| | |
| | | |
Contacts: Lawrence P. Ward, CEO Margaret Torres, CFO 805-369-5200 | | |
HERITAGE OAKS BANCORP EARNS $1.5 MILLION IN FIRST QUARTER,
LOANS INCREASE 23%, DEPOSITS RISE 6%
Paso Robles, CA - April 19, 2007 - Heritage Oaks Bancorp (NASDAQ: HEOP), the parent company of Heritage Oaks Bank, today reported solid loan and deposit growth, along with continued strong asset quality, contributing to first quarter profits. For the first quarter of 2007, net income was $1.5 million, or $0.23 per diluted share, compared to $1.6 million, or $0.24 per diluted share, in the first quarter of 2006.
“We began this year with a solid first quarter performance, generating strong growth in loans and deposits,” said Lawrence P. Ward, President and CEO. “We continue to see demand for business loans in our markets, particularly in construction and commercial business-related loans. Although our profits are down slightly from the first quarter of 2006, we are slightly ahead of internal projections and are positioned to meet our year-end targets.”
First Quarter 2007 Highlights:
| · | Net income was $1.5 million, or $0.23 per diluted share. |
| · | Revenues increased 8% to $8.3 million. |
| · | Return on average equity was 12.10% and return on average assets was 1.10%. |
| · | Net interest margin was 5.66%. |
| · | Net loans increased 23% to $460 million. |
| · | Asset quality remained strong, non-performing assets were just 0.03% of total assets. |
| · | Paid a $0.08 per share quarterly cash dividend on February 17. |
| · | Deposits increased by 5.5% |
Operating Results
Total revenues, consisting of net interest income before the provision for loan losses and non-interest income, increased 8% to $8.3 million in the first quarter of 2007 compared to $7.7 million in the same quarter of 2006. In the first quarter, net interest income increased 9% to $7.0 million compared to $6.4 million in the first quarter a year ago. “Our strong net interest income is a product of our exceptional loan growth, which we see continuing,” said Ward. Interest and fees on loans increased 31% to $9.8 million in the first quarter compared to $7.5 million in the first quarter last year. Non-interest income for the first quarter was $1.2 million, even with the same period a year ago.
First quarter net interest margin was 5.66% compared to 5.77% in the previous quarter and 5.98% in the first quarter a year ago. “Our margin came under pressure again this quarter as costs associated with borrowing from the FHLB increased faster than loan yields,” said Ward. “However, our new deposit strategy of growing variable interest rate money market accounts is proving to be very successful as we have already increased the balances in these accounts by 16% this quarter alone, and we expect this to help our margin to turn around or at least stabilize in the second half of 2007.
“We see the consolidation of banks along the Central Coast as an excellent marketing opportunity for us to attract new customers,” continued Ward. “In the first quarter we increased our marketing and advertising costs significantly to compete for this new business and we are already seeing this expense pay off with deposit increases, which we expect will help lower our funding costs as we move through the year.” In the first quarter of 2007 salary and employee benefits as well as the increased advertising costs accounted for most of the increase in non-interest expenses which totaled $5.7 million compared to $5.5 million for the prior linked quarter and $5.0 million in the first quarter a year ago.
As a result of the increase in expenses, the efficiency ratio was 68.9% in the first quarter of 2007 compared to 65.0% in the first quarter of 2006 and 67.1% in the fourth quarter of 2006. The efficiency ratio measures operating expenses as a percent of revenues.
Return on average assets was 1.10% in the first quarter of 2007 compared to 1.35% in the first quarter a year ago. The Company also generated a return on average equity of 12.1% for the first quarter of 2007, compared to 14.1% in the first quarter a year ago. The decline was a result of higher capital balances as a percentage of assets for the quarter compared to the year-ago period.
HEOP 1Q07 results
April 19, 2007
Page 2
Balance Sheet
The loan portfolio grew 23% to $460 million at March 31, 2007, from $373 million a year earlier. The growth was fueled by a 41% increase in commercial, financial and agricultural loans, as well as a 21% increase in commercial real estate loans.
The tables below show the diversification within the Construction/Land and Commercial Real Estate portion of the loan portfolio:
Construction / Land
| Single Family Residences | | Single Family Residences - Spec. | | Land | | Owner Occupied | | Other | |
8% | | | 9 | % | | 23 | % | | 30 | % | | 30 | % |
| Farmland | | Commercial Industrial | | Retail | | Professional | | Hospitality | | Other | |
7% | | | 14 | % | | 20 | % | | 19 | % | | 21 | % | | 19 | % |
Total assets continued to grow, reaching $579 million as of March 31, 2007, compared to $492 million a year earlier. Total assets were $542 million at December 31, 2006.
“While our total deposits increased only 6% over the past year, savings, NOW and money market balances increased 16% during the first quarter of 2007 compared to year-end balances,” Ward added. Total deposits were $445 million at the end of March, compared to $422 million at March 31, 2006 “Our challenge continues to be with growing non-interest bearing demand deposits, however, we have implemented a new strategy of funding our loan demand through our new variable interest rate money market accounts, and we are already seeing positive results,” said Ward. Non-interest bearing accounts account for 33% of total deposits and savings, money market and NOW accounts now account for 38% of total deposits.
Asset quality remains exceptional with non-performing assets at $145,000, or 0.03% of total assets at March 31, 2007. The allowance for loan losses was $4.3 million, or 0.94% of net loans held for investment at quarter-end compared to $4.0 million or 1.07% of net loans outstanding at March 31, 2006. The bank recovered $92,000 from a previously charged off loan and took an additional $140,000 provision in the first quarter of 2007.
Book value per share was $7.98 at March 31, 2007, compared to $7.38 per share a year earlier. Tangible book value per share was $7.06 at March 31, 2007, compared to $6.40 a year earlier. Shareholders’ equity increased 10% to $51.2 million compared to $46.7 million a year ago.
Heritage Oaks Bancorp is the holding company for Heritage Oaks Bank. Heritage Oaks Bank has its headquarters plus two branch offices in Paso Robles, two branch offices in San Luis Obispo, single branch offices in Cambria, Arroyo Grande, Atascadero, Templeton and Morro Bay and three branch offices in Santa Maria. Heritage conducts commercial banking business in San Luis Obispo County and Northern Santa Barbara County. Visit Heritage Oaks Bancorp on the Web at www.heritageoaksbancorp.com.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, increased profitability, continued growth, the Bank’s beliefs as to the adequacy of its existing and anticipated allowances for loan losses, beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank’s operations, interest rates and financial policies of the United States government, general economic conditions and California’s energy crisis. Additional information on these and other factors that could affect financial results are included in Heritage Oaks Bancorp’s Securities and Exchange Commission filings. If any of these risks or uncertainties materialize or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Heritage Oaks Bancorp’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. Heritage Oaks Bancorp assumes no obligation to update such forward-looking statements.
(tables follow)
HEOP 1Q07 results
April 19, 2007
Page 3
Heritage Oaks Bancorp
Consolidated Balance Sheets
(dollars in thousands except share data)
| | | (unaudited) | | (audited) | | (unaudited) | | Percentage Change vs. | |
| | | 3/31/2007 | | 12/31/2006 | | 3/31/2006 | | 12/31/2006 | | 3/31/2006 | |
Assets | | | | | | | | | | | |
Cash and due from banks | | $ | 26,501 | | $ | 19,164 | | $ | 17,398 | | | 38.3 | % | | 52.3 | % |
Federal funds sold | | | 8,620 | | | 3,870 | | | 20,475 | | | 122.7 | % | | -57.9 | % |
Total cash and cash equivalents | | | 35,121 | | | 23,034 | | | 37,873 | | | 52.5 | % | | -7.3 | % |
| | | | | | | | | | | | | | | | | |
Interest bearing deposits with other banks | | | 318 | | | 318 | | | 318 | | | - | | | - | |
Securities available for sale | | | 37,620 | | | 38,445 | | | 43,847 | | | -2.1 | % | | -14.2 | % |
Federal Home Loan Bank Stock, at cost | | | 3,085 | | | 2,350 | | | 1,907 | | | 31.3 | % | | 61.8 | % |
Loans held for sale | | | 5,300 | | | 1,764 | | | 2,994 | | | 200.5 | % | | 77.0 | % |
Loans, net (1) | | | 460,302 | | | 439,277 | | | 373,189 | | | 4.8 | % | | 23.3 | % |
Property, premises and equipment | | | 14,551 | | | 14,581 | | | 13,055 | | | -0.2 | % | | 11.5 | % |
Cash surrender value of life insurance | | | 9,528 | | | 9,435 | | | 7,777 | | | 1.0 | % | | 22.5 | % |
Deferred tax assets | | | 3,218 | | | 2,414 | | | 2,352 | | | 33.3 | % | | 36.8 | % |
Goodwill | | | 4,864 | | | 4,865 | | | 4,865 | | | 0.0 | % | | 0.0 | % |
Core deposit intangible | | | 1,059 | | | 1,148 | | | 1,373 | | | -7.8 | % | | -22.9 | % |
Other assets | | | 3,968 | | | 4,143 | | | 2,901 | | | -4.2 | % | | 36.8 | % |
Total assets | | $ | 578,934 | | $ | 541,774 | | $ | 492,451 | | | 6.9 | % | | 17.6 | % |
| | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | |
Non-interest bearing demand | | $ | 146,406 | | $ | 153,005 | | $ | 156,406 | | | -4.3 | % | | -6.4 | % |
Savings, NOW, and money market | | | 169,860 | | | 146,110 | | | 173,421 | | | 16.3 | % | | -2.1 | % |
Time deposits of $100K or more | | | 32,822 | | | 30,630 | | | 17,229 | | | 7.2 | % | | 90.5 | % |
Time deposits under $100K | | | 95,923 | | | 90,776 | | | 74,663 | | | 5.7 | % | | 28.5 | % |
Total deposits | | | 445,011 | | | 420,521 | | | 421,719 | | | 5.8 | % | | 5.5 | % |
FHLB advances and other borrowings | | | 60,000 | | | 50,000 | | | 10,000 | | | 20.0 | % | | 500.0 | % |
Securities sold under agreements to repurchase | | | 1,387 | | | 1,364 | | | 1,954 | | | 1.7 | % | | -29.0 | % |
Junior subordinated debentures | | | 16,496 | | | 16,496 | | | 8,248 | | | - | | | 100.0 | % |
Other liabilities | | | 4,875 | | | 3,921 | | | 3,801 | | | 24.3 | % | | 28.3 | % |
Total liabilities | | | 527,769 | | | 492,302 | | | 445,722 | | | 7.2 | % | | 18.4 | % |
Stockholders' equity | | | | | | | | | | | | | | | | |
Common stock, no par value; 20,000,000 shares | | | | | | | | | | | | | | | | |
authorized; issued and outstanding 6,410,829; 6,345,639 | | | | | | | | | | | | | | | | |
and 6,330,523 for March 31, 2007; December 31, 2006 | | | | | | | | | | | | | | | | |
and March 31, 2006 respectively | | | 29,802 | | | 29,247 | | | 29,521 | | | 1.9 | % | | 1.0 | % |
Additional paid in capital | | | 428 | | | 336 | | | - | | | 27.4 | % | | - | |
Retained earnings | | | 20,809 | | | 19,809 | | | 17,354 | | | 5.0 | % | | 19.9 | % |
Accumulated other comprehensive income | | | 126 | | | 80 | | | (146 | ) | | 57.5 | % | | - | |
Total stockholders' equity | | | 51,165 | | | 49,472 | | | 46,729 | | | 3.4 | % | | 9.5 | % |
Total liabilities and stockholders' equity | | $ | 578,934 | | $ | 541,774 | | $ | 492,451 | | | 6.9 | % | | 17.6 | % |
| (1) | Loans are net of deferred loan fees of $1,598; $1,625; $1,526 and allowance for loan losses of $4,313; $4,081; $4,005 for March 31, 2007, December 31, 2006, and March 31, 2006 respectively. |
(more)
HEOP 1Q07 results
April 19, 2007
Page 4
Heritage Oaks Bancorp
Consolidated Statements of Income
(dollars in thousands except share data)
| | | (unaudited) | | (audited) | | (unaudited) | | Percentage | | Percentage | |
| | For the Three Months Ended | | Change vs. | | Change vs. | |
| | 3/31/2007 | | 12/31/2006 | | 3/31/2006 | | 12/31/2006 | | 3/31/2006 | |
Interest Income: | | | | | | | | | | | |
Interest and fees on loans | | $ | 9,816 | | $ | 9,423 | | $ | 7,489 | | | 4.2 | % | | 31.1 | % |
Investment securities | | | 448 | | | 426 | | | 489 | | | 5.2 | % | | -8.4 | % |
Federal funds sold and commercial paper | | | 31 | | | 35 | | | 226 | | | -11.4 | % | | -86.3 | % |
Time certificates of deposit | | | 8 | | | 48 | | | 2 | | | -83.3 | % | | 300.0 | % |
Total interest income | | | 10,303 | | | 9,932 | | | 8,206 | | | 3.7 | % | | 25.6 | % |
Interest Expense: | | | | | | | | | | | | | | | | |
NOW accounts | | | 28 | | | 20 | | | 21 | | | 40.0 | % | | 33.3 | % |
MMDA accounts | | | 667 | | | 622 | | | 571 | | | 7.2 | % | | 16.8 | % |
Savings accounts | | | 24 | | | 24 | | | 28 | | | 0.0 | % | | -14.3 | % |
Time deposits of $100K or more | | | 209 | | | 199 | | | 138 | | | 5.0 | % | | 51.4 | % |
Time deposits under $100K | | | 1,212 | | | 1,174 | | | 694 | | | 3.2 | % | | 74.6 | % |
Other borrowed funds | | | 1,129 | | | 942 | | | 307 | | | 19.9 | % | | 267.8 | % |
Total interest expense | | | 3,269 | | | 2,981 | | | 1,759 | | | 9.7 | % | | 85.8 | % |
Net interest income before provision for loan losses | | | 7,034 | | | 6,951 | | | 6,447 | | | 1.2 | % | | 9.1 | % |
Provision for loan losses | | | 140 | | | 120 | | | 120 | | | 16.7 | % | | 16.7 | % |
Net interest income after provision for loan losses | | | 6,894 | | | 6,831 | | | 6,327 | | | 0.9 | % | | 9.0 | % |
Non Interest Income: | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 613 | | | 581 | | | 568 | | | 5.5 | % | | 7.9 | % |
Other income | | | 618 | | | 720 | | | 650 | | | -14.2 | % | | -4.9 | % |
Total non-interest income | | | 1,231 | | | 1,301 | | | 1,218 | | | -5.4 | % | | 1.1 | % |
Non-Interest Expense: | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 3,250 | | | 3,039 | | | 2,783 | | | 6.9 | % | | 16.8 | % |
Occupancy and equipment | | | 715 | | | 706 | | | 622 | | | 1.3 | % | | 15.0 | % |
Other expenses | | | 1,729 | | | 1,794 | | | 1,579 | | | -3.6 | % | | 9.5 | % |
Total non-interest expenses | | | 5,694 | | | 5,539 | | | 4,984 | | | 2.8 | % | | 14.2 | % |
Income before provision for income taxes | | | 2,431 | | | 2,593 | | | 2,561 | | | -6.2 | % | | -5.1 | % |
Provision for income taxes | | | 921 | | | 944 | | | 955 | | | -2.4 | % | | -3.6 | % |
Net Income | | $ | 1,510 | | $ | 1,649 | | $ | 1,606 | | | -8.4 | % | | -6.0 | % |
| | | | | | | | | | | | | | | | | |
Average basic shares outstanding | | | 6,384,150 | | | 6,355,466 | | | 6,283,890 | | | | | | | |
Average diluted shares outstanding | | | 6,605,942 | | | 6,598,355 | | | 6,643,432 | | | | | | | |
Basic earnings per share | | $ | 0.24 | | $ | 0.26 | | $ | 0.26 | | | | | | | |
Fully diluted earnings per share | | $ | 0.23 | | $ | 0.25 | | $ | 0.24 | | | | | | | |
(more)
HEOP 1Q07 results
April 19, 2007
Page 5
| | For the Quarters Ended | | Percentage Change vs. | |
Additional Financial Information | | 3/31/2007 | | 12/31/2006 | | 3/31/2006 | | 12/31/2006 | | 3/31/2006 | |
(dollars in thousands) | | | | | | | | | | | |
LOANS (including loans held for sale) | | | | | | | | | | | |
| Commercial, financial and agricultural | | $ | 91,476 | | $ | 84,976 | | $ | 65,079 | | | 7.6 | % | | 40.6 | % |
| Real estate - construction/land | | | 106,542 | | | 105,712 | | | 86,533 | | | 0.8 | % | | 23.1 | % |
| Real estate - other | | | 252,080 | | | 237,401 | | | 208,271 | | | 6.2 | % | | 21.0 | % |
| Home equity lines of credit | | | 9,617 | | | 10,792 | | | 13,168 | | | -10.9 | % | | -27.0 | % |
| Installment loans to individuals | | | 5,705 | | | 5,598 | | | 5,418 | | | 1.9 | % | | 5.3 | % |
| All other loans (including overdrafts) | | | 793 | | | 504 | | | 251 | | | 57.4 | % | | 216.1 | % |
| Total loans | | $ | 466,213 | | $ | 444,983 | | $ | 378,720 | | | 4.8 | % | | 23.1 | % |
| | | | | | | | | | | | | | | | | |
ALLOWANCE FOR LOAN LOSSES | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 4,081 | | $ | 3,881 | | $ | 3,881 | | | 5.2 | % | | 5.2 | % |
| Provision expense | | | 140 | | | 600 | | | 120 | | | -76.7 | % | | 16.7 | % |
| Credit losses charged against allowance | | | (1 | ) | | (561 | ) | | - | | | - | | | - | |
| Recoveries of loans previously charged off | | | 92 | | | 161 | | | 4 | | | -42.8 | % | | 2203.5 | % |
| Balance, end of period | | $ | 4,312 | | $ | 4,081 | | $ | 4,005 | | | 5.7 | % | | 7.7 | % |
| | | | | | | | | | | | | | | | | |
| Net ( charge-offs ) recoveries | | $ | 91 | | $ | (400 | ) | $ | 4 | | | - | | | 2184.3 | % |
| Net charge-offs / Average loans outstanding | | | 0.00 | % | | 0.09 | % | | 0.00 | % | | -99.8 | % | | -84.5 | % |
| Allowance for loan losses / Total loans outstanding | | | 0.92 | % | | 0.92 | % | | 1.06 | % | | 0.9 | % | | -12.5 | % |
| | | | | | | | | | | | | | | | | |
NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Loans on non-accrual status | | $ | 143 | | $ | 55 | | $ | 52 | | | 160.0 | % | | 175.0 | % |
| Loans more than 90 days delinquent, still accruing | | | 2 | | | - | | | - | | | - | | | - | |
| Total non-performing loans | �� | | 145 | | | 55 | | | 52 | | | 163.6 | % | | 178.8 | % |
| Other real estate owned (OREO) / Repossessed assets | | | - | | | - | | | - | | | - | | | - | |
| Total non-performing assets | | $ | 145 | | $ | 55 | | $ | 52 | | | 163.6 | % | | 178.8 | % |
| | | | | | | | | | | | | | | | | |
| Total non-performing assets to total assets | | | 0.03 | % | | 0.01 | % | | 0.01 | % | | 150.5 | % | | 150.5 | % |
| | | | | | | | | | | | | | | | | |
DEPOSITS | | | | | | | | | | | | | | | | |
| Non-interest bearing demand | | $ | 146,406 | | $ | 153,005 | | $ | 156,406 | | | -4.3 | % | | -6.4 | % |
| | | | | | | | | | | | | | | | | |
| Interest-bearing demand | | | 51,304 | | | 45,164 | | | 54,701 | | | 13.6 | % | | -6.2 | % |
| Regular savings accounts | | | 23,829 | | | 23,406 | | | 26,758 | | | 1.8 | % | | -10.9 | % |
| Money market accounts | | | 94,727 | | | 77,540 | | | 91,962 | | | 22.2 | % | | 3.0 | % |
| Total interest-bearing transaction and savings accounts | | | 169,860 | | | 146,110 | | | 173,421 | | | 16.3 | % | | -2.1 | % |
| | | | | | | | | | | | | | | | | |
| Time deposits under $100 thousand | | | 95,923 | | | 90,776 | | | 74,663 | | | 5.7 | % | | 28.5 | % |
| Time deposits of $100 thousand or more | | | 32,822 | | | 30,630 | | | 17,229 | | | 7.2 | % | | 90.5 | % |
| Total time deposits | | | 128,745 | | | 121,406 | | | 91,892 | | | 6.0 | % | | 40.1 | % |
| | | | | | | | | | | | | | | | | |
| Total deposits | | $ | 445,011 | | $ | 420,521 | | $ | 421,719 | | | 5.8 | % | | 5.5 | % |
(more)
HEOP 1Q07 results
April 19, 2007
Page 6
| | For the Three Months Ended | |
| | 3/31/2007 | | 12/31/2006 | | 3/31/2006 | |
| PROFITABILITY / PERFORMANCE RATIOS | | | | | | | |
| | | | | | | | |
| Operating efficiency | | | 68.89 | % | | 67.12 | % | | 65.02 | % |
| | | | | | | | | | | |
| Operating expenses to average assets | | | 4.14 | % | | 4.17 | % | | 4.20 | % |
| | | | | | | | | | | |
| Return on average equity | | | 12.10 | % | | 13.64 | % | | 14.12 | % |
| | | | | | | | | | | |
| Return on average tangible equity | | | 13.71 | % | | 15.58 | % | | 16.33 | % |
| | | | | | | | | | | |
| Return on average assets | | | 1.10 | % | | 1.24 | % | | 1.35 | % |
| | | | | | | | | | | |
| Other operating income to average assets | | | 0.89 | % | | 0.98 | % | | 1.03 | % |
| | | | | | | | | | | |
| Other operating expense to average assets | | | 4.14 | % | | 4.17 | % | | 4.20 | % |
| | | | | | | | | | | |
| Net interest income to average assets | | | 5.11 | % | | 5.24 | % | | 5.43 | % |
| | | | | | | | | | | |
| Non-interest income to total net revenue | | | 14.89 | % | | 15.77 | % | | 15.89 | % |
| | | | | | | | | | | |
ASSET QUALITY AND CAPITAL RATIOS | | | | | | | | | | |
| | | | | | | | | | | |
| Non-performing loans to total loans, net | | | 0.03 | % | | 0.01 | % | | 0.01 | % |
| | | | | | | | | | | |
| ALLL to total loans, net | | | 0.94 | % | | 0.93 | % | | 1.07 | % |
| | | | | | | | | | | |
| Non-performing loans as a % of ALLL | | | 3.36 | % | | 1.35 | % | | 1.30 | % |
| | | | | | | | | | | |
| Net charge-offs to average loans | | | -0.02 | % | | 0.10 | % | | 0.00 | % |
| | | | | | | | | | | |
| Non-performing loans to primary capital | | | 0.28 | % | | 0.11 | % | | 0.11 | % |
| | | | | | | | | | | |
| Leverage ratio | | | 10.87 | % | | 11.00 | % | | 10.23 | % |
| | | | | | | | | | | |
| Tier I Risk-Based Capital Ratio | | | 11.42 | % | | 11.51 | % | | 11.20 | % |
| | | | | | | | | | | |
| Total Risk-Based Capital Ratio | | | 12.28 | % | | 12.36 | % | | 12.16 | % |
| | For the Three Months Ended | |
AVERAGE BALANCES AND RATES | | 3/31/2007 | | 12/31/2006 | | 3/31/2006 | |
(dollars in thousands) | | | | | | | |
| Average Investments | | $ | 41,186 | | $ | 41,981 | | $ | 46,212 | |
| Average Fed funds sold | | | 2,411 | | | 2,534 | | | 20,640 | |
| Average loans | | | 460,825 | | | 437,623 | | | 370,083 | |
| Average earning assets | | | 504,422 | | | 482,138 | | | 436,935 | |
| Average non-earning assets | | | 57,629 | | | 52,629 | | | 48,802 | |
| Allowance for loan losses | | | (4,180 | ) | | (3,938 | ) | | (3,948 | ) |
| Average assets | | | 557,871 | | | 530,829 | | | 481,789 | |
| Average non-interest bearing demand deposits | | | 141,073 | | | 142,582 | | | 148,020 | |
| Average interest bearing deposits | | | 284,718 | | | 274,081 | | | 262,516 | |
| Average borrowings | | | 76,865 | | | 60,638 | | | 20,918 | |
| Average non-interest bearing liabilities | | | 4,612 | | | 5,186 | | | 4,201 | |
| Average liabilities | | | 507,268 | | | 482,487 | | | 435,655 | |
| Average equity | | | 50,603 | | | 48,342 | | | 46,134 | |
| Average liabilities and equity | | $ | 557,871 | | $ | 530,829 | | $ | 481,789 | |
| Interest rate yield on loans | | | 8.64 | % | | 8.61 | % | | 8.21 | % |
| Interest rate yield on investments | | | 4.49 | % | | 4.52 | % | | 4.31 | % |
| Interest rate yield on federal funds sold | | | 5.21 | % | | 5.52 | % | | 4.39 | % |
| Interest rate yield on interest-earning assets | | | 8.28 | % | | 8.24 | % | | 7.62 | % |
| Interest rate expense on deposits | | | 2.04 | % | | 1.96 | % | | 1.43 | % |
| Interest rate expense on other borrowings | | | 5.96 | % | | 6.22 | % | | 5.95 | % |
| Interest rate expense on interest-bearing liabilities | | | 3.67 | % | | 3.56 | % | | 2.52 | % |
| Average equity to average assets | | | 9.07 | % | | 9.11 | % | | 9.58 | % |
| Net interest margin | | | 5.66 | % | | 5.77 | % | | 5.98 | % |
NOTE: Transmitted on Prime Newswire on April 19, 2007 at 3:30 AM PST
