For further information:
Dennis Klaeser, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release
PrivateBancorp Reports Record Earnings Per Share of $0.34,
an increase of 26 percent over the prior year third quarter
Chicago, IL, October 18, 2004--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings of $0.34 per diluted share for the third quarter of 2004, an increase of 26 percent compared to third quarter 2003 earnings per diluted share of $0.27. Net income for the third quarter was $7.1 million, an increase of 38 percent over third quarter 2003 net income of $5.1 million. Net income for the nine months ended September 30, 2004 was $19.5 million, or $0.94 per diluted share, compared to net income of $13.3 million, or $0.77 per diluted share for the nine months ended September 30, 2003. All per share amounts have been adjusted to reflect the two-for-one stock split that occurred on May 31, 2004.
"Substantial growth in loans, core deposits and our wealth management business contributed to our record performance. Overall, loans have increased by 30 percent since last year's third quarter and the growth was strongest for commercial and industrial loans, which grew 39 percent year over year. Core deposit growth, which represents total deposits less brokered deposits, exceeded loan growth, with core deposits increasing 42 percent over the past four quarters. Our wealth management business also showed strong year over year growth with revenue growing 24 percent and assets under management growing 23 percent," said Ralph B. Mandell, Chairman, President and CEO.
Net interest income totaled $18.5 million in the third quarter of 2004, an increase of 25 percent over third quarter 2003 net interest income of $14.8 million, primarily due to growth in average earning assets. Net interest margin (on a tax equivalent basis) was 3.58 percent in the third quarter 2004, down from 3.64 percent in the prior year third quarter and up from 3.51 percent in the second quarter of 2004. On a quarter linked basis, yields on earning assets increased by 19 basis points offset by an increase in our cost of funds of 10 basis points. The increase in earning asset yields was primarily due to the increases in the prime interest rate during the third quarter. Approximately two-thirds of the loan portfolio floats with prime or is indexed to other short-term interest rates. The increase in cost of fun ds was primarily due to increases in money market deposit yields, some of which are tied to prime, as well as higher rates on short-term borrowings and Federal Home Loan Bank advances.
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At the end of the third quarter, the Company had a total investment of $207.0 million in Federal Home Loan Bank of Chicago (FHLBC) common stock, and the annualized yield on this investment was 6.0 percent for the third quarter, as it was in the second quarter of 2004. This 6.0 percent rate is a decrease from the 6.5 percent rate paid in the first quarter of 2004. The FHLBC is scheduled to announce tomorrow (October 19th), the dividend that will be paid in the fourth quarter of 2004. During the quarter, management met with new FHLBC CEO J. Mikesell (“Mike”) Thomas, who has been a respected banker in the Chicago financ ial services community for many years. The Company closely monitors the FHLBC, continues to believe the FHLBC stock is a prudent investment and has no current plans to substantially reduce the size of this investment.
The provision for loan losses was $851,000 for the third quarter of 2004, compared to $1.1 million in the prior year third quarter and $724,000 in the second quarter of 2004. Net charge-offs totaled $404,000 in the quarter ended September 30, 2004 versus net charge-offs of $246,000 in the prior year quarter and net recoveries of $51,000 in the second quarter of 2004. At September 30, 2004, nonperforming loans as a percentage of total loans were 0.17 percent, unchanged from the prior year quarter and an increase from 0.06 percent at June 30, 2004. Non-performing loans increased to $2.4 million at September 30, 2004 compared to $795,000 at June 30, 2004, and non-accrual loans increased to $796,000 from $151,000 in the second quarter. The increas e in non-performing and non-accrual loans was due primarily to a single-family residential real estate credit. Despite the increase in non-accrual and non-performing loans, overall asset quality remains very high. Additionally, asset quality trends continue to be positive as measured by watch list loans, which decreased from the second quarter 2004 and are lower year over year. As a result, the Company’s allowance for loan losses as a percentage of total loans decreased to 1.21 percent as of September 30, 2004, from 1.23 percent at June 30, 2004 and at December 31, 2003.
Non-interest income was $4.0 million in the third quarter 2004, reflecting a decrease of approximately $49,000 from the third quarter 2003. The combined impact of $1.3 million of securities gains and a $1.1 million loss from the fair market value adjustments on an interest rate swap during the third quarter of 2004 resulted in a $141,000 contribution to non-interest income. In the third quarter 2003, securities losses of $333,000 combined with $765,000 of gains on the interest rate swap resulted in $432,000 of non-interest income.
Wealth management, mortgage banking and other income increased by $242,000, or 7 percent, from prior year quarter and $427,000, or 12 percent, over the second quarter 2004. The growth in non-interest income as compared to the prior year quarter was primarily driven by growth in wealth management fee income, which grew $407,000, or 24 percent, to $2.1 million compared to $1.7 million for the third quarter 2003 and was flat with second quarter 2004. Wealth management assets under management increased 23 percent to $1.62 billion at September 30, 2004 compared to $1.32 billion at September 30, 2003 and $1.59 billion at June 30, 2004.
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Residential mortgage fee income was $776,000 for the third quarter of 2004, down $428,000 from $1.2 million in the third quarter 2003 and relatively unchanged from $782,000 in the second quarter 2004. During the third quarter 2004, income on bank-owned life insurance (BOLI) increased by $227,000 to $352,000 from $125,000 in the second quarter of 2004 due to an additional purchase of BOLI of $22.0 million which was funded during the third quarter 2004.
Non-interest expense increased 12 percent to $11.9 million in the third quarter of 2004 from $10.6 million in the prior year quarter and increased 6 percent from $11.2 million in second quarter 2004. The increase in non-interest expense from the second quarter 2004 reflects the continued growth of the organization. Full-time equivalent employees at quarter’s end increased to 253 from 206 at September 30, 2003 and from 252 at June 30, 2004. At September 30, 2004, the Company had 72 managing directors compared to 63 at December 31, 2003 and up from 71 managing directors at June 30, 2004. The efficiency ratio was 50 percent in the third quarter of 2004 compared to 54 percent in the prior year quarter and 51 percent in the second quarter of 2004.
Total assets were $2.4 billion at September 30, 2004 compared to $1.9 billion at September 30, 2003, an increase of 27 percent. Asset growth was driven primarily by loan growth, which increased 30 percent year over year to $1.5 billion atSeptember 30, 2004. Loans outstanding as of September 30, 2004 increased by 5 percent from June 30, 2004.
Deposits increased by 23 percent to $1.8 billion during the third quarter 2004 as compared to $1.5 billion at September 30, 2003 and up 8 percent from $1.7 billion as of June 30, 2004. Brokered deposits were $356.4 million at September 30, 2004, a decrease of 22 percent, or $97.9 million, from $454.3 million at September 30, 2003 and a decrease of 14 percent, or $57.4 million, from $413.8 million at June 30, 2004. Funds borrowed, including FHLB advances, increased to $301.6 million at September 30, 2004 from $164.5 million in the prior year quarter and down from $306.4 million at the end of the second quarter 2004.
PrivateBancorp, Inc. was organized in 1989 to provide highly personalized financial services primarily to affluent individuals, professionals, owners of closely held businesses and commercial real estate investors. The Company operates two banking subsidiaries, The PrivateBank and Trust Company and The PrivateBank - St. Louis, and a mortgage company, The PrivateBank Mortgage Company. The PrivateBank and Trust Company subsidiary has a controlling interest in a Chicago-based investment advisor, Lodestar Investment Counsel, LLC. The Company, which had assets of $2.4 billion at September 30, 2004, currently has banking offices in Chicago, Wilmette, Oak Brook, St. Charles, Lake Forest, Winnetka, and Geneva, Illinois, and in St. Louis, Missouri. In April 2004 the Company announced plans to open two new offices -- one on Chicago’s Gold Coast in the historic Palmolive Building at the corner of North Michigan Avenue and Walton Place and one in downtown Milwaukee to be known as The PrivateBank - Wisconsin.
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Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.'s website atwww.privatebancorp.com.
Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing, greater than anticipated deterioration in asset quality due to a prolonged economic downturn in the greater Chicago and St. Louis metropolitan areas, legislative or regulatory changes, adverse developments in the Company’s loan or investment portfolios, chan ges in the current redemption practices of the FHLBC relating to its stock, unexpected difficulties in integrating or operating the mortgage banking business, unanticipated construction or other delays relating to our new offices to be located in the Palmolive Building and in Milwaukee, Wisconsin, competition and the possible dilutive effect of potential acquisitions, expansion or future capital raises. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update publicly any of these statements in light of future events.
Editor’s Note: Financial highlights attached.
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Consolidated Statements of Income | |||||||
(dollars in thousands except per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2004 | 2003 | 2004 | 2003 | ||||
unaudited | unaudited | unaudited | unaudited | ||||
Interest Income | |||||||
| Interest and fees on loans | $20,315 | $15,830 | $56,697 | $46,205 | |||
| Interest on investment securities | 8,436 | 6,333 | 24,185 | 16,860 | |||
| Interest on short-term investments | 18 | 6 | 28 | 62 | |||
Total Interest Income | 28,769 | 22,169 | 80,910 | 63,127 | |||
Interest Expense | |||||||
| Interest on deposits | 8,227 | 5,855 | 21,475 | 17,772 | |||
| Interest on borrowings | 1,572 | 1,016 | 4,610 | 3,532 | |||
| Interest on long-term debt - trust preferred securities | 485 | 485 | 1,455 | 1,455 | |||
Total Interest Expense | 10,284 | 7,356 | 27,540 | 22,759 | |||
Net Interest Income | 18,485 | 14,813 | 53,370 | 40,368 | |||
| Provision for loan losses | 851 | 1,092 | 2,901 | 2,778 | |||
Net Interest Income After Provision | 17,634 | 13,721 | 50,469 | 37,590 | |||
Non Interest Income | |||||||
| Wealth management, mortgage banking and other income | 3,899 | 3,657 | 10,351 | 9,539 | |||
| Net securities gains (losses) | 1,259 | (333) | 1,091 | 1,922 | |||
| (Losses) gains on interest rate swap | (1,118) | 765 | (859) | (519) | |||
Total Non Interest Income | 4,040 | 4,089 | 10,583 | 10,942 | |||
Non Interest Expense | |||||||
| Salaries and benefits | 6,811 | 5,338 | 18,903 | 15,186 | |||
| Occupancy expense | 1,394 | 1,403 | 4,104 | 4,092 | |||
| Professional fees | 1,407 | 1,130 | 3,972 | 3,483 | |||
| Marketing | 628 | 855 | 1,825 | 1,850 | |||
| Data processing | 520 | 376 | 1,480 | 1,137 | |||
| Amortization of intangibles | 42 | 42 | 126 | 126 | |||
| Insurance | 221 | 186 | 642 | 499 | |||
| Other operating expenses | 860 | 1,273 | 2,590 | 3,405 | |||
Total Non Interest Expense | 11,883 | 10,603 | 33,642 | 29,778 | |||
| Minority interest expense | 74 | 59 | 206 | 141 | |||
Income Before Income Taxes | 9,717 | 7,148 | 27,204 | 18,613 | |||
| Income tax expense | 2,654 | 2,018 | 7,735 | 5,267 | |||
Net Income | $7,063 | $5,130 | $19,469 | $13,346 | |||
Weighted Average Shares O/S | 19,921,465 | 18,018,468 | 19,684,867 | 16,183,509 | |||
Diluted Average Shares O/S | 20,947,078 | 19,149,604 | 20,660,588 | 17,227,297 | |||
Earnings Per Share | |||||||
| Basic | $ 0.35 | $ 0.28 | $ 0.99 | $ 0.82 | |||
| Diluted | $ 0.34 | $ 0.27 | $ 0.94 | $ 0.77 | |||
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements. | |||||||
Note 2:All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004 | |||||||
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Consolidated Balance Sheets | |||||
(dollars in thousands except per share data) | |||||
09/30/04 | 12/31/03 | 09/30/03 | |||
unaudited | audited | unaudited | |||
Assets | |||||
| Cash and due from banks | $44,814 | $49,115 | $33,551 | ||
| Short-term investments | 11,004 | 985 | 1,999 | ||
| Investment securities: available-for-sale | 759,328 | 669,262 | 647,433 | ||
| Loans held for sale | 8,014 | 4,420 | 5,554 | ||
| Loans | 1,471,083 | 1,224,657 | 1,131,706 | ||
| Allowance for loan losses | (17,751) | (15,100) | (13,865) | ||
| Net loans | 1,453,332 | 1,209,557 | 1,117,841 | ||
| Premises and equipment, net | 6,013 | 6,233 | 6,334 | ||
| Goodwill | 20,547 | 19,242 | 19,242 | ||
| Other assets | 49,314 | 26,109 | 25,149 | ||
Total Assets | $2,352,366 | $1,984,923 | $1,857,103 | ||
Liabilities | |||||
| Non-interest bearing deposits | $170,315 | $135,110 | $125,505 | ||
| Interest bearing deposits | 1,638,217 | 1,412,249 | 1,350,542 | ||
| Total deposits | 1,808,532 | 1,547,359 | 1,476,047 | ||
| Funds borrowed | 301,558 | 219,563 | 164,491 | ||
| Long-term debt - trust preferred securities | 20,000 | 20,000 | 20,000 | ||
| Other liabilities | 35,241 | 31,045 | 35,460 | ||
Total Liabilities | 2,165,331 | 1,817,967 | 1,695,998 | ||
Stockholders' Equity | |||||
| Common stock and additional paid-in-capital less treasury stock | 117,653 | 113,650 | 113,512 | ||
| Retained earnings | 64,136 | 46,193 | 40,114 | ||
| Accumulated other comprehensive income | 9,842 | 9,909 | 10,420 | ||
| Deferred compensation | (4,596) | (2,796) | (2,941) | ||
Total Stockholders' Equity | 187,035 | 166,956 | 161,105 | ||
Total Liabilities and | |||||
Stockholders' Equity | $2,352,366 | $1,984,923 | $1,857,103 | ||
Book Value Per Share | $9.19 | $8.47 | $8.19 | ||
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements. | |||||
Note 2:All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004 | |||||
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Key Financial Data | |||||||||||
Unaudited | |||||||||||
(dollars in thousands except per share data) | |||||||||||
3Q04 | 2Q04 | 1Q04 | 4Q03 | 3Q03 | |||||||
Key Statistics | |||||||||||
| Net income | $7,063 | $6,456 | $5,950 | $5,723 | $5,130 | ||||||
| Basic earnings per share | $0.35 | $0.33 | $0.31 | $0.30 | $0.28 | ||||||
| Diluted earnings per share | $0.34 | $0.31 | $0.29 | $0.28 | $0.27 | ||||||
| Return on average total assets | 1.23% | 1.20% | 1.17% | 1.19% | 1.15% | ||||||
| Return on average total equity | 15.29% | 14.86% | 13.87% | 14.03% | 14.57% | ||||||
| Dividend payout ratio | 8.63% | 9.42% | 10.03% | 6.89% | 7.67% | ||||||
Fee revenue as a percent of total revenue(1) | 17.41% | 16.69% | 14.51% | 14.69% | 19.80% | ||||||
| Non-interest income to average assets | 0.71% | 0.67% | 0.57% | 0.63% | 0.92% | ||||||
| Non-interest expense to average assets | 2.08% | 2.08% | 2.08% | 2.16% | 2.38% | ||||||
Net overhead ratio (2) | 1.37% | 1.41% | 1.51% | 1.53% | 1.46% | ||||||
Efficiency ratio (3) | 50.0% | 50.8% | 49.1% | 50.1% | 53.9% | ||||||
Net interest margin(4) | 3.58% | 3.51% | 3.80% | 3.82% | 3.64% | ||||||
| Yield on average earning assets | 5.46% | 5.27% | 5.46% | 5.48% | 5.37% | ||||||
| Cost of average interest-bearing liabilities | 2.13% | 2.03% | 1.89% | 1.88% | 1.94% | ||||||
Net interest spread(5) | 3.33% | 3.24% | 3.57% | 3.60% | 3.43% | ||||||
Tax equivalent adjustment to net interest income(6) | $1,224 | $1,100 | $1,017 | $925 | $772 | ||||||
(1)Represents wealth management, mortgage banking and other income as a percentage of the sum of net interest income and wealth management, mortgage banking and other income. | |||||||||||
(2)Non-interest expense less non-interest income divided by average total assets. | |||||||||||
(3)Non-interest expense divided by the sum of net interest income, on a tax equivalent basis, plus non-interest income. | |||||||||||
(4)Net interest income, on a tax equivalent basis, divided by average interest-earning assets. | |||||||||||
(5)Yield on average interest-earning assets less rate on average interest-bearing liabilities. | |||||||||||
(6)The company adjusts GAAP reported net interest income by the tax equivalent adjustment amount to account for the tax attributes on federally tax exempt municipal securities. For GAAP purposes, tax benefits associated with federally tax exempt municipal securities are recorded as a benefit in income tax expense. The following table reconciles reported net interest income to net interest income on a tax equivalent basis for the periods presented: | |||||||||||
Reconciliation of net interest income to net interest income on a tax equivalent basis | |||||||||||
| 3Q04 | 2Q04 | 1Q04 | 4Q03 | 3Q03 | |||||||
| Net interest income | $18,485 | $17,334 | $17,551 | $16,772 | $14,813 | ||||||
| Tax equivalent adjustment to net interest income | 1,224 | 1,100 | 1,017 | 925 | 772 | ||||||
| Net interest income, tax equivalent basis | $19,709 | $18,434 | $18,568 | $17,697 | $15,585 | ||||||
Note:All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004 | |||||||||||
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Key Financial Data | |||||||||||
Unaudited | |||||||||||
(dollars in thousands except per share data) | |||||||||||
3Q04 | 2Q04 | 1Q04 | 4Q03 | 3Q03 | |||||||
Balance Sheet Ratios | |||||||||||
| Loans to Deposits (period end) | 81.34% | 84.12% | 82.86% | 79.14% | 76.67% | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 114.0 | 114.9 | 113.5 | 113.9 | 112.4 | ||||||
Per Share Data | |||||||||||
| Dividends | $0.03 | $0.03 | $0.03 | $0.02 | $0.02 | ||||||
| Book value (period end) | $9.19 | $8.54 | $8.72 | $8.47 | $8.19 | ||||||
Tangible book value (period end)(1) | $8.07 | $7.41 | $7.64 | $7.38 | $7.09 | ||||||
Share Price Data (period end) | |||||||||||
| Closing Price | $26.96 | $27.48 | $25.80 | $22.65 | $16.56 | ||||||
Diluted earnings multiple(2) | 19.99 | x | 22.10 | x | 22.53 | x | 20.53 | x | 15.58 | x | |
| Book value multiple | 2.93 | x | 3.22 | x | 2.96 | x | 2.67 | x | 2.02 | x | |
Common Stock Information | |||||||||||
| Outstanding shares at end of period | 20,346,303 | 20,344,073 | 19,954,848 | 19,707,328 | 19,680,068 | ||||||
Number of shares used to compute: | |||||||||||
| Basic earnings per share | 19,921,465 | 19,706,993 | 19,461,134 | 19,321,310 | 18,018,468 | ||||||
| Diluted earnings per share | 20,947,078 | 20,708,906 | 20,614,694 | 20,581,020 | 19,149,604 | ||||||
Capital Ratios (period end) (3): | |||||||||||
| Total equity to total assets | 7.95% | 7.90% | 8.14% | 8.41% | 8.68% | ||||||
| Total risk-based capital ratio | 11.59% | 12.14% | 12.14% | 12.71% | 12.88% | ||||||
| Tier-1 risk-based capital ratio | 10.52% | 11.00% | 11.01% | 11.59% | 11.79% | ||||||
| Leverage ratio | 7.74% | 7.82% | 8.03% | 8.25% | 8.52% | ||||||
(1)Tangible book value is total capital less goodwill and other intangibles divided by outstanding shares at end of period. | |||||||||||
(2)Period end closing stock price divided by annualized quarterly earnings for the quarter then ended. | |||||||||||
(3) Capital ratios for the most recent period presented in the press release are based on preliminary data. | |||||||||||
Note:All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004 | |||||||||||
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Key Financial Data | ||||||||||
Unaudited | ||||||||||
(dollars in thousands) | ||||||||||
3Q04 | 2Q04 | 1Q04 | 4Q03 | 3Q03 | ||||||
Summary Income Statement | ||||||||||
Interest Income | ||||||||||
| Interest and fees on loans | $20,315 | $18,702 | $17,680 | $16,588 | $15,830 | |||||
| Interest on investment securities | 8,436 | 7,820 | 7,929 | 7,773 | 6,333 | |||||
| Interest on short-term investments | 18 | 4 | 6 | 6 | 6 | |||||
Total Interest Income | 28,769 | 26,526 | 25,615 | 24,367 | 22,169 | |||||
Interest Expense | 10,284 | 9,192 | 8,064 | 7,595 | 7,356 | |||||
Net Interest Income | 18,485 | 17,334 | 17,551 | 16,772 | 14,813 | |||||
| Provision for loan losses | 851 | 724 | 1,326 | 1,595 | 1,092 | |||||
Net Interest Income after Provision for Loan Losses | 17,634 | 16,610 | 16,225 | 15,177 | 13,721 | |||||
Non Interest Income | ||||||||||
| Wealth management, mortgage banking and other income | 3,899 | 3,472 | 2,980 | 2,889 | 3,657 | |||||
| Net securities gains (losses) | 1,259 | (1,166) | 998 | (163) | (333) | |||||
| (Losses) gains on interest rate swap | (1,118) | 1,325 | (1,066) | 280 | 765 | |||||
Total Non Interest Income | 4,040 | 3,631 | 2,912 | 3,006 | 4,089 | |||||
Non Interest Expense | ||||||||||
| Salaries and benefits | 6,811 | 6,057 | 6,035 | 5,670 | 5,338 | |||||
| Occupancy expense | 1,394 | 1,350 | 1,360 | 1,472 | 1,403 | |||||
| Professional fees | 1,407 | 1,451 | 1,114 | 1,189 | 1,130 | |||||
| Marketing | 628 | 703 | 495 | 678 | 855 | |||||
| Data processing | 520 | 513 | 446 | 391 | 376 | |||||
| Insurance | 221 | 207 | 215 | 200 | 186 | |||||
| Amortization of intangibles | 42 | 42 | 42 | 42 | 42 | |||||
| Other operating expenses | 860 | 897 | 832 | 724 | 1,273 | |||||
Total Non Interest Expense | 11,883 | 11,220 | 10,539 | 10,366 | 10,603 | |||||
| Minority interest expense | 74 | 65 | 67 | 52 | 59 | |||||
Income Before Income Taxes | 9,717 | 8,956 | 8,531 | 7,765 | 7,148 | |||||
| Income tax expense | 2,654 | 2,500 | 2,581 | 2,042 | 2,018 | |||||
Net income | $7,063 | $6,456 | $5,950 | $5,723 | $5,130 | |||||
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Key Financial Data | ||||||||||
Unaudited | ||||||||||
(dollars in thousands) | ||||||||||
3Q04 | 2Q04 | 1Q04 | 4Q03 | 3Q03 | ||||||
Credit Quality | ||||||||||
Key Ratios | ||||||||||
| Net charge-offs (recoveries) to average loans | 0.11% | -0.01% | -0.03% | 0.12% | 0.09% | |||||
| Total non-performing loans to total loans | 0.17% | 0.06% | 0.06% | 0.09% | 0.17% | |||||
| Total non-performing assets to total assets | 0.10% | 0.04% | 0.04% | 0.06% | 0.10% | |||||
| Nonaccrual loans to: | ||||||||||
| total loans | 0.05% | 0.01% | 0.01% | 0.00% | 0.05% | |||||
| total assets | 0.03% | 0.01% | 0.01% | 0.00% | 0.03% | |||||
| Allowance for loan losses to: | ||||||||||
| total loans | 1.21% | 1.23% | 1.23% | 1.23% | 1.23% | |||||
| non-performing loans | 729% | 2175% | 1954% | 1343% | 676% | |||||
| nonaccrual loans | 2228% | 11422% | 12626% | 41369% | 2681% | |||||
Non-performing assets: | ||||||||||
| Loans delinquent over 90 days | $1,638 | $644 | $715 | $1,088 | $1,401 | |||||
| Nonaccrual loans | 797 | 151 | 131 | 36 | 517 | |||||
| Total non-performing assets | $2,435 | $795 | $846 | $1,124 | $1,918 | |||||
Net loan charge-offs (recoveries): | ||||||||||
| Loans charged off | $831 | $0 | $5 | $367 | $335 | |||||
| (Recoveries) | (427) | (51) | (108) | (7) | (89) | |||||
| Net charge-offs (recoveries) | $404 | ($51) | ($103) | $360 | $246 | |||||
Provision for loan losses | $851 | $724 | $1,326 | $1,595 | $1,092 | |||||
Allowance for Loan Losses Summary | ||||||||||
| Balance at beginning of period | $17,304 | $16,529 | $15,100 | $13,865 | $13,019 | |||||
| Provision | 851 | 724 | 1,326 | 1,595 | 1,092 | |||||
| Net charge-offs (recoveries) | 404 | (51) | (103) | 360 | 246 | |||||
| Balance at end of period | $17,751 | $17,304 | $16,529 | $15,100 | $13,865 | |||||
Net loan charge-offs (recoveries): | ||||||||||
| Commercial real estate | - | - | - | - | - | |||||
| Residential real estate | - | - | - | - | - | |||||
| Commercial | ($314) | ($49) | ($105) | $312 | $327 | |||||
| Personal | 718 | (2) | 2 | 48 | (81) | |||||
| Home equity | - | - | - | - | - | |||||
| Construction | - | - | - | - | - | |||||
| Total net loan charge-offs (recoveries) | $404 | ($51) | ($103) | $360 | $246 | |||||
| 10 | ||
| | ||||||||||||
Balance Sheets | ||||||||||||
(dollars in thousands) | ||||||||||||
unaudited | unaudited | unaudited | audited | unaudited | ||||||||
09/30/04 | 06/30/04 | 03/31/04 | 12/31/03 | 09/30/03 | ||||||||
Assets | ||||||||||||
| Cash and due from banks | $44,814 | $22,414 | $60,047 | $49,115 | $33,551 | |||||||
| Short-term investments | 11,004 | 1,779 | 1,224 | 985 | 1,999 | |||||||
| Investment securities: available-for-sale | 759,328 | 722,582 | 692,678 | 669,262 | 647,433 | |||||||
| Loans held for sale | 8,014 | 6,419 | 4,133 | 4,420 | 5,554 | |||||||
| Loans | 1,471,083 | 1,407,586 | 1,344,706 | 1,224,657 | 1,131,706 | |||||||
| Less: Allowance for loan losses | (17,751) | (17,304) | (16,529) | (15,100) | (13,865) | |||||||
| Net loans | 1,453,332 | 1,390,282 | 1,328,177 | 1,209,557 | 1,117,841 | |||||||
| Premises and equipment, net | 6,013 | 5,711 | 5,924 | 6,233 | 6,334 | |||||||
| Goodwill | 20,547 | 20,547 | 19,242 | 19,242 | 19,242 | |||||||
| Other assets | 49,314 | 29,436 | 27,669 | 26,109 | 25,149 | |||||||
| Total Assets | $2,352,366 | $2,199,170 | $2,139,094 | $1,984,923 | $1,857,103 | |||||||
Liabilities and Stockholders' Equity | ||||||||||||
| Non-interest bearing deposits | $170,315 | $163,543 | $153,197 | $135,110 | $125,505 | |||||||
| Interest bearing demand deposits | 89,538 | 89,810 | 79,453 | 85,083 | 71,958 | |||||||
| Savings and money market deposits | 864,794 | 683,205 | 646,838 | 562,234 | 484,662 | |||||||
| Time deposits | 683,885 | 736,846 | 743,411 | 764,932 | 793,922 | |||||||
| Total deposits | 1,808,532 | 1,673,404 | 1,622,899 | 1,547,359 | 1,476,047 | |||||||
| Funds borrowed | 301,558 | 306,447 | 297,537 | 219,563 | 164,491 | |||||||
| Long-term debt - Trust Preferred Securities | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | |||||||
| Other liabilities | 35,241 | 25,650 | 24,617 | 31,045 | 35,460 | |||||||
| Total liabilities | 2,165,331 | 2,025,501 | 1,965,053 | 1,817,967 | 1,695,998 | |||||||
| Stockholders' equity | 187,035 | 173,669 | 174,041 | 166,956 | 161,105 | |||||||
| Total Liabilities and Stockholders' Equity | $2,352,366 | $2,199,170 | $2,139,094 | $1,984,923 | $1,857,103 | |||||||
| 11 | ||
| | ||||||||||||
Average Quarterly Balance Sheets | ||||||||||||
(unaudited, dollars in thousands) | ||||||||||||
09/30/04 | 06/30/04 | 03/31/04 | 12/31/03 | 09/30/03 | ||||||||
Assets | ||||||||||||
| Cash and due from banks | $26,706 | $31,788 | $35,533 | $33,812 | $36,424 | |||||||
| Short-term investments | 3,949 | 1,944 | 1,648 | 1,597 | 1,480 | |||||||
| Investment securities: available-for-sale | 744,446 | 713,099 | 690,826 | 652,463 | 589,624 | |||||||
| Loans held for sale | 4,704 | 10,335 | 3,640 | 4,481 | 11,228 | |||||||
| Loans | 1,432,003 | 1,370,030 | 1,263,047 | 1,175,718 | 1,091,982 | |||||||
| Less: Allowance for loan losses | (17,781) | (16,838) | (15,544) | (14,332) | (13,358) | |||||||
| Net loans | 1,414,222 | 1,353,192 | 1,247,503 | 1,161,386 | 1,078,624 | |||||||
| Premises and equipment, net | 5,788 | 5,854 | 6,153 | 6,332 | 6,376 | |||||||
| Goodwill | 20,547 | 19,242 | 21,338 | 19,233 | 19,275 | |||||||
| Other assets | 51,115 | 28,874 | 25,179 | 25,079 | 27,774 | |||||||
| Total Assets | $2,271,477 | $2,164,328 | $2,031,820 | $1,904,383 | $1,770,805 | |||||||
Liabilities and Stockholders' Equity | ||||||||||||
| Non-interest bearing deposits | $157,312 | $152,817 | $127,635 | $122,372 | $111,010 | |||||||
| Interest bearing demand deposits | 89,754 | 88,982 | 84,975 | 82,293 | 76,223 | |||||||
| Savings and money market deposits | 780,746 | 660,324 | 580,663 | 541,432 | 478,659 | |||||||
| Time deposits | 719,528 | 724,794 | 717,282 | 772,564 | 755,081 | |||||||
| Total deposits | 1,747,340 | 1,626,917 | 1,510,555 | 1,518,661 | 1,420,973 | |||||||
| Funds borrowed | 293,942 | 320,766 | 305,930 | 183,290 | 169,088 | |||||||
| Long-term debt - Trust Preferred Securities | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | |||||||
| Other liabilities | 26,901 | 22,469 | 23,301 | 20,619 | 21,093 | |||||||
| Total liabilities | 2,088,183 | 1,990,152 | 1,859,786 | 1,742,570 | 1,631,154 | |||||||
| Stockholders' equity | 183,294 | 174,176 | 172,034 | 161,813 | 139,651 | |||||||
| Total Liabilities and Stockholders' Equity | $2,271,477 | $2,164,328 | $2,031,820 | $1,904,383 | $1,770,805 | |||||||
| 12 | ||
| | ||||||||||||
Average Year-To-Date Balance Sheets | ||||||||||||
(unaudited, dollars in thousands) | ||||||||||||
09/30/04 | 06/30/04 | 03/31/04 | 12/31/03 | 09/30/03 | ||||||||
Assets | ||||||||||||
| Cash and due from banks | $31,557 | $33,630 | $35,533 | $36,548 | $37,598 | |||||||
| Short-term investments | 2,468 | 1,797 | 1,648 | 6,348 | 7,696 | |||||||
| Investment securities: available-for-sale | 727,466 | 701,963 | 690,826 | 569,718 | 541,833 | |||||||
| Loans held for sale | 5,350 | 8,842 | 3,640 | 9,359 | 11,003 | |||||||
| Loans | 1,365,261 | 1,314,683 | 1,263,047 | 1,075,344 | 1,041,520 | |||||||
| Less: Allowance for loan losses | (16,844) | (16,191) | (15,544) | (13,109) | (12,697) | |||||||
| Net loans | 1,348,417 | 1,298,492 | 1,247,503 | 1,062,235 | 1,028,823 | |||||||
| Premises and equipment, net | 5,895 | 6,008 | 6,153 | 6,478 | 6,527 | |||||||
| Goodwill | 20,917 | 20,290 | 21,338 | 19,353 | 19,416 | |||||||
| Other assets | 35,278 | 25,929 | 25,179 | 24,531 | 26,482 | |||||||
| Total Assets | $2,177,348 | $2,096,951 | $2,031,820 | $1,734,570 | $1,679,378 | |||||||
Liabilities and Stockholders' Equity | ||||||||||||
| Non-interest bearing deposits | $147,818 | $140,188 | $127,635 | $103,073 | $96,246 | |||||||
| Interest bearing demand deposits | 87,906 | 86,978 | 84,975 | 74,926 | 72,444 | |||||||
| Savings and money market deposits | 683,121 | 620,493 | 580,663 | 496,607 | 480,717 | |||||||
| Time deposits | 734,053 | 721,038 | 717,282 | 722,990 | 706,285 | |||||||
| Total deposits | 1,652,898 | 1,568,697 | 1,510,555 | 1,397,596 | 1,355,692 | |||||||
| Funds borrowed | 302,291 | 313,348 | 305,930 | 175,451 | 172,862 | |||||||
| Long-term debt - Trust Preferred Securities | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | |||||||
| Other liabilities | 24,646 | 21,459 | 23,301 | 17,924 | 19,016 | |||||||
| Total liabilities | 1,999,835 | 1,923,504 | 1,859,786 | 1,610,971 | 1,567,570 | |||||||
| Stockholders' equity | 177,513 | 173,447 | 172,034 | 123,599 | 111,808 | |||||||
| Total Liabilities and Stockholders' Equity | $2,177,348 | $2,096,951 | $2,031,820 | $1,734,570 | $1,679,378 | |||||||
| 13 | ||