Exhibit 99.1
PSB Announces 4th Quarter Earnings of $.85 Per Share
Wausau, Wisconsin [OTCBB:PSBQ.OB] – Peter W. Knitt, President and CEO of PSB Holdings, Inc. (“PSB”) and Peoples State Bank (“Peoples”) announced record December 2007 quarterly earnings of $.85 per share on net income of $1,312,000, up from $.66 per share on net income of $1,021,000 in the recent September 2007 quarter, and up from $.54 per share on net income of $873,000 in the fourth quarter of 2006. Year to date 2007 earnings per share were $2.64 on net income of $4,140,000 compared to $2.07 per share on net income of $3,427,000 during 2006, an increase of 28% in earnings per share.
During the December 2007 quarter, PSB recognized a $200,000 decrease in income tax expense from its recent victory in Tax Court which permits a favorable calculation of interest expense deductions related to tax-exempt income that was originally disallowed upon IRS audit. In addition, PSB incurred costs related to a severance agreement with a former executive officer. To permit comparisons to prior period income levels, the following table outlines the impact of special items to net income and earnings per share in 2007 and 2006:
Three months ended | Year ended | ||||||||
Periods ended December 31, 2007 | $000s | per share | $000s | per share | |||||
Net income as reported | $ 1,312 | $ 0.85 | $ 4,140 | $ 2.64 | |||||
Special items, net of tax effects: | |||||||||
Cost of employee severance benefit | 61 | $ 0.04 | 61 | 0.04 | |||||
Favorable Tax Court decision on TEFRA calc. | (200) | $ (0.13) | (200) | (0.13) | |||||
Interest rate swap income | – | $ – | (10) | (0.01) | |||||
Pro-forma net income | $ 1,173 | $ 0.76 | $ 3,991 | $ 2.54 |
Three months ended | Year ended | ||||||||
Periods ended December 31, 2006 | $000s | per share | $000s | per share | |||||
Net income as reported | $ 873 | $ 0.54 | $ 3,427 | $ 2.07 | |||||
Special items, net of tax effects: | |||||||||
Cost of employee severance benefit | 101 | 0.06 | 101 | 0.06 | |||||
Interest rate swap expense | 7 | 0.01 | 143 | 0.08 | |||||
Gain on sale of student loans | (39) | (0.02) | |||||||
Gain on sale of vacant land held for branching | (236) | (0.14) | |||||||
Loss on securities sale in balance sheet restructuring | 303 | 0.18 | |||||||
Pro-forma net income | $ 981 | $ 0.61 | $ 3,699 | $ 2.23 |
Return on average assets based on net income for the quarter and year end December 31, 2007 was 1.00% and .82%, respectively. Return on average assets based on net income for the quarter and year ended December 31, 2006 was .70% and .68%, respectively.
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Return on average stockholders’ equity based on net income for the quarter and year ended December 31, 2007 was 14.44% and 11.79%, respectively. Return on equity based on net income for the quarter and year ended December 31, 2006 was 10.05% and 9.84%, respectively. Book value per share was $23.70 at December 31, 2007 compared to $21.67 at December 31, 2006, an increase of 9.4%.
Assets at December 31, 2007 were $534.2 million compared to $501.8 million at December 31, 2006, an increase of $32.3 million, or 6.5%. Total loans receivable were $387.1 million at December 31, 2007 compared to $369.7 million at December 31, 2006, an increase of $17.4 million, or 4.7%. Investment securities also grew $17.2 million during the year ended December 31, 2007 primarily from a leveraged purchase of conforming mortgages funded by a new $13.5 million structured repurchase agreement during the December 2007 quarter.
Total deposits of $402.0 million at December 31, 2007 increased $10.6 million from December 31, 2006, an increase of 2.7%. However, the retail and local deposits category increased $27.8 million, or 8.6%, which was used in part to pay down wholesale brokered certificates by $17.2 million. During 2007, PSB also entered into new structured repurchase agreements totaling $20.5 million which were used to purchase $15.0 million in mortgage backed securities and pay down FHLB advances by $3.0 million. Total wholesale funding at December 31, 2007 was $134.1 million, up $2.2 million, or 1.7% from total wholesale funding of $131.9 million at December 31, 2006.
PSB’s provision for loan losses was $120,000 in the fourth quarter of both 2007 and 2006. Year to date provision for loan losses were $480,000 and $495,000 for the years ended December 31, 2007 and 2006, respectively. Annualized net charge-offs were .10% and .01% during the December 2007 and 2006 quarters, respectively. Net charge-offs were .03% and .05% of loan receivable during all of 2007 and 2006, respectively.
At December 31, 2007, the allowance for loan losses was 1.24% of total loans ($4,850,000), compared to 1.20% (4,478,000) a year earlier. Nonperforming loans were .97% of total loans at December 31, 2007, down from 1.13% at September 30, 2007, and 1.14% at December 31, 2006. The following table summarizes non-performing assets as of period end:
Non-Performing Assets as of | December 31, | ||
(dollars in thousands) | 2007 | 2006 | |
Nonaccrual loans | $ 3,144 | $ 4,281 | |
Accruing loans past due 90 days or more | – | – | |
Restructured loans not on nonaccrual | 653 | – | |
Total nonperforming loans | 3,797 | 4,281 | |
Foreclosed assets | 653 | 464 | |
Total nonperforming assets | $ 4,450 | $ 4,745 | |
Nonperforming loans as a % of gross loans | 0.97% | 1.14% | |
Total nonperforming assets as a % of total assets | 0.83% | 0.95% |
Existing nonaccrual loans are spread over unrelated borrowers, with the top five largest nonaccrual relationships totaling $1.1 million principal in the aggregate (35% of total nonaccrual balances) as of December 31, 2007. PSB applies all payments received on nonaccrual loans to principal until the loan is returned to accrual status.
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Tax adjusted net interest margin was 3.11% during the December 2007 quarter compared to 3.05% in the September 2007 quarter and 3.06% during the December 2006 quarter. December 2007 quarterly margin improved compared to the recent September 2007 quarter due to a decline in savings, checking, and money market core deposit rates of .26% which outpaced a decline in loan yields of .01%. The cumulative Federal Reserve discount rate decline of 1.00% which began in September 2007 has contributed to the falling rates during the December 2007 quarter. Net interest margin was 3.12% and 3.05% during the years ended December 31, 2007, and 2006, respectively.
During 2005, PSB entered into a $10 million interest rate swap (receive fixed, pay variable payments) to hedge the interest rate risk inherent in a fixed rate certificate of deposit that was later determined to not qualify for hedge accounting. Eliminating the application of fair value hedge accounting in March 2006 caused PSB to mark the swap liability to fair value and generated a charge against noninterest income. Following a decline in interest rates (which lowered the swap liability), this swap was prepaid in the March 2007 quarter with a final payment of $115,000 (swap final maturity was in October 2008). Changes in the fair value of the swap liability and the monthly settlement payments were recorded as reductions to noninterest income. The table below summarizes swap expense for the periods ended December 31 before income tax effects:
Interest Rate Swap Net Expense | Three months ended | Year ended | |||||||
(dollars in thousands) | December 31, | December 31, | |||||||
2007 | 2006 | 2007 | 2006 | ||||||
Net monthly settlement expense | $ – | $ 32 | $ 15 | $ 89 | |||||
Net change in unrealized fair value liability | – | (20) | (32) | 147 | |||||
Total swap (income) expense during the period | $ – | $ 12 | $ (17) | $ 236 |
Total noninterest income for the quarter ended December 31, was $935,000 and $865,000 in 2007 and 2006, respectively, an increase of 8.1%. The majority of the increase during the current quarter was due to additional debit card interchange income. PSB’s new Reward Checking account requires greater customer debit card use to obtain the premium account interest rate and other rewards. Growth in this deposit account category during the quarter has led to the substantially increased debit card income.
Total noninterest income was $3,704,000 during the year ended 2007 compared to $3,276,000 during 2006, an increase of $428,000 or 13.1%. However, 2006 results included several special items impacting non-interest income including the swap previously described.
Following a decision not to enter a nearby market with a stand alone de novo banking location, vacant land held for branching was sold during 2006 for a gain of $389,000.
In response to falling long-term market rates in September 2006 and the ability to offset a securities loss against the one-time gain on sale of land held for branching, PSB restructured its balance sheet by selling low yielding securities for a loss and reinvesting in longer-term higher yielding securities. During the September 2006 quarter, PSB sold $17 million of securities which generated a loss of $472,000.
If the impact to noninterest income from the three 2006 special items were excluded, noninterest income would have been $3,687,000 in 2007 and $3,595,000 in 2006, an increase of $92,000 or 2.6%. As noted for the December quarter, an increase in debit card interchange income of $113,000 during all of 2007 contributed significantly to the increase in noninterest income and offset a decline in deposit service fees of $33,000.
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Total noninterest expenses increased modestly during the quarter and year ended December 2007 compared to the prior year. December 2007 quarterly operating expenses were $2,971,000 compared to $2,932,000 in the December 2006 quarter, an increase of $39,000. For the year ended December 2007, operating expenses totaled $11,952,000 compared to $11,702,000 for 2006, an increase of $250,000, or 2.1%.
Salaries and employee benefits expense continued to run at levels less than the prior year, totaling $1,762,000 and $6,921,000 for the quarter and year ended December 31, 2007, respectively, compared to $1,809,000 and $7,057,000 for the same periods in 2006. Lower employee health insurance expense was a significant driver to lower costs, with total savings of $73,000 during all of 2007 compared to 2006. Savings were achieved from more active management of self-funded plan expenses, moderately higher benefit deductibles, and a lower number of employee claims. Salaries and benefits expenses have also benefited from operational efficiencies delivered by a smaller employee base, which has declined from 139 full-time equivalent employees (FTE) at December 31, 2006 to 130 at December 31, 2007.
Expenses other than salaries and benefits totaled $1,209,000 in the December 2007 quarter compared to $1,123,000 in the December 2006 quarter, an increase of $86,000. Expenses other than salaries and benefits totaled $5,031,000 during all of 2007 compared to $4,645,000 for all of 2006, an increase of $386,000, or 8.3%. Costs related to initial year compliance with Section 404 of the Sarbanes-Oxley Act (“SOX 404”) increased operating expenses $120,000 during the year ended December 2007 compared to such expenses incurred during 2006. In addition, PSB recorded a long-term donation commitment for a qualifying community reinvestment project during 2007 totaling $47,000. Before the SOX 404 costs and the donation commitment, 2007 operating expenses other than salaries and benefits increased $219,000 or 4.7% led by marketing costs (up $94,000), and information technology expense (up $55,000).
On December 18, 2007, PSB declared its regular semi-annual cash dividend of $.33 per share payable on January 31, 2008 to shareholders of record as of January 10, 2008, an increase over $.32 per share paid this time last year.
PSB Holdings, Inc. (OTCBB:PSBQ.OB), is the parent company of Peoples. Peoples is headquartered in Wausau, Wisconsin with eight retail locations serving north central Wisconsin in Marathon, Oneida, and Vilas counties. In addition to traditional retail and commercial banking products, Peoples provides retail investments and insurance annuities, retirement planning, commercial treasury management services, and long-term fixed rate residential mortgages.
Forward Looking Statements
Certain matters discussed in this news release, including those relating to the growth of PSB, its profits, and future interest rates, are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in this release. Among other things, these risks and uncertainties include the strength of the economy, the effects of government policies, including, in particular, interest rate policies, and other risks and assumptions described under “Forward - Looking Statements” in Item 1 and “Risk Factors” in Item 1A of PSB’s Form 10-K for the year ended December 31, 2006. PSB assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
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PSB Holdings, Inc. | |||||||||||
Quarterly Financial Summary | |||||||||||
(dollars in thousands, except per share data) | |||||||||||
Quarter ended – Unaudited | |||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||
Earnings and dividends: | 2007 | 2007 | 2007 | 2007 | 2006 | ||||||
Net income | $ 1,312 | $ 1,021 | $ 1,008 | $ 799 | $ 873 | ||||||
Basic earnings per share(3) | $ 0.85 | $ 0.66 | $ 0.64 | $ 0.50 | $ 0.55 | ||||||
Diluted earnings per share(3) | $ 0.85 | $ 0.66 | $ 0.64 | $ 0.50 | $ 0.54 | ||||||
Dividends declared per share(3) | $ 0.33 | $ – | $ 0.33 | $ – | $ 0.32 | ||||||
Net book value per share | $ 23.70 | $ 22.90 | $ 21.83 | $ 22.14 | $ 21.67 | ||||||
Semi-annual dividend payout ratio | 21.86% | n/a | 28.48% | n/a | 27.68% | ||||||
Average common shares outstanding | 1,544,855 | 1,553,952 | 1,572,679 | 1,589,980 | 1,593,320 | ||||||
Balance sheet - average balances: | |||||||||||
Loans receivable, net of allowances | $ 384,069 | $ 382,474 | $ 379,084 | $ 372,448 | $ 370,256 | ||||||
Total assets | $ 520,098 | $ 509,947 | $ 496,952 | $ 497,349 | $ 497,502 | ||||||
Deposits | $ 395,148 | $ 395,508 | $ 384,984 | $ 387,803 | $ 388,299 | ||||||
Stockholders’ equity | $ 36,044 | $ 34,636 | $ 35,135 | $ 34,692 | $ 34,463 | ||||||
Performance ratios: | |||||||||||
Return on average assets(1) | 1.00% | 0.79% | 0.81% | 0.65% | 0.70% | ||||||
Return on avg. stockholders’ equity(1) | 14.44% | 11.70% | 11.51% | 9.34% | 10.05% | ||||||
Average tangible stockholders’ equity to | |||||||||||
average assets(4) | 6.92% | 6.91% | 7.11% | 7.02% | 6.96% | ||||||
Net loan charge-offs to average loans(1) | 0.10% | 0.02% | 0.00% | -0.01% | 0.01% | ||||||
Nonperforming loans to gross loans | 0.97% | 1.13% | 0.96% | 0.96% | 1.14% | ||||||
Allowance for loan loss to gross loans | 1.24% | 1.25% | 1.21% | 1.22% | 1.20% | ||||||
Net interest rate margin(1)(2) | 3.11% | 3.05% | 3.22% | 3.13% | 3.06% | ||||||
Net interest rate spread(1)(2) | 2.60% | 2.53% | 2.67% | 2.62% | 2.52% | ||||||
Service fee revenue as a percent of | |||||||||||
average demand deposits(1) | 2.89% | 2.75% | 2.61% | 2.57% | 2.39% | ||||||
Noninterest income as a percent | |||||||||||
of gross revenue | 10.35% | 10.37% | 11.34% | 9.94% | 10.25% | ||||||
Efficiency ratio(2) | 62.21% | 62.27% | 63.51% | 69.32% | 65.68% | ||||||
Noninterest expenses to avg. assets(1) | 2.27% | 2.24% | 2.44% | 2.51% | 2.34% | ||||||
Stock price information: | |||||||||||
High | $ 27.25 | $ 29.00 | $ 29.25 | $ 30.35 | $ 30.75 | ||||||
Low | $ 25.05 | $ 27.10 | $ 27.00 | $ 28.00 | $ 30.15 | ||||||
Market value at quarter-end | $ 26.00 | $ 27.10 | $ 27.75 | $ 28.50 | $ 30.25 |
(1)Annualized
(2)The yield on tax-exempt loans and securities is computed on a tax-equivalent basis.
(3)Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.
(4)Tangible stockholders' equity excludes the impact of cumulative other comprehensive income (loss).
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PSB Holdings, Inc. | |||||||||
Consolidated Statements of Income | |||||||||
Three Months Ended | Year ended | ||||||||
(dollars in thousands, | December 31, | December 31, | |||||||
except per share data – unaudited) | 2007 | 2006 | 2007 | 2006 | |||||
| |||||||||
Interest and dividend income: | |||||||||
Loans, including fees | $ 6,935 | $ 6,493 | $ 27,283 | $ 25,546 | |||||
Securities: | |||||||||
Taxable | 805 | 619 | 2,665 | 2,512 | |||||
Tax-exempt | 324 | 283 | 1,276 | 1,052 | |||||
Other interest and dividends | 37 | 177 | 333 | 403 | |||||
Total interest and dividend income | 8,101 | 7,572 | 31,557 | 29,513 | |||||
Interest expense: | |||||||||
Deposits | 3,473 | 3,339 | 13,905 | 12,636 | |||||
FHLB advances | 645 | 660 | 2,490 | 2,477 | |||||
Other borrowings | 221 | 31 | 573 | 174 | |||||
Junior subordinated debentures | 114 | 114 | 454 | 454 | |||||
Total interest expense | 4,453 | 4,144 | 17,422 | 15,741 | |||||
Net interest income | 3,648 | 3,428 | 14,135 | 13,772 | |||||
Provision for loan losses | 120 | 120 | 480 | 495 | |||||
Net interest income after provision for loan losses | 3,528 | 3,308 | 13,655 | 13,277 | |||||
Noninterest income: | |||||||||
Service fees | 361 | 331 | 1,331 | 1,364 | |||||
Mortgage banking | 207 | 254 | 871 | 885 | |||||
Investment and insurance sales commissions | 121 | 132 | 592 | 530 | |||||
Net loss on sale of securities | – | – | – | (472) | |||||
Increase in cash surrender value of life insurance | 77 | 57 | 270 | 201 | |||||
Change in fair value of interest rate swap | – | 19 | 32 | (147) | |||||
Gain on sale of land held for branching | – | – | – | 389 | |||||
Other noninterest income | 169 | 72 | 608 | 526 | |||||
Total noninterest income | 935 | 865 | 3,704 | 3,276 | |||||
Noninterest expense: | |||||||||
Salaries and employee benefits | 1,762 | 1,809 | 6,921 | 7,057 | |||||
Occupancy and facilities | 445 | 453 | 1,868 | 1,827 | |||||
Data processing and other office operations | 189 | 180 | 796 | 741 | |||||
Advertising and promotion | 118 | 88 | 367 | 273 | |||||
Other noninterest expenses | 457 | 402 | 2,000 | 1,804 | |||||
Total noninterest expense | 2,971 | 2,932 | 11,952 | 11,702 | |||||
Income before provision for income taxes | 1,492 | 1,241 | 5,407 | 4,851 | |||||
Provision for income taxes | 180 | 368 | 1,267 | 1,424 | |||||
Net income | $ 1,312 | $ 873 | $ 4,140 | $ 3,427 | |||||
Basic earnings per share | $ 0.85 | $ 0.60 | $ 2.65 | $ 2.08 | |||||
Diluted earnings per share | $ 0.85 | $ 0.60 | $ 2.64 | $ 2.07 |
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PSB Holdings, Inc. | ||||
Consolidated Balance Sheets | ||||
December 31, 2007 unaudited, December 31, 2006 derived from audited financial statements | ||||
(dollars in thousands, except per share data) – unaudited | 2007 | 2006 | ||
Assets | ||||
Cash and due from banks | $ 18,895 | $ 14,738 | ||
Interest-bearing deposits and money market funds | 2,232 | 1,048 | ||
Federal funds sold | – | 9,756 | ||
Cash and cash equivalents | 21,127 | 25,542 | ||
Securities available for sale (at fair value) | 97,214 | 80,009 | ||
Loans held for sale | 365 | 1,001 | ||
Loans receivable, net of allowance for loan losses | 387,130 | 369,749 | ||
Accrued interest receivable | 2,383 | 2,464 | ||
Foreclosed assets | 653 | 464 | ||
Premises and equipment, net | 11,082 | 11,469 | ||
Mortgage servicing rights, net | 889 | 908 | ||
Federal Home Loan Bank stock (at cost) | 3,017 | 3,017 | ||
Cash surrender value of bank-owned life insurance | 8,728 | 5,900 | ||
Other assets | 1,597 | 1,317 | ||
TOTAL ASSETS | $ 534,185 | $ 501,840 | ||
Liabilities | ||||
Non-interest-bearing deposits | $ 55,470 | $ 55,083 | ||
Interest-bearing deposits | 346,536 | 336,332 | ||
Total deposits | 402,006 | 391,415 | ||
Federal Home Loan Bank advances | 57,000 | 60,000 | ||
Other borrowings | 26,407 | 3,995 | ||
Junior subordinated debentures | 7,732 | 7,732 | ||
Accrued expenses and other liabilities | 4,425 | 4,251 | ||
Total liabilities | 497,570 | 467,393 | ||
Stockholders’ equity | ||||
Common stock - no par value with a stated value of $1 per share: | ||||
Authorized - 3,000,000 shares | ||||
Issued - 1,887,179 shares | 1,887 | 1,887 | ||
Additional paid-in capital | 9,493 | 9,645 | ||
Retained earnings | 34,081 | 30,967 | ||
Accumulated other comprehensive income (loss) | 423 | (105) | ||
Treasury stock, at cost - 342,197 and 297,223 shares, respectively | (9,269) | (7,947) | ||
|
| |||
Total stockholders’ equity | 36,615 | 34,447 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 534,185 | $ 501,840 |
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PSB Holdings, Inc. | |||||||
Average Balances and Interest Rates | |||||||
Quarter Ended December 31, | |||||||
2007 | 2006 | ||||||
Avg. Bal. | Interest | Yield/Rate | Avg. Bal. | Interest | Yield/Rate | ||
Assets | |||||||
Interest-earning assets: | |||||||
Loans(1)(2) | $ 388,926 | $ 6,961 | 7.10% | $ 374,672 | $ 6,518 | 6.90% | |
Taxable securities | 61,567 | 805 | 5.19% | 48,812 | 619 | 5.03% | |
Tax-exempt securities(2) | 33,115 | 491 | 5.88% | 28,008 | 429 | 6.08% | |
FHLB stock | 3,017 | (14) | -1.84% | 3,017 | 23 | 3.02% | |
Other | 3,648 | 51 | 5.55% | 12,545 | 154 | 4.87% | |
Total(2) | 490,273 | 8,294 | 6.71% | 467,054 | 7,743 | 6.58% | |
Non-interest-earning assets: | |||||||
Cash and due from banks | 9,635 | 11,552 | |||||
Premises and equipment, net | 11,172 | 11,560 | |||||
Cash surrender value ins. | 8,099 | 5,863 | |||||
Other assets | 5,776 | 5,889 | |||||
Allowance for loan losses | (4,857) | (4,416) | |||||
Total | $ 520,098 | $ 497,502 | |||||
Liabilities & stockholders’ equity | |||||||
Interest-bearing liabilities: | |||||||
Savings and demand deposits | $ 83,340 | $ 606 | 2.88% | $ 72,958 | $ 515 | 2.80% | |
Money market deposits | 78,010 | 641 | 3.26% | 67,872 | 569 | 3.33% | |
Time deposits | 184,312 | 2,226 | 4.79% | 192,601 | 2,255 | 4.65% | |
FHLB borrowings | 56,728 | 645 | 4.51% | 60,000 | 660 | 4.36% | |
Other borrowings | 19,980 | 221 | 4.39% | 3,302 | 31 | 3.72% | |
Junior subordinated debentures | 7,732 | 114 | 5.85% | 7,732 | 114 | 5.85% | |
Total | 430,102 | 4,453 | 4.11% | 404,465 | 4,144 | 4.06% | |
Non-interest-bearing liabilities: | |||||||
Demand deposits | 49,486 | 54,868 | |||||
Other liabilities | 4,466 | 3,706 | |||||
Stockholders’ equity | 36,044 | 34,463 | |||||
Total | $ 520,098 | $ 497,502 | |||||
Net interest income | $ 3,841 | $ 3,599 | |||||
Rate spread | 2.60% | 2.52% | |||||
Net yield on interest-earning assets | 3.11% | 3.06% |
(1)Nonaccrual loans are included in the daily average loan balances outstanding.
(2)The yield on tax-exempt loans and securities is computed on a tax-equivalent.
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PSB Holdings, Inc. | ||||||||||
Average Balances and Interest Rates | ||||||||||
Years Ended December 31, | ||||||||||
2007 | 2006 | |||||||||
Avg. Bal. | Interest | Yield/Rate | Avg. Bal. | Interest | Yield/Rate | |||||
Assets | ||||||||||
Interest-earning assets: | ||||||||||
Loans(1)(2) | $ 384,265 | $ 27,387 | 7.13% | $ 380,555 | $ 25,637 | 6.74% | ||||
Taxable securities | 52,149 | 2,665 | 5.11% | 55,338 | 2,512 | 4.54% | ||||
Tax-exempt securities(2) | 32,223 | 1,933 | 6.00% | 26,299 | 1,594 | 6.06% | ||||
FHLB stock | 3,017 | 50 | 1.66% | 3,017 | 89 | 2.95% | ||||
Other | 5,314 | 283 | 5.33% | 6,628 | 314 | 4.74% | ||||
Total(2) | 476,968 | 32,318 | 6.78% | 471,837 | 30,146 | 6.39% | ||||
Non-interest-earning assets: | ||||||||||
Cash and due from banks | 9,987 | 11,356 | ||||||||
Premises and equipment, net | 11,312 | 12,069 | ||||||||
Cash surrender value ins. | 7,020 | 5,271 | ||||||||
Other assets | 5,691 | 5,859 | ||||||||
Allowance for loan losses | (4,706) | (4,302) | ||||||||
Total | $ 506,272 | $ 502,090 | ||||||||
Liabilities & stockholders’ equity | ||||||||||
Interest-bearing liabilities: | ||||||||||
Savings and demand deposits | $ 82,333 | $ 2,475 | 3.01% | $ 78,209 | $ 2,173 | 2.78% | ||||
Money market deposits | 71,588 | 2,443 | 3.41% | 66,394 | 2,029 | 3.06% | ||||
Time deposits | 187,807 | 8,987 | 4.79% | 194,735 | 8,434 | 4.33% | ||||
FHLB borrowings | 55,337 | 2,490 | 4.50% | 57,644 | 2,477 | 4.30% | ||||
Other borrowings | 12,911 | 573 | 4.44% | 4,719 | 174 | 3.69% | ||||
Junior subordinated debentures | 7,732 | 454 | 5.87% | 7,732 | 454 | 5.87% | ||||
Total | 417,708 | 17,422 | 4.17% | 409,433 | 15,741 | 3.84% | ||||
Non-interest-bearing liabilities: | ||||||||||
Demand deposits | 49,162 | 54,236 | ||||||||
Other liabilities | 4,287 | 3,605 | ||||||||
Stockholders’ equity | 35,115 | 34,816 | ||||||||
Total | $ 506,272 | $ 502,090 | ||||||||
Net interest income | $ 14,896 | $ 14,405 | ||||||||
Rate spread | 2.61% | 2.55% | ||||||||
Net yield on interest-earning assets | 3.12% | 3.05% |
(1) Nonaccrual loans are included in the daily average loan balances outstanding.
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 34%.
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