Exhibit 99.1
FOR IMMEDIATE RELEASE
January 29, 2004
| Contacts: Melanie J. Dressel, President and |
| Chief Executive Officer |
| (253) 305-1911 |
| Gary R. Schminkey, Executive Vice President |
| and Chief Financial Officer |
| (253) 305-1966 |
COLUMBIA BANKING SYSTEM ANNOUNCES
INCREASED FULL YEAR AND FOURTH QUARTER 2003 EARNINGS
HIGHLIGHTS
| • | Fourth quarter earnings of $5.4 million, up 21% from 4th quarter 2002. |
| • | Earnings for the year of $19.5 million, up 79% compared with the prior year. |
| • | Diluted 4th quarter earnings per share of $0.40, up 21% from the prior year. |
| • | Diluted earnings per share for the year of $1.44, up 76% from last year. |
| • | Return on Assets improved to 1.25% from 1.06% in 4th quarter 2002. |
| • | Return on Equity improved to 14.80% from 13.74% in 4th quarter 2002. |
| • | Average core deposit growth of 15%, compared with the prior year. |
| • | Total nonperforming assets decreased 15% from December 31, 2002; allowance for loan losses to total loans increased to 1.88% from 1.63% a year ago. |
TACOMA, Washington—Columbia Banking System, Inc. (Nasdaq: COLB) today announced increased net income for the fourth quarter ended December 31, 2003 of $5.4 million, an increase of 21% compared to $4.5 million for the fourth quarter of 2002. On a diluted per share basis, net income for the fourth quarter was $0.40, an increase of 21% from $0.33 in 2002. Return on average assets and return on average equity for the fourth quarter 2003 were 1.25% and 14.80%, respectively, compared to 1.06% and 13.74%, respectively, for last year. Total nonperforming assets decreased $2.8 million, or 15%, to $15.4 million at December 31, 2003 from $18.2 million at December 31, 2002.
Net income for the year 2003 was $19.5 million, an increase of $8.6 million, or 79%, from net income of $10.9 million in 2002. On a diluted per share basis, net income for 2003 was $1.44,
compared with $0.82 cents, or 76%, for the same period last year. Return on average assets and return on average equity for the year were 1.15% and 13.83%, respectively, compared to 0.68% and 8.77%, respectively for 2002.
“We are pleased to see our profitability continue to improve for the fourth quarter and full year 2003 in a challenging economic environment,” stated Melanie J. Dressel, President and Chief Executive Officer. “Our growth in net income is due to lower necessary additions to our loan loss allowance than last year, a notable increase in noninterest income, and a continued emphasis on controlling expenses. We have effectively managed our net interest margin during this time of low rates through our strong growth in core deposits. While we have made significant progress toward improved profitability in 2003, we continue our commitment to further enhance shareholder value in 2004 and beyond.”
At December 31, 2003, Columbia’s total assets were $1.74 billion, an increase of 3% from $1.70 billion at December 31, 2002. Total loans were $1.08 billion at December 31, 2003, down 8% from December 31, 2002, and total securities increased $186 million to $524 million at December 31, 2003, an increase of 55% from the prior year. Total deposits increased 4% from December 31, 2002, ending at $1.54 billion at December 31, 2003. Core deposits at December 31, 2003 were $1.10 billion, an increase of $117.5 million, or 12%, compared with 2002.
Ms. Dressel continued, “Investment securities grew last year in response to increased deposits coupled with soft loan demand. We are beginning to see signs of an improving economy, as total loans for the fourth quarter reflected a slight increase from third quarter 2003. Compared to a year ago, outstanding loans are down $98 million, due to a combination of lower line of credit usage, problem loan resolutions, and a commitment to manage interest rate risk and our loan portfolio mix. We have carefully monitored our underwriting criteria and loan approvals to manage our interest and credit risk during this period of low interest rates and a soft economy. Our overall loan portfolio remains well diversified.”
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Operating Results
Quarter Ended December 31, 2003
Net Interest Income
Net interest income for the fourth quarter of 2003 decreased 2% to $16.2 million, from $16.6 million for the three months ended December 31, 2002. The decrease is primarily due to lower loan balances and yields, which is partially offset by the effects of the growth in core deposits and the steps the Company has taken to manage its deposit costs.
With the declining interest rate environment during 2003, the Company has experienced downward pressure on its net interest margin. Net interest margin decreased to 4.16% in the fourth quarter of 2003, from 4.42% for the same period last year. Ms. Dressel remarked, “Despite downward pressure, we were able to hold our net interest margin steady at 4.16% in both the third and fourth quarters of 2003.”
Average interest-earning assets grew to $1.59 billion, or 5%, during the fourth quarter of 2003, compared with $1.52 billion in the fourth quarter of 2002. The yield on average interest-earning assets decreased 87 basis points (a basis point equals 1/100 of 1%) to 5.25% during the fourth quarter of 2003 compared with 6.12% during the same period of 2002. In comparison, average interest-bearing liabilities decreased $1.3 million to $1.25 billion compared to a year ago. The cost of average interest-bearing liabilities decreased 68 basis points to 1.39% during the fourth quarter of 2003, from 2.07% in the same period of 2002.
For the twelve months ended December 31, 2003, net interest income decreased 1% to $63.9 million from $64.3 million in 2002. During 2003, the Company’s net interest margin decreased to 4.23% from 4.50% for 2002. Average interest-earning assets grew to $1.54 billion during 2003, compared with $1.45 billion for the same period of 2002. The yield on average interest-earning assets decreased 89 basis points to 5.53% during 2003, from 6.42% in 2002. In comparison, average interest-bearing liabilities grew to $1.24 billion compared with $1.21 billion for 2002. The cost of average interest-bearing liabilities decreased 70 basis points to 1.61% during 2003 from 2.31% in 2002.
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Noninterest Income
Noninterest income decreased $394,000 or 7% in the fourth quarter of 2003, and increased $2.7 million, or 14%, for the full year of 2003 compared with the year 2002. The decrease during the fourth quarter is due to a decrease in residential mortgage loan applications as higher interest rates during the latter half of 2003 slowed refinancing activity compared to the same period in 2002. Increases during the full year of 2003 were primarily centered in merchant services income, service charges and other fees, and mortgage banking. Increases in merchant services income is due to the overall growth of the customer base. Increases in service charges and other fees reflect growth in core deposits, while mortgage banking increases were largely due to low mortgage rates primarily during the first half of the year. Historically, Columbia’s new residential real estate loans to purchase homes have comprised a significant portion of mortgage banking originations. The record low interest rates of the last two years resulted in a larger percentage of home refinancing.
Noninterest Expense
Total noninterest expense increased 1% to $13.9 million for the fourth quarter of 2003, and increased 1% to $55.8 million for the full year of 2003 compared with the same periods in 2002, excluding net costs (gains) of OREO . During the third quarter of 2002, the Company received a lease termination payment of $1.2 million from the tenant of a property included in OREO. Including net costs (gains) of OREO, total noninterest expense increased 4% from the fourth quarter and the full year of 2002.
The Company’s efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding nonrecurring income and expense) was 62.84% for the fourth quarter 2003 compared to 60.22% for the fourth quarter 2002. The efficiency ratio for the year 2003 was 62.86%, compared to 64.46% for 2002. The Company’s goal of continuing to improve its efficiency ratio will depend on its ability to grow the loan portfolio, changes in interest rates and continued expense control.
Nonperforming Assets and Loan Loss Provision
The Company made no provision for loan losses in the fourth quarter of 2003, compared with a provision of $2.7 million for fourth quarter 2002. For the quarter ended December 31, 2003 net loan charge-offs amounted to $70,000 compared to net loan charge-offs of $2.0 million for the quarter ended December 31, 2002. For the twelve months ended December 31, 2003 and 2002, net loan charge-offs were $1.8 million and $11.3 million, respectively.
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The allowance for loan losses had a net increase of $1.1 million, to $20.3 million at December 31, 2003 as compared to year-end 2002. The allowance for loan losses as a percentage of loans (excluding loans held for sale at each date) increased to 1.88% at December 31, 2003 as compared to 1.63% at year-end 2002. Management believes the increase in the allowance as a percentage of total loans is prudent and appropriate considering the challenging economic environment and the level of nonperforming loans. At December 31, 2003, the allowance for loan losses to nonperforming loans was 153% compared to 112% at December 31, 2002. The allowance for loan losses to nonperforming assets was 132% compared to 106% the prior year.
Nonperforming assets decreased $2.8 million to $15.4 million from year end 2002 primarily due to decreases in nonaccrual loans which decreased $3.7 million to $13.3 million at December 31, 2003. Nonaccrual loans increased $6.4 million at year-end 2003 from $6.8 million at September 30, 2003.
Ms. Dressel commented, “The increase in nonaccrual loans for the fourth quarter of 2003 was due to a credit which we moved to nonaccrual status as a result of adverse changes in the borrower’s financial condition. However, a purchaser has made an equity investment and a further financial commitment designed to improve the company’s financial position. The purchaser has brought all payments current.”
Ms. Dressel continued, “We will continue to leverage the strong base of branches we have built in our market areas. In November 2003, we consolidated the operations of our two Bellevue, Washington branches into the Bellevue Way location. While we have no immediate plans for new branches, new markets and locations are reviewed on an ongoing basis and the bank will take advantage of branching opportunities as they arise. Our primary emphasis, as always, will be to provide exceptional customer service and a complete banking relationship for our customers.”
Columbia Banking System, Inc. is a Tacoma-based bank holding company whose wholly owned subsidiary is Columbia Bank, a Washington state-chartered full-service commercial bank with
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34 banking offices in Pierce, King, Cowlitz, Kitsap and Thurston counties. Columbia’s stock trades on the Nasdaq Stock MarketSMunder the symbol COLB. Columbia Banking System’s Annual Meeting of Shareholders will be held at 1:00 PDT on April 28, 2004 at the Best Western Hotel & Conference Center, 5700 Pacific Highway East, Fife, Washington.
# # #
Note Regarding Forward-Looking Statements
This news release includes forward looking statements, which management believes are a benefit to shareholders. These forward looking statements describe Columbia’s management’s expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of Columbia’s style of banking and the strength of the local economy. The words “will,” “believe,” “expect,” “should,” and “anticipate” and words of similar construction are intended in part to help identify forward looking statements. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in Columbia’s filings with the SEC, factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities: (1) local, national and international economic conditions are less favorable than expected or have a more direct and pronounced effect on Columbia than expected and adversely affect Columbia’s ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates reduce interest margins more than expected and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new branches are lower than expected; (4) costs or difficulties related to the integration of acquisitions are greater than expected; (5) competitive pressure among financial institutions increases significantly; (6) legislation or regulatory requirements or changes adversely affect the businesses in which Columbia is engaged.
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FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited
(in thousands, except per share amounts)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
Earnings | ||||||||||||||||
Net interest income | $ | 16,245 | $ | 16,587 | $ | 63,867 | $ | 64,289 | ||||||||
Provision for loan loss | 2,700 | 2,850 | 15,780 | |||||||||||||
Noninterest income | 5,464 | 5,858 | 22,784 | 20,050 | ||||||||||||
Noninterest expense | 13,931 | 13,335 | 55,960 | 53,653 | ||||||||||||
Net income | 5,431 | 4,472 | 19,522 | 10,885 | ||||||||||||
Per Share | ||||||||||||||||
Net income (basic) | $ | 0.41 | 0.34 | 1.46 | 0.83 | |||||||||||
Net income (diluted) | 0.40 | 0.33 | 1.44 | 0.82 | ||||||||||||
Averages | ||||||||||||||||
Total assets | $ | 1,724,573 | $ | 1,668,848 | $ | 1,696,417 | $ | 1,601,061 | ||||||||
Interest-earning assets | 1,588,762 | 1,518,118 | 1,544,869 | 1,454,714 | ||||||||||||
Loans | 1,081,513 | 1,186,886 | 1,128,941 | 1,183,922 | ||||||||||||
Securities | 497,380 | 280,358 | 401,594 | 246,995 | ||||||||||||
Deposits | 1,532,063 | 1,454,955 | 1,483,173 | 1,360,968 | ||||||||||||
Core deposits | 1,082,843 | 951,165 | 1,017,126 | 885,008 | ||||||||||||
Shareholders’ Equity | 145,593 | 129,137 | 141,129 | 124,096 | ||||||||||||
Financial Ratios | ||||||||||||||||
Return on average assets | 1.25 | % | 1.06 | % | 1.15 | % | 0.68 | % | ||||||||
Return on average equity | 14.80 | 13.74 | 13.83 | 8.77 | ||||||||||||
Net interest margin | 4.16 | 4.42 | 4.23 | 4.50 | ||||||||||||
Efficiency ratio (tax equivalent)(1) | 62.84 | 60.22 | 62.86 | 64.46 | ||||||||||||
Average equity to average assets | 8.44 | 7.74 | 8.32 | 7.75 | ||||||||||||
| December 31, | ||||||||
| 2003 | 2002 | |||||||
Period end | ||||||||
Total assets | $ | 1,744,347 | $ | 1,699,613 | ||||
Loans | 1,078,302 | 1,175,853 | ||||||
Allowance for loan losses | 20,261 | 19,171 | ||||||
Securities | 523,864 | 337,412 | ||||||
Deposits | 1,544,626 | 1,487,153 | ||||||
Core deposits | 1,098,237 | 980,709 | ||||||
Shareholders’ equity | 150,372 | 132,384 | ||||||
Book value per share | 11.19 | 9.95 | ||||||
Nonperforming assets | ||||||||
Nonaccrual loans | $ | 13,255 | $ | 16,918 | ||||
Restructured loans | 187 | |||||||
Personal property owned | 691 | 916 | ||||||
Real estate owned | 1,452 | 130 | ||||||
Total nonperforming assets | $ | 15,398 | $ | 18,151 | ||||
Nonperforming loans to period-end loans | 1.23 | % | 1.45 | % | ||||
Nonperforming assets to period-end assets | 0.88 | % | 1.07 | % | ||||
Allowance for loan losses to period-end loans | 1.88 | % | 1.63 | % | ||||
Allowance for loan losses to nonperforming loans | 152.86 | % | 112.08 | % | ||||
Allowance for loan losses to nonperforming assets | 131.58 | % | 105.62 | % | ||||
Net loan charge-offs | $ | 1,760 | (2) | $ | 11,343 | (2) | ||
| (1) | Noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding nonrecurring income and expense, such as gains/losses on investment securities and net cost (gain) of OREO. |
| (2) | For the year ended December 31, 2003 and 2002, respectively. |
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QUARTERLY FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited
(in thousands, except per share amounts)
| Three Months Ended | ||||||||||||||||||||
Dec 31 2003 | Sept 30 2003 | Jun 30 2003 | Mar 31 2003 | Dec 31 2002 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 16,245 | $ | 15,489 | $ | 16,114 | $ | 16,019 | $ | 16,587 | ||||||||||
Provision for loan loss | 250 | 1,000 | 1,600 | 2,700 | ||||||||||||||||
Noninterest income | 5,464 | 6,032 | 5,735 | 5,553 | 5,858 | |||||||||||||||
Noninterest expense | 13,931 | 14,291 | 14,044 | 13,694 | 13,335 | |||||||||||||||
Net income | 5,431 | 4,895 | 4,765 | 4,431 | 4,472 | |||||||||||||||
Per Share | ||||||||||||||||||||
Net income [basic] | 0.41 | 0.37 | 0.36 | 0.33 | 0.34 | |||||||||||||||
Net income [diluted] | 0.40 | 0.36 | 0.35 | 0.33 | 0.33 | |||||||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 1,724,573 | $ | 1,676,192 | $ | 1,709,468 | $ | 1,673,047 | $ | 1,668,848 | ||||||||||
Interest-earning assets | 1,588,762 | 1,514,584 | 1,554,936 | 1,520,782 | 1,518,118 | |||||||||||||||
Loans | 1,081,513 | 1,115,637 | 1,143,862 | 1,175,935 | 1,186,886 | |||||||||||||||
Securities | 497,380 | 367,246 | 404,914 | 335,432 | 280,358 | |||||||||||||||
Deposits | 1,532,063 | 1,496,116 | 1,455,247 | 1,448,203 | 1,454,955 | |||||||||||||||
Core deposits | 1,082,843 | 1,044,124 | 982,948 | 956,909 | 951,165 | |||||||||||||||
Shareholders’ Equity | 145,593 | 143,208 | 140,417 | 135,160 | 129,137 | |||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.25 | % | 1.16 | % | 1.12 | % | 1.07 | % | 1.06 | % | ||||||||||
Return on average equity | 14.80 | 13.56 | 13.61 | 13.30 | 13.74 | |||||||||||||||
Net interest margin | 4.16 | 4.16 | 4.26 | 4.37 | 4.42 | |||||||||||||||
Efficiency ratio (tax equivalent) | 62.84 | 64.36 | 62.43 | 61.84 | 60.22 | |||||||||||||||
Average equity to average assets | 8.44 | 8.54 | 8.21 | 8.08 | 7.74 | |||||||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 1,744,347 | $ | 1,698,956 | $ | 1,724,798 | $ | 1,758,587 | $ | 1,699,613 | ||||||||||
Loans | 1,078,302 | 1,071,201 | 1,098,675 | 1,146,527 | 1,175,853 | |||||||||||||||
Allowance for loan losses | 20,261 | 20,331 | 19,994 | 19,272 | 19,171 | |||||||||||||||
Securities | 523,864 | 433,460 | 385,971 | 426,088 | 337,412 | |||||||||||||||
Deposits | 1,544,626 | 1,518,844 | 1,542,387 | 1,489,039 | 1,487,153 | |||||||||||||||
Core deposits | 1,098,237 | 1,070,216 | 1,079,879 | 1,006,121 | 980,709 | |||||||||||||||
Shareholders’ equity | 150,372 | 144,528 | 144,871 | 137,594 | 132,384 | |||||||||||||||
Book value per share | 11.19 | 10.79 | 10.82 | 10.32 | 9.95 | |||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 13,255 | $ | 6,806 | $ | 6,165 | $ | 10,532 | $ | 16,918 | ||||||||||
Restructured loans | 50 | 130 | 187 | |||||||||||||||||
Personal property owned | 691 | 700 | 769 | 836 | 916 | |||||||||||||||
Real estate owned | 1,452 | 1,503 | 2,547 | 2,500 | 130 | |||||||||||||||
Total nonperforming assets | $ | 15,398 | $ | 9,009 | $ | 9,531 | $ | 13,998 | $ | 18,151 | ||||||||||
Nonperforming loans to period-end loans | 1.23 | % | 0.64 | % | 0.57 | % | 0.93 | % | 1.45 | % | ||||||||||
Nonperforming assets to period-end assets | 0.88 | % | 0.53 | % | 0.55 | % | 0.80 | % | 1.07 | % | ||||||||||
Allowance for loan losses to period-end loans | 1.88 | % | 1.90 | % | 1.82 | % | 1.68 | % | 1.63 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 152.86 | % | 298.72 | % | 321.71 | % | 180.75 | % | 112.08 | % | ||||||||||
Allowance for loan losses to nonperforming assets | 131.58 | % | 225.67 | % | 209.78 | % | 137.68 | % | 105.62 | % | ||||||||||
Net loan (recoveries) charge-offs | $ | 70 | $ | (87 | ) | $ | 278 | $ | 1,499 | $ | 1,955 | |||||||||
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Columbia Banking System, Inc.
(Unaudited)
(in thousands except per share)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||
Interest Income | ||||||||||||||
Loans | $ | 15,985 | $ | 19,619 | $ | 69,427 | $ | 80,003 | ||||||
Securities available for sale | 4,567 | 3,250 | 14,166 | 11,606 | ||||||||||
Securities held to maturity | 34 | 50 | 162 | 214 | ||||||||||
Deposits with banks | 23 | 188 | 145 | 372 | ||||||||||
Total interest income | 20,609 | 23,107 | 83,900 | 92,195 | ||||||||||
Interest Expense | ||||||||||||||
Deposits | 4,068 | 5,906 | 18,304 | 24,740 | ||||||||||
Federal Home Loan Bank advances | 36 | 313 | 652 | 1,945 | ||||||||||
Long-term obligations | 260 | 301 | 1,077 | 1,221 | ||||||||||
Total interest expense | 4,364 | 6,520 | 20,033 | 27,906 | ||||||||||
Net Interest Income | 16,245 | 16,587 | 63,867 | 64,289 | ||||||||||
Provision for loan losses | 2,700 | 2,850 | 15,780 | |||||||||||
Net interest income after provision for loan losses | 16,245 | 13,887 | 61,017 | 48,509 | ||||||||||
Noninterest Income | ||||||||||||||
Service charges and other fees | 2,514 | 2,518 | 10,072 | 8,783 | ||||||||||
Mortgage banking | 439 | 1,352 | 3,746 | 3,411 | ||||||||||
Merchant services fees | 1,613 | 1,161 | 6,108 | 4,852 | ||||||||||
Gain on sale of investment securities, net | 222 | 193 | 222 | 610 | ||||||||||
Bank owned life insurance (BOLI) | 388 | 358 | 1,539 | 1,294 | ||||||||||
Other | 288 | 276 | 1,097 | 1,100 | ||||||||||
Total noninterest income | 5,464 | 5,858 | 22,784 | 20,050 | ||||||||||
Noninterest Expense | ||||||||||||||
Compensation and employee benefits | 7,512 | 6,980 | 29,657 | 28,964 | ||||||||||
Occupancy | 2,060 | 2,142 | 8,728 | 8,249 | ||||||||||
Merchant processing | 620 | 508 | 2,461 | 2,015 | ||||||||||
Advertising and promotion | 326 | 231 | 1,745 | 1,867 | ||||||||||
Data processing | 493 | 414 | 1,918 | 1,792 | ||||||||||
Legal & professional services | 449 | 1,043 | 1,831 | 2,382 | ||||||||||
Taxes, licenses & fees | 411 | 490 | 1,670 | 1,777 | ||||||||||
Net cost (gains) of OREO | 41 | (372 | ) | 139 | (1,565 | ) | ||||||||
Other | 2,019 | 1,899 | 7,811 | 8,172 | ||||||||||
Total noninterest expense | 13,931 | 13,335 | 55,960 | 53,653 | ||||||||||
Income before income taxes | 7,778 | 6,410 | 27,841 | 14,906 | ||||||||||
Provision for income taxes | 2,347 | 1,983 | 8,319 | 4,021 | ||||||||||
Net Income | $ | 5,431 | $ | 4,472 | $ | 19,522 | $ | 10,885 | ||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.41 | $ | 0.34 | $ | 1.46 | $ | 0.83 | ||||||
Diluted | 0.40 | 0.33 | 1.44 | 0.82 | ||||||||||
Dividend declared per common share | 0.05 | 0.15 | ||||||||||||
Average number of common shares outstanding | 13,403 | 13,187 | 13,370 | 13,165 | ||||||||||
Average number of diluted common shares outstanding | 13,617 | 13,353 | 13,538 | 13,318 | ||||||||||
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CONSOLIDATED CONDENSED BALANCE SHEETS
Columbia Banking System, Inc.
(Unaudited)
(in thousands)
December 31, 2003 | December 31, 2002 | |||||
Assets | ||||||
Cash and due from banks | $ | 49,685 | $ | 67,058 | ||
Interest-earning deposits with banks | 949 | 18,425 | ||||
Total cash and cash equivalents | 50,634 | 85,483 | ||||
Securities available for sale at fair value (amortized cost of $509,989 and $320,499 respectively) | 509,200 | 321,513 | ||||
Securities held to maturity (fair value of $4,708 and $6,412 respectively) | 4,548 | 6,192 | ||||
Federal Home Loan Bank stock | 10,116 | 9,707 | ||||
Loans held for sale | 10,640 | 22,102 | ||||
Loans, net of unearned income of ($2,437) and ($2,625) respectively | 1,078,302 | 1,175,853 | ||||
Less: allowance for loan losses | 20,261 | 19,171 | ||||
Loans, net | 1,058,041 | 1,156,682 | ||||
Interest receivable | 6,640 | 6,710 | ||||
Premises and equipment, net | 50,692 | 52,921 | ||||
Real estate owned | 1,452 | 130 | ||||
Other | 42,384 | 38,173 | ||||
Total Assets | $ | 1,744,347 | $ | 1,699,613 | ||
Liabilities and Shareholders’ Equity | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 317,721 | $ | 299,862 | ||
Interest-bearing | 1,226,905 | 1,187,291 | ||||
Total deposits | 1,544,626 | 1,487,153 | ||||
Federal Home Loan Bank advances | 16,500 | 46,470 | ||||
Trust preferred obligations | 21,433 | |||||
Long-term subordinated debt | 22,180 | |||||
Other liabilities | 10,669 | 12,173 | ||||
Total liabilities | 1,593,975 | 1,567,229 | ||||
Shareholders’ equity: | ||||||
Preferred stock (no par value) | ||||||
Authorized, 2 million shares; none outstanding | ||||||
| December 31, 2003 | December 31, 2002 | ||||||||||
Common stock (no par value) | |||||||||||
Authorized shares | 60,032 | 60,032 | |||||||||
Issued and outstanding | 13,433 | 13,310 | 112,675 | 111,028 | |||||||
Retained earnings | 38,210 | 20,696 | |||||||||
Accumulated other comprehensive income - Unrealized (losses) gains on securities available for sale, net of tax | (513 | ) | 660 | ||||||||
Total shareholders’ equity | 150,372 | 132,384 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,744,347 | $ | 1,699,613 | |||||||
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