Exhibit 99.1
(BW) (INTERVEST-BANCSHARES) (IBCA)
INTERVEST BANCSHARES CORPORATION
Reports 2009 Second Quarter Earnings of $0.4 Million
Business Editors - New York – (Business Wire – July 14, 2009)
Intervest Bancshares Corporation (NASDAQ-GS: IBCA) (the “Company”) today reported net earnings for the second quarter of 2009 (“Q2-09”) of $0.4 million, or $0.04 per diluted common share, compared to $1.9 million, or $0.22 per share, for the second quarter of 2008 (“Q2-08”). The decrease in net earnings was due a $2.3 million increase in noninterest expenses, a $1.1 million decrease in noninterest income and $0.4 million of dividend requirements related to outstanding preferred stock held by the U.S. Treasury under the TARP program. The aggregate of these items was partially offset by a $1.2 million decrease in the provision for income tax expense and a $1.1 million increase in net interest and dividend income.
Net interest and dividend income increased to $10.2 million in Q2-09 from $9.1 million in Q2-08, primarily reflecting $173 million of growth in interest earning assets. The Company’s net interest margin improved to 1.75% in Q2-09, from 1.69% in Q2-08 due to lower deposit and borrowing costs, which decreased the cost of funds to 3.95% in Q2-09 from 4.70% in Q2-08. This decrease was largely offset by $360 million of calls in the first half of 2009 of higher yielding U.S. government agency security investments (coupled with the reinvestment of those proceeds into the same types of securities with lower market rates of approximately 100 basis points) and lower yields earned on overnight investments. The yield on interest-earning assets decreased to 5.30% in Q2-09 from 5.92% in Q2-08. The provision for loan losses amounted to $2.7 million in Q2-09, compared to $2.8 million in Q2-08. The Company continues to be negatively impacted by the downturn in the economy and lower commercial real estate values. Noninterest expenses increased to $6.5 million in Q2-09 from $4.2 million in Q2-08 primarily due to a 444% increase, or $1.8 million, in FDIC insurance expense due to higher premium rates and a special assessment in June, both of which have been imposed on all FDIC insured banks, and a $0.4 million increase in expenses associated with nonperforming assets. Noninterest income decreased to $0.1 million in Q2-09 from $1.1 million in Q2-08 primarily due to a $0.5 million decrease in income from early repayment of loans and a $0.3 million impairment charge on certain trust preferred security investments. The Company’s effective income tax rate was 23% in Q2-09, compared to 43% in Q2-08. The lower rate was due to a $0.2 million income tax refund of prior year taxes. The Company had 73 employees at June 30, 2009, compared to 71 employees at June 30, 2008.
Net earnings for the six-months ended June 30, 2009 decreased by $3.3 million from the same period of 2008 due to a $4.8 million increase in noninterest expenses, a $1.9 million decrease in noninterest income and $0.8 million of preferred stock dividend requirements, partially offset by a $2.2 million decrease in the provision for income taxes, a $1.5 million increase in net interest and dividend income and a $0.5 million decrease in the provision for loan losses.
Total assets at June 30, 2009 were $2.38 billion, compared to $2.27 billion at December 31, 2008, reflecting growth in loans and security investments, partially offset by a lower level of overnight investments.
Total securities held to maturity amounted to $567 million at June 30, 2009, a $91 million increase from $476 million at December 31, 2008. At June 30, 2009, the portfolio had a weighted-average remaining contractual maturity and a yield of 4.7 years and 2.94%, respectively. The Company does not own or invest in any CDOs, CMOs or any preferred or common stock of FNMA or FHLMC.
Total loans, net of unearned fees, amounted to $1.75 billion at June 30, 2009, a $40 million increase from $1.71 billion at December 31, 2008. The increase was due to $129 million of new originations secured primarily by commercial real estate exceeding the aggregate of $77 million of principal repayments, $9.4 million of loans transferred to foreclosed real estate and $2.3 million of loan chargeoffs. The new loans are nearly all fixed-rate with a weighted-average yield and term of 6.57% and 5.3 years, respectively. New loan originations for the first half of 2008 amounted to $226 million.
Total nonperforming assets at June 30, 2009 amounted to $148.0 million, or 6.22% of total assets, compared to $117.7 million, or 5.18%, at December 31, 2008. At June 30, 2009, nonperforming assets were comprised of $129.8 million of nonaccrual loans, or 39 loans, and $18.2 million (net of a $0.8 million valuation allowance) of real estate acquired through foreclosure, or 6 properties. At June 30, 2009, the Company also had $76 million of accruing restructured loans on which the Company has granted certain concessions to provide payment relief generally consisting of the deferral of principal and or a partial reduction in interest payments for a period of time.
The Company is taking various steps to resolve its nonaccrual loans, including proceeding with foreclosures on many of the collateral properties as well as working with certain borrowers to provide payment relief. The Company believes that concentrating its effort towards the individual collection of nonaccrual loans either through the restructure of certain loans or through the acquisition and eventual sale of the collateral properties in most cases will maximize the recovery of the Company’s investment. The Company’s ability to complete foreclosure or other proceedings to acquire and sell certain collateral properties however continues to be delayed by various factors including bankruptcy proceedings and an overloaded court system. As a result of these delays, the timing and amount of the resolution/disposition of nonaccrual loans as well as foreclosed real estate cannot be predicted with certainty. In addition, if the current downturn in commercial real estate values and local economic conditions in both New York and Florida as well as other factors noted above continue for an additional extended period, it could have an adverse impact on the Company’s future asset quality and level of nonperforming assets, charge offs and profitability. There can be no assurance that the Company will not incur significant additional loan loss provisions or expenses in connection with the ultimate collection of nonaccrual loans or in carrying and disposing of foreclosed real estate. The Company does not own or originate construction/development loans or condominium conversion loans.
The total allowance for loan losses increased to $32.0 million at June 30, 2009, from $28.5 million at December 31, 2008. The increase was due to $4.5 million of loan loss provisions and a $1.3 million partial recovery of a previous chargeoff, partially offset by $2.3 million of new chargeoffs. The allowance represented 1.84% of total loans (net of deferred fees) at June 30, 2009, compare to 1.67% at December 31, 2008. At June 30, 2009 and December 31, 2008, a SFAS No. 114 specific valuation allowance (included as part of the overall allowance for loan losses) in the aggregate amount of $13.5 million and $8.2 million, respectively, was maintained on nonaccrual and restructured loans, all of which are considered impaired loans.
Total deposits at June 30, 2009 increased to $1.99 billion, from $1.86 billion at December 31, 2008, reflecting an increase of $98 million in money market accounts and a $31 million increase in certificate of deposit accounts. Total borrowed funds and related interest payable at June 30, 2009 decreased to $118 million, from $149 million at December 31, 2008, reflecting the early repayment of $30 million of higher rate subordinated debentures.
Total stockholders’ equity at June 30, 2009 increased to $213.1 million, from $212.0 million at December 31, 2008 primarily due to net earnings of $0.9 million for the period. In April 2009, the Company’s wholly owned subsidiary, Intervest National Bank (the “Bank”) agreed with the OCC, its primary regulator, to maintain minimum capital ratios at specified levels higher than those otherwise required by applicable regulations as follows: Tier 1 capital to total average assets (leverage ratio) - 9%; Tier 1 capital to risk-weighted assets - - 10%; and total capital to risk-weighted assets - 12%. At June 30, 2009, the Bank’s actual capital ratios were in excess of these levels and were 13.33%, 12.08% and 9.94%, respectively.
Intervest Bancshares Corporation is a holding company. Its operating subsidiaries are: Intervest National Bank, a nationally chartered commercial bank that has its headquarters and full-service banking office at One Rockefeller Plaza, in New York City, and a total of six full-service banking offices in Clearwater and Gulfport, Florida; and Intervest Mortgage Corporation, a mortgage investment company. Intervest National Bank maintains capital ratios in excess of the regulatory requirements to be designated as a well-capitalized institution. Intervest Bancshares Corporation’s Class A Common Stock is listed on the NASDAQ Global Select Market: Trading Symbol IBCA.
This press release may contain forward-looking information. Except for historical information, the matters discussed herein are subject to certain risks and uncertainties that may affect the Company’s actual results of operations. The following important factors, among others, could cause actual results to differ materially from those set forth in forward looking statements: changes in general economic conditions and real estate values in the Company’s market areas; changes in policies by regulatory agencies; fluctuations in interest rates; demand for loans and deposits; and competition. Reference is made to the Company’s filings with the SEC for further discussion of risks and uncertainties regarding the Company’s business. Historical results are not necessarily indicative of the future prospects of the Company.
Contact: Lowell S. Dansker, Chairman, Intervest Bancshares Corporation
One Rockefeller Plaza (Suite 400), New York, New York 10020-2002, Phone 212-218-2800 Fax 212-218-2808
Selected Consolidated Financial Information Follows.
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INTERVEST BANCSHARES CORPORATION
Selected Consolidated Financial Information
| | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Six-Months Ended | |
| | | June 30, | | | June 30, | |
(Dollars in thousands, except per share amounts) | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Selected Operating Data: | | | | | | | | | | | | | | | | |
Interest and dividend income | | $ | 30,804 | | | $ | 31,776 | | | $ | 61,483 | | | $ | 63,564 | |
Interest expense | | | 20,607 | | | | 22,712 | | | | 41,996 | | | | 45,645 | |
| | | | | | | | | | | | | | | | |
Net interest and dividend income | | | 10,197 | | | | 9,064 | | | | 19,487 | | | | 17,919 | |
Provision for loan losses | | | 2,686 | | | | 2,753 | | | | 4,543 | | | | 5,016 | |
| | | | | | | | | | | | | | | | |
Net interest and dividend income after provision for loan losses | | | 7,511 | | | | 6,311 | | | | 14,944 | | | | 12,903 | |
Noninterest income | | | 57 | | | | 1,139 | | | | 130 | | | | 2,082 | |
Noninterest expenses | | | 6,554 | | | | 4,197 | | | | 12,493 | | | | 7,715 | |
| | | | | | | | | | | | | | | | |
Earnings before income taxes | | | 1,014 | | | | 3,253 | | | | 2,581 | | | | 7,270 | |
Provision for income taxes | | | 236 | | | | 1,392 | | | | 908 | | | | 3,128 | |
| | | | | | | | | | | | | | | | |
Net earnings before preferred dividend requirements | | | 778 | | | | 1,861 | | | | 1,673 | | | | 4,142 | |
Preferred dividend requirements (1) | | | 409 | | | | — | | | | 814 | | | | — | |
| | | | | | | | | | | | | | | | |
Net earnings available to common stockholders | | $ | 369 | | | $ | 1,861 | | | $ | 859 | | | $ | 4,142 | |
| | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.04 | | | $ | 0.22 | | | $ | 0.10 | | | $ | 0.50 | |
Diluted earnings per common share | | $ | 0.04 | | | $ | 0.22 | | | $ | 0.10 | | | $ | 0.50 | |
Cash dividends paid per common share | | $ | — | | | $ | 0.25 | | | $ | — | | | $ | 0.25 | |
Average common shares used to calculate: | | | | | | | | | | | | | | | | |
Basic earnings per common share | | | 8,270,812 | | | | 8,270,812 | | | | 8,270,812 | | | | 8,247,241 | |
Diluted earnings per common share (2) | | | 8,270,812 | | | | 8,270,812 | | | | 8,270,812 | | | | 8,251,589 | |
Common shares outstanding at end of period | | | 8,270,812 | | | | 8,270,812 | | | | 8,270,812 | | | | 8,270,812 | |
Common stock options/warrants outstanding at end of period | | | 955,712 | | | | 132,140 | | | | 955,712 | | | | 132,140 | |
Yield on interest-earning assets | | | 5.30 | % | | | 5.92 | % | | | 5.40 | % | | | 6.04 | % |
Cost of funds | | | 3.95 | % | | | 4.70 | % | | | 4.12 | % | | | 4.82 | % |
Net interest margin (3) | | | 1.75 | % | | | 1.69 | % | | | 1.71 | % | | | 1.70 | % |
Return on average assets (annualized) | | | 0.13 | % | | | 0.34 | % | | | 0.14 | % | | | 0.39 | % |
Return on average common equity (annualized) | | | 1.64 | % | | | 4.04 | % | | | 1.77 | % | | | 4.52 | % |
Effective income tax rate | | | 23.27 | % | | | 42.79 | % | | | 35.18 | % | | | 43.03 | % |
Efficiency ratio (4) | | | 53 | % | | | 34 | % | | | 53 | % | | | 34 | % |
Total average loans outstanding | | $ | 1,739,859 | | | $ | 1,701,949 | | | $ | 1,726,844 | | | $ | 1,674,302 | |
Total average securities outstanding | | | 575,281 | | | | 428,601 | | | | 550,628 | | | | 414,872 | |
Total average short-term investments outstanding | | | 16,320 | | | | 28,201 | | | | 16,764 | | | | 28,704 | |
Total average interest-earning assets outstanding | | | 2,331,460 | | | | 2,158,751 | | | | 2,294,236 | | | | 2,117,878 | |
Total average assets outstanding | | | 2,359,924 | | | | 2,179,331 | | | | 2,320,792 | | | | 2,137,491 | |
Total average interest-bearing deposits outstanding | | $ | 1,972,245 | | | $ | 1,802,455 | | | $ | 1,930,739 | | | $ | 1,762,543 | |
Total average borrowings outstanding | | | 120,982 | | | | 141,383 | | | | 126,192 | | | | 142,925 | |
Total average interest-bearing liabilities outstanding | | | 2,093,227 | | | | 1,943,838 | | | | 2,056,931 | | | | 1,905,468 | |
Total average stockholders’ equity | | | 212,733 | | | | 184,185 | | | | 212,448 | | | | 183,088 | |
| | | | | | | | | | | | | | | | | | | | |
| | | At Jun 30, | | | At Mar 31, | | | At Dec 31, | | | At Sep 30, | | | At Jun 30, | |
| | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
Selected Financial Condition Information: | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,380,044 | | | $ | 2,317,613 | | | $ | 2,271,833 | | | $ | 2,180,746 | | | $ | 2,207,170 | |
Total cash and short-term investments | | | 23,441 | | | | 30,203 | | | | 54,903 | | | | 21,969 | | | | 16,726 | |
Total securities held to maturity | | | 566,722 | | | | 544,702 | | | | 475,581 | | | | 410,844 | | | | 430,934 | |
Total FRB and FHLB stock | | | 9,929 | | | | 9,657 | | | | 8,901 | | | | 10,912 | | | | 8,428 | |
Total loans, net of unearned fees | | | 1,746,087 | | | | 1,708,752 | | | | 1,705,711 | | | | 1,691,851 | | | | 1,723,213 | |
Total deposits | | | 1,995,165 | | | | 1,938,123 | | | | 1,864,135 | | | | 1,734,820 | | | | 1,809,683 | |
Total borrowed funds and accrued interest payable | | | 118,035 | | | | 122,194 | | | | 149,566 | | | | 210,551 | | | | 168,063 | |
Total preferred equity | | | 23,273 | | | | 23,177 | | | | 23,080 | | | | — | | | | — | |
Total common equity | | | 189,864 | | | | 189,440 | | | | 188,894 | | | | 186,230 | | | | 183,549 | |
Book value per common share | | | 22.96 | | | | 22.90 | | | | 22.84 | | | | 22.52 | | | | 22.19 | |
Total allowance for loan losses | | $ | 32,054 | | | $ | 30,371 | | | $ | 28,524 | | | $ | 25,828 | | | $ | 26,609 | |
Total loan recoveries for the quarter | | | 1,329 | | | | — | | | | — | | | | — | | | | — | |
Total loan chargeoffs for the quarter | | | 2,332 | | | | 10 | | | | — | | | | 4,227 | | | | — | |
Total accruing troubled debt restructurings (5) | | | 76,210 | | | | 30,586 | | | | — | | | | — | | | | — | |
Total loans ninety days past due and still accruing | | | 6,367 | | | | 1,958 | | | | 1,964 | | | | — | | | | 3,051 | |
Total nonaccrual loans | | | 129,784 | | | | 119,305 | | | | 108,610 | | | | 82,759 | | | | 119,078 | |
Total foreclosed real estate | | | 18,214 | | | | 9,742 | | | | 9,081 | | | | 25,099 | | | | 7,272 | |
Allowance for loan losses/net loans | | | 1.84 | % | | | 1.78 | % | | | 1.67 | % | | | 1.53 | % | | | 1.54 | % |
| (1) | Represents accrued dividends on $25 million of 5% cumulative preferred stock held by the U.S. Treasury and amortization of related preferred stock discount. |
| (2) | Diluted EPS includes shares that would be outstanding if dilutive common stock options/warrants were assumed to be exercised during the period. Outstanding options/warrants are dilutive when their exercise price is above the average market price of the Class A common stock during the reporting periods. |
| (3) | Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of noninterest income. |
| (4) | Represents noninterest expenses (excluding provision for loan losses & real estate expenses) as a percentage of net interest and dividend income plus noninterest income. |
| (5) | Represent loans whose terms have been modified mostly through the deferral of principal and or a partial reduction in interest payments. |
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INTERVEST BANCSHARES CORPORATION
Consolidated Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | | At or For The Period Ended | |
| ($ in thousands, except per share amounts) | | Six-Months
Ended
June 30,
2009 | | | Year
Ended
Dec 31,
2008 | | | Year
Ended
Dec 31,
2007 | | | Year
Ended
Dec 31,
2006 | | | Year
Ended
Dec 31,
2005 | |
Balance Sheet Highlights: | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,380,044 | | | $ | 2,271,833 | | | $ | 2,021,392 | | | $ | 1,971,753 | | | $ | 1,706,423 | |
Asset growth rate | | | 5 | % | | | 12 | % | | | 3 | % | | | 16 | % | | | 30 | % |
Total loans, net of unearned fees | | $ | 1,746,087 | | | $ | 1,705,711 | | | $ | 1,614,032 | | | $ | 1,490,653 | | | $ | 1,367,986 | |
Loan growth rate | | | 2 | % | | | 6 | % | | | 8 | % | | | 9 | % | | | 35 | % |
Total deposits | | $ | 1,995,165 | | | $ | 1,864,135 | | | $ | 1,659,174 | | | $ | 1,588,534 | | | $ | 1,375,330 | |
Deposit growth rate | | | 7 | % | | | 12 | % | | | 4 | % | | | 16 | % | | | 38 | % |
Loans/deposits (Intervest National Bank) | | | 82 | % | | | 85 | % | | | 88 | % | | | 84 | % | | | 88 | % |
Total borrowed funds and accrued interest payable | | $ | 118,035 | | | $ | 149,566 | | | $ | 136,434 | | | $ | 172,909 | | | $ | 155,725 | |
Preferred equity | | $ | 23,273 | | | $ | 23,080 | | | $ | — | | | $ | — | | | $ | — | |
Common equity | | $ | 189,864 | | | $ | 188,894 | | | $ | 179,561 | | | $ | 170,046 | | | $ | 136,178 | |
Common shares outstanding | | | 8,270,812 | | | | 8,270,812 | | | | 8,075,812 | | | | 8,371,595 | | | | 7,823,058 | |
Common book value per share | | $ | 22.96 | | | $ | 22.84 | | | $ | 22.23 | | | $ | 20.31 | | | $ | 17.41 | |
Market price per common share | | $ | 3.50 | | | $ | 3.99 | | | $ | 17.22 | | | $ | 34.41 | | | $ | 24.04 | |
Asset Quality Highlights | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans . | | $ | 129,784 | | | $ | 108,610 | | | $ | 90,756 | | | $ | 3,274 | | | $ | 750 | |
Foreclosed real estate | | | 18,214 | | | | 9,081 | | | | — | | | | — | | | | — | |
Accruing troubled debt restructurings (1) | | | 76,210 | | | | — | | | | — | | | | — | | | | — | |
Loans ninety days past due and still accruing | | | 6,367 | | | | 1,964 | | | | 11,853 | | | | — | | | | 2,649 | |
Allowance for loan losses | | | 32,054 | | | | 28,524 | | | | 21,593 | | | | 17,833 | | | | 15,181 | |
Loan recoveries | | | 1,329 | | | | — | | | | — | | | | — | | | | — | |
Loan chargeoffs | | | 2,342 | | | | 4,227 | | | | — | | | | — | | | | — | |
Allowance for loan losses/net loans | | | 1.84 | % | | | 1.67 | % | | | 1.34 | % | | | 1.20 | % | | | 1.11 | % |
Statement of Operations Highlights: | | | | | | | | | | | | | | | | | | | | |
Interest and dividend income | | $ | 61,483 | | | $ | 128,497 | | | $ | 131,916 | | | $ | 128,605 | | | $ | 97,881 | |
Interest expense | | | 41,996 | | | | 90,335 | | | | 89,653 | | | | 78,297 | | | | 57,447 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest and dividend income | | | 19,487 | | | | 38,162 | | | | 42,263 | | | | 50,308 | | | | 40,434 | |
Provision for loan losses | | | 4,543 | | | | 11,158 | | | | 3,760 | | | | 2,652 | | | | 4,075 | |
Noninterest income | | | 130 | | | | 5,026 | | | | 8,825 | | | | 6,855 | | | | 6,594 | |
Noninterest expenses | | | 12,493 | | | | 18,873 | | | | 12,876 | | | | 13,027 | | | | 10,703 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes | | | 2,581 | | | | 13,157 | | | | 34,452 | | | | 41,484 | | | | 32,250 | |
Provision for income taxes | | | 908 | | | | 5,891 | | | | 15,012 | | | | 17,953 | | | | 14,066 | |
| | | | | | | | | | | | | | | | | | | | |
Net earnings before preferred dividend requirements | | | 1,673 | | | | 7,266 | | | | 19,440 | | | | 23,531 | | | | 18,184 | |
Preferred dividend requirements (2) | | | 814 | | | | 41 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net earnings available to common stockholders | | $ | 859 | | | $ | 7,225 | | | $ | 19,440 | | | $ | 23,531 | | | $ | 18,184 | |
| | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.10 | | | $ | 0.87 | | | $ | 2.35 | | | $ | 2.98 | | | $ | 2.65 | |
Diluted earnings per common share | | $ | 0.10 | | | $ | 0.87 | | | $ | 2.31 | | | $ | 2.82 | | | $ | 2.47 | |
Adjusted net earnings used to calculate diluted earnings per common share | | $ | 859 | | | $ | 7,225 | | | $ | 19,484 | | | $ | 23,679 | | | $ | 18,399 | |
Average common shares used to calculate: | | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | | 8,270,812 | | | | 8,259,091 | | | | 8,275,539 | | | | 7,893,489 | | | | 6,861,887 | |
Diluted earnings per common share | | | 8,270,812 | | | | 8,267,781 | | | | 8,422,017 | | | | 8,401,379 | | | | 7,449,658 | |
Net interest margin (3) | | | 1.71 | % | | | 1.79 | % | | | 2.11 | % | | | 2.75 | % | | | 2.70 | % |
Return on average assets | | | 0.14 | % | | | 0.34 | % | | | 0.96 | % | | | 1.28 | % | | | 1.20 | % |
Return on average common equity | | | 1.77 | % | | | 3.94 | % | | | 11.05 | % | | | 15.82 | % | | | 16.91 | % |
Effective income tax rate | | | 35.18 | % | | | 44.77 | % | | | 43.57 | % | | | 43.28 | % | | | 43.62 | % |
Efficiency ratio (4) | | | 53 | % | | | 33 | % | | | 24 | % | | | 23 | % | | | 23 | % |
Full-service banking offices | | | 7 | | | | 7 | | | | 7 | | | | 7 | | | | 6 | |
| (1) | Represent loans whose terms have been modified mostly through the deferral of principal and or a partial reduction in interest payments. |
| (2) | Represents accrued dividends on $25 million of 5% cumulative preferred stock held by the U.S. Treasury and amortization of related preferred stock discount. |
| (3) | Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of noninterest income. Inclusive of such income, the margin would compute to 1.72% for the six-months ended June 30, 2009, 1.77% for 2008, 2.60% for 2007, 3.24% for 2006 and 2.85% for 2005. |
| (4) | Represents noninterest expenses (excluding provision for loan losses and real estate expenses) as a percentage of net interest and dividend income plus noninterest income. Noninterest expenses for 2006 included a one-time charge of $1.5 million. |
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