Exhibit 99.1
For Release:IMMEDIATELY
Contact: | Stephen F. Carman, VP/Treasurer | (609) 631-6222 orcarmans@yanb.com | ||
Patrick M. Ryan, President and CEO | (609) 631-6177 | |||
Leonardo G. Zangani | (908) 788- 9660 oroffice@zangani.com | |||
Investor Relations on YNB’s website: | www.ynb.com |
YNB REPORTS RECORD SECOND QUARTER EARNINGS
Hamilton, N.J., July 20, 2005 — Yardville National Bancorp (NASDAQ:YANB)today announced double-digit percentage increases in key performance indicators, led by a 26.3 percent increase in second quarter 2005 net income over the same period in 2004. For the quarter ended June 30, 2005, YNB’s net income was $5.6 million, compared with $4.5 million earned in the second quarter of last year. Earnings per share also increased to $0.51 per diluted share, up 24.4 percent over the $0.41 per diluted share reported in the second quarter of 2004.
For the six months ended June 30, 2005, YNB’s net income increased 34.9 percent to $11.2 million from the $8.3 million earned in the same period a year ago. Diluted earnings per share increased 32.5 percent to $1.02 from the $0.77 reported in the prior year’s first half. The ongoing improvement in YNB’s financial performance for the comparable periods is primarily attributable to higher net interest income, partially offset by an increase in non-interest expense.
Loan growth continued, with loans increasing 16.4 percent to $1.90 billion at June 30, 2005 compared to $1.63 billion at June 30, 2004. “We are seeing increased competition for commercial loan business, which is resulting in a slower growth trend,” noted YNB President and Chief Executive Officer Patrick M. Ryan. “As pricing pressure comes into play, we continue to benefit from our established loan relationships, allowing us to maintain our profitability on mutually agreeable terms,” he added.
YNB has also continued to maintain sound overall credit quality. Nonperforming assets decreased to $7.9 million or 0.27 percent of total assets at June 30, 2005, compared to $11.8 million or 0.45 percent of total assets at June 30, 2004. Nonperforming assets totaled $10.0 million at December 31, 2004. At June 30, 2005, YNB’s allowance for loan losses totaled $21.7 million, or 1.15 percent of total loans, covering 274.35 percent of total nonperforming loans. As another indicator of loan quality, YNB’s net loan chargeoffs dropped in the first half of 2005 to $2.0 million compared to $3.2 million in net chargeoffs recorded for the same period of 2004.
For the three months ended June 30, 2005, YNB’s tax equivalent net interest margin improved to 3.07 percent, compared to 2.76 percent for the same period in 2004. “We have had success in achieving our goal of moving YNB’s net interest margin above 3.00 percent. However, several factors could limit further improvement in the net interest margin for the remainder of the year,” Mr. Ryan noted. “These include the impact of increased competition for loans and deposits and the flattening of the yield curve, which affects commercial loan pricing, as well as investment portfolio yields,” he explained.
YNB’s aggressive consumer deposit campaign was a major factor in deposit growth, as deposits rose 13.0 percent to $1.91 billion at June 30, 2005 from $1.69 billion at the same date in 2004. Contributing to this increase were deposits from customers attracted to YNB’s popular new “Simply Better” checking and savings relationship products as well as promotional CD rates.
New branch offices also played a role in the company’s deposit growth. YNB’s Mountain View branch in Ewing Township that opened in December and the expanded, modernized Stelton Road branch in Piscataway have already been positive factors in deposit growth. The newly-opened branch at Pennington Point West, in Northern Mercer County, should contribute going forward as well. In addition, YNB has already announced plans to open several more branches before the end of 2005, with openings planned in the fall for a North Olden Avenue location in Ewing and a branch at the Avalon Run development in Lawrence. YNB’s second Pennsylvania branch, in Morrisville, Bucks County, is scheduled to open in November.
“These new branches and product introductions help us to execute our retail banking strategy,” said YNB’s Senior Executive Vice President and Chief Operating Officer F. Kevin Tylus. “Expansion of the YNB footprint should continue into 2006, as we finalize plans for additional branches in existing and contiguous markets,” he went on.
YNB’s Executive Vice President and Chief Financial Officer Stephen F. Carman provided guidance on the company’s second half prospects. “We believe we are on track to achieve our net income goal for 2005 and are monitoring several factors that could influence these results,” he stated. “In order to reach our income target, we must accomplish loan growth of 10 to 15 percent for the year, modestly improve on our second quarter net interest margin, and experience continued sound credit quality,” he explained. “We also expect our efficiency ratio, which was 54.5 percent for the six month period ended June 30, 2005, to finish the year within our previously stated guidance,” he concluded.
YNB’s capital structure to support future growth remains solid. At June 30, 2005, YNB’s Tier 1 and risk-based capital ratios exceeded those required by regulatory guidelines to be considered well-capitalized. Shareholders were also well-rewarded, as YNB paid a cash dividend for the 46th consecutive quarter.
As of June 30, 2005, YNB had $2.93 billion in assets, with twenty-four branches serving individuals and businesses in Mercer, Hunterdon, Somerset, Burlington and Middlesex Counties in New Jersey, and Bucks County, Pennsylvania, and 7 day a week, twenty-four hour a day banking at www.ynbonline.com. Located in the 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, 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)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share amounts) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Stock Information: | ||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 10,552 | 10,444 | 10,535 | 10,435 | ||||||||||||
Diluted | 11,006 | 10,803 | 10,991 | 10,799 | ||||||||||||
Shares outstanding end of period | 10,572 | 10,478 | ||||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.53 | $ | 0.43 | $ | 1.07 | $ | 0.80 | ||||||||
Diluted | 0.51 | 0.41 | 1.02 | 0.77 | ||||||||||||
Dividends paid per share | 0.115 | 0.115 | 0.23 | 0.23 | ||||||||||||
Book value per share | 16.14 | 13.48 | ||||||||||||||
Tangible book value per share | 15.98 | 13.29 | ||||||||||||||
Closing price per share | 35.75 | 24.95 | ||||||||||||||
Closing price to tangible book value | 223.72 | % | 187.74 | % | ||||||||||||
Key Ratios: | ||||||||||||||||
Return on average assets | 0.79 | % | 0.68 | % | 0.80 | % | 0.65 | % | ||||||||
Return on average stockholders’ equity | 13.61 | 12.48 | 13.82 | 11.46 | ||||||||||||
Net interest margin | 3.00 | 2.70 | 2.97 | 2.66 | ||||||||||||
Net interest margin (tax equivalent) (1) | 3.07 | 2.76 | 3.04 | 2.72 | ||||||||||||
Efficiency ratio | 54.03 | 56.64 | 54.48 | 56.71 | ||||||||||||
Equity-to-assets at period end | 5.82 | 5.30 | ||||||||||||||
Tier 1 leverage ratio (2) | 7.98 | 7.83 | ||||||||||||||
Asset Quality Data: | ||||||||||||||||
Net loan charge-offs | $ | 1,606 | $ | 1,593 | $ | 1,996 | $ | 3,176 | ||||||||
Nonperforming assets as a percentage of total assets | 0.27 | % | 0.45 | % | ||||||||||||
Allowance for loan losses at period end as a percent of: | ||||||||||||||||
Total loans | 1.15 | 1.14 | ||||||||||||||
Nonperforming loans | 274.35 | 156.81 | ||||||||||||||
Nonperforming assets at period end: | ||||||||||||||||
Nonperforming loans | $ | 7,917 | $ | 11,826 | ||||||||||||
Other real estate | — | — | ||||||||||||||
Total nonperforming assets | $ | 7,917 | $ | 11,826 | ||||||||||||
(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 $491,000 and $392,000 for the three months and $959,000 and $802,000 for the six month periods ended June 30, 2005 and 2004, respectively. | |
(2) | 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share amounts) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 31,117 | $ | 24,149 | $ | 59,919 | $ | 47,248 | ||||||||
Interest on deposits with banks | 194 | 59 | 351 | 110 | ||||||||||||
Interest on securities available for sale | 9,154 | 8,631 | 18,170 | 16,796 | ||||||||||||
Interest on investment securities: | ||||||||||||||||
Taxable | 30 | 32 | 56 | 75 | ||||||||||||
Exempt from Federal income tax | 919 | 786 | 1,804 | 1,564 | ||||||||||||
Interest on Federal funds sold | 155 | 44 | 302 | 126 | ||||||||||||
Total Interest Income | 41,569 | 33,701 | 80,602 | 65,919 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Interest on savings account deposits | 4,995 | 2,984 | 9,450 | 5,552 | ||||||||||||
Interest on certificates of deposit of $100,000 or more | 1,400 | 983 | 2,593 | 1,957 | ||||||||||||
Interest on other time deposits | 3,692 | 3,047 | 6,886 | 6,293 | ||||||||||||
Interest on borrowed funds | 9,600 | 8,879 | 18,820 | 17,753 | ||||||||||||
Interest on subordinated debentures | 1,156 | 840 | 2,263 | 1,650 | ||||||||||||
Total Interest Expense | 20,843 | 16,733 | 40,012 | 33,205 | ||||||||||||
Net Interest Income | 20,726 | 16,968 | 40,590 | 32,714 | ||||||||||||
Less provision for loan losses | 2,100 | 1,975 | 3,600 | 4,425 | ||||||||||||
Net Interest Income After Provision for Loan Losses | 18,626 | 14,993 | 36,990 | 28,289 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges on deposit accounts | 687 | 787 | 1,348 | 1,650 | ||||||||||||
Securities gains, net | 283 | — | 476 | 586 | ||||||||||||
Income on bank owned life insurance | 361 | 491 | 804 | 977 | ||||||||||||
Other non-interest income | 596 | 438 | 1,016 | 877 | ||||||||||||
Total Non-Interest Income | 1,927 | 1,716 | 3,644 | 4,090 | ||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||
Salaries and employee benefits | 7,034 | 5,643 | 13,863 | 11,475 | ||||||||||||
Occupancy expense, net | 1,186 | 1,077 | 2,375 | 2,167 | ||||||||||||
Equipment expense | 757 | 816 | 1,533 | 1,610 | ||||||||||||
Other non-interest expense | 3,263 | 3,047 | 6,327 | 5,618 | ||||||||||||
Total Non-Interest Expense | 12,240 | 10,583 | 24,098 | 20,870 | ||||||||||||
Income before income tax expense | 8,313 | 6,126 | 16,536 | 11,509 | ||||||||||||
Income tax expense | 2,677 | 1,664 | 5,287 | 3,169 | ||||||||||||
Net Income | $ | 5,636 | $ | 4,462 | $ | 11,249 | $ | 8,340 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Basic | $ | 0.53 | $ | 0.43 | $ | 1.07 | $ | 0.80 | ||||||||
Diluted | 0.51 | 0.41 | 1.02 | 0.77 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 10,552 | 10,444 | 10,535 | 10,435 | ||||||||||||
Diluted | 11,006 | 10,803 | 10,991 | 10,799 | ||||||||||||
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
June 30, | Dec. 31, | |||||||||||
(in thousands) | 2005 | 2004 | 2004 | |||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 33,334 | $ | 32,629 | $ | 32,115 | ||||||
Federal funds sold | 75,670 | 20,845 | 6,769 | |||||||||
Cash and Cash Equivalents | 109,004 | 53,474 | 38,884 | |||||||||
Interest bearing deposits with banks | 23,204 | 14,798 | 41,297 | |||||||||
Securities available for sale | 751,536 | 817,406 | 802,525 | |||||||||
Investment securities | 83,588 | 69,876 | 78,257 | |||||||||
Loans | 1,895,917 | 1,628,576 | 1,782,592 | |||||||||
Less: Allowance for loan losses | (21,720 | ) | (18,544 | ) | (20,116 | ) | ||||||
Loans, net | 1,874,197 | 1,610,032 | 1,762,476 | |||||||||
Bank premises and equipment, net | 10,318 | 10,898 | 10,431 | |||||||||
Bank owned life insurance | 45,306 | 43,768 | 44,501 | |||||||||
Other assets | 33,260 | 37,152 | 27,546 | |||||||||
Total Assets | $ | 2,930,413 | $ | 2,657,404 | $ | 2,805,917 | ||||||
Liabilities and Stockholders’ Equity: | ||||||||||||
Deposits | ||||||||||||
Non-interest bearing | $ | 218,042 | $ | 199,485 | $ | 202,196 | ||||||
Interest bearing | 1,694,921 | 1,493,903 | 1,607,808 | |||||||||
Total Deposits | 1,912,963 | 1,693,388 | 1,810,004 | |||||||||
Borrowed funds | ||||||||||||
Securities sold under agreements to repurchase | 10,000 | 10,000 | 10,000 | |||||||||
Federal Home Loan Bank advances | 750,000 | 726,000 | 742,000 | |||||||||
Subordinated debentures | 62,892 | 62,892 | 62,892 | |||||||||
Obligation for Employee Stock Ownership Plan (ESOP) | 189 | 566 | 377 | |||||||||
Other | 1,311 | 369 | 753 | |||||||||
Total Borrowed Funds | 824,392 | 799,827 | 816,022 | |||||||||
Other liabilities | 22,390 | 23,247 | 19,733 | |||||||||
Total Liabilities | $ | 2,759,745 | $ | 2,516,462 | $ | 2,645,759 | ||||||
Stockholders’ equity: | ||||||||||||
Common stock: no par value | 93,078 | 90,831 | 91,658 | |||||||||
Surplus | 2,205 | 2,205 | 2,205 | |||||||||
Undivided profits | 78,686 | 62,088 | 69,860 | |||||||||
Treasury stock, at cost | (3,160 | ) | (3,160 | ) | (3,160 | ) | ||||||
Unallocated ESOP shares | (189 | ) | (566 | ) | (377 | ) | ||||||
Accumulated other comprehensive income (loss) | 48 | (10,456 | ) | (28 | ) | |||||||
Total Stockholders’ Equity | 170,668 | 140,942 | 160,158 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,930,413 | $ | 2,657,404 | $ | 2,805,917 | ||||||
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
June 30, 2005 | June 30, 2004 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Average | Yield / | Average | Yield / | |||||||||||||||||||||
(in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Interest bearing deposits with banks | $ | 25,177 | $ | 194 | 3.08 | % | $ | 25,230 | $ | 59 | 0.94 | % | ||||||||||||
Federal funds sold | 21,067 | 155 | 2.94 | 18,146 | 44 | 0.97 | ||||||||||||||||||
Securities | 857,958 | 10,103 | 4.71 | 879,623 | 9,449 | 4.30 | ||||||||||||||||||
Loans (1) | 1,859,969 | 31,117 | 6.69 | 1,594,495 | 24,149 | 6.06 | ||||||||||||||||||
Total interest earning assets | $ | 2,764,171 | $ | 41,569 | 6.02 | % | $ | 2,517,494 | $ | 33,701 | 5.35 | % | ||||||||||||
NON-INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Cash and due from banks | $ | 31,868 | $ | 28,847 | ||||||||||||||||||||
Allowance for loan losses | (21,274 | ) | (18,488 | ) | ||||||||||||||||||||
Premises and equipment, net | 10,401 | 11,244 | ||||||||||||||||||||||
Other assets | 76,715 | 78,071 | ||||||||||||||||||||||
Total non-interest earning assets | 97,710 | 99,674 | ||||||||||||||||||||||
Total assets | $ | 2,861,881 | $ | 2,617,168 | ||||||||||||||||||||
INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings, money markets, and interest bearing demand | $ | 987,686 | $ | 4,995 | 2.02 | % | $ | 870,158 | $ | 2,984 | 1.37 | % | ||||||||||||
Certificates of deposit of $100,000 or more | 180,410 | 1,400 | 3.10 | 157,867 | 983 | 2.49 | ||||||||||||||||||
Other time deposits | 479,910 | 3,692 | 3.08 | 453,126 | 3,047 | 2.69 | ||||||||||||||||||
Total interest bearing deposits | 1,648,006 | 10,087 | 2.45 | 1,481,151 | 7,014 | 1.89 | ||||||||||||||||||
Borrowed funds | 756,815 | 9,600 | 5.07 | 737,275 | 8,879 | 4.82 | ||||||||||||||||||
Subordinated debentures | 62,892 | 1,156 | 7.35 | 49,662 | 840 | 6.77 | ||||||||||||||||||
Total interest bearing liabilities | $ | 2,467,713 | $ | 20,843 | 3.38 | % | $ | 2,268,088 | $ | 16,733 | 2.95 | % | ||||||||||||
NON-INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Demand deposits | $ | 205,839 | $ | 182,637 | ||||||||||||||||||||
Other liabilities | 22,644 | 23,387 | ||||||||||||||||||||||
Stockholders’ equity | 165,685 | 143,056 | ||||||||||||||||||||||
Total non-interest bearing liabilities and stockholders’ equity | $ | 394,168 | $ | 349,080 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,861,881 | $ | 2,617,168 | ||||||||||||||||||||
Interest rate spread (2) | 2.64 | % | 2.40 | % | ||||||||||||||||||||
Net interest income and margin (3) | $ | 20,726 | 3.00 | % | $ | 16,968 | 2.70 | % | ||||||||||||||||
Net interest income and margin (tax equivalent basis)(4) | $ | 21,217 | 3.07 | % | $ | 17,360 | 2.76 | % | ||||||||||||||||
(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 $491,000 and $392,000 for the three month periods ended June 30, 2005 and 2004, respectively. |
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2005 | June 30, 2004 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Average | Yield / | Average | Yield / | |||||||||||||||||||||
(in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Interest bearing deposits with banks | $ | 25,304 | $ | 351 | 2.77 | % | $ | 22,772 | $ | 110 | 0.97 | % | ||||||||||||
Federal funds sold | 22,612 | 302 | 2.67 | 25,814 | 126 | 0.98 | ||||||||||||||||||
Securities | 854,363 | 20,030 | 4.69 | 863,642 | 18,435 | 4.27 | ||||||||||||||||||
Loans (1) | 1,829,458 | 59,919 | 6.55 | 1,548,310 | 47,248 | 6.10 | ||||||||||||||||||
Total interest earning assets | $ | 2,731,737 | $ | 80,602 | 5.90 | % | $ | 2,460,538 | $ | 65,919 | 5.36 | % | ||||||||||||
NON-INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Cash and due from banks | $ | 31,378 | $ | 27,582 | ||||||||||||||||||||
Allowance for loan losses | (20,925 | ) | (18,072 | ) | ||||||||||||||||||||
Premises and equipment, net | 10,417 | 11,747 | ||||||||||||||||||||||
Other assets | 76,130 | 73,190 | ||||||||||||||||||||||
Total non-interest earning assets | 97,000 | 94,447 | ||||||||||||||||||||||
Total assets | $ | 2,828,737 | $ | 2,554,985 | ||||||||||||||||||||
INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings, money markets, and interest bearing demand | $ | 982,877 | $ | 9,450 | 1.92 | % | $ | 821,177 | $ | 5,552 | 1.35 | % | ||||||||||||
Certificates of deposit of $100,000 or more | 174,735 | 2,593 | 2.97 | 154,604 | 1,957 | 2.53 | ||||||||||||||||||
Other time deposits | 474,814 | 6,886 | 2.90 | 453,925 | 6,293 | 2.77 | ||||||||||||||||||
Total interest bearing deposits | 1,632,426 | 18,929 | 2.32 | 1,429,706 | 13,802 | 1.93 | ||||||||||||||||||
Borrowed funds | 745,537 | 18,820 | 5.05 | 737,450 | 17,753 | 4.81 | ||||||||||||||||||
Subordinated debentures | 62,892 | 2,263 | 7.20 | 48,545 | 1,650 | 6.80 | ||||||||||||||||||
Total interest bearing liabilities | $ | 2,440,855 | $ | 40,012 | 3.28 | % | $ | 2,215,701 | $ | 33,205 | 3.00 | % | ||||||||||||
NON-INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Demand deposits | $ | 202,412 | $ | 172,851 | ||||||||||||||||||||
Other liabilities | 22,725 | 20,890 | ||||||||||||||||||||||
Stockholders’ equity | 162,745 | 145,543 | ||||||||||||||||||||||
Total non-interest bearing liabilities and stockholders’ equity | $ | 387,882 | $ | 339,284 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,828,737 | $ | 2,554,985 | ||||||||||||||||||||
Interest rate spread (2) | 2.62 | % | 2.36 | % | ||||||||||||||||||||
Net interest income and margin (3) | $ | 40,590 | 2.97 | % | $ | 32,714 | 2.66 | % | ||||||||||||||||
Net interest income and margin (tax equivalent basis)(4) | $ | 41,549 | 3.04 | % | $ | 33,516 | 2.72 | % | ||||||||||||||||
(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 $959,000 and $802,000 for the six month periods ended June 30, 2005 and 2004, respectively. |