News Release
| For Immediate Release: | For More Information, |
| October 28, 2008 | Contact: Jerry L. Ocheltree |
| | 910-576-6171 |
First Bancorp Reports Third Quarter Results
TROY, N.C. – First Bancorp (NASDAQ - FBNC), the parent company of First Bank, reports that net income for the third quarter of 2008 amounted to $6,197,000, or $0.37 per diluted share. This represents an increase in net income of 7.9% and a decrease in diluted earnings per share of 7.5% from the $5,743,000, or $0.40 per diluted share, reported in the third quarter of 2007. For the nine months ended September 30, 2008, the Company reports net income of $17,004,000, or $1.07 per diluted share. This represents an increase in net income of 6.0% and a decrease in diluted earnings per share of 3.6% from the net income of $16,048,000, or $1.11 per diluted share, reported for the first nine months of 2007. The 2008 earnings reflect the impact of the acquisition of Great Pee Dee Bancorp, which had $213 million in total assets as of the acquisition date of April 1, 2008, and resulted in the issuance of 2,059,091 shares of First Bancorp common stock.
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2008 amounted to $22.8 million, a 12.9% increase over the $20.2 million recorded in the third quarter of 2007. Net interest income for the nine months ended September 30, 2008 amounted to $64.1 million, a 9.1% increase over the $58.7 million recorded in the same nine month period in 2007.
The increases in net interest income during 2008 were primarily due to growth in loans and deposits. Also, during the second and third quarters of 2008, the Company recorded non-cash net interest income purchase accounting adjustments related to the Great Pee Dee acquisition totaling $366,000 in each quarter, which increased net interest income. The largest of the adjustments relates to recording the Great Pee Dee time deposit portfolio at fair market value. This adjustment was $1.1 million and is being amortized to reduce interest expense over a total of eleven months, or $100,000 per month, until March 2009.
The impact of the growth in loans and deposits on net interest income was partially offset by a decline in the Company’s net interest margin (tax-equivalent net interest income divided by average earning assets). The Company’s net interest margin for the third quarter of 2008 was 3.79%, a 21 basis point decline from the 4.00% margin realized in the third quarter of 2007. The Company’s net interest margin for the first nine months of 2008 was 3.76% compared to 4.00% for the same nine months of 2007. The Company’s net interest margin has been negatively impacted by the Federal Reserve lowering interest rates by a total of 325 basis points from September 2007 to September 2008. When interest rates are lowered, the Company’s net interest margin declines, at least temporarily, as most of the Company’s adjustable rate loans reprice downward immediately, while rates on the Company’s customer time deposits are fixed, and thus do not adjust downward until they mature.
The Company’s net interest margin of 3.79% realized for the third quarter of 2008 was an eight basis point increase from the margin realized in the second quarter of 2008. With no changes in the prime rate of interest during the third quarter of 2008, this margin increase was primarily due to the Company’s ability to reprice time deposits that matured during the quarter at lower interest rates.
As a result of the 50 basis point cut in interest rates announced by the Federal Reserve on October 8, 2008, the Company expects that its net interest margin will decline in the fourth quarter.
Provision for Loan Losses and Asset Quality
The Company’s provision for loan losses amounted to $2,851,000 in the third quarter of 2008 compared to $1,299,000 in the third quarter of 2007. The provision for loan losses for the nine month period ended September 30, 2008 was $6,443,000 compared to $3,742,000 recorded in the first nine months of 2007. The higher provisions in 2008 are primarily related to negative trends in asset quality.
Although the Company has no subprime exposure, the current economic environment has resulted in an increase in the Company’s delinquencies and classified assets. At September 30, 2008, the Company’s nonperforming assets were $24.1 million compared to $9.0 million at September 30, 2007. At September 30, 2008, approximately $4.3 million of the Company’s nonaccrual loans outstanding related to loans assumed in the acquisition of Great Pee Dee. The total amount receivable related to those loans was $9.0 million at September 30, 2008, the balances of which were written down as of the date of the acquisition by $4.7 million in accordance with applicable accounting requirements.
The Company’s nonperforming assets to total assets ratio was 0.89% at September 30, 2008 compared to 0.39% at September 30, 2007. The Company’s ratio of annualized net charge-offs to average loans was 0.18% for the third quarter of 2008 compared to 0.17% in the third quarter of 2007. For the nine months ended September 30, 2008, the Company’s ratio of annualized net charge-offs to average loans was 0.17% compared to 0.15% in the comparable period of 2007.
Although the Company’s asset quality ratios discussed above reflect unfavorable trends, they remain superior to those of the Company’s peers based on public information available. The table below shows how the Company’s ratios compare to Federal Reserve data for all bank holding companies with between $1 billion and $3 billion in assets at June 30, 2008 (the most recent information available):
| | | |
| Nonperforming assets to total assets | 0.78% | 1.53% |
| Annualized net charge-offs to average loans | 0.16% | 0.39% |
Noninterest Income
Noninterest income amounted to $5.4 million for the third quarter of 2008, a 27.1% increase from the $4.3 million recorded in the third quarter of 2007. Noninterest income for the nine months ended September 30, 2008 amounted to $16.1 million, an increase of 20.8% from the $13.4 million recorded in the first nine months of 2007. The increases in noninterest income in 2008 primarily relate to increases in service charges on deposit accounts. These higher service charges were primarily associated with the Company expanding the availability of its customer overdraft protection program in the fourth quarter of 2007 to include debit card purchases and ATM
withdrawals. Previously the overdraft protection program, in which the Company charges a fee for honoring payments on overdrawn accounts, only applied to written checks.
Noninterest Expenses
Noninterest expenses amounted to $15.5 million in the third quarter of 2008, an 11.0% increase over 2007. Noninterest expenses for the nine months ended September 30, 2008 amounted to $46.6 million, a 9.4% increase from the $42.6 million recorded in the first nine months of 2007. These increases are primarily attributable to the Company’s growth, including the April 1, 2008 acquisition of Great Pee Dee. Additionally, the Company recorded FDIC insurance expense of $337,000 and $839,000 for the three and nine month periods ended September 30, 2008, respectively, compared to none for the same periods in 2007, as a result of the FDIC recently beginning to charge for FDIC insurance again in order to replenish its reserves.
The Company’s effective tax rate was 37%-38% for each of the three and nine month periods ended September 30, 2008 and 2007.
Balance Sheet Growth
During the third quarter of 2008, loans outstanding increased by $45 million, or 8.3% annualized, while deposits increased by $6 million, or 1.3% annualized. The Company’s growth in deposits during the quarter was concentrated in brokered CD’s, which had interest rates meaningfully lower than the interest rates being offered by several local competitors in the Company’s marketplace. The Company’s brokered CD’s amounted to $47 million at September 30, 2008 compared to $22 million at June 30, 2008. The $47 million in brokered CD’s at September 30, 2008 represented just 2.3% of the Company’s total deposits.
Total assets at September 30, 2008 amounted to $2.7 billion, 18.2% higher than a year earlier. Total loans at September 30, 2008 amounted to $2.2 billion, a 20.3% increase from a year earlier, and total deposits amounted to $2.0 billion at September 30, 2008, an 11.2% increase from a year earlier. The Company completed the acquisition of Great Pee Dee Bancorp on April 1, 2008, which had $188 million in loans, $148 million in deposits, and $213 million in assets.
Comments of the President and Other Business Matters
Jerry L. Ocheltree, President and CEO of First Bancorp, commented on the quarter’s results, “In light of the current economic environment, I am pleased with the solid results we are reporting today. Our commitment to a conservative operating philosophy has provided us with the ability to withstand the current economic turmoil in good shape – we continue to report solid earnings, our asset quality is superior to that of our peers, and we remain classified as ‘well-capitalized’ according to regulatory standards. And I know in talking to our shareholders how pleased they are that we have been able to maintain our dividend rate.”
Mr. Ocheltree noted the following corporate developments and information:
| | · | The Company is studying the benefits of participating in the plan recently announced by the U.S. Treasury, whereby the Treasury would purchase preferred stock from eligible financial institutions. |
| | · | On September 29, 2008, the Company reported that it had been recently recognized by investment banking firm Sandler O’Neill & Partners, L.P., as one of the top performing small-cap banks in the |
nation. New York-based Sandler O’Neill is one of the best-known and most highly regarded investment firms specializing in the commercial banking industry. Please contact the Company if you would like a copy of this press release.
| | · | On August 26, 2008, the Company announced a quarterly cash dividend of 19 cents per share payable on October 25, 2008 to shareholders of record on September 30, 2008. This is the same dividend rate the Company paid in the comparable quarter in 2007. |
| | · | On August 8, 2008, the Company replaced its modular building in Mt. Pleasant, North Carolina with a new, state-of-the-art building at the same address on Highway 49 North. With the new building, First Bank more than doubled the size of its former Mt. Pleasant Office. |
| | · | The Company has no holdings of Freddie Mac or Fannie Mae preferred stock. |
| | · | The Company has recently increased its mortgage loan capabilities by adding FHA and VA loans to its product line. Applications can be submitted at the Company’s website – www.firstbancorp.com or by contacting any branch manager. |
| | · | The Company has recently completed a major expansion of its bank branch in Harmony, North Carolina. |
| | · | There has been no stock repurchase activity during 2008. |
First Bancorp is a bank holding company headquartered in Troy, North Carolina with total assets of approximately $2.7 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 74 branches, with 63 branches operating in a 21-county market area in the central piedmont and coastal regions of North Carolina, 6 branches in South Carolina (Cheraw, Dillon, Florence, and Latta), and 5 branches in Virginia (Abingdon, Dublin, Fort Chiswell, Radford, and Wytheville), where First Bank does business as First Bank of Virginia. First Bank also has a loan production office in Blacksburg, Virginia. First Bancorp’s common stock is traded on the NASDAQ Global Select Market under the symbol “FBNC.”
Please visit our website at www.FirstBancorp.com. For additional financial data, please see the attached Financial Summary.
This press release contains statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” or other statements concerning opinions or judgments of the Company and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company’s customers, the Company’s level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of the Company’s most recent report on Form 10-K.
First Bancorp and Subsidiaries Financial Summary |
| | | Three Months Ended | | | Percent | |
| ($ in thousands except per share data - unaudited) | | 2008 | | | 2007 | | | Change | |
| | | | | | | | | | |
| INCOME STATEMENT | | | | | | | | | |
| | | | | | | | | | |
| Interest income | | | | | | | | | |
| Interest and fees on loans | | $ | 35,556 | | | | 35,717 | | | | |
| Interest on investment securities | | | 2,022 | | | | 1,743 | | | | |
| Other interest income | | | 211 | | | | 715 | | | | |
| Total interest income | | | 37,789 | | | | 38,175 | | | | (1.0 | %) |
| Interest expense | | | | | | | | | | | | |
| Interest on deposits | | | 12,724 | | | | 15,528 | | | | | |
| Other, primarily borrowings | | | 2,280 | | | | 2,470 | | | | | |
| Total interest expense | | | 15,004 | | | | 17,998 | | | | (16.6 | %) |
| Net interest income | | | 22,785 | | | | 20,177 | | | | 12.9 | % |
| Provision for loan losses | | | 2,851 | | | | 1,299 | | | | 119.5 | % |
Net interest income after provision for loan losses | | | 19,934 | | | | 18,878 | | | | 5.6 | % |
| Noninterest income | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 3,610 | | | | 2,323 | | | | | |
| Other service charges, commissions, and fees | | | 1,190 | | | | 1,273 | | | | | |
| Fees from presold mortgages | | | 199 | | | | 230 | | | | | |
| Commissions from financial product sales | | | 419 | | | | 374 | | | | | |
| Data processing fees | | | 42 | | | | 52 | | | | | |
| Securities gains (losses) | | | 2 | | | ─ | | | | | |
| Other gains (losses) | | | (28 | ) | | | 25 | | | | | |
| Total noninterest income | | | 5,434 | | | | 4,277 | | | | 27.1 | % |
| Noninterest expenses | | | | | | | | | | | | |
| Personnel expense | | | 8,907 | | | | 8,330 | | | | | |
| Occupancy and equipment expense | | | 2,097 | | | | 1,902 | | | | | |
| Intangibles amortization | | | 107 | | | | 93 | | | | | |
| Other operating expenses | | | 4,359 | | | | 3,616 | | | | | |
| Total noninterest expenses | | | 15,470 | | | | 13,941 | | | | 11.0 | % |
| Income before income taxes | | | 9,898 | | | | 9,214 | | | | 7.4 | % |
| Income taxes | | | 3,701 | | | | 3,471 | | | | 6.6 | % |
| Net income | | $ | 6,197 | | | | 5,743 | | | | 7.9 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Earnings per share – basic | | $ | 0.38 | | | | 0.40 | | | | (5.0 | %) |
| Earnings per share – diluted | | | 0.37 | | | | 0.40 | | | | (7.5 | %) |
| | | | | | | | | | | | | |
ADDITIONAL INCOME STATEMENT INFORMATION | | | | | | | | | | | | |
| Net interest income, as reported | | $ | 22,785 | | | | 20,177 | | | | | |
| Tax-equivalent adjustment (1) | | | 165 | | | | 136 | | | | | |
| Net interest income, tax-equivalent | | $ | 22,950 | | | | 20,313 | | | | 13.0 | % |
| | | | | | | | | | | | | |
| |
| | (1) | This amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax exempt status. This amount has been computed assuming a 39% tax rate and is reduced by the related nondeductible portion of interest expense. |
First Bancorp and Subsidiaries Financial Summary - Page 2 |
| | | Nine Months Ended | | | Percent | |
| ($ in thousands except per share data - unaudited) | | 2008 | | | 2007 | | | Change | |
| | | | | | | | | | |
| INCOME STATEMENT | | | | | | | | | |
| | | | | | | | | | |
| Interest income | | | | | | | | | |
| Interest and fees on loans | | $ | 104,309 | | | | 103,420 | | | | |
| Interest on investment securities | | | 5,990 | | | | 5,157 | | | | |
| Other interest income | | | 930 | | | | 2,051 | | | | |
| Total interest income | | | 111,229 | | | | 110,628 | | | | 0.5 | % |
| Interest expense | | | | | | | | | | | | |
| Interest on deposits | | | 40,934 | | | | 44,245 | | | | | |
| Other, primarily borrowings | | | 6,245 | | | | 7,662 | | | | | |
| Total interest expense | | | 47,179 | | | | 51,907 | | | | (9.1 | %) |
| Net interest income | | | 64,050 | | | | 58,721 | | | | 9.1 | % |
| Provision for loan losses | | | 6,443 | | | | 3,742 | | | | 72.2 | % |
Net interest income after provision for loan losses | | | 57,607 | | | | 54,979 | | | | 4.8 | % |
| Noninterest income | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 10,148 | | | | 6,800 | | | | | |
| Other service charges, commissions, and fees | | | 3,812 | | | | 3,798 | | | | | |
| Fees from presold mortgages | | | 657 | | | | 849 | | | | | |
| Commissions from financial product sales | | | 1,174 | | | | 1,177 | | | | | |
| Data processing fees | | | 140 | | | | 152 | | | | | |
| Securities gains (losses) | | | (14 | ) | | | 487 | | | | | |
| Other gains | | | 229 | | | | 107 | | | | | |
| Total noninterest income | | | 16,146 | | | | 13,370 | | | | 20.8 | % |
| Noninterest expenses | | | | | | | | | | | | |
| Personnel expense | | | 26,590 | | | | 24,970 | | | | | |
| Occupancy and equipment expense | | | 6,148 | | | | 5,639 | | | | | |
| Intangibles amortization | | | 309 | | | | 281 | | | | | |
| Other operating expenses | | | 13,538 | | | | 11,691 | | | | | |
| Total noninterest expenses | | | 46,585 | | | | 42,581 | | | | 9.4 | % |
| Income before income taxes | | | 27,168 | | | | 25,768 | | | | 5.4 | % |
| Income taxes | | | 10,164 | | | | 9,720 | | | | 4.6 | % |
| Net income | | $ | 17,004 | | | | 16,048 | | | | 6.0 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Earnings per share - basic | | $ | 1.08 | | | | 1.12 | | | | (3.6 | %) |
| Earnings per share - diluted | | | 1.07 | | | | 1.11 | | | | (3.6 | %) |
| | | | | | | | | | | | | |
| ADDITIONAL INCOME STATEMENT INFORMATION | | | | | | | | | | | | |
| Net interest income, as reported | | $ | 64,050 | | | | 58,721 | | | | | |
| Tax-equivalent adjustment (1) | | | 493 | | | | 399 | | | | | |
| Net interest income, tax-equivalent | | $ | 64,543 | | | | 59,120 | | | | 9.2 | % |
| |
(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments
First Bancorp and Subsidiaries Financial Summary - page 3 |
| | | Three Months Ended | | | Nine Months Ended | |
PERFORMANCE RATIOS (annualized) | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Return on average assets | | | 0.96 | % | | | 1.06 | % | | | 0.93 | % | | | 1.01 | % |
| Return on average equity | | | 11.09 | % | | | 13.25 | % | | | 11.02 | % | | | 12.68 | % |
| Net interest margin - tax equivalent (1) | | | 3.79 | % | | | 4.00 | % | | | 3.76 | % | | | 4.00 | % |
| Efficiency ratio - tax equivalent (1) (2) | | | 54.50 | % | | | 56.69 | % | | | 57.73 | % | | | 58.74 | % |
| Net charge-offs to average loans | | | 0.18 | % | | | 0.17 | % | | | 0.17 | % | | | 0.15 | % |
| Nonperforming assets to total assets (period end) | | | 0.89 | % | | | 0.39 | % | | | 0.89 | % | | | 0.39 | % |
| | | | | | | | | | | | | | | | | |
| SHARE DATA | | | | | | | | | | | | | | | | |
| Cash dividends declared | | $ | 0.19 | | | | 0.19 | | | $ | 0.57 | | | | 0.57 | |
| Stated book value | | | 13.28 | | | | 11.88 | | | | 13.28 | | | | 11.88 | |
| Tangible book value | | | 9.17 | | | | 8.32 | | | | 9.17 | | | | 8.32 | |
| Common shares outstanding at end of period | | | 16,522,581 | | | | 14,375,303 | | | | 16,522,581 | | | | 14,375,303 | |
| Weighted average shares outstanding - basic | | | 16,515,507 | | | | 14,391,739 | | | | 15,789,027 | | | | 14,378,787 | |
| Weighted average shares outstanding - diluted | | | 16,539,179 | | | | 14,462,266 | | | | 15,846,966 | | | | 14,474,673 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL RATIOS | | | | | | | | | | | | | | | | |
| Shareholders’ equity to total assets | | | 8.12 | % | | | 7.48 | % | | | 8.12 | % | | | 7.48 | % |
| Tangible equity to tangible assets | | | 5.75 | % | | | 5.36 | % | | | 5.75 | % | | | 5.36 | % |
| Tier I leverage ratio | | | 8.10 | % | | | 8.60 | % | | | 8.10 | % | | | 8.60 | % |
| Tier I risk-based capital ratio | | | 9.29 | % | | | 10.04 | % | | | 9.29 | % | | | 10.04 | % |
| Total risk-based capital ratio | | | 10.54 | % | | | 11.63 | % | | | 10.54 | % | | | 11.63 | % |
| | | | | | | | | | | | | | | | | |
AVERAGE BALANCES ($ in thousands) | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,570,067 | | | | 2,157,155 | | | $ | 2,444,993 | | | | 2,118,019 | |
| Loans | | | 2,195,971 | | | | 1,819,253 | | | | 2,085,331 | | | | 1,786,631 | |
| Earning assets | | | 2,412,037 | | | | 2,016,480 | | | | 2,291,855 | | | | 1,976,580 | |
| Deposits | | | 2,018,313 | | | | 1,808,468 | | | | 1,969,817 | | | | 1,761,472 | |
| Interest-bearing liabilities | | | 2,092,329 | | | | 1,741,495 | | | | 1,983,663 | | | | 1,709,173 | |
| Shareholders’ equity | | | 222,237 | | | | 171,947 | | | | 206,179 | | | | 169,251 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | (1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. |
| | (2) Calculated by dividing noninterest expense by the sum of tax-equivalent net interest income plus noninterest income. |
TREND INFORMATION
($ in thousands except per share data)
| | | For the Three Months Ended | |
INCOME STATEMENT | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | | | | | | | | | | | | | | |
| Net interest income - tax equivalent (1) | | $ | 22,950 | | | | 21,664 | | | | 19,928 | | | | 20,718 | | | | 20,313 | |
| Taxable equivalent adjustment (1) | | | 165 | | | | 163 | | | | 164 | | | | 155 | | | | 136 | |
| Net interest income | | | 22,785 | | | | 21,501 | | | | 19,764 | | | | 20,563 | | | | 20,177 | |
| Provision for loan losses | | | 2,851 | | | | 2,059 | | | | 1,533 | | | | 1,475 | | | | 1,299 | |
| Noninterest income | | | 5,434 | | | | 5,337 | | | | 5,375 | | | | 5,103 | | | | 4,277 | |
| Noninterest expense | | | 15,470 | | | | 16,344 | | | | 14,771 | | | | 14,999 | | | | 13,941 | |
| Income before income taxes | | | 9,898 | | | | 8,435 | | | | 8,835 | | | | 9,192 | | | | 9,214 | |
| Income taxes | | | 3,701 | | | | 3,157 | | | | 3,306 | | | | 3,430 | | | | 3,471 | |
| Net income | | | 6,197 | | | | 5,278 | | | | 5,529 | | | | 5,762 | | | | 5,743 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings per share – basic | | | 0.38 | | | | 0.32 | | | | 0.38 | | | | 0.40 | | | | 0.40 | |
| Earnings per share – diluted | | | 0.37 | | | | 0.32 | | | | 0.38 | | | | 0.40 | | | | 0.40 | |
| | (1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments. |
First Bancorp and Subsidiaries Financial Summary - page 4 |
PERIOD END BALANCES ($ in thousands) | | September 30, | | | June 30, | | | December 31, | | | September 30, | | | One Year | |
| Assets | | $ | 2,700,666 | | | | 2,621,356 | | | | 2,317,249 | | | | 2,284,263 | | | | 18.2 | % |
| Securities | | | 182,487 | | | | 172,002 | | | | 151,754 | | | | 153,390 | | | | 19.0 | % |
| Loans | | | 2,211,678 | | | | 2,166,840 | | | | 1,894,295 | | | | 1,838,346 | | | | 20.3 | % |
| Allowance for loan losses | | | 27,928 | | | | 26,061 | | | | 21,324 | | | | 20,631 | | | | 35.4 | % |
| Intangible assets | | | 67,887 | | | | 67,995 | | | | 51,020 | | | | 51,113 | | | | 32.8 | % |
| Deposits | | | 2,022,822 | | | | 2,016,477 | | | | 1,838,277 | | | | 1,818,908 | | | | 11.2 | % |
| Borrowings | | | 387,390 | | | | 326,006 | | | | 242,394 | | | | 233,013 | | | | 66.3 | % |
| Shareholders’ equity | | | 219,354 | | | | 216,677 | | | | 174,070 | | | | 170,770 | | | | 28.4 | % |
| | | For the Three Months Ended | |
YIELD INFORMATION | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | | | | | | | | | | | | | | |
| Yield on loans | | | 6.44 | % | | | 6.53 | % | | | 7.13 | % | | | 7.61 | % | | | 7.79 | % |
| Yield on securities - tax equivalent (1) | | | 4.89 | % | | | 5.39 | % | | | 5.71 | % | | | 5.27 | % | | | 5.07 | % |
| Yield on other earning assets | | | 2.18 | % | | | 2.72 | % | | | 3.49 | % | | | 5.56 | % | | | 5.66 | % |
| Yield on all interest earning assets | | | 6.26 | % | | | 6.38 | % | | | 6.94 | % | | | 7.39 | % | | | 7.54 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Rate on interest bearing deposits | | | 2.84 | % | | | 3.10 | % | | | 3.56 | % | | | 3.78 | % | | | 3.89 | % |
| Rate on other interest bearing liabilities | | | 2.92 | % | | | 3.05 | % | | | 4.35 | % | | | 5.64 | % | | | 6.16 | % |
| Rate on all interest bearing liabilities | | | 2.85 | % | | | 3.09 | % | | | 3.64 | % | | | 3.96 | % | | | 4.10 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread - tax equivalent (1) | | | 3.41 | % | | | 3.29 | % | | | 3.30 | % | | | 3.43 | % | | | 3.44 | % |
| Net interest margin - tax equivalent (2) | | | 3.79 | % | | | 3.71 | % | | | 3.79 | % | | | 3.98 | % | | | 4.00 | % |
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| Average prime rate | | | 5.00 | % | | | 5.08 | % | | | 6.22 | % | | | 7.53 | % | | | 8.18 | % |
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(1) See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments.
(2) Calculated by dividing annualized tax equivalent net interest income by average earning assets for the period. See footnote 1 on page 1 of Financial Summary for discussion of tax-equivalent adjustments.
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ASSET QUALITY DATA ($ in thousands) | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
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| Nonaccrual loans | | $ | 19,558 | | | | 17,588 | | | | 8,799 | | | | 7,807 | | | | 6,941 | |
| Accruing loans > 90 days past due | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total nonperforming loans | | | 19,558 | | | | 17,588 | | | | 8,799 | | | | 7,807 | | | | 6,941 | |
| Other assets | | | 4,565 | | | | 2,934 | | | | 3,289 | | | | 3,042 | | | | 2,058 | |
| Total nonperforming assets | | $ | 24,123 | | | | 20,522 | | | | 12,088 | | | | 10,849 | | | | 8,999 | |
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| Net charge-offs to average loans - annualized | | | 0.18 | % | | | 0.15 | % | | | 0.18 | % | | | 0.17 | % | | | 0.17 | % |
| Nonperforming loans to total loans | | | 0.88 | % | | | 0.81 | % | | | 0.45 | % | | | 0.41 | % | | | 0.38 | % |
| Nonperforming assets to total assets | | | 0.89 | % | | | 0.78 | % | | | 0.51 | % | | | 0.47 | % | | | 0.39 | % |
| Allowance for loan losses to total loans | | | 1.26 | % | | | 1.20 | % | | | 1.14 | % | | | 1.13 | % | | | 1.12 | % |
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