Exhibit 99.1
Bryn Mawr Bank Corporation
| | |
| FOR RELEASE: | | IMMEDIATELY |
| |
| FOR MORE INFORMATION CONTACT: | | Ted Peters, Chairman |
| | 610-581-4800 or |
| | 610-525-2531 (evening) |
| | tpeters@bmtc.com |
| | J. Duncan Smith, CFO |
| | 610-526-2466 or |
| | 610-306-8489 (evening) |
| | jdsmith@bmtc.com |
Bryn Mawr Bank Corporation Reports a 27.8% Increase in First Quarter Diluted Earnings Per Share – Due to a $0.10 per Share Gain on Sale of Real Estate
BRYN MAWR, Pa. April 25, 2007 - Bryn Mawr Bank Corporation, (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today announced financial results for the first quarter ended March 31, 2007.
The Corporation reported first quarter 2007 diluted earnings per share of $0.46, an increase of $0.10 or 27.8% compared to $0.36 in the same period of 2006. Net income for the first quarter of 2007 was $3.976 million, an increase of 26.8% or $840,000, compared to $3.136 million in last year’s first quarter. The primary factor contributing to the increase in earnings for the first quarter of 2007 compared to the same period last year was $0.10 per share or an $866,000 after tax gain on the sale of real estate that previously served as the Bank’s Wynnewood branch location. Excluding the real estate gain, first quarter 2007 diluted earnings per share and net income were $0.36 per share and $3.110 million, respectively, essentially unchanged from first quarter 2006 results.
The Corporation’s Chairman and Chief Executive Officer, Ted Peters, said “The first quarter results are in line with our internal projections. Having anticipated a large one-time gain on the sale of real estate during this first quarter, the Corporation began a number of initiatives in the latter part of 2006. All of these initiatives are expected to be dilutive to earnings in 2007. They include the formation of an equipment leasing company, the start-up of a loan production office in West Chester, the opening of our new Ardmore Office and the re-tooling of our Wealth Services area. In addition, on May 1, 2007, we are starting a Private Banking Group to better meet the needs of our most affluent clients. All of these initiatives should be accretive to earnings in 2008.”
Additionally, first quarter 2007 results reflect the continued unfavorable interest rate environment as net interest income grew only $195,000 or 2.4% from the first quarter of 2006 and actually decreased $49,000 or 0.6% from the fourth quarter of 2006.
Return on average equity (ROE) and return on average assets (ROA) for the quarter ended March 31, 2007 were 19.36% (15.15% excluding the real estate gain) and 2.03% (1.59% excluding the real estate gain), respectively. ROE was 16.27% and ROA was 1.83% for the same period last year. The tax equivalent net interest margin for the first quarter of 2007 was 4.65% compared with 5.22% in the first quarter of 2006. This decrease reflects the Corporation’s need to fund earning asset growth in 2007 with wholesale funding at a rate of 5.42% and a continued change in deposit mix which is discussed later in this release.
The net interest margin of 4.65% for the first quarter of 2007 is unchanged from the fourth quarter of 2006, reflecting higher earning asset yields provided by the leasing company, offset by higher funding costs. Chairman and CEO, Ted Peters commented that, “the leasing company is significantly ahead of plan and is expected to break-even in the third quarter of 2007.”
Total portfolio loans and leases at March 31, 2007 were $691.5 million, an increase of $84.9 million or 14.0% from $606.6 million at March 31, 2006 and an increase of $10.2 million or 6.0% (annualized) from year end balances of $681.3 million. Leases at March 31, 2007 of $16.9
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million were 2.4% of total portfolio loans and leases. The lease portfolio is presently growing at a rate of over $3 million per month. Credit quality on the entire loan and lease portfolio continues to be very strong as nonperforming loans and leases of $417,000 represents less than 0.07% of total loans and leases. The Corporation expects lease charge-offs to increase as the lease portfolio matures and grows over the next two years. However, lease charge-offs are expected to be below industry norms as we have an experienced underwriting team, the lease portfolio is geographically diverse, and the average customer exposure is less than $25,000. At March 31, 2007, the allowance for loan and lease losses of $8.366 million represents 1.21% of portfolio loans and leases compared with 1.19% at December 31, 2006.
Low cost core deposit growth remains extremely difficult as lower cost interest bearing checking, money market and savings balances continue to decline as reflected in the accompanying five quarter average balance sheet presentation. Higher cost time deposits, wholesale deposits and borrowed funds continue to be the incremental funding source for the Corporation’s earning asset growth. Average deposit balances are more indicative of typical funding levels as quarter end customer deposit inflows temporarily boosted overall footings. The Corporation expects the reliance on higher cost wholesale funding sources to continue for the foreseeable future. The Corporation has significant unused wholesale funding capacity from the Federal Home Loan Bank of Pittsburgh, correspondent banks and the institutional CD market.
The Corporation’s plan is to increase core funding, include the opening of a West Chester Branch location in 2008, the refurbishment of the Wayne branch location in the Fall of 2007 and the introduction of “e-Z Banking”, a remote capture product that allows high volume commercial customers to electronically transmit their check deposits from their offices. Once implemented, these plans should have a positive impact on deposit growth over the next few years.
Non-interest income for the first quarter of 2007 excluding the $1.333 million (pre-tax) real estate gain, was $4.813 million, an increase of $214,000 or 4.7% over the $4.599 million in the first quarter of 2006. The primary factor for this increase was first quarter Wealth Division revenue of $3.287 million which was $167,000 or 5.4% higher than the same period last year. As mentioned earlier in this release, the Corporation is investing in additional personnel and
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service enhancements in the Wealth Division with the goal of stronger revenue growth. A slight improvement in mortgage loan sale revenue also contributed to the growth in non-interest income.
Non-interest expense for the first quarter of 2007 was $8.435 million, an increase of $590,000 or 7.5% over $7.845 million in the first quarter of 2006. This increase is due to several factors including staffing costs relating to the leasing company and the West Chester loan production office, annual merit increases, the opening of the Ardmore branch and increased advertising costs and professional fees. The costs of the Wealth Division and Private Banking Group initiatives will be phased in over the second and third quarters of 2007. Fourth quarter 2006 non-interest expense was $7.846 million.
In other business, the Corporation’s Board of Directors declared a regular quarterly dividend of $0.12 per share, payable June 1, 2007, to shareholders of record as of May 7, 2007.
As previously announced, the Corporation will hold an earnings conference call at 4:30 p.m. EDT on Wednesday, April 25, 2007. Interested parties may participate by calling 973-321-1024 at 4:25 p.m. EDT and referencing conference PIN #8718224. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Wednesday, May 10, 2007. The number to call for the taped replay is 973-341-3080 and the conference PIN is 8718224.
The conference call will be simultaneously broadcast live over the Internet through a web cast on the investor relations portion of the Bryn Mawr Bank Corporation’s website. To access the call, please visit the website athttp://www.bmtc.com/investor_01.cfm. An online archive of the web cast will be available within two hours of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.
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This release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Corporation’s Management uses these non-GAAP measures in its analysis of the Corporation’s performance. These non-GAAP measures consist of adjusting net income, diluted earnings per share, ROE, ROA and the efficiency ratio determined in accordance with GAAP to exclude the effects of the real estate gain in the first quarter of 2007. Management believes that the presentation excluding the impact of the real estate gain in the first quarter of 2007 provides useful supplementation information essential to the proper understanding of the operating results of the Corporation’s core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.
This release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words believe, expect, anticipate, intend, plan, target, estimate or words of similar meaning. Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond the Corporation’s control, could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Forward-looking statements speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.
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Bryn Mawr Bank Corporation
Reconcilation of Non-GAAP Information
Three month period ended March 31,
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Income | | Change | | | Non-interest income | | | Change | |
| | | 2007 | | | 2006 | | $ | | | % | | | 2007 | | | 2006 | | | $ | | | % | |
As reported (GAAP) | | $ | 3,976 | | | $ | 3,136 | | $ | 840 | | | 26.8 | % | | $ | 6,146 | | | $ | 4,599 | | | $ | 1,547 | | | 33.6 | % |
| | | | | | | | |
Non-GAAP adjustment1 | | | (866 | ) | | | — | | | (866 | ) | | (27.6 | %) | | $ | 1,333 | | | $ | 0 | | | $ | 1,333 | | | (29.0 | %) |
| | | | | | | | |
Adjusted (Non-GAAP) | | $ | 3,110 | | | $ | 3,136 | | ($ | 26 | ) | | (0.8 | %) | | $ | 4,813 | | | $ | 4,599 | | | $ | 214 | | | 4.7 | % |
| | | | |
| | | Diluted earnings per share | | Change | | | ROE | | | ROA | |
| | | 2007 | | | 2006 | | $ | | | % | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
As reported (GAAP) | | $ | 0.46 | | | $ | 0.36 | | $ | 0.10 | | | 27.8 | % | | | 19.36 | % | | | 16.27 | % | | | 2.03 | % | | 1.83 | % |
| | | | | | | | |
Non-GAAP adjustment1 | | ($ | 0.10 | ) | | | — | | ($ | 0.10 | ) | | (27.8 | %) | | | 4.21 | % | | | 0.00 | % | | | 0.44 | % | | 0.00 | % |
| | | | | | | | |
Adjusted (Non-GAAP) | | $ | 0.36 | | | $ | 0.36 | | $ | 0.00 | | | 0.0 | % | | | 15.15 | % | | | 16.27 | % | | | 1.59 | % | | 1.83 | % |
| | | | | | |
| |
| | | Efficiency Ratio | |
| | | 2007 | | | 2006 | |
As reported (GAAP) | | 58.08 | % | | 61.39 | % |
| | |
Non-GAAP adjustment1 | | 5.88 | % | | 0.00 | % |
| | |
Adjusted (Non-GAAP) | | 63.96 | % | | 61.39 | % |
1 | The non-GAAP adjustment in 2007 represents the reduction of the effect of the after tax gain on sale of real estate of $866,000. |
The gain was calculated as the excess of the net sale proceeds over net book value, less income taxes.
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands, except per share data)
March 31, 2007
(unaudited)
| | | | | | | | | | | | | | | |
| | | For The Three Months Ended |
For the period: | | Mar 31,
2007 | | Dec 31, 2006 | | Sep 30, 2006 | | Jun 30, 2006 | | Mar 31,
2006 |
Interest income | | $ | 12,521 | | $ | 12,446 | | $ | 12,017 | | $ | 11,098 | | $ | 10,345 |
Interest expense | | | 4,145 | | | 4,021 | | | 3,627 | | | 2,795 | | | 2,164 |
| | | | | | | | | | | | | | | |
| | | | | |
Net interest income | | | 8,376 | | | 8,425 | | | 8,390 | | | 8,303 | | | 8,181 |
Provision for loan and lease losses | | | 250 | | | 211 | | | 258 | | | 209 | | | 154 |
| | | | | | | | | | | | | | | |
Net interest income after provision for loan and lease losses | | | 8,126 | | | 8,214 | | | 8,132 | | | 8,094 | | | 8,027 |
| | | | | |
Fees for wealth management services | | | 3,287 | | | 3,241 | | | 3,013 | | | 3,048 | | | 3,120 |
Loan servicing and late fees | | | 280 | | | 283 | | | 271 | | | 282 | | | 290 |
Service charges on deposits | | | 360 | | | 376 | | | 388 | | | 397 | | | 379 |
Net gain on sale of real estate | | | 1,333 | | | | | | | | | | | | |
Net gain on sale of loans | | | 280 | | | 182 | | | 268 | | | 254 | | | 250 |
Other operating income | | | 606 | | | 542 | | | 623 | | | 594 | | | 560 |
| | | | | | | | | | | | | | | |
Noninterest income | | | 6,146 | | | 4,624 | | | 4,563 | | | 4,575 | | | 4,599 |
| | | | | |
Salaries and wages | | | 4,048 | | | 3,982 | | | 4,109 | | | 3,834 | | | 3,829 |
Employee benefits | | | 1,221 | | | 951 | | | 887 | | | 1,131 | | | 1,318 |
Occupancy and bank premises | | | 686 | | | 632 | | | 636 | | | 642 | | | 624 |
Furniture fixtures and equipment | | | 507 | | | 481 | | | 486 | | | 476 | | | 482 |
Advertising | | | 316 | | | 238 | | | 187 | | | 273 | | | 200 |
Amortization of mortgage servicing rights | | | 92 | | | 90 | | | 88 | | | 84 | | | 86 |
Professional fees | | | 401 | | | 225 | | | 285 | | | 209 | | | 297 |
Other expenses | | | 1,164 | | | 1,247 | | | 1,152 | | | 1,253 | | | 1,009 |
| | | | | | | | | | | | | | | |
Noninterest expense | | | 8,435 | | | 7,846 | | | 7,830 | | | 7,902 | | | 7,845 |
| | | | | |
Income before income taxes | | | 5,837 | | | 4,992 | | | 4,865 | | | 4,767 | | | 4,781 |
Income tax expense | | | 1,861 | | | 1,784 | | | 1,630 | | | 1,630 | | | 1,645 |
| | | | | | | | | | | | | | | |
Net income | | $ | 3,976 | | $ | 3,208 | | $ | 3,235 | | $ | 3,137 | | $ | 3,136 |
| | | | | | | | | | | | | | | |
| | | | | |
Per share data: | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | 8,575,172 | | | 8,588,820 | | | 8,575,170 | | | 8,577,365 | | | 8,570,675 |
Dilutive potential common shares | | | 121,519 | | | 120,792 | | | 109,995 | | | 113,690 | | | 109,837 |
| | | | | | | | | | | | | | | |
Adjusted weighted average dilutive shares | | | 8,696,691 | | | 8,709,612 | | | 8,685,165 | | | 8,691,055 | | | 8,680,512 |
| | | | | |
Basic earnings per common share | | $ | 0.46 | | $ | 0.37 | | $ | 0.38 | | $ | 0.37 | | $ | 0.37 |
| | | | | |
Diluted earnings per common share | | $ | 0.46 | | $ | 0.37 | | $ | 0.37 | | $ | 0.36 | | $ | 0.36 |
| | | | | |
Dividend declared per share | | $ | 0.12 | | $ | 0.12 | | $ | 0.12 | | $ | 0.11 | | $ | 0.11 |
Note: Certain prior period amounts have been reclassified to conform to current period presentation.
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands)
March 31, 2007
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | As of | |
Balance Sheet For the period ended: | | Mar 31,
2007 | | | Dec 31,
2006 | | | Sept 30,
2006 | | | Jun 30,
2006 | | | Mar 31,
2006 | |
Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest bearing deposits with banks | | $ | 407 | | | $ | 532 | | | $ | 544 | | | $ | 642 | | | $ | 508 | |
Fed funds sold | | | 7,885 | | | | — | | | | — | | | | — | | | | — | |
Investment securities | | | 45,772 | | | | 48,232 | | | | 51,399 | | | | 45,697 | | | | 41,488 | |
| | | | | |
Loans held for sale | | | 7,448 | | | | 3,726 | | | | 7,621 | | | | 6,369 | | | | 4,061 | |
| | | | | |
Portfolio loans: | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 8,073 | | | | 9,156 | | | | 8,848 | | | | 8,863 | | | | 9,149 | |
Commercial & industrial | | | 179,483 | | | | 175,278 | | | | 177,797 | | | | 166,442 | | | | 165,508 | |
Commercial mortgages | | | 200,121 | | | | 198,407 | | | | 185,234 | | | | 178,253 | | | | 166,816 | |
Construction | | | 74,355 | | | | 74,798 | | | | 74,949 | | | | 65,097 | | | | 49,375 | |
Residential mortgages | | | 105,065 | | | | 103,572 | | | | 107,021 | | | | 108,820 | | | | 106,196 | |
Home equity lines & loans | | | 107,554 | | | | 113,068 | | | | 112,940 | | | | 112,157 | | | | 109,534 | |
Leases | | | 16,898 | | | | 7,012 | | | | 316 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total portfolio loans | | | 691,549 | | | | 681,291 | | | | 667,105 | | | | 639,632 | | | | 606,578 | |
| | | | | |
Earning assets | | | 753,061 | | | | 733,781 | | | | 726,669 | | | | 692,340 | | | | 652,635 | |
| | | | | |
Cash and due from | | | 25,114 | | | | 61,473 | | | | 23,921 | | | | 27,529 | | | | 26,132 | |
Allowance for loan and lease losses | | | (8,366 | ) | | | (8,122 | ) | | | (8,025 | ) | | | (7,779 | ) | | | (7,571 | ) |
Other assets | | | 41,113 | | | | 39,528 | | | | 40,678 | | | | 39,392 | | | | 38,737 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total assets | | $ | 810,922 | | | $ | 826,660 | | | $ | 783,243 | | | $ | 751,482 | | | $ | 709,933 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest-bearing checking | | $ | 130,447 | | | $ | 143,742 | | | $ | 128,707 | | | $ | 134,754 | | | $ | 142,606 | |
Money market | | | 107,919 | | | | 111,338 | | | | 112,360 | | | | 106,401 | | | | 115,920 | |
Savings | | | 40,751 | | | | 40,441 | | | | 41,640 | | | | 43,303 | | | | 44,830 | |
Wholesale deposits | | | 65,270 | | | | 19,976 | | | | 29,963 | | | | 34,951 | | | | 5,000 | |
Time deposits | | | 166,967 | | | | 200,446 | | | | 179,712 | | | | 163,029 | | | | 148,412 | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 511,354 | | | | 515,943 | | | | 492,382 | | | | 482,438 | | | | 456,768 | |
| | | | | |
Non-interest bearing deposits | | | 152,926 | | | | 198,546 | | | | 145,872 | | | | 152,092 | | | | 151,324 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 664,280 | | | | 714,489 | | | | 638,254 | | | | 634,530 | | | | 608,092 | |
| | | | | |
Borrowed funds | | | 45,000 | | | | 15,000 | | | | 46,300 | | | | 22,700 | | | | 8,000 | |
Other liabilities | | | 16,061 | | | | 14,788 | | | | 14,395 | | | | 12,597 | | | | 14,171 | |
Shareholders’ equity | | | 85,581 | | | | 82,383 | | | | 84,294 | | | | 81,655 | | | | 79,670 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 810,922 | | | $ | 826,660 | | | $ | 783,243 | | | $ | 751,482 | | | $ | 709,933 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Balance Sheet (average) | | 2007 1Q | | | 2006 4Q | | | 2006 3Q | | | 2006 2Q | | | 2006 1Q | |
Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest bearing deposits with banks | | $ | 486 | | | $ | 500 | | | $ | 807 | | | $ | 687 | | | $ | 439 | |
Fed funds sold | | | 2,597 | | | | 1,291 | | | | 3,345 | | | | 1,467 | | | | 6,161 | |
Investment securities | | | 47,029 | | | | 51,658 | | | | 49,103 | | | | 44,197 | | | | 37,069 | |
Loans held for sale | | | 3,746 | | | | 4,312 | | | | 5,910 | | | | 3,304 | | | | 3,217 | |
Portfolio loans and leases | | | 684,870 | | | | 669,036 | | | | 645,284 | | | | 617,627 | | | | 595,446 | |
| | | | | | | | | | | | | | | | | | | | |
Earning assets | | | 738,728 | | | | 726,797 | | | | 704,449 | | | | 667,282 | | | | 642,332 | |
| | | | | |
Cash and due from | | | 24,766 | | | | 27,030 | | | | 25,373 | | | | 24,666 | | | | 24,332 | |
Allowance for loan and lease losses | | | (8,254 | ) | | | (8,189 | ) | | | (7,904 | ) | | | (7,686 | ) | | | (7,524 | ) |
Other assets | | | 38,297 | | | | 40,374 | | | | 37,267 | | | | 37,803 | | | | 35,819 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total assets | | $ | 793,537 | | | $ | 786,012 | | | $ | 759,185 | | | $ | 722,065 | | | $ | 694,959 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest-bearing checking | | $ | 133,252 | | | $ | 129,400 | | | $ | 132,826 | | | $ | 140,400 | | | $ | 141,504 | |
Money market | | | 107,978 | | | | 113,608 | | | | 109,595 | | | | 110,710 | | | | 118,365 | |
Savings | | | 40,143 | | | | 40,856 | | | | 42,533 | | | | 43,738 | | | | 45,073 | |
Wholesale deposits | | | 31,573 | | | | 19,957 | | | | 19,956 | | | | 1,425 | | | | — | |
Time deposits | | | 191,838 | | | | 193,166 | | | | 187,083 | | | | 164,803 | | | | 147,610 | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 504,784 | | | | 496,987 | | | | 491,993 | | | | 461,076 | | | | 452,552 | |
| | | | | |
Non-interest bearing deposits | | | 149,420 | | | | 152,822 | | | | 149,465 | | | | 150,586 | | | | 147,274 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 654,204 | | | | 649,809 | | | | 641,458 | | | | 611,662 | | | | 599,826 | |
| | | | | |
Borrowed funds | | | 40,363 | | | | 35,731 | | | | 21,380 | | | | 16,738 | | | | 3,544 | |
Other liabilities | | | 15,704 | | | | 15,702 | | | | 13,966 | | | | 13,487 | | | | 13,419 | |
Shareholders’ equity | | | 83,266 | | | | 84,770 | | | | 82,381 | | | | 80,178 | | | | 78,170 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 793,537 | | | $ | 786,012 | | | $ | 759,185 | | | $ | 722,065 | | | $ | 694,959 | |
| | | | | | | | | | | | | | | | | | | | |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands, except per share data)
March 31, 2007
(unaudited)
| | | | | | | | | | | | | | | | | | |
For the period: | | 2007 1Q | | | 2006 4Q | | | 2006 3Q | | | 2006 2Q | | | 2006 1Q | |
Asset Quality Data | | | | | | | | | | | | | | | | | | |
| | | | | |
Nonaccrual loans and leases | | $ | 371 | | | $ | 704 | | | $ | 794 | | | 866 | | | 773 | |
90 + days past due loans and leases | | | 46 | | | | 119 | | | | 835 | | | 794 | | | 5 | |
| | | | | | | | | | | | | | | | | | |
Nonperforming loans and leases | | $ | 417 | | | $ | 823 | | | $ | 1,629 | | | 1,660 | | | 778 | |
OREO | | | 561 | | | | — | | | | — | | | — | | | 25 | |
| | | | | | | | | | | | | | | | | | |
Nonperforming assets | | $ | 978 | | | $ | 823 | | | $ | 1,629 | | | 1,660 | | | 803 | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
Allowance for loan and lease losses | | $ | 8,366 | | | $ | 8,122 | | | $ | 8,025 | | | 7,779 | | | 7,571 | |
Allowance for loan and lease losses / loans | | | 1.21 | % | | | 1.19 | % | | | 1.20 | % | | 1.22 | % | | 1.25 | % |
Allowance for loan and lease losses / nonperforming loans and leases | | | 2,006 | % | | | 987 | % | | | 493 | % | | 469 | % | | 973 | % |
Nonperforming loans and leases / portfolio loans | | | 0.06 | % | | | 0.12 | % | | | 0.24 | % | | 0.26 | % | | 0.13 | % |
Nonperforming assets / assets | | | 0.12 | % | | | 0.10 | % | | | 0.21 | % | | 0.22 | % | | 0.11 | % |
Net loan and lease charge-offs (recoveries) | | | 6 | | | | 114 | | | | 12 | | | 1 | | | (15 | ) |
Net loan and lease charge-offs (annualized)/ average loans | | | 0.004 | % | | | 0.07 | % | | | 0.01 | % | | NC | * | | NC | * |
| | | | | |
| (NC*- Not calculated as there were no significant charge-offs) | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | 2007 1Q | | | 2006 4Q | | | 2006 3Q | | | 2006 2Q | | | 2006 1Q | |
Selected ratios (annualized): | | | | | | | | | | | | | | | | | | |
| | | | | |
Return on average assets | | | 2.03 | % | | | 1.62 | % | | | 1.69 | % | | 1.74 | % | | 1.83 | % |
Return on average shareholders’ equity | | | 19.36 | % | | | 15.01 | % | | | 15.58 | % | | 15.70 | % | | 16.27 | % |
Yield on interest earning assets* | | | 6.93 | % | | | 6.85 | % | | | 6.82 | % | | 6.72 | % | | 6.58 | % |
Cost of interest bearing funds | | | 3.08 | % | | | 2.99 | % | | | 2.80 | % | | 2.35 | % | | 1.92 | % |
Net interest margin* | | | 4.65 | % | | | 4.65 | % | | | 4.78 | % | | 5.04 | % | | 5.22 | % |
Tier 1 leverage ratio | | | 11.34 | % | | | 11.04 | % | | | 11.12 | % | | 11.39 | % | | 11.53 | % |
Book value per share | | $ | 9.97 | | | $ | 9.62 | | | $ | 9.83 | | | 9.52 | | | 9.29 | |
Tangible book value per share | | $ | 9.97 | | | $ | 9.62 | | | $ | 9.83 | | | 9.52 | | | 9.29 | |
Period end shares outstanding | | | 8,582,172 | | | | 8,562,209 | | | | 8,575,253 | | | 8,575,398 | | | 8,575,555 | |
| | | | | |
Selected data: | | | | | | | | | | | | | | | | | | |
| | | | | |
Mortgage loans originated | | $ | 28,271 | | | $ | 23,030 | | | $ | 37,860 | | | 31,966 | | | 34,451 | |
Mortgage loans sold—servicing retained | | $ | 4,831 | | | $ | 4,242 | | | $ | 6,043 | | | 3,615 | | | 7,010 | |
Mortgage loans sold—servicing released | | $ | 14,844 | | | $ | 15,320 | | | $ | 10,867 | | | 13,127 | | | 7,436 | |
Mortgage loans serviced for others | | $ | 377,512 | | | $ | 382,141 | | | $ | 385,861 | | | 395,091 | | | 409,429 | |
| | | | | |
Wealth assets under management / administration | | $ | 2,522,371 | | | $ | 2,514,824 | | | $ | 2,243,595 | | | 2,195,258 | | | 2,262,064 | |
| * | Yield on interest earning assets and net interest margin are calculated on a tax equivalent basis. |
Quarterly Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1st Quarter 2007 | | | 4rd Quarter 2006 | | | 3rd Quarter 2006 | |
(dollars in thousands) | | Average
Balance | | | Interest
Income/
Expense | | Average Rates
Earned/ Paid | | | Average
Balance | | | Interest
Income/
Expense | | Average Rates
Earned/ Paid | | | Average
Balance | | | Interest
Income/
Expense | | Average Rates
Earned/ Paid | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 486 | | | $ | 6 | | 5.01 | % | | $ | 500 | | | $ | 7 | | 5.55 | % | | $ | 807 | | | $ | 11 | | 5.41 | % |
Federal funds sold | | | 2,597 | | | | 34 | | 5.31 | % | | | 1,291 | | | | 17 | | 5.22 | % | | | 3,345 | | | | 45 | | 5.34 | % |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 42,023 | | | | 529 | | 5.11 | % | | | 46,618 | | | | 567 | | 4.83 | % | | | 44,132 | | | | 503 | | 4.52 | % |
Tax-exempt | | | 5,006 | | | | 58 | | 4.70 | % | | | 5,040 | | | | 58 | | 4.57 | % | | | 4,971 | | | | 58 | | 4.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities available for sale | | | 47,029 | | | | 587 | | 5.06 | % | | | 51,658 | | | | 625 | | 4.80 | % | | | 49,103 | | | | 561 | | 4.53 | % |
| | | | | | | | | |
Loans and leases | | | 688,616 | | | | 11,993 | | 7.06 | % | | | 673,348 | | | | 11,892 | | 7.01 | % | | | 651,194 | | | | 11,494 | | 7.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 738,728 | | | | 12,620 | | 6.93 | % | | | 726,797 | | | | 12,541 | | 6.85 | % | | | 704,449 | | | | 12,111 | | 6.82 | % |
| | | | | | | | | |
Cash and due from banks | | | 24,766 | | | | | | | | | | 27,030 | | | | | | | | | | 25,373 | | | | | | | |
Less allowance for loan and lease losses | | | (8,254 | ) | | | | | | | | | (8,189 | ) | | | | | | | | | (7,904 | ) | | | | | | |
Other assets | | | 38,297 | | | | | | | | | | 40,374 | | | | | | | | | | 37,267 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Total assets | | $ | 793,537 | | | | | | | | | $ | 786,012 | | | | | | | | | $ | 759,185 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Savings, NOW and market rate deposits | | $ | 281,373 | | | $ | 998 | | 1.44 | % | | $ | 283,864 | | | $ | 1,066 | | 1.49 | % | | $ | 284,954 | | | $ | 1,029 | | 1.43 | % |
Wholesale deposits | | | 31,573 | | | | 422 | | 5.42 | % | | | 19,957 | | | | 281 | | 5.59 | % | | | 19,956 | | | | 278 | | 5.53 | % |
Time deposits | | | 191,838 | | | | 2,184 | | 4.62 | % | | | 193,166 | | | | 2,184 | | 4.49 | % | | | 187,083 | | | | 2,026 | | 4.30 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 504,784 | | | | 3,604 | | 2.90 | % | | | 496,987 | | | | 3,531 | | 2.82 | % | | | 491,993 | | | | 3,333 | | 2.69 | % |
| | | | | | | | | |
Short term borrowings | | | 40,363 | | | | 541 | | 5.44 | % | | | 35,731 | | | | 490 | | 5.44 | % | | | 21,380 | | | | 294 | | 5.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 545,147 | | | | 4,145 | | 3.08 | % | | | 532,718 | | | | 4,021 | | 2.99 | % | | | 513,373 | | | | 3,627 | | 2.80 | % |
| | | | | | | | | |
Noninterest-bearing deposits | | | 149,420 | | | | | | | | | | 152,822 | | | | | | | | | | 149,465 | | | | | | | |
Other liabilities | | | 15,704 | | | | | | | | | | 15,702 | | | | | | | | | | 13,966 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 165,124 | | | | | | | | | | 168,524 | | | | | | | | | | 163,431 | | | | | | | |
| | | | | | | | | |
Total liabilities | | | 710,271 | | | | | | | | | | 701,242 | | | | | | | | | | 676,804 | | | | | | | |
| | | | | | | | | |
Shareholders’ equity | | | 83,266 | | | | | | | | | | 84,770 | | | | | | | | | | 82,381 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 793,537 | | | | | | | | | $ | 786,012 | | | | | | | | | $ | 759,185 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Interest income to earning assets | | | — | | | | — | | 6.93 | % | | | — | | | | — | | 6.85 | % | | | — | | | | — | | 6.82 | % |
| | | | | | | | | |
Net interest spread | | | | | | | | | 3.85 | | | | | | | | | | 3.86 | | | | | | | | | | 4.02 | |
Effect of noninterest-bearing sources | | | | | | | | | 0.80 | | | | | | | | | | 0.79 | | | | | | | | | | 0.76 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Net interest income/ margin on earning assets | | | — | | | $ | 8,475 | | 4.65 | % | | | — | | | $ | 8,520 | | 4.65 | % | | | — | | | $ | 8,484 | | 4.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Tax equivalent adjustment | | | | | | $ | 99 | | 0.05 | % | | | | | | $ | 95 | | 0.05 | % | | | | | | $ | 94 | | 0.05 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | 2nd Quarter 2006 | | | 1st Quarter 2006 | |
(dollars in thousands) | | Average
Balance | | | Interest
Income/
Expense | | Average Rates
Earned/ Paid | | | Average
Balance | | | Interest
Income/
Expense | | Average Rates
Earned/ Paid | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 687 | | | $ | 8 | | 4.67 | % | | $ | 439 | | | $ | 5 | | 4.62 | % |
Federal funds sold | | | 1,467 | | | | 18 | | 4.92 | % | | | 6,161 | | | | 66 | | 4.34 | % |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 39,249 | | | | 416 | | 4.25 | % | | | 32,055 | | | | 306 | | 3.87 | % |
Tax-exempt | | | 4,948 | | | | 59 | | 4.78 | % | | | 5,014 | | | | 60 | | 4.85 | % |
| | | | | | | | | | | | | | | | | | | | |
Investment securities available for sale | | | 44,197 | | | | 475 | | 4.31 | % | | | 37,069 | | | | 366 | | 4.00 | % |
| | | | | | |
Loans and leases | | | 620,931 | | | | 10,683 | | 6.90 | % | | | 598,663 | | | | 9,987 | | 6.77 | % |
| | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 667,282 | | | | 11,184 | | 6.72 | % | | | 642,332 | | | | 10,424 | | 6.58 | % |
| | | | | | |
Cash and due from banks | | | 24,666 | | | | | | | | | | 24,332 | | | | | | | |
Less allowance for loan and lease losses | | | (7,686 | ) | | | | | | | | | (7,524 | ) | | | | | | |
Other assets | | | 37,803 | | | | | | | | | | 35,819 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total assets | | $ | 722,065 | | | | | | | | | $ | 694,959 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Savings, NOW and market rate deposits | | $ | 294,848 | | | $ | 914 | | 1.24 | % | | $ | 304,942 | | | $ | 821 | | 1.09 | % |
Wholesale deposits | | | 1,425 | | | | 20 | | 5.63 | % | | | — | | | | — | | | |
Time deposits | | | 164,803 | | | | 1,645 | | 4.00 | % | | | 147,610 | | | | 1,301 | | 3.57 | % |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 461,076 | | | | 2,579 | | 2.24 | % | | | 452,552 | | | | 2,122 | | 1.90 | % |
| | | | | | |
Short term borrowings | | | 16,738 | | | | 216 | | 5.18 | % | | | 3,544 | | | | 42 | | 4.81 | % |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 477,814 | | | | 2,795 | | 2.35 | % | | | 456,096 | | | | 2,164 | | 1.92 | % |
| | | | | | |
Noninterest-bearing deposits | | | 150,586 | | | | | | | | | | 147,274 | | | | | | | |
Other liabilities | | | 13,487 | | | | | | | | | | 13,419 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 164,073 | | | | | | | | | | 160,693 | | | | | | | |
| | | | | | |
Total liabilities | | | 641,887 | | | | | | | | | | 616,789 | | | | | | | |
| | | | | | |
Shareholders’ equity | | | 80,178 | | | | | | | | | | 78,170 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total liabilities and shareholders’ equity | | $ | 722,065 | | | | | | | | | $ | 694,959 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Interest income to earning assets | | | — | | | | — | | 6.72 | % | | | — | | | | — | | 6.58 | % |
| | | | | | |
Net interest spread | | | | | | | | | 4.37 | | | | | | | | | | 4.66 | |
Effect of noninterest-bearing sources | | | | | | | | | 0.67 | | | | | | | | | | 0.56 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net interest income/ margin on earning assets | | | — | | | $ | 8,389 | | 5.04 | % | | | — | | | $ | 8,260 | | 5.22 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Tax equivalent adjustment | | | | | | $ | 86 | | 0.05 | % | | | | | | $ | 79 | | 0.05 | % |
