For further information:
Dennis Klaeser, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release
PrivateBancorp Reports Earnings Per Share of $0.46
Earnings per share up 24 percent over third quarter 2005
Chicago, IL, October 16, 2006--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings of $0.46 per diluted share for the third quarter 2006 compared to third quarter 2005 earnings per diluted share of $0.37, an increase of 24 percent. Net income for the third quarter 2006 was $9.8 million compared to third quarter 2005 net income of $7.9 million. For the nine months ended September 30, 2006, net income was $28.8 million, or $1.34 per diluted share, compared to net income of $22.7 million, or $1.07 per diluted share, for the nine months ended September 30, 2005, a 25 percent increase in diluted earnings per share between periods. Third quarter earnings include the impact of net securities gains of $1.2 million, a loss of $904,000 on an interest rate swap, and $615,000 of expenses associated with the relocation of our headquarters. The combined effect of these items decreased our diluted earnings per share by $0.01 for the third quarter.
“PrivateBancorp continued its trend of strong earnings growth based on solid operating progress during the third quarter. We experienced strong deposit and loan growth while adhering to our high credit standards. During the third quarter, we successfully relocated our headquarters into larger offices that will better serve our long-term growth needs,” said Ralph B. Mandell, Chairman, President and CEO. “In addition, we have taken other steps during the quarter to facilitate the Company’s future growth. Notably, in early August, we announced that we had agreed to acquire Piedmont Bancshares, Inc., the holding company for Piedmont Bank of Georgia, marking our initial expansion outside of the Midwest. This transaction, which is expected to close during the fourth quarter, will allow us to extend our unique brand of private banking to the fast-growing Atlanta market.”
For the third quarter 2006, net interest income totaled $30.0 million compared to third quarter 2005 net interest income of $26.3 million, primarily due to asset growth more than offsetting a decrease in net interest margin. Net interest margin (on a tax equivalent basis) was 3.47 percent in the third quarter 2006, down from 3.53 percent in the prior year third quarter and 3.55 percent in the second quarter 2006. During the third quarter 2006, the yield on average interest earning assets increased by 20 basis points while total cost of funds increased by 33 basis points from the second quarter 2006.
The third quarter 2006 provision for loan losses was $1.5 million compared to $2.0 million in the prior year third quarter and $2.4 million in the second quarter 2006. The decrease in the provision reflects a low level of non-accrual loans as well as a sequential decrease in charge-offs and non-performing loans. The allowance for loan losses as a percentage of total loans was 1.11 percent as of September 30, 2006, down from 1.13 percent at June 30, 2006 and from 1.15 percent at September 30, 2005. At September 30, 2006, nonperforming loans as a percentage of total loans were 0.06 percent, compared to 0.05 percent at September 30, 2005, and down from 0.10 percent at June 30, 2006.
Third quarter 2006 non interest income of $5.9 million was 9 percent higher than third quarter 2005 non interest income of $5.5 million. The growth in non interest income as compared to the prior year third quarter was driven primarily by growth in wealth management income and other income, partially offset by a decrease in mortgage banking income. Wealth management fee income increased to $3.5 million for the third quarter 2006, up from $2.6 million in the third quarter 2005 and down slightly from $3.6 million in the second quarter 2006. Wealth management assets under management increased 35 percent to $2.8 billion at September 30, 2006 compared to $2.1 billion at September 30, 2005 and up $93.9 million from $2.7 billion at June 30, 2006. Mortgage banking income fell to $0.8 million for the third quarter 2006 compared to $1.3 million for the third quarter 2005, and $1.0 million during the second quarter 2006.
For the three months ended September 30, 2006, securities gains of $1.2 million combined with net losses of $904,000 from an interest rate swap resulted in a $308,000 gain that also affected our non interest income. For the third quarter 2005, a $644,000 gain from an interest rate swap combined with securities losses of $249,000 resulted in $395,000 of other income. During the quarter, the Company retired its investment in the interest rate swap derivative.
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Non interest expense increased to $20.0 million in the third quarter 2006 from $17.2 million in the prior year quarter and $18.9 million in the second quarter 2006, reflecting increases in personnel, professional fees, wealth management fees and occupancy expenses. During the quarter, the Company moved its downtown Chicago headquarters into a larger facility. Approximately $615,000 of expenses was recognized in conjunction with the move during the quarter. These expenses are spread across the occupancy expense, marketing expense, professional fees and other expense categories, and we expect all of these expense categories to decrease in the fourth quarter.
For the quarter and nine months ended September 30, 2006, $0.02 and $0.06 per share, respectively, of options expense were recognized. Financial results for the quarter and nine months ended September 30, 2005 include $0.03 and $0.09 per share, net of tax, respectively, of options expense that is recognized as a result of the modified retrospective application of SFAS 123R, Share-Base Payment, which the Company adopted effective January 1, 2006. Option expense is expected to be $0.03 per share in the fourth quarter of 2006 resulting in $0.09 of total option expense for the full year 2006 compared to $0.12 of options expense for 2005.
The Company continues to add experienced managing directors to support continued growth. Full-time equivalent employees at quarter’s end increased to 421 from 366 at September 30, 2005 and from 409 at June 30, 2006. At September 30, 2006, the Company had 129 managing directors compared to 109 at September 30, 2005 and 126 managing directors at June 30, 2006. The efficiency ratio was 53.9 percent in the third quarter 2006 compared to 52.2 percent in the prior year quarter and 50.3 percent in the second quarter 2006. The higher ratio is primarily attributable to the aforementioned headquarters relocation costs.
Total assets were $3.9 billion at September 30, 2006, an increase of 16 percent from $3.3 billion at September 30, 2005, and an increase of 6 percent from $3.7 billion at June 30, 2006. At September 30, 2006, total loans were $3.1 billion, an increase of 30 percent from $2.4 billion at September 30, 2005 and up 6 percent from $3.0 billion at June 30, 2006. Although the Company has benefited from strong loan growth across the geographic markets it serves, growth in the third quarter was fueled especially by growth in the Michigan and Chicago-area markets.
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Investment securities were $458.9 million at September 30, 2006, down from $499.8 million at June 30, 2006 and $720.1 million at September 30, 2005. The decrease in the investment portfolio from the prior year quarter’s end was due primarily to the redemption of Federal Home Loan Bank of Chicago (“FHLB (Chicago)”) stock held by the Company in conjunction with its May, 2006 withdrawal of membership from the FHLB (Chicago).
Total deposits were $3.2 billion at September 30, 2006, up 26 percent from $2.6 billion at September 30, 2005 and up 4 percent from $3.1 billion at June 30, 2006. Core deposits, defined as total deposits less brokered deposits, increased 23 percent to $2.5 billion compared to $2.0 billion at September 30, 2005, and were up $140.4 million, or 6 percent, from $2.4 billion at June 30, 2006. Brokered deposits were $720.7 million at September 30, 2006, up 36 percent from $528.7 million at September 30, 2005 and down $27.3 million, or 4 percent, from $748.0 million at June 30, 2006. Funds borrowed decreased 44 percent to $235.9 million at September 30, 2006 from $417.7 million at September 30, 2005, but were up 77 percent from $133.2 million at June 30, 2006.
PrivateBancorp, Inc. was organized in 1989 to provide distinctive, highly personalized premium financial services primarily to privately held businesses, affluent individuals, wealthy families, professionals, entrepreneurs and real estate investors for their personal and professional interests. The Company uses a European tradition of “private banking” as a model to develop lifetime relationships with its clients. Utilizing a team of highly qualified managing directors, The PrivateBank tailors products and services to meet each client’s needs in personal and commercial banking services and wealth management services. The Company, which had assets of $3.9 billion as of September 30, 2006, has 14 offices located in the Chicago, Detroit, Milwaukee, and St. Louis metropolitan areas. On August 3, 2006, the Company announced it had signed a definitive agreement to acquire Piedmont Bancshares, Inc., the holding company for Piedmont Bank of Georgia, Atlanta, Georgia.
Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.’s website at www.pvtb.com.
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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, unanticipated difficulties or delays in obtaining the requisite shareholder or regulatory approval for the pending acquisition of Piedmont Bancshares, higher than expected costs related to the transaction, fluctuations in market rates of interest and loan and deposit pricing, deterioration in asset quality due to an economic downturn in the greater Chicago, Detroit, Milwaukee or St. Louis metropolitan areas, legislative or regulatory changes, adverse developments in the Company’s loan or investment portfolios, slower than anticipated growth of the Company’s or Piedmont’s business or unanticipated business declines, unforeseen difficulties in the continued integration of The PrivateBank - Michigan or higher than expected operational costs, unexpected difficulties in the continued integration of or in operating our mortgage banking business, 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 unless required under the federal securities laws.
Additional Information About the Proposed Merger with Piedmont Bancshares, Inc.
PrivateBancorp has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”), which has not yet been declared effective, in connection with the proposed transaction. The registration statement includes a proxy statement of Piedmont that also constitutes a prospectus of PrivateBancorp, which, when available, will be sent to the shareholders of Piedmont seeking their approval of the merger and the other transactions contemplated thereby. Piedmont shareholders are advised to read the proxy statement/prospectus when it becomes available because it will contain important information about PrivateBancorp, Piedmont and the proposed transaction. When available, this document and other relevant documents relating to the merger filed by PrivateBancorp can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing PrivateBancorp’s website at www.pvtb.com under the tab “Investor Relations”. Alternatively, these documents can be obtained free of charge from PrivateBancorp upon request to PrivateBancorp, Inc., Secretary, 70 West Madison, Suite 900, Chicago, Illinois 60602 or by calling (312) 683-7100, or to Piedmont Bancshares, Inc., Attention: President, 3423 Piedmont Road, Suite 225, Atlanta, Georgia 30305, or by calling (404) 926-2400.
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Participants in the Transaction
PrivateBancorp, Piedmont and certain of their respective directors and executive officers and other members of management and employees may, under the rules of the SEC, be deemed to be participants in the solicitation of proxies from shareholders of Piedmont in connection with the proposed merger. Information about these participants will be included in the proxy statement/prospectus regarding the proposed merger when it becomes available.
This press release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Editor’s Note: Financial highlights attached.
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Consolidated Balance Sheets
(dollars in thousands except per share data)
09/30/06 | 12/31/05 | 09/30/05 | ||||||||
unaudited | unaudited | |||||||||
Assets | ||||||||||
| Cash and due from banks | $ | 91,026 | $ | 47,736 | $ | 43,246 | ||||
| Short-term investments | 33,565 | 14,133 | 11,179 | |||||||
| Investment securities: available-for-sale | 458,869 | 695,151 | 720,055 | |||||||
| Loans held for sale | 7,719 | 5,269 | 9,104 | |||||||
| Loans | 3,136,634 | 2,608,067 | 2,421,725 | |||||||
| Allowance for loan losses | (34,693 | ) | (29,388 | ) | (27,884 | ) | ||||
| Net loans | 3,101,941 | 2,578,679 | 2,393,841 | |||||||
| Premises and equipment, net | 19,825 | 11,754 | 9,798 | |||||||
| Goodwill | 63,176 | 63,176 | 63,160 | |||||||
| Other assets | 100,771 | 81,410 | 78,313 | |||||||
Total Assets | $ | 3,876,892 | $ | 3,497,308 | $ | 3,328,696 | ||||
Liabilities | ||||||||||
| Non-interest bearing deposits | $ | 280,478 | $ | 252,625 | $ | 261,808 | ||||
| Interest bearing deposits | 2,958,344 | 2,570,757 | 2,310,426 | |||||||
| Total deposits | 3,238,822 | 2,823,382 | 2,572,234 | |||||||
| Funds borrowed | 235,858 | 296,980 | 417,664 | |||||||
| Long-term debt - trust preferred securities | 98,000 | 98,000 | 78,000 | |||||||
| Other liabilities | 36,016 | 40,317 | 29,995 | |||||||
Total Liabilities | 3,608,696 | 3,258,679 | 3,097,893 | |||||||
Stockholders' Equity | ||||||||||
| Common stock and additional paid-in-capital | 148,948 | 142,649 | 141,306 | |||||||
| Treasury stock | (3,830 | ) | (2,728 | ) | (2,635 | ) | ||||
| Retained earnings | 116,278 | 91,274 | 83,971 | |||||||
| Accumulated other comprehensive income | 6,800 | 7,434 | 8,161 | |||||||
Total Stockholders' Equity | 268,196 | 238,629 | 230,803 | |||||||
Total Liabilities and | ||||||||||
Stockholders' Equity | $ | 3,876,892 | $ | 3,497,308 | $ | 3,328,696 | ||||
Book Value Per Share | $ | 12.87 | $ | 11.64 | $ | 11.26 | ||||
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 data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Consolidated Statements of Income
(dollars in thousands except per share data)
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
unaudited | unaudited | unaudited | unaudited | ||||||||||
Interest Income | |||||||||||||
| Interest and fees on loans | $ | 60,361 | $ | 39,580 | $ | 164,398 | $ | 94,369 | |||||
| Interest on investment securities | 6,320 | 9,093 | 22,356 | 27,734 | |||||||||
| Interest on short-term investments | 116 | 166 | 402 | 293 | |||||||||
Total Interest Income | 66,797 | 48,839 | 187,156 | 122,396 | |||||||||
Interest Expense | |||||||||||||
| Interest on deposits | 32,804 | 16,811 | 86,637 | 41,649 | |||||||||
| Interest on borrowings | 2,398 | 4,387 | 8,253 | 9,611 | |||||||||
| Interest on long-term debt - trust preferred securities | 1,555 | 1,377 | 4,589 | 2,453 | |||||||||
Total Interest Expense | 36,757 | 22,575 | 99,479 | 53,713 | |||||||||
Net Interest Income | 30,040 | 26,264 | 87,677 | 68,683 | |||||||||
| Provision for loan losses | 1,494 | 2,046 | 6,129 | 4,848 | |||||||||
Net Interest Income After Provision | 28,546 | 24,218 | 81,548 | 63,835 | |||||||||
Non Interest Income | |||||||||||||
| Wealth management income | 3,477 | 2,627 | 10,240 | 7,174 | |||||||||
| Mortgage banking income | 804 | 1,284 | 2,532 | 3,102 | |||||||||
| Other income | 1,351 | 1,165 | 5,106 | 2,915 | |||||||||
| Net securities (losses) gains | 1,212 | (249 | ) | (373 | ) | 691 | |||||||
| Gains (losses) on interest rate swap | (904 | ) | 644 | 64 | 152 | ||||||||
Total Non Interest Income | 5,940 | 5,471 | 17,569 | 14,034 | |||||||||
Non Interest Expense | |||||||||||||
| Salaries and benefits | 10,864 | 10,011 | 31,725 | 25,634 | |||||||||
| Occupancy expense | 2,639 | 1,963 | 7,022 | 5,505 | |||||||||
| Professional fees | 1,866 | 1,272 | 4,837 | 3,285 | |||||||||
| Wealth management fees | 774 | 308 | 1,979 | 735 | |||||||||
| Marketing | 1,159 | 1,150 | 3,154 | 2,409 | |||||||||
| Data processing | 788 | 803 | 2,318 | 2,012 | |||||||||
| Amortization of intangibles | 152 | 156 | 459 | 255 | |||||||||
| Insurance | 349 | 275 | 982 | 808 | |||||||||
| Other operating expenses | 1,420 | 1,221 | 4,027 | 3,209 | |||||||||
Total Non Interest Expense | 20,011 | 17,159 | 56,503 | 43,852 | |||||||||
| Minority interest expense | 85 | 82 | 248 | 231 | |||||||||
Income Before Income Taxes | 14,390 | 12,448 | 42,366 | 33,786 | |||||||||
| Income tax expense | 4,596 | 4,542 | 13,572 | 11,116 | |||||||||
Net Income | $ | 9,794 | $ | 7,906 | $ | 28,794 | $ | 22,670 | |||||
Weighted Average Shares Outstanding | 20,581,504 | 20,408,238 | 20,519,959 | 20,129,908 | |||||||||
Diluted Average Shares Outstanding | 21,440,343 | 21,373,287 | 21,413,356 | 21,037,915 | |||||||||
Earnings Per Share | |||||||||||||
| Basic | $ | 0.48 | $ | 0.39 | $ | 1.40 | $ | 1.13 | |||||
| Diluted | $ | 0.46 | $ | 0.37 | $ | 1.34 | $ | 1.07 | |||||
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 data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands except per share data)
3Q06 | 2Q06 | 1Q06 | 4Q05 | 3Q05 | ||||||||||||
Key Statistics | ||||||||||||||||
| Net income | $ | 9,794 | $ | 10,013 | $ | 8,987 | $ | 8,242 | $ | 7,906 | ||||||
| Basic earnings per share | $ | 0.48 | $ | 0.48 | $ | 0.44 | $ | 0.40 | $ | 0.39 | ||||||
| Diluted earnings per share | $ | 0.46 | $ | 0.47 | $ | 0.42 | $ | 0.39 | $ | 0.37 | ||||||
| Return on average total assets | 1.04 | % | 1.10 | % | 1.03 | % | 0.97 | % | 0.97 | % | ||||||
| Return on average total equity | 15.25 | % | 16.45 | % | 15.21 | % | 14.44 | % | 14.01 | % | ||||||
| Dividend payout ratio | 12.96 | % | 12.65 | % | 14.06 | % | 11.41 | % | 11.91 | % | ||||||
Fee revenue as a percent of total revenue (1) | 15.79 | % | 19.48 | % | 15.32 | % | 15.07 | % | 16.20 | % | ||||||
| Wealth management assets under management | 2,780,121 | 2,686,255 | 2,716,599 | 2,436,766 | 2,061,510 | |||||||||||
| Non-interest income to average assets | 0.63 | % | 0.73 | % | 0.57 | % | 0.58 | % | 0.67 | % | ||||||
| Non-interest expense to average assets | 2.13 | % | 2.08 | % | 2.01 | % | 2.20 | % | 2.10 | % | ||||||
Net overhead ratio (2) | 1.50 | % | 1.35 | % | 1.44 | % | 1.62 | % | 1.43 | % | ||||||
Efficiency ratio (3) | 53.9 | % | 50.3 | % | 51.7 | % | 55.7 | % | 52.2 | % | ||||||
Net interest margin | ||||||||||||||||
| Fed funds sold & other short-term investments | 6.40 | % | 5.02 | % | 4.81 | % | 4.61 | % | 3.59 | % | ||||||
| Investment Securities (taxable) | 5.50 | % | 5.75 | % | 4.88 | % | 5.02 | % | 4.96 | % | ||||||
| Investment Securities (non-taxable) | 6.88 | % | 6.90 | % | 6.91 | % | 6.91 | % | 6.96 | % | ||||||
| Loans, net of unearned discount | 7.83 | % | 7.64 | % | 7.39 | % | 7.14 | % | 6.76 | % | ||||||
| Yield on average earning assets | 7.59 | % | 7.39 | % | 7.00 | % | 6.79 | % | 6.44 | % | ||||||
| Interest bearing deposits | 4.53 | % | 4.21 | % | 3.84 | % | 3.45 | % | 3.04 | % | ||||||
| Funds borrowed | 5.20 | % | 4.58 | % | 4.24 | % | 4.04 | % | 3.66 | % | ||||||
| Trust preferred securities | 6.21 | % | 6.17 | % | 6.14 | % | 7.00 | % | 7.06 | % | ||||||
| Cost of average interest-bearing liabilities | 4.62 | % | 4.29 | % | 3.96 | % | 3.64 | % | 3.26 | % | ||||||
Net interest spread (4) | 2.97 | % | 3.10 | % | 3.04 | % | 3.15 | % | 3.18 | % | ||||||
Net interest margin (5) | 3.47 | % | 3.55 | % | 3.45 | % | 3.55 | % | 3.53 | % | ||||||
Tax equivalent adjustment to net interest income (6) | $ | 1,166 | $ | 1,173 | $ | 1,174 | $ | 1,143 | $ | 1,132 | ||||||
(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) | Yield on average interest-earning assets less rate on average interest-bearing liabilities. |
(5) | Net interest income, on a tax equivalent basis, divided by average interest-earning assets. |
(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 | ||||||||||||||||
| 3Q06 | 2Q06 | 1Q06 | 4Q05 | 3Q05 | ||||||||||||
| Net interest income | $ | 30,040 | $ | 29,862 | $ | 27,775 | $ | 27,717 | $ | 26,264 | ||||||
| Tax equivalent adjustment to net interest income | 1,166 | 1,173 | 1,174 | 1,143 | 1,132 | |||||||||||
| Net interest income, tax equivalent basis | $ | 31,206 | $ | 31,035 | $ | 28,949 | $ | 28,860 | $ | 27,396 | ||||||
Note: All previously reported data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands except per share data)
3Q06 | 2Q06 | 1Q06 | 4Q05 | 3Q05 | ||||||||||||
Balance Sheet Ratios | ||||||||||||||||
| Loans to Deposits (period end) | 96.84 | % | 94.57 | % | 94.78 | % | 92.37 | % | 94.15 | % | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 112.2 | 111.9 | 111.2 | 112.0 | 111.7 | |||||||||||
Per Share Data | ||||||||||||||||
| Dividends | $ | 0.060 | $ | 0.060 | $ | 0.060 | $ | 0.045 | $ | 0.045 | ||||||
| Book value (period end) | $ | 12.87 | $ | 12.22 | $ | 11.86 | $ | 11.64 | $ | 11.26 | ||||||
Tangible book value (period end) (1) | $ | 9.59 | $ | 8.92 | $ | 8.55 | $ | 8.46 | $ | 7.90 | ||||||
Share Price Data (period end) | ||||||||||||||||
| Closing Price | $ | 45.72 | $ | 41.41 | $ | 41.49 | $ | 35.57 | $ | 34.28 | ||||||
Diluted earnings multiple (2) | 25.05 | x | 21.97 | x | 24.36 | x | 22.99 | x | 23.35 | x | ||||||
| Book value multiple | 3.55 | x | 3.39 | x | 3.50 | x | 3.05 | x | 3.04 | x | ||||||
Common Stock Information | ||||||||||||||||
| Outstanding shares at end of period | 20,842,083 | 20,769,859 | 20,729,339 | 20,491,934 | 20,490,119 | |||||||||||
Number of shares used to compute: | ||||||||||||||||
| Basic earnings per share | 20,581,504 | 20,659,566 | 20,561,694 | 20,427,363 | 20,408,238 | |||||||||||
| Diluted earnings per share | 21,440,343 | 21,523,387 | 21,424,810 | 21,410,469 | 21,373,287 | |||||||||||
Capital Ratios (period end) (3): | ||||||||||||||||
| Total equity to total assets | 6.92 | % | 6.95 | % | 6.70 | % | 6.82 | % | 6.91 | % | ||||||
| Total risk-based capital ratio | 10.64 | % | 10.66 | % | 10.51 | % | 10.65 | % | 10.25 | % | ||||||
| Tier-1 risk-based capital ratio | 8.60 | % | 8.65 | % | 8.57 | % | 8.61 | % | 8.79 | % | ||||||
| Leverage ratio | 7.37 | % | 7.44 | % | 7.28 | % | 7.18 | % | 7.16 | % | ||||||
(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 data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands)
3Q06 | 2Q06 | 1Q06 | 4Q05 | 3Q05 | ||||||||||||
Summary Income Statement | ||||||||||||||||
Interest Income | ||||||||||||||||
| Interest and fees on loans | $ | 60,361 | $ | 55,127 | $ | 48,910 | $ | 45,244 | $ | 39,580 | ||||||
| Interest on investment securities | 6,320 | 7,734 | 8,302 | 8,585 | 9,093 | |||||||||||
| Interest on short-term investments | 116 | 199 | 87 | 207 | 166 | |||||||||||
Total Interest Income | 66,797 | 63,060 | 57,299 | 54,036 | 48,839 | |||||||||||
Interest Expense | 36,757 | 33,198 | 29,524 | 26,319 | 22,575 | |||||||||||
Net Interest Income | 30,040 | 29,862 | 27,775 | 27,717 | 26,264 | |||||||||||
| Provision for loan losses | 1,494 | 2,382 | 2,253 | 1,690 | 2,046 | |||||||||||
Net Interest Income after Provision for Loan Losses | 28,546 | 27,480 | 25,522 | 26,027 | 24,218 | |||||||||||
Non Interest Income | ||||||||||||||||
| Wealth management income | 3,477 | 3,603 | 3,160 | 2,771 | 2,627 | |||||||||||
| Mortgage banking income | 804 | 1,005 | 724 | 784 | 1,284 | |||||||||||
| Other income | 1,351 | 2,616 | 1,138 | 1,361 | 1,165 | |||||||||||
| Net securities (losses) gains | 1,212 | (1,007 | ) | (578 | ) | (192 | ) | (249 | ) | |||||||
| Gains (losses) on interest rate swap | (904 | ) | 413 | 555 | 252 | 644 | ||||||||||
Total Non Interest Income | 5,940 | 6,630 | 4,999 | 4,976 | 5,471 | |||||||||||
Non Interest Expense | ||||||||||||||||
| Salaries and benefits | 10,864 | 10,325 | 10,536 | 10,677 | 10,011 | |||||||||||
| Occupancy expense | 2,639 | 2,214 | 2,169 | 2,012 | 1,963 | |||||||||||
| Professional fees | 1,866 | 1,955 | 1,016 | 1,284 | 1,272 | |||||||||||
| Wealth management fees | 774 | 799 | 406 | 326 | 308 | |||||||||||
| Marketing | 1,159 | 1,083 | 913 | 1,140 | 1,150 | |||||||||||
| Data processing | 788 | 764 | 766 | 820 | 803 | |||||||||||
| Insurance | 349 | 323 | 310 | 287 | 275 | |||||||||||
| Amortization of intangibles | 152 | 153 | 154 | 156 | 156 | |||||||||||
| Other operating expenses | 1,420 | 1,318 | 1,288 | 2,132 | 1,221 | |||||||||||
Total Non Interest Expense | 20,011 | 18,934 | 17,558 | 18,834 | 17,159 | |||||||||||
| Minority interest expense | 85 | 86 | 77 | 76 | 82 | |||||||||||
Income Before Income Taxes | 14,390 | 15,090 | 12,886 | 12,093 | 12,448 | |||||||||||
| Income tax expense | 4,596 | 5,077 | 3,899 | 3,851 | 4,542 | |||||||||||
Net income | $ | 9,794 | $ | 10,013 | $ | 8,987 | $ | 8,242 | $ | 7,906 | ||||||
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 data has been restated to reflect the adoption of SFAS No. 123(R), “Share Based Payment”
Key Financial Data
Unaudited
(dollars in thousands)
3Q06 | 2Q06 | 1Q06 | 4Q05 | 3Q05 | ||||||||||||
Credit Quality | ||||||||||||||||
Key Ratios | ||||||||||||||||
| Net charge-offs (recoveries) to average loans | 0.04 | % | 0.05 | % | 0.02 | % | 0.03 | % | -0.12 | % | ||||||
| Total non-performing loans to total loans | 0.06 | % | 0.10 | % | 0.15 | % | 0.04 | % | 0.05 | % | ||||||
| Total non-performing assets to total assets | 0.06 | % | 0.09 | % | 0.12 | % | 0.04 | % | 0.04 | % | ||||||
| Nonaccrual loans to: | ||||||||||||||||
| total loans | 0.02 | % | 0.06 | % | 0.12 | % | 0.03 | % | 0.02 | % | ||||||
| total assets | 0.02 | % | 0.05 | % | 0.09 | % | 0.02 | % | 0.01 | % | ||||||
| Allowance for loan losses to: | ||||||||||||||||
| total loans | 1.11 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.15 | % | ||||||
| non-performing loans | 1490 | % | 1051 | % | 693 | % | 2201 | % | 1954 | % | ||||||
| nonaccrual loans | 5897 | % | 1946 | % | 976 | % | 4434 | % | 5908 | % | ||||||
Non-performing assets: | ||||||||||||||||
| Loans delinquent over 90 days | $ | 1,260 | $ | 1,262 | $ | 1,080 | $ | 280 | $ | 744 | ||||||
| Nonaccrual loans | 588 | 1,721 | 3,228 | 663 | 472 | |||||||||||
| OREO | 480 | 203 | 235 | 393 | 211 | |||||||||||
| Total non-performing assets | $ | 2,328 | $ | 3,186 | $ | 4,543 | $ | 1,336 | $ | 1,427 | ||||||
Net loan charge-offs (recoveries): | ||||||||||||||||
| Loans charged off | $ | 308 | $ | 466 | $ | 165 | $ | 188 | $ | 19 | ||||||
| (Recoveries) | (17 | ) | (77 | ) | (21 | ) | (2 | ) | (705 | ) | ||||||
| Net charge-offs (recoveries) | $ | 291 | $ | 389 | $ | 144 | $ | 186 | ($686 | ) | ||||||
Provision for loan losses | $ | 1,494 | $ | 2,382 | $ | 2,253 | $ | 1,690 | $ | 2,046 | ||||||
Allowance for Loan Losses Summary | ||||||||||||||||
| Balance at beginning of period | $ | 33,490 | $ | 31,497 | $ | 29,388 | $ | 27,884 | $ | 25,152 | ||||||
| Provision | 1,494 | 2,382 | 2,253 | 1,690 | 2,046 | |||||||||||
| Net charge-offs (recoveries) | 291 | 389 | 144 | 186 | (686 | ) | ||||||||||
| Balance at end of period | $ | 34,693 | $ | 33,490 | $ | 31,497 | $ | 29,388 | $ | 27,884 | ||||||
Net loan charge-offs (recoveries): | ||||||||||||||||
| Commercial real estate | - | $ | 250 | - | - | - | ||||||||||
| Residential real estate | - | - | - | - | - | |||||||||||
| Commercial | $ | 298 | $ | 180 | $ | 121 | - | ($115 | ) | |||||||
| Personal | ($7 | ) | ($41 | ) | $ | 23 | $ | 186 | ($571 | ) | ||||||
| Home equity | - | - | - | - | - | |||||||||||
| Construction | - | - | - | - | - | |||||||||||
| Total net loan charge-offs (recoveries) | $ | 291 | $ | 389 | $ | 144 | $ | 186 | ($686 | ) | ||||||
Balance Sheets
(dollars in thousands)
unaudited | unaudited | unaudited | audited | unaudited | ||||||||||||
09/30/06 | 06/30/06 | 03/31/06 | 12/31/05 | 09/30/05 | ||||||||||||
Assets | ||||||||||||||||
| Cash and due from banks | $ | 91,026 | $ | 46,625 | $ | 42,827 | $ | 47,736 | $ | 43,246 | ||||||
| Short-term investments | 33,565 | 1,496 | 9,613 | 14,133 | 11,179 | |||||||||||
| Investment securities: available-for-sale | 458,869 | 499,801 | 682,355 | 695,151 | 720,055 | |||||||||||
| Loans held for sale | 7,719 | 6,443 | 9,747 | 5,269 | 9,104 | |||||||||||
| Loans | 3,136,634 | 2,956,026 | 2,786,075 | 2,608,067 | 2,421,725 | |||||||||||
| Less: Allowance for loan losses | (34,693 | ) | (33,490 | ) | (31,497 | ) | (29,388 | ) | (27,884 | ) | ||||||
| Net loans | 3,101,941 | 2,922,536 | 2,754,578 | 2,578,679 | 2,393,841 | |||||||||||
| Premises and equipment, net | 19,825 | 17,902 | 15,146 | 11,754 | 9,798 | |||||||||||
| Goodwill | 63,176 | 63,176 | 63,176 | 63,176 | 63,160 | |||||||||||
| Other assets | 100,771 | 93,587 | 93,775 | 81,410 | 78,313 | |||||||||||
| Total Assets | $ | 3,876,892 | $ | 3,651,566 | $ | 3,671,217 | $ | 3,497,308 | $ | 3,328,696 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
| Non-interest bearing deposits | $ | 280,478 | $ | 273,003 | $ | 240,961 | $ | 252,625 | $ | 261,808 | ||||||
| Interest bearing demand deposits | 115,531 | 127,445 | 142,734 | 132,787 | 121,696 | |||||||||||
| Savings and money market deposits | 1,327,932 | 1,277,067 | 1,243,501 | 1,272,353 | 1,108,299 | |||||||||||
| Time deposits | 1,514,881 | 1,448,259 | 1,312,306 | 1,165,617 | 1,080,431 | |||||||||||
| Total deposits | 3,238,822 | 3,125,774 | 2,939,502 | 2,823,382 | 2,572,234 | |||||||||||
| Funds borrowed | 235,858 | 133,163 | 351,523 | 296,980 | 417,664 | |||||||||||
| Long-term debt - Trust Preferred Securities | 98,000 | 98,000 | 98,000 | 98,000 | 78,000 | |||||||||||
| Other liabilities | 36,016 | 40,860 | 36,361 | 40,317 | 29,995 | |||||||||||
| Total liabilities | 3,608,696 | 3,397,797 | 3,425,386 | 3,258,679 | 3,097,893 | |||||||||||
| Stockholders' equity | 268,196 | 253,769 | 245,831 | 238,629 | 230,803 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,876,892 | $ | 3,651,566 | $ | 3,671,217 | $ | 3,497,308 | $ | 3,328,696 | ||||||
Average Quarterly Balance Sheets
(unaudited, dollars in thousands)
09/30/06 | 06/30/06 | 03/31/06 | 12/31/05 | 09/30/05 | ||||||||||||
Assets | ||||||||||||||||
| Cash and due from banks | $ | 43,029 | $ | 37,582 | $ | 35,208 | $ | 36,703 | $ | 34,513 | ||||||
| Short-term investments | 7,101 | 15,646 | 7,317 | 17,522 | 18,234 | |||||||||||
| Investment securities: available-for-sale | 494,626 | 579,223 | 696,323 | 702,351 | 749,461 | |||||||||||
| Loans held for sale | 6,875 | 7,375 | 7,655 | 7,541 | 9,644 | |||||||||||
| Loans | 3,037,863 | 2,869,754 | 2,660,074 | 2,499,060 | 2,305,517 | |||||||||||
| Less: Allowance for loan losses | (34,335 | ) | (32,517 | ) | (30,018 | ) | (28,475 | ) | (26,271 | ) | ||||||
| Net loans | 3,003,528 | 2,837,237 | 2,630,056 | 2,470,585 | 2,279,246 | |||||||||||
| Premises and equipment, net | 19,137 | 17,148 | 14,417 | 10,649 | 9,248 | |||||||||||
| Goodwill | 63,176 | 63,176 | 63,176 | 63,161 | 62,983 | |||||||||||
| Other assets | 89,168 | 85,581 | 88,125 | 82,430 | 77,467 | |||||||||||
| Total Assets | $ | 3,726,640 | $ | 3,642,968 | $ | 3,542,277 | $ | 3,390,942 | $ | 3,240,796 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
| Non-interest bearing deposits | $ | 271,287 | $ | 264,798 | $ | 240,119 | $ | 256,782 | $ | 238,632 | ||||||
| Interest bearing demand deposits | 122,321 | 128,854 | 123,524 | 127,769 | 119,060 | |||||||||||
| Savings and money market deposits | 1,315,230 | 1,273,639 | 1,240,914 | 1,191,130 | 1,120,336 | |||||||||||
| Time deposits | 1,435,345 | 1,389,356 | 1,230,534 | 1,096,528 | 957,640 | |||||||||||
| Total deposits | 3,144,183 | 3,056,647 | 2,835,091 | 2,672,209 | 2,435,668 | |||||||||||
| Funds borrowed | 180,608 | 206,098 | 326,862 | 363,540 | 468,681 | |||||||||||
| Long-term debt - Trust Preferred Securities | 98,000 | 98,000 | 98,000 | 89,304 | 78,000 | |||||||||||
| Other liabilities | 49,034 | 38,033 | 42,728 | 39,314 | 34,645 | |||||||||||
| Total liabilities | 3,471,825 | 3,398,778 | 3,302,681 | 3,164,367 | 3,016,994 | |||||||||||
| Stockholders' equity | 254,815 | 244,190 | 239,596 | 226,575 | 223,802 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,726,640 | $ | 3,642,968 | $ | 3,542,277 | $ | 3,390,942 | $ | 3,240,796 | ||||||
Average Year-To-Date Balance Sheets
(unaudited, dollars in thousands)
09/30/06 | 06/30/06 | 03/31/06 | 12/31/05 | 09/30/05 | ||||||||||||
Assets | ||||||||||||||||
| Cash and due from banks | $ | 38,598 | $ | 36,348 | $ | 35,208 | $ | 33,043 | $ | 31,856 | ||||||
| Short-term investments | 6,593 | 11,505 | 7,317 | 14,730 | 10,824 | |||||||||||
| Investment securities: available-for-sale | 589,318 | 637,450 | 696,323 | 743,162 | 756,915 | |||||||||||
| Loans held for sale | 7,368 | 7,520 | 7,655 | 7,875 | 8,431 | |||||||||||
| Loans | 2,857,212 | 2,765,489 | 2,660,075 | 2,077,000 | 1,934,324 | |||||||||||
| Less: Allowance for loan losses | (32,305 | ) | (31,274 | ) | (30,018 | ) | (23,725 | ) | (22,124 | ) | ||||||
| Net loans | 2,824,907 | 2,734,215 | 2,630,057 | 2,053,275 | 1,912,200 | |||||||||||
| Premises and equipment, net | 17,190 | 15,790 | 14,417 | 8,538 | 7,827 | |||||||||||
| Goodwill | 63,176 | 63,176 | 63,176 | 43,262 | 36,556 | |||||||||||
| Other assets | 83,975 | 81,747 | 88,124 | 71,616 | 66,971 | |||||||||||
| Total Assets | $ | 3,631,125 | $ | 3,587,751 | $ | 3,542,277 | $ | 2,975,501 | $ | 2,831,580 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
| Non-interest bearing deposits | $ | 259,094 | $ | 252,529 | $ | 240,119 | $ | 214,826 | $ | 200,704 | ||||||
| Interest bearing demand deposits | 124,895 | 126,204 | 123,524 | 114,743 | 110,353 | |||||||||||
| Savings and money market deposits | 1,276,866 | 1,257,367 | 1,240,914 | 1,067,763 | 1,026,205 | |||||||||||
| Time deposits | 1,352,495 | 1,310,384 | 1,230,534 | 887,716 | 817,344 | |||||||||||
| Total deposits | 3,013,350 | 2,946,484 | 2,835,091 | 2,285,048 | 2,154,606 | |||||||||||
| Funds borrowed | 237,247 | 266,123 | 326,862 | 386,184 | 390,920 | |||||||||||
| Long-term debt - Trust Preferred Securities | 98,000 | 98,000 | 98,000 | 53,633 | 41,743 | |||||||||||
| Other liabilities | 40,741 | 36,410 | 42,728 | 34,833 | 32,348 | |||||||||||
| Total liabilities | 3,389,338 | 3,347,017 | 3,302,681 | 2,759,698 | 2,619,617 | |||||||||||
| Stockholders' equity | 241,787 | 240,734 | 239,596 | 215,803 | 211,963 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,631,125 | $ | 3,587,751 | $ | 3,542,277 | $ | 2,975,501 | $ | 2,831,580 | ||||||