| 87,054 |
|
Net Interest Income |
|
| 20,728 |
|
| 21,734 |
|
| 84,130 |
|
| 83,213 |
|
Less provision for loan losses |
|
| 2,575 |
|
| 4,830 |
|
| 8,850 |
|
| 10,530 |
|
Net Interest Income After Provision for Loan Losses |
|
| 18,153 |
|
| 16,904 |
|
| 75,280 |
|
| 72,683 |
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
| 668 |
|
| 709 |
|
| 2,840 |
|
| 2,819 |
|
Securities (losses) gains, net |
|
| (6,523 | ) |
| 112 |
|
| (6,523 | ) |
| 862 |
|
Income on bank owned life insurance |
|
| 484 |
|
| 396 |
|
| 1,799 |
|
| 1,651 |
|
Other non-interest income |
|
| 961 |
|
| 587 |
|
| 2,642 |
|
| 2,158 |
|
Total Non-Interest (Loss) Income |
|
| (4,410 | ) |
| 1,804 |
|
| 758 |
|
| 7,490 |
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 7,152 |
|
| 6,352 |
|
| 29,800 |
|
| 27,654 |
|
Occupancy expense, net |
|
| 1,640 |
|
| 1,315 |
|
| 6,016 |
|
| 4,934 |
|
Equipment expense |
|
| 851 |
|
| 889 |
|
| 3,297 |
|
| 3,173 |
|
Loss on prepayment of FHLB advances |
|
| 15,271 |
|
| — |
|
| 15,271 |
|
| — |
|
Other non-interest expense |
|
| 4,519 |
|
| 4,015 |
|
| 16,119 |
|
| 13,841 |
|
Total Non-Interest Expense |
|
| 29,433 |
|
| 12,571 |
|
| 70,503 |
|
| 49,602 |
|
(Loss) income before income tax (benefit) expense |
|
| (15,690 | ) |
| 6,137 |
|
| 5,535 |
|
| 30,571 |
|
Income tax (benefit) expense |
|
| (7,027 | ) |
| 1,804 |
|
| (1,355 | ) |
| 9,637 |
|
Net (loss) income |
| $ | (8,663 | ) | $ | 4,333 |
| $ | 6,890 |
| $ | 20,934 |
|
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (0.79 | ) | $ | 0.40 |
| $ | 0.63 |
| $ | 1.97 |
|
Diluted |
|
| (0.79 | ) |
| 0.39 |
|
| 0.61 |
|
| 1.89 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 11,002 |
|
| 10,760 |
|
| 10,948 |
|
| 10,609 |
|
Diluted |
|
| 11,002 |
|
| 11,199 |
|
| 11,350 |
|
| 11,057 |
|
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
|
| Year Ended December 31, |
| ||||
(in thousands) |
| 2006 |
| 2005 |
| ||
Assets: |
|
|
|
|
|
|
|
Cash and due from banks |
| $ | 30,355 |
| $ | 52,686 |
|
Federal funds sold |
|
| 3,265 |
|
| 10,800 |
|
Cash and Cash Equivalents |
|
| 33,620 |
|
| 63,486 |
|
Interest bearing deposits with banks |
|
| 32,358 |
|
| 16,408 |
|
Securities available for sale |
|
| 402,641 |
|
| 741,668 |
|
Investment securities |
|
| 96,072 |
|
| 89,026 |
|
Loans |
|
| 1,972,881 |
|
| 1,972,840 |
|
Less: Allowance for loan losses |
|
| (22,063 | ) |
| (22,703 | ) |
Loans, net |
|
| 1,950,818 |
|
| 1,950,137 |
|
Bank premises and equipment, net |
|
| 12,067 |
|
| 11,697 |
|
Other real estate |
|
| 385 |
|
| — |
|
Bank owned life insurance |
|
| 49,651 |
|
| 46,152 |
|
Other assets |
|
| 44,744 |
|
| 38,157 |
|
Total Assets |
| $ | 2,622,356 |
| $ | 2,956,731 |
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
Non-interest bearing |
| $ | 197,126 |
| $ | 232,269 |
|
Interest bearing |
|
| 1,806,157 |
|
| 1,740,448 |
|
Total Deposits |
|
| 2,003,283 |
|
| 1,972,717 |
|
Borrowed funds |
|
|
|
|
|
|
|
Securities sold under agreements to repurchase |
|
| 10,000 |
|
| 10,000 |
|
Federal Home Loan Bank advances |
|
| 324,000 |
|
| 704,000 |
|
Subordinated debentures |
|
| 62,892 |
|
| 62,892 |
|
Obligation for Employee Stock Ownership Plan (ESOP) |
|
| 1,688 |
|
| 2,250 |
|
Other |
|
| 1,593 |
|
| 1,870 |
|
Total Borrowed Funds |
|
| 400,173 |
|
| 781,012 |
|
Other liabilities |
|
| 31,181 |
|
| 25,544 |
|
Total Liabilities |
| $ | 2,434,637 |
| $ | 2,779,273 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Common stock: no par value |
|
| 108,728 |
|
| 105,122 |
|
Surplus |
|
| 2,205 |
|
| 2,205 |
|
Undivided profits |
|
| 87,725 |
|
| 85,896 |
|
Treasury stock, at cost |
|
| (3,160 | ) |
| (3,160 | ) |
Unallocated ESOP shares |
|
| (1,688 | ) |
| (2,250 | ) |
Accumulated other comprehensive loss, net of taxes |
|
| (6,091 | ) |
| (10,355 | ) |
Total Stockholders’ Equity |
|
| 187,719 |
|
| 177,458 |
|
Total Liabilities and Stockholders’ Equity |
| $ | 2,622,356 |
| $ | 2,956,731 |
|
Yardville National Bancorp and Subsidiaries
Calculation of Adjusted Net Income (Loss)
(Unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||
(in thousands, except per share amounts) |
| December 31, 2006 |
| December 31, 2006 |
| ||
Net (Loss) Income as Reported |
|
| (8,663 | ) |
| 6,890 |
|
Adjustments: |
|
|
|
|
|
|
|
Securities losses on restructure |
|
| 6,523 |
|
| 6,523 |
|
Loss on prepayment of FHLB advances |
|
| 15,271 |
|
| 15,271 |
|
Income tax benefit |
|
| (8,977 | ) |
| (8,977 | ) |
Net Income - as adjusted |
| $ | 4,154 |
| $ | 19,707 |
|
EARNINGS PER SHARE - As reported |
|
|
|
|
|
|
|
Basic |
|
| ($0.79 | ) | $ | 0.63 |
|
Diluted |
|
| (0.79 | ) |
| 0.61 |
|
Weighted average shares outstanding - As reported |
|
|
|
|
|
|
|
Basic |
|
| 11,002 |
|
| 10,948 |
|
Diluted |
|
| 11,002 |
|
| 11,350 |
|
EARNINGS PER SHARE - As adjusted |
|
|
|
|
|
|
|
Basic |
| $ | 0.38 |
| $ | 1.80 |
|
Diluted |
|
| 0.36 |
|
| 1.74 |
|
Weighted average shares outstanding - As adjusted |
|
|
|
|
|
|
|
Basic |
|
| 11,002 |
|
| 10,948 |
|
Diluted |
|
| 11,397 |
|
| 11,350 |
|
The above table excludes the impact of the balance sheet restructuring which management believes should be |
excluded in order to provide investors with a clear understanding of the results of the Company's normal |
operations. These items, which are included in the financial results prepared in accordance with U.S. Generally |
Accepted Accounting Principles but which are excluded from adjusted results are described more fully in |
the attached press release. |
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
|
| Three Months Ended |
| Three Months Ended |
| ||||||||||||
|
| Average |
|
|
| Average |
| Average |
|
|
| Average |
| ||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks |
| $ | 55,187 |
| $ | 734 |
| 5.32 | % | $ | 26,672 |
| $ | 279 |
| 4.18 | % |
Federal funds sold |
|
| 23,694 |
|
| 314 |
| 5.30 |
|
| 15,494 |
|
| 154 |
| 3.98 |
|
Securities |
|
| 701,895 |
|
| 8,740 |
| 4.98 |
|
| 867,286 |
|
| 10,498 |
| 4.84 |
|
Loans (1) |
|
| 1,974,176 |
|
| 37,400 |
| 7.58 |
|
| 1,964,298 |
|
| 34,980 |
| 7.12 |
|
Total interest earning assets |
| $ | 2,754,952 |
| $ | 47,188 |
| 6.85 | % | $ | 2,873,750 |
| $ | 45,911 |
| 6.39 | % |
NON-INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| $ | 31,033 |
|
|
|
|
|
| $ | 36,418 |
|
|
|
|
|
|
Allowance for loan losses |
|
| (22,583 | ) |
|
|
|
|
|
| (23,451 | ) |
|
|
|
|
|
Premises and equipment, net |
|
| 12,014 |
|
|
|
|
|
|
| 11,536 |
|
|
|
|
|
|
Other assets |
|
| 77,006 |
|
|
|
|
|
|
| 76,253 |
|
|
|
|
|
|
Total non-interest earning assets |
|
| 97,470 |
|
|
|
|
|
|
| 100,756 |
|
|
|
|
|
|
Total assets |
| $ | 2,852,422 |
|
|
|
|
|
| $ | 2,974,506 |
|
|
|
|
|
|
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, money markets, and interest bearing demand |
| $ | 938,862 |
| $ | 7,279 |
| 3.10 | % | $ | 967,768 |
| $ | 5,675 |
| 2.35 | % |
Certificates of deposit of $100,000 or more |
|
| 249,603 |
|
| 3,036 |
| 4.87 |
|
| 254,718 |
|
| 2,416 |
| 3.79 |
|
Other time deposits |
|
| 624,521 |
|
| 7,487 |
| 4.80 |
|
| 544,365 |
|
| 5,250 |
| 3.86 |
|
Total interest bearing deposits |
|
| 1,812,986 |
|
| 17,802 |
| 3.93 |
|
| 1,766,851 |
|
| 13,341 |
| 3.02 |
|
Borrowed funds |
|
| 563,521 |
|
| 7,244 |
| 5.14 |
|
| 728,896 |
|
| 9,557 |
| 5.24 |
|
Subordinated debentures |
|
| 62,892 |
|
| 1,414 |
| 8.99 |
|
| 62,892 |
|
| 1,279 |
| 8.13 |
|
Total interest bearing liabilities |
| $ | 2,439,399 |
| $ | 26,460 |
| 4.34 | % | $ | 2,558,639 |
| $ | 24,177 |
| 3.78 | % |
NON-INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
| $ | 204,416 |
|
|
|
|
|
| $ | 221,452 |
|
|
|
|
|
|
Other liabilities |
|
| 17,019 |
|
|
|
|
|
|
| 23,324 |
|
|
|
|
|
|
Stockholders' equity |
|
| 191,588 |
|
|
|
|
|
|
| 171,091 |
|
|
|
|
|
|
Total non-interest bearing liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity |
| $ | 413,023 |
|
|
|
|
|
| $ | 415,867 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
| $ | 2,852,422 |
|
|
|
|
|
| $ | 2,974,506 |
|
|
|
|
|
|
Interest rate spread (2) |
|
|
|
|
|
|
| 2.51 | % |
|
|
|
|
|
| 2.61 | % |
Net interest income and margin (3) |
|
|
|
| $ | 20,728 |
| 3.01 | % |
|
|
| $ | 21,734 |
| 3.03 | % |
Net interest income and margin (tax equivalent basis)(4) |
|
|
|
| $ | 21,268 |
| 3.09 | % |
|
|
| $ | 22,247 |
| 3.10 | % |
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances |
include nonaccrual balances with no related interest income. |
(2) The interest rate spread is the difference between the average yield on interest earning assets and 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 make 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 the appropriate Federal |
income tax rate for the period, and has the effect of increasing interest income by $540,000 and $513,000 for the three month periods ended |
December 31, 2006 and 2005, respectively. |
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
|
| Twelve Months Ended |
| Twelve Months Ended |
| ||||||||||||
|
| Average |
|
|
| Average |
| Average |
|
|
| Average |
| ||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits with banks |
| $ | 37,321 |
| $ | 1,979 |
| 5.30 | % | $ | 30,534 |
| $ | 1,027 |
| 3.36 | % |
Federal funds sold |
|
| 16,475 |
|
| 835 |
| 5.07 |
|
| 23,112 |
|
| 730 |
| 3.16 |
|
Securities |
|
| 782,531 |
|
| 38,527 |
| 4.92 |
|
| 860,430 |
|
| 40,826 |
| 4.74 |
|
Loans (1) |
|
| 1,995,515 |
|
| 148,190 |
| 7.43 |
|
| 1,880,166 |
|
| 127,684 |
| 6.79 |
|
Total interest earning assets |
| $ | 2,831,842 |
| $ | 189,531 |
| 6.69 | % | $ | 2,794,242 |
| $ | 170,267 |
| 6.09 | % |
NON-INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| $ | 33,735 |
|
|
|
|
|
| $ | 32,939 |
|
|
|
|
|
|
Allowance for loan losses |
|
| (23,019 | ) |
|
|
|
|
|
| (21,823 | ) |
|
|
|
|
|
Premises and equipment, net |
|
| 11,791 |
|
|
|
|
|
|
| 10,716 |
|
|
|
|
|
|
Other assets |
|
| 77,827 |
|
|
|
|
|
|
| 76,561 |
|
|
|
|
|
|
Total non-interest earning assets |
|
| 100,334 |
|
|
|
|
|
|
| 98,393 |
|
|
|
|
|
|
Total assets |
| $ | 2,932,176 |
|
|
|
|
|
| $ | 2,892,635 |
|
|
|
|
|
|
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, money markets, and interest bearing demand |
| $ | 948,828 |
| $ | 27,461 |
| 2.89 | % | $ | 985,346 |
| $ | 20,757 |
| 2.11 | % |
Certificates of deposit of $100,000 or more |
|
| 244,662 |
|
| 10,706 |
| 4.38 |
|
| 208,521 |
|
| 6,992 |
| 3.35 |
|
Other time deposits |
|
| 596,517 |
|
| 26,626 |
| 4.46 |
|
| 497,530 |
|
| 16,432 |
| 3.30 |
|
Total interest bearing deposits |
|
| 1,790,007 |
|
| 64,793 |
| 3.62 |
|
| 1,691,397 |
|
| 44,181 |
| 2.61 |
|
Borrowed funds |
|
| 671,656 |
|
| 35,117 |
| 5.23 |
|
| 740,075 |
|
| 38,114 |
| 5.15 |
|
Subordinated debentures |
|
| 62,892 |
|
| 5,491 |
| 8.73 |
|
| 62,892 |
|
| 4,759 |
| 7.57 |
|
Total interest bearing liabilities |
| $ | 2,524,555 |
| $ | 105,401 |
| 4.18 | % | $ | 2,494,364 |
| $ | 87,054 |
| 3.49 | % |
NON-INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
| $ | 209,160 |
|
|
|
|
|
| $ | 209,179 |
|
|
|
|
|
|
Other liabilities |
|
| 14,946 |
|
|
|
|
|
|
| 22,520 |
|
|
|
|
|
|
Stockholders' equity |
|
| 183,515 |
|
|
|
|
|
|
| 166,572 |
|
|
|
|
|
|
Total non-interest bearing liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity |
| $ | 407,621 |
|
|
|
|
|
| $ | 398,271 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
| $ | 2,932,176 |
|
|
|
|
|
| $ | 2,892,635 |
|
|
|
|
|
|
Interest rate spread (2) |
|
|
|
|
|
|
| 2.51 | % |
|
|
|
|
|
| 2.60 | % |
Net interest income and margin (3) |
|
|
|
| $ | 84,130 |
| 2.97 | % |
|
|
| $ | 83,213 |
| 2.98 | % |
Net interest income and margin (tax equivalent basis)(4) |
|
|
|
| $ | 86,284 |
| 3.05 | % |
|
|
| $ | 85,187 |
| 3.05 | % |
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances |
include nonaccrual balances with no related interest income. |
(2) The interest rate spread is the difference between the average yield on interest earning assets and 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 make pre-tax income and resultant yields on tax-exempt investments and loans on a basis comparable to those on taxable investments and |
and loans, a tax equivalent adjustment is made to interest income. The tax equivalent adjustment has been computed using the appropriate Federal |
income tax rate for the period, and has the effect of increasing interest income by $2,154,000 and $1,974,000 for the twelve month periods ended |
December 31, 2006 and 2005, respectively. |