Exhibit 99.1
YARDVILLE NATIONAL BANCORP ANNOUNCES FOURTH QUARTER AND 2003 RESULTS
Hamilton, N.J.- January 26, 2004- Yardville National Bancorp (NASDAQ:YANB) today announced significantly lower earnings for the quarter ended December 31, 2003 when compared to the same period a year ago, primarily due to charge-offs associated with two loan relationships. As a result, YNB’s net income decreased to $199,000 from the $3.3 million earned in the same period in 2002. Earnings per share on a diluted basis declined to $0.02 compared to $0.38 for the three months ended December 31, 2002.
In the last quarter of 2003, YNB charged off approximately $4.7 million of a $10.2 million commercial loan relationship, after the borrower advised YNB during the quarter that the company had determined to cease operations. As previously disclosed, YNB did not expect recovery of the entire loan relationship, but at this time does not anticipate additional material charge-offs related to it. In addition, approximately $2.0 million of an $8.6 million commercial loan relationship to another borrower was charged off in the fourth quarter of 2003. YNB continues to work closely with the borrower to reach a resolution, but the ultimate collectibility of the balance cannot be determined at this time. The resultant provision for loan losses of $6.1 million for the fourth quarter of 2003, primarily from these two loan relationships, negatively impacted the fourth quarter and earnings for the full year. Overall credit quality, however, has remained relatively strong, with nonperforming assets of $10.6 million, or 0.44 percent of total assets at December 31, 2003 compared to $7.3 million, or 0.33 percent of total assets at the same date in 2002. The allowance for loan losses at December 31, 2003 totaled $17.3 million, or 1.20 percent of total loans, covering 162.5 percent of total nonperforming loans.
“While we are disappointed in our fourth quarter and full year earnings,” stated YNB President and CEO Patrick M. Ryan, “our overall asset quality trends, absent the previously mentioned loan relationships, have remained positive. We will continue our policies of strict loan underwriting standards and anticipate a return to our traditional loan quality performance in 2004,” he added.
YNB did experience net interest income growth of $6.7 million in 2003, primarily due to the continued strong growth in commercial lending and a lower cost of funds. Offsetting the improvement in net interest income, however, was a $5.0 million increase in the provision for loan losses, a $7.1 million increase in non-interest expenses, and a $1.6 million decline in net securities gains. The combination of these factors resulted in lower net income for 2003.
Net income for 2003 decreased $3.7 million to $10.3 million, a 26.4 percent decline from the $14.0 million reported in 2002. Diluted earnings per share decreased 42.3 percent to $0.97 in 2003 from $1.68 in the prior year. The diluted earnings per share decreases, both for the quarter and year, were attributable to both lower net income as noted above and to the greater number of weighted average common shares outstanding resulting from the December 2002 stock offering.
“The rise in non-interest expenses is, in part, due to the ongoing implementation of our retail strategy, designed to ultimately lower our cost of funds and enhance the value of our franchise. Another factor contributing to the increase is the much stricter regulatory environment in which we must function,” Mr. Ryan explained. “We must, therefore, further improve the top-line, or revenue stream, in order to absorb these costs and continue to grow as a supercommunity bank,” he said.
“During 2003, we took actions to improve our net interest margin for 2004,” continued Mr. Ryan. “Ongoing quality commercial loan growth, the improvement in our investment portfolio yield, and a lower cost of funds should have a positive impact on net interest income as we enter the new year,” he added.
YNB also maintained its outstanding growth trend in both loans and deposits for the year ended December 31, 2003. Total loans, led by commercial loans, increased 20.8 percent to $1.44 billion compared with $1.20 billion at the end of 2002. Total deposits at December 31, 2003 increased to $1.48 billion from $1.27 billion a year ago.
“We remain focused on expanding and enhancing our franchise as well as positioning YNB for the future, and our retail strategy is an important part of our growth plans,” further noted Mr. Ryan. “In 2003 we successfully marketed our concept of ‘Banking on a More Personal Level,’ and attracted new deposits in new markets with the promotion of our ‘Simply Better Checking’ product. Increasing our retail presence has further enhanced the value of YNB, and we have targeted additional branch locations for expansion in the future,” he concluded.
During 2003, YNB opened three new branches, including its first branch in Somerset County, New Jersey in the second quarter. In December, YNB completed the first branch acquisition in its history by acquiring the Lawrence branch of First Savings Bank, a subsidiary of First Sentinel Bancorp, Inc. further expanding the bank’s retail network in Mercer County. YNB completed 2003 by opening its second branch in Somerset County – its twenty-second overall – in Hillsborough in the last week of December.
YNB maintained its solid capital foundation in 2003, as all capital ratios exceeded those required by regulatory authorities to be considered well-capitalized. Shareholders were also rewarded in 2003, as YNB paid cash dividends totaling $0.46, an increase of 4.5 percent from cash dividends of $0.44 paid in 2002.
“With 2003 behind us we are confident about our prospects for success in 2004,” said Stephen F. Carman, YNB Executive Vice President and CFO. “We expect the pace of our earnings growth to substantially increase due to our projected commercial loan growth, an anticipated lower cost of funds, and controlled growth of non-interest expenses,” he added. “Further, our balance sheet is positioned to take advantage of gradually increasing interest rates. Finally, based on current internal financial models, we are projecting loans to grow 15 to 20 percent this year, our net interest margin to reach 3.00 percent by the end of 2004, our efficiency ratio to be less than 60 percent, and net income to grow by 25 to 30 percent based on our year-end 2002 earnings of $14.0 million,” he concluded.
With $2.43 billion in assets as of December 31, 2003, YNB serves individuals and small-to mid-sized businesses in the dynamic New York City-Philadelphia corridor through a network of 22 branches in Mercer, Hunterdon, Somerset, Middlesex and Burlington counties in New Jersey and Bucks County in Pennsylvania. Headquartered in Mercer County, YNB emphasizes commercial lending and offers a broad range of lending, deposit and other financial products and services.
Yardville National Bancorp
Summary of Financial Information
(Unaudited)
Three Months Ended | Years Ended | ||||||||||||||||||
December, 31 | December 31, | ||||||||||||||||||
(in thousands, except per share amounts) | 2003 | 2002 | 2003 | 2002 | |||||||||||||||
Stock Information: | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 10,395 | 8,409 | 10,391 | 8,124 | |||||||||||||||
Diluted | 10,748 | 8,621 | 10,652 | 8,319 | |||||||||||||||
Shares outstanding end of period | 10,439 | 10,396 | |||||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.02 | $ | 0.39 | $ | 0.99 | $ | 1.72 | |||||||||||
Diluted | 0.02 | 0.38 | 0.97 | 1.68 | |||||||||||||||
Dividends paid per share | 0.115 | 0.11 | 0.46 | 0.44 | |||||||||||||||
Book value per share | 13.80 | 14.08 | |||||||||||||||||
Tangible book value per share | 13.61 | 14.08 | |||||||||||||||||
Closing price per share | 25.74 | 17.24 | |||||||||||||||||
Closing price to tangible book value | 189.13 | % | 122.44 | % | |||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets | 0.03 | % | 0.60 | % | 0.44 | % | 0.67 | % | |||||||||||
Return on average stockholders’ equity | 0.55 | 11.50 | 7.09 | 13.45 | |||||||||||||||
Net interest margin (tax equivalent) | 2.60 | 2.33 | 2.42 | 2.36 | |||||||||||||||
Equity-to-assets at period end | 5.91 | 6.54 | |||||||||||||||||
Tier 1 leverage ratio (1) | 8.04 | 8.16 | |||||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Net loan charge-offs | $ | 6,875 | $ | 794 | $ | 8,886 | $ | 1,096 | |||||||||||
Nonperforming assets as a percentage of total assets | 0.44 | % | 0.33 | % | |||||||||||||||
Allowance for loan losses at period end as a percent of: | |||||||||||||||||||
Total loans | 1.20 | 1.41 | |||||||||||||||||
Nonperforming loans | 162.55 | 268.11 | |||||||||||||||||
Nonperforming assets at period end: | |||||||||||||||||||
Nonperforming loans | $ | 10,640 | $ | 6,274 | |||||||||||||||
Other real estate | — | 1,048 | |||||||||||||||||
Total nonperforming assets | $ | 10,640 | $ | 7,322 | |||||||||||||||
(1) Tier 1 leverage ratio is Tier 1 capital to adjusted average assets
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended | Years Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2003 | 2002 | 2003 | 2002 | ||||||||||||||
INTEREST INCOME: | ||||||||||||||||||
Interest and fees on loans | $ | 22,623 | $ | 20,190 | $ | 85,529 | $ | 75,395 | ||||||||||
Interest on deposits with banks | 32 | 16 | 121 | 60 | ||||||||||||||
Interest on securities available for sale | 7,956 | 9,455 | 32,213 | 40,498 | ||||||||||||||
Interest on investment securities: | ||||||||||||||||||
Taxable | 42 | 59 | 192 | 690 | ||||||||||||||
Exempt from Federal income tax | 748 | 594 | 2,796 | 2,345 | ||||||||||||||
Interest on Federal funds sold | 59 | 206 | 523 | 1,157 | ||||||||||||||
Total Interest Income | 31,460 | 30,520 | 121,374 | 120,145 | ||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||
Interest on savings account deposits | 2,589 | 2,742 | 10,834 | 11,228 | ||||||||||||||
Interest on certificates of deposit of $100,000 or more | 924 | 1,241 | 4,014 | 5,184 | ||||||||||||||
Interest on other time deposits | 3,405 | 4,278 | 14,521 | 17,747 | ||||||||||||||
Interest on borrowed funds | 8,944 | 9,353 | 35,799 | 36,403 | ||||||||||||||
Interest on subordinated debentures | 789 | 775 | 3,026 | 3,100 | ||||||||||||||
Total Interest Expense | 16,651 | 18,389 | 68,194 | 73,662 | ||||||||||||||
Net Interest Income | 14,809 | 12,131 | 53,180 | 46,483 | ||||||||||||||
Less provision for loan losses | 6,135 | 1,450 | 9,360 | 4,375 | ||||||||||||||
Net Interest Income After Provision for Loan Losses | 8,674 | 10,681 | 43,820 | 42,108 | ||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||
Service charges on deposit accounts | 677 | 562 | 2,388 | 2,203 | ||||||||||||||
Securities gains, net | 249 | 562 | 1,513 | 3,084 | ||||||||||||||
Income on bank owned life insurance | 482 | 418 | 2,036 | 1,678 | ||||||||||||||
Other non-interest income | 472 | 330 | 2,157 | 1,339 | ||||||||||||||
Total Non-Interest Income | 1,880 | 1,872 | 8,094 | 8,304 | ||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||
Salaries and employee benefits | 5,610 | 4,773 | 21,433 | 17,890 | ||||||||||||||
Occupancy expense, net | 1,004 | 939 | 3,934 | 3,507 | ||||||||||||||
Equipment expense | 807 | 688 | 2,955 | 2,423 | ||||||||||||||
Other non-interest expense | 3,277 | 1,658 | 9,837 | 7,224 | ||||||||||||||
Total Non-Interest Expense | 10,698 | 8,058 | 38,159 | 31,044 | ||||||||||||||
Income (loss) before income tax (benefit) expense | (144 | ) | 4,495 | 13,755 | 19,368 | |||||||||||||
Income tax (benefit) expense | (343 | ) | 1,212 | 3,446 | 5,364 | |||||||||||||
Net Income | $ | 199 | $ | 3,283 | $ | 10,309 | $ | 14,004 | ||||||||||
EARNINGS PER SHARE: | ||||||||||||||||||
Basic | $ | 0.02 | $ | 0.39 | $ | 0.99 | $ | 1.72 | ||||||||||
Diluted | 0.02 | 0.38 | 0.97 | 1.68 | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||
Basic | 10,395 | 8,409 | 10,391 | 8,124 | ||||||||||||||
Diluted | 10,748 | 8,621 | 10,652 | 8,319 | ||||||||||||||
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
December 31, | ||||||||||
(in thousands) | 2003 | 2002 | ||||||||
Assets: | ||||||||||
Cash and due from banks | $ | 25,785 | $ | 28,608 | ||||||
Federal funds sold | 7,370 | 72,485 | ||||||||
Cash and Cash Equivalents | 33,155 | 101,093 | ||||||||
Interest bearing deposits with banks | 20,552 | 2,501 | ||||||||
Securities available for sale | 796,579 | 820,665 | ||||||||
Investment securities | 68,686 | 54,690 | ||||||||
Loans | 1,443,355 | 1,195,143 | ||||||||
Less: Allowance for loan losses | (17,295 | ) | (16,821 | ) | ||||||
Loans, net | 1,426,060 | 1,178,322 | ||||||||
Bank premises and equipment, net | 12,307 | 12,208 | ||||||||
Other real estate | — | 1,048 | ||||||||
Bank owned life insurance | 42,816 | 40,850 | ||||||||
Other assets | 29,610 | 20,081 | ||||||||
Total Assets | $ | 2,429,765 | $ | 2,231,458 | ||||||
Liabilities and Stockholders’ Equity: | ||||||||||
Deposits | ||||||||||
Non-interest bearing | $ | 163,812 | $ | 126,183 | ||||||
Interest bearing | 1,319,997 | 1,146,103 | ||||||||
Total Deposits | 1,483,809 | 1,272,286 | ||||||||
Borrowed funds | ||||||||||
Securities sold under agreements to repurchase | 10,000 | 10,000 | ||||||||
Federal Home Loan Bank advances | 726,000 | 746,000 | ||||||||
Obligation for Employee Stock Ownership Plan (ESOP) | 755 | 400 | ||||||||
Other | 1,325 | 1,311 | ||||||||
Total Borrowed Funds | 738,080 | 757,711 | ||||||||
Subordinated debentures | 46,000 | 32,500 | ||||||||
Other liabilities | 18,319 | 23,022 | ||||||||
Total Liabilities | $ | 2,286,208 | $ | 2,085,519 | ||||||
Stockholders’ equity: | ||||||||||
Common stock: no par value | 90,079 | 89,297 | ||||||||
Surplus | 2,205 | 2,205 | ||||||||
Undivided profits | 56,152 | 50,633 | ||||||||
Treasury stock, at cost | (3,160 | ) | (3,154 | ) | ||||||
Unallocated ESOP shares | (755 | ) | (400 | ) | ||||||
Accumulated other comprehensive (loss) income | (964 | ) | 7,358 | |||||||
Total Stockholders’ Equity | 143,557 | 145,939 | ||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,429,765 | $ | 2,231,458 | ||||||
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
December 31, 2003 | December 31, 2002 | |||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||
Average | Yield / | Average | Yield / | |||||||||||||||||||||||
(in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||||||||||
Deposits with other banks | $ | 12,535 | $ | 32 | 1.02 | % | $ | 2,707 | $ | 16 | 2.36 | % | ||||||||||||||
Federal funds sold | 24,413 | 59 | 0.97 | 59,583 | 206 | 1.38 | ||||||||||||||||||||
Securities | 858,333 | 8,746 | 4.08 | 901,554 | 10,108 | 4.48 | ||||||||||||||||||||
Loans (1) | 1,434,531 | 22,623 | 6.31 | 1,171,590 | 20,190 | 6.89 | ||||||||||||||||||||
Total interest earning assets | $ | 2,329,812 | $ | 31,460 | 5.40 | % | $ | 2,135,434 | $ | 30,520 | 5.72 | % | ||||||||||||||
NON-INTEREST EARNING ASSETS: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 26,656 | $ | 24,149 | ||||||||||||||||||||||
Allowance for loan losses | (17,231 | ) | (16,274 | ) | ||||||||||||||||||||||
Premises and equipment, net | 11,967 | 11,867 | ||||||||||||||||||||||||
Other assets | 69,892 | 50,897 | ||||||||||||||||||||||||
Total non-interest earning assets | 91,284 | 70,639 | ||||||||||||||||||||||||
Total assets | $ | 2,421,096 | $ | 2,206,073 | ||||||||||||||||||||||
INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Savings, money markets and interest bearing demand | $ | 736,706 | $ | 2,589 | 1.41 | % | $ | 510,137 | $ | 2,742 | 2.15 | % | ||||||||||||||
Certificates of deposit of $100,000 or more | 131,367 | 924 | 2.81 | 149,628 | 1,241 | 3.32 | ||||||||||||||||||||
Other time deposits | 449,885 | 3,405 | 3.03 | 492,220 | 4,278 | 3.48 | ||||||||||||||||||||
Total interest bearing deposits | 1,317,958 | 6,918 | 2.10 | 1,151,985 | 8,261 | 2.87 | ||||||||||||||||||||
Borrowed funds | 737,558 | 8,944 | 4.85 | 758,000 | 9,353 | 4.94 | ||||||||||||||||||||
Subordinated debentures | 46,000 | 789 | 6.86 | 32,500 | 775 | 9.54 | ||||||||||||||||||||
Total interest bearing liabilities | $ | 2,101,516 | $ | 16,651 | 3.17 | % | $ | 1,942,485 | $ | 18,389 | 3.79 | % | ||||||||||||||
NON-INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||||
Demand deposits | $ | 155,561 | $ | 127,479 | ||||||||||||||||||||||
Other liabilities | 18,458 | 21,882 | ||||||||||||||||||||||||
Stockholders’ equity | 145,561 | 114,227 | ||||||||||||||||||||||||
Total non-interest bearing liabilities and stockholders’ equity | $ | 319,580 | $ | 263,588 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,421,096 | $ | 2,206,073 | ||||||||||||||||||||||
Interest rate spread (2) | 2.23 | % | 1.93 | % | ||||||||||||||||||||||
Net interest income and margin (3) | $ | 14,809 | 2.54 | % | $ | 12,131 | 2.27 | % | ||||||||||||||||||
Net interest income and margin (tax equivalent basis)(4) | $ | 15,153 | 2.60 | % | $ | 12,447 | 2.33 | % | ||||||||||||||||||
(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 34% and has the effect of increasing interest income by $344,000 and $316,000 for the three month periods ended December 31, 2003 and 2002, respectively. |
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Year Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2003 | December 31, 2002 | |||||||||||||||||||||||||
�� | Average | Average | ||||||||||||||||||||||||
Average | Yield / | Average | Yield / | |||||||||||||||||||||||
(in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||||||||||
Deposits with other banks | $ | 10,383 | $ | 121 | 1.17 | % | $ | 2,887 | $ | 60 | 2.08 | % | ||||||||||||||
Federal funds sold | 48,102 | 523 | 1.09 | 72,790 | 1,157 | 1.59 | ||||||||||||||||||||
Securities | 877,456 | 35,201 | 4.01 | 863,695 | 43,533 | 5.04 | ||||||||||||||||||||
Loans (1) | 1,323,243 | 85,529 | 6.46 | 1,085,306 | 75,395 | 6.95 | ||||||||||||||||||||
Total interest earning assets | $ | 2,259,184 | $ | 121,374 | 5.37 | % | $ | 2,024,678 | $ | 120,145 | 5.93 | % | ||||||||||||||
NON-INTEREST EARNING ASSETS: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 25,428 | $ | 22,965 | ||||||||||||||||||||||
Allowance for loan losses | (17,060 | ) | (14,771 | ) | ||||||||||||||||||||||
Premises and equipment, net | 12,085 | 11,363 | ||||||||||||||||||||||||
Other assets | 67,005 | 51,198 | ||||||||||||||||||||||||
Total non-interest earning assets | 87,458 | 70,755 | ||||||||||||||||||||||||
Total assets | $ | 2,346,642 | $ | 2,095,433 | ||||||||||||||||||||||
INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Savings, money markets and interest bearing demand | $ | 662,262 | $ | 10,834 | 1.64 | % | $ | 469,985 | $ | 11,228 | 2.39 | % | ||||||||||||||
Certificates of deposit of $100,000 or more | 137,168 | 4,014 | 2.93 | 148,119 | 5,184 | 3.50 | ||||||||||||||||||||
Other time deposits | 457,717 | 14,521 | 3.17 | 469,858 | 17,747 | 3.78 | ||||||||||||||||||||
Total interest bearing deposits | 1,257,147 | 29,369 | 2.34 | 1,087,962 | 34,159 | 3.14 | ||||||||||||||||||||
Borrowed funds | 742,877 | 35,799 | 4.82 | 735,201 | 36,403 | 4.95 | ||||||||||||||||||||
Subordinated debentures | 39,153 | 3,026 | 7.73 | 32,500 | 3,100 | 9.54 | ||||||||||||||||||||
Total interest bearing liabilities | $ | 2,039,177 | $ | 68,194 | 3.34 | % | $ | 1,855,663 | $ | 73,662 | 3.97 | % | ||||||||||||||
NON-INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||||
Demand deposits | $ | 139,332 | $ | 118,154 | ||||||||||||||||||||||
Other liabilities | 22,728 | 17,493 | ||||||||||||||||||||||||
Stockholders’ equity | 145,405 | 104,123 | ||||||||||||||||||||||||
Total non-interest bearing liabilities and stockholders’ equity | $ | 307,465 | $ | 239,770 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,346,642 | $ | 2,095,433 | ||||||||||||||||||||||
Interest rate spread (2) | 2.03 | % | 1.96 | % | ||||||||||||||||||||||
Net interest income and margin (3) | $ | 53,180 | 2.35 | % | $ | 46,483 | 2.30 | % | ||||||||||||||||||
Net interest income and margin (tax equivalent basis)(4) | $ | 54,599 | 2.42 | % | $ | 47,728 | 2.36 | % | ||||||||||||||||||
(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 34% and has the effect of increasing interest income by $1,419,000 and $1,245,000 for the years ended December 31, 2003 and 2002, respectively. |