SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
January 20, 2004
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(Date of earliest event reported)
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Progress Financial Corporation
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(Exact name of registrant as specified in its charter)
Delaware 0-14815 23-2413363
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(State of other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identified No.)
4 Sentry Parkway, Suite 200, Blue Bell, Pennsylvania 19422-0764
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(Address of principal executive offices) (Zip Code)
(610)-825-8800
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name, ormer address and former fiscal year,if changed since last report)
Item 5. Other Events and Regulation FD Disclosure
-----------------------------------------
On January 20, 2004, Progress Financial Corporation released the cash
dividend press release for the fourth quarter 2003. A copy of this press
release is included as Exhibit 99.1 and is incorporated herein by reference.
On January 20, 2004 Progress Financial Corporation announced the
Shareholders approval of the merger with FleetBoston Financial Corporation. A
copy of this press release is included as Exhibit 99.2 and is incorporated
herein by reference.
On January 20, 2004, Progress Financial Corporation distributed an
earnings package to analysts, a copy of which is furnished as Exhibit 99.4 to
this report.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
(a) Not applicable.
(b) Not applicable.
(c) The following exhibits are included with this Report:
Exhibit No. Description
----------- -----------
99.1 Dividend Press Release dated January 20, 2004
99.2 Approval of Merger Announcement dated January 20, 2004
99.3 Press Release reporting fourth quarter earnings dated
January 20, 2004
99.4 Earnings Package distributed to Analysts dated
January 20, 2004
Item 12. Results of Operations and Financial Condition
---------------------------------------------
On January 20, 2004 Progress Financial Corporation reported fourth
quarter net income of $2.4 million, or diluted earnings of $.33 per share. A
copy of the press release is included as Exhibit 99.3 and is incorporated herein
by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PROGRESS FINANCIAL CORPORATION
Dated: January 20, 2004 By: /s/ Michael B. High
-----------------------------------
Michael B. High
Chief Operating Officer and
Chief Financial Officer
Exhibit 99.1
Press Release on Fourth Quarter Cash Dividend
FOR IMMEDIATE RELEASE Contacts:
January 20, 2004 Michael B. High, COO/CFO
610-941-4804
mhigh@progressbank.com
Dorothy Jaworski, Director of Investor Relations
484-322-4822
djaworski@progressbank.com
Progress Financial Corporation Announces Quarterly Cash Dividend
Blue Bell, PA, January 20, 2004 - The Board of Directors of Progress
Financial Corporation (the "Company" - Nasdaq: PFNC) declared its quarterly cash
dividend on its common stock, according to W. Kirk Wycoff, Chairman, President
and Chief Executive Officer. The Board approved the quarterly cash dividend of
$.13 per share. The dividend will be paid on February 6, 2004 to shareholders of
record on January 26, 2004.
Progress Financial Corporation is a unitary thrift holding company
headquartered in Blue Bell, Pennsylvania. The business of the Company consists
primarily of the operation of Progress Bank, which serves businesses and
consumers through twenty-one offices. The Company also offers financial planning
services, life insurance, group employee benefits and investments through
Progress Financial Resources, Inc., headquartered in Philadelphia, Pa. The
Company's common stock is traded on The Nasdaq Stock Market under the Symbol
"PFNC".
####
Exhibit 99.2
Press Release on Shareholder Approval of Merger
FOR IMMEDIATE RELEASE Contacts:
January 20, 2004 Michael B. High, COO/CFO
610-941-4804
mhigh@progressbank.com
Dorothy Jaworski, Director of Investor Relations
484-322-4822
djaworski@progressbank.com
Shareholders of Progress Financial Corporation Approve
Merger With FleetBoston Financial Corporation
Blue Bell, PA, January 20, 2004 - Progress Financial Corporation (the
"Company" - Nasdaq: PFNC) announced that its shareholders approved its merger
agreement with FleetBoston Financial Corporation at a special meeting of
shareholders held today. Under the merger agreement, the Company will merge with
and into FleetBoston and each outstanding share of common stock of the Company
will be converted into the right to receive the number of shares of common stock
of FleetBoston determined by dividing $30.80 by the average closing trading
price of FleetBoston common stock during a specified period preceding the
merger, plus cash in lieu of any fractional share interest. The merger is expect
to close on or about February 1, 2004, subject to the receipt of all required
regulatory approvals.
Progress Financial Corporation is a unitary thrift holding company
headquartered in Blue Bell, Pennsylvania. The business of the Company consists
primarily of the operation of Progress Bank, which serves businesses and
consumers through twenty-one offices. The Company also offers financial planning
services, life insurance, group employee benefits and investments through
Progress Financial Resources, Inc., headquartered in Philadelphia, Pa. The
Company's common stock is traded on The Nasdaq Stock Market under the Symbol
"PFNC".
####
Exhibit 99.3
Press Release on Fourth Quarter 2003 Earnings
FOR IMMEDIATE RELEASE Contacts:
January 20, 2004 Michael B. High, COO/CFO
610-941-4804
mhigh@progressbank.com
Dorothy Jaworski, Director of Investor Relations
484-322-4822
djaworski@progressbank.com
Progress Financial Corporation Announces 146% Increase in
Fourth Quarter 2003 Earnings Per Share
Blue Bell, PA, January 20, 2004 - Progress Financial Corporation (the
"Company" - Nasdaq: PFNC), reported fourth quarter 2003 net income of $2.5
million, or diluted earnings per share of $.33, compared to net income of $1.0
million, or diluted earnings per share of $.14, for the fourth quarter of 2002.
Net income for the year ended December 31, 2003 was $8.7 million, or diluted
earnings per share of $1.19, compared to net income of $4.0 million, or diluted
earnings per share of $.56, for the year ended December 31, 2002.
Message to Shareholders from W. Kirk Wycoff, Chairman and CEO
- -------------------------------------------------------------
"It is with regret that I am communicating such stellar financial results
for the final time, as later this quarter Progress will become part of
FleetBoston Financial Corporation. I hope our shareholders recognize and
appreciate the incredible effort put forth by our 248 employees in 2003 which
resulted in more than doubling our income from 2002 of $4.0 million to $8.7
million. I want to personally thank each and every one of those employees for
their commitment to our mission to be the best bank in the region.
The significance of these final annual results should not be diminished due
to our pending merger for two reasons. First, the ability to serve our community
and our clients at a high level is what drives this financial performance and
the extremely high level of client satisfaction we enjoy. Second, the Fleet
shareholders (soon to include all of us) are the beneficiaries of all the
benefits, and more,
which they forecast from the Progress merger last August. This phenomenon that
all to infrequently in corporate America today.
On behalf of all the employees of Progress, thank you for your support,
enthusiasm and confidence in us. It has been a pleasure working for you, our
shareholders."
Commenting on the fourth quarter results, W. Kirk Wycoff, President and
CEO, stated, "The fourth quarter earnings for Progress Financial Corporation of
$.33 and 2003 earnings of $1.19 per share exceeded our expectations. Also, in
the fourth quarter we achieved two key performance metrics; an ROE of 15.18% and
an efficiency ratio of 59.56%, that have been long term targets for our Board
and Management team."
Focusing on the financial results, tax-equivalent net interest income for
the quarter ended December 31, 2003 increased $2.0 million, or 28%, compared to
the fourth quarter of 2002. The increase in tax-equivalent interest income in
the current quarter was primarily due to growth in consumer and commercial real
estate loans and additional investments in tax-exempt municipal securities.
Interest expense decreased in the current quarter primarily due to lower
interest rates on time deposits. The tax-equivalent net interest margin for the
fourth quarter of 2003 was 3.17% compared to 3.09% for the fourth quarter of
2002 and 3.09% for the third quarter of 2003. Tax-equivalent net interest income
for the twelve months ended December 31, 2003 increased $5.7 million, or 21%,
compared to the same period in 2002. The increase in tax-equivalent interest
income during the year ended December 31, 2003 was primarily due to growth in
commercial real estate loans and additional investments in mortgage-backed and
tax-exempt municipal securities. Interest expense decreased during the twelve
months ended
December 31, 2003 primarily due to lower interest rates on time deposits. The
tax-equivalent net interest margin for the twelve months ended December 31, 2003
was 3.10% compared to 3.23% for the same period in 2002.
The provision for loan and lease losses was $500,000 for the quarter ended
December 31, 2003, compared to $875,000 for the same period in 2002. The
provision for loan and lease losses was $2.3 million for the twelve months ended
December 31, 2003, compared to $3.8 million for the same period in 2002. The
higher provision during 2002 was primarily due to charge-offs in the TechBanc
portfolio (which was subsequently sold) and the reserve additions to address
credit and economic concerns which have now been reduced as a result of the
reduction in the Company's classified assets.
Non-interest income for the quarter ended December 31, 2003 was $3.0
million, a decrease of 7% compared to $3.2 million for the same period in 2002.
Fee income for the three months ended December 31, 2003 decreased $613,000 from
the comparable quarter in 2002 primarily due to a reduction in loan brokerage
and advisory fees and consulting fees of $170,000 from the Company's subsidiary
KMR Management, Inc. ("KMR"), during the fourth quarter of 2002 compared to none
in the current quarter since the business was exited during the third quarter of
2003. Gain on sale of securities was $573,000 for the three months ended
December 31, 2003, an increase of $354,000 compared to $219,000 for the same
period in 2002.
Non-interest income for the twelve months ended December 31, 2003 was $12.8
million, a decrease of 17% compared to $15.3 million for the same period in
2002. This decrease was the result of a variety of factors, including, among
others, a decline in client warrant income. Fee income for the twelve months
ended December 31, 2003 decreased $936,000 primarily due to a decrease in mutual
fund, annuity and insurance commissions from the Company's subsidiary Progress
Financial
Resources, Inc. ("PFR") and a reduction in consulting fees from KMR, partially
offset by an increase in loan brokerage and advisory fees. During 2003, a loss
on extinguishment of debt of $559,000 was recognized compared to a loss of
$55,000 in 2002. Gain on sale of real estate was $1.2 million during 2003
compared to $1.6 million in 2002. The twelve months ended December 31, 2003
included client warrant income of $268,000 compared to $1.9 million during the
same period in 2002. Gain on sale of securities was $1.7 million for the twelve
months ended December 31, 2003, an increase of $1.0 million compared to $655,000
for the same period in 2002.
Total non-interest expense was $7.5 million for the quarter ended December
31, 2003, a decrease of 3% compared to $7.7 million for the same period in 2002.
Professional services expenses decreased $289,000 primarily due to recoveries of
legal expenses during the fourth quarter of 2003 and legal expenses during the
fourth quarter of 2002 related to collecting on loans and leases and for KMR.
Other expenses decreased $272,000 primarily due to lower advertising expense
during the fourth quarter of 2003 and expenses during the fourth quarter of 2002
for loan workouts and real estate owned. During the current quarter, the Company
recognized non-recurring expenses amounting to $150,000 related to an
anticipated settlement associated with leasing activities. Compensation and
benefits expense increased $328,000 for the three months ended December 31, 2003
from the comparable period in 2002 primarily due to bonus expense related to
increased earnings and additional Employee Stock Ownership Plan costs associated
with the increase in the Company's stock price partially offset by reduced
expenses for KMR.
Total non-interest expense was $30.0 million for the twelve months ended
December 31, 2003, a decrease of 7% compared to $32.2 million for same period in
2002. During the year, the Company recognized non-recurring expenses associated
with the impairment of goodwill for KMR and leasing of $353,000 compared to
$685,000 for the same period in 2002. As of December 31, 2003, the Company
had no remaining goodwill for KMR. Other expenses decreased $1.3 million for the
twelve months ended December 31, 2003 primarily due to recoveries of real estate
owned expenses during 2003 and expenses during 2002 related to real estate
owned, loan workouts, and write-downs of used asset inventory for Progress
Leasing.
Average earning assets for the fourth quarter of 2003 were $1.13 billion,
an increase of $226.7 million or 25%, compared to $900.2 million for the fourth
quarter of 2002. Average earning assets for the twelve months ended December 31,
2003 were $1.07 billion, an increase of $218.0 million or 26%, compared to
$851.3 million for the same period in 2002. The increases in earning assets
during the three and twelve months ended December 31, 2003 from the comparable
periods in 2002 were primarily due to higher levels of loans and securities.
Tax-equivalent interest income for the fourth quarter of 2003 increased $1.5
million, or 11%, over the same period in 2002 while interest expense decreased
$507,000, or 8%, for the same period. Tax-equivalent interest income for the
twelve months ended December 31, 2003 increased $3.8 million, or 7%, over the
same period in 2002 while interest expense decreased $1.9 million, or 7%, for
the same period.
Loans and leases outstanding increased $98.6 million, or 21%, to $564.4
million at December 31, 2003 from $465.8 million at December 31, 2002. This
increase was primarily due to growth in commercial real estate loans,
construction loans and consumer loans. The Company reported non-performing
assets of $2.4 million at December 31, 2003, compared with $5.4 million at
December 31, 2002. The decrease was primarily due to the payment and partial
charge-off of commercial business loans for one borrower during the fourth
quarter of 2003. The Company reported net charge-offs of $1.9 million for the
twelve month period ended December 31, 2003 as compared to $7.3 million of net
charge-offs for the comparable period in 2002. As of December 31, 2003 and
December 31, 2002, the
Company had no real estate owned. The Company's non-performing assets to total
assets ratio and non-performing loans to assets ratio were .21% at December 31,
2003 compared to .54% at December 31, 2002. The ratio of the allowance for loan
and lease losses to total loans and leases was 1.22% at December 31, 2003
compared to 1.39% at December 31, 2002.
Total deposits increased $74.9 million, or 11%, to $766.4 million at
December 31, 2003 from $691.5 million at December 31, 2002. Total assets
increased 15% to $1.17 billion at December 31, 2003 from $1.02 billion at
December 31, 2002.
At December 31, 2003, Progress Bank's Tier 1 leverage and total risk-based
capital ratios were 7.64% and 14.27%, respectively, as compared to 7.82% and
15.20% at December 31, 2002.
Progress Financial Corporation is a unitary thrift holding company
headquartered in Blue Bell, Pennsylvania. The business of the Company consists
primarily of the operation of Progress Bank, which serves businesses and
consumers through twenty-one full service offices. The Company also offers
financial planning services, life insurance, group employee benefits, and
investments through Progress Financial Resources, Inc., headquartered in
Philadelphia, Pa. The Company's common stock is traded on The Nasdaq Stock
Market under the symbol "PFNC".
####
This release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
estimates. When used in filings by the Company with the Securities and Exchange
Commission, in the Company's press releases or other public or shareholder
communications, or in oral statements made with the approval of an authorized
executive officer, the words or phrases "will likely result", "are expected to",
"will continue", "is anticipated", "estimate", "project", or similar expressions
are intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks and uncertainties including changes in economic conditions in the
Company's market area, changes in policies by regulatory agencies, fluctuations
in interest rates, demand for loans in the Company's market area and competition
that could cause actual results to differ materially from historical earnings
and those presently anticipated or projected. The Company wishes to caution
readers not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. The Company wishes to advise readers that
the factors listed above could affect the Company's financial performance and
could cause the Company's actual results for future periods to differ materially
from any opinions or statements expressed with respect to future periods in any
current statements.
FINANCIAL DATA ATTACHED
Progress Financial Corporation
Consolidated Statements of Financial Condition
(Dollars in thousands)
December 31, December 31,
2003 2002
--------------------- ------------------
Assets
Cash and due from banks:
Non-interest earning $ 27,433 $ 20,650
Interest earning 1,382 17,570
Investments and mortgage-backed securities:
Available for sale at fair value (amortized cost: $305,694 and $353,688) 302,768 359,290
Held to maturity at amortized cost (fair value: $241,624 and $121,968) 241,095 120,006
Loans and leases, net (net of reserve: $6,859 and $6,463) 557,531 459,350
Premises and equipment 22,000 26,726
Other assets 17,364 14,252
---------------------- ------------------
Total assets $1,169,573 $1,017,844
====================== ==================
Liabilities and Shareholders' Equity
Liabilities:
Deposits $ 766,449 $ 691,538
Short-term borrowings 136,023 96,882
Other liabilities 9,148 12,132
Long-term debt:
Federal Home Loan Bank advances 160,500 120,500
Other debt 1,102 1,227
Capital securities 28,869 28,836
---------------------- ------------------
Total liabilities 1,102,091 951,115
---------------------- ------------------
Commitments and contingencies
Shareholders' Equity:
Common stock - $1 par value; 12,000,000 shares authorized;
7,562,000, and 7,058,000 shares issued and outstanding at 7,562 7,058
December 31, 2003 and December 31, 2002, respectively
Treasury stock (194,000 and 114,000 shares at December 31, 2003 and
December, 31, 2002, respectively) (3,703) (1,050)
Unearned Employee Stock Ownership Plan shares (162,000 and
169,000 shares at December 31, 2003 and December 31, 2002) (1,225) (1,341)
Unearned compensation - restricted stock awards (37) (75)
Capital surplus 58,173 51,536
Retained earnings 8,660 6,936
Net accumulated other comprehensive income (loss) (1,948) 3,665
---------------------- ------------------
Total shareholders' equity 67,482 66,729
---------------------- ------------------
Total liabilities and shareholders' equity $ 1,169,573 $1,017,844
====================== ==================
Progress Financial Corporation
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
------------ ------------ -----------------------
Interest income:
Loans and leases, including fees $ 8,723 $7,911 $34,034 $33,636
Mortgage-backed securities 4,757 4,784 18,621 16,929
Investment securities 1,009 543 3,462 2,451
Other 20 38 80 219
--------- --------- --------- ---------
Total interest income 14,509 13,276 56,197 53,235
Interest expense:
Deposits 3,232 3,793 13,454 15,665
Borrowings 2,126 2,117 8,662 8,430
Capital securities 582 537 2,342 2,230
--------- --------- -------- --------
Total interest expense 5,940 6,447 24,458 26,325
Net interest income 8,569 6,829 31,739 26,910
Provision for loan and lease losses 500 875 2,260 3,814
--------- --------- -------- --------
Net interest income after provision
for loan and lease losses 8,069 5,954 29,479 23,096
Non-interest income:
Service charges on deposits 917 937 3,540 3,685
Mutual fund, annuity and insurance commissions 632 685 2,389 2,781
Loan brokerage and advisory fees 276 489 1,793 1,142
Private equity fund management fees 65 65 261 247
Gain on sale of securities 573 219 1,674 655
Gain on sale of loans and lease receivables 216 206 760 701
Gain on sale of real estate --- 76 1,201 1,646
Loss on extinguishment of debt --- (80) (559) (55)
Client warrant income 71 20 268 1,947
Fees and other 245 591 1,438 2,570
--------- -------- -------- --------
Total non-interest income 2,995 3,208 12,765 15,319
Non-interest Expense:
Salaries and employee benefits 4,142 3,814 15,916 16,025
Occupancy 740 624 2,712 2,591
Data processing 271 209 966 911
Furniture, fixtures and equipment 457 505 1,884 2,071
Professional services 423 712 2,261 2,528
Goodwill and other intangible assets impairment losses
and amortization 113 213 556 1,032
Other 1,388 1,660 5,691 6,992
--------- -------- -------- --------
Total non-interest expense 7,534 7,737 29,986 32,150
--------- -------- -------- --------
Income before income taxes 3,530 1,425 12,258 6,265
Income tax expense 1,016 401 3,518 2,269
--------- -------- --------- --------
Net income $ 2,514 $1,024 $ 8,740 $3,996
========= ======== ========= ========
Basic earnings per common share $0.35 $0.14 $1.25 $0.57
========== ========= ========= ========
Diluted earnings per common share $0.33 $0.14 $1.19 $0.56
========== ========= ========= ========
Dividends per common share $0.13 $0.05 $0.33 $0.10
========== ========= ========= ========
Basic average common shares outstanding 7,096,178 7,150,092 6,979,332 6,991,517
========== ========= ========== =========
Diluted average common shares outstanding 7,427,731 7,365,569 7,331,493 7,168,587
========== ========= ========== =========
Progress Financial Corporation
Supplemental Data
(Dollars in Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
-------------- --------------- --------------- -------------------
Profitability Measures:
Return on average assets 0.85% 0.43% 0.78% 0.44%
Return on average equity 15.18 6.09 13.57 6.38
Net interest spread (tax-equivalent) 2.89 2.67 2.80 2.83
Net interest margin (tax-equivalent) 3.17 3.09 3.10 3.23
Efficiency ratio (excludes non-recurring items) 59.56 73.78 64.25 75.88
Efficiency ratio (GAAP) 62.81 75.73 65.34 75.13
Diluted net income per common share $0.33 $0.14 $1.19 $0.56
Selected Loan Data:
Non-performing assets $2,401 $5,447 2,401 $5,447
Ratio of non-performing assets to total assets 0.21% 0.54% 0.21% 0.54%
Ratio of allowance for loan and lease losses
to total loans and leases receivable 1.22 1.39 1.22 1.39
Ratio of allowance for loan and lease losses
to non-performing loans and leases 285.67 118.65 285.67 118.65
Loan delinquency ratio 1.09 1.21 1.09 1.21
Ratio of loans and leases to deposits 73.64 67.36 73.64 67.36
Selected Equity Data:
Book value per share $ 9.36 $ 9.38 $ 9.36 $ 9.38
Tangible book value per share 9.28 9.22 9.28 9.22
Dividends per common share 0.13 0.05 0.33 0.10
Average equity to average assets 5.60% 7.00% 5.75% 6.93%
Tier 1 risk-based capital ratio (Bank) 13.29 14.09 13.29 14.09
Total risk-based capital ratio (Bank) 14.27 15.20 14.27 15.20
Tier 1 leverage capital ratio (Bank) 7.64 7.82 7.64 7.82
Selected Average Balances:
Loans, gross $570,078 $463,363 $531,822 $479,604
Earning assets 1,126,869 900,209 1,069,202 851,250
Total assets 1,174,094 953,315 1,120,194 903,429
Deposits 763,894 671,380 732,934 642,496
Equity 65,711 66,718 64,392 62,585
Progress Financial Corporation
Supplemental Balances
(Dollars in Thousands)
December 31, December 31, %
Period-End Balances At: 2003 2002 Change
-----------------------------------------------------------
Loans and Leases, Net:
Commercial business $ 76,236 $ 83,994 (9.2)%
Commercial real estate 240,495 199,672 20.4
Construction, net of loans in process 118,976 87,728 35.6
Single family residential real estate 28,312 26,870 5.4
Consumer 95,029 50,105 89.7
Lease receivable 5,342 17,444 (69.4)
-------- -------- -----
Total loans and leases 564,390 465,813 21.2
Allowance for loan and lease losses (6,859) (6,463) 6.1
-------- --------- -----
Loans and leases, net $557,531 $ 459,350 21.4%
======== ========= =====
Deposits:
Non-interest-bearing demand $118,757 $100,075 18.7 %
NOW and SuperNow 85,640 93,182 (8.1)
Money Market 172,790 105,563 63.7
Passbook and Statement Savings 37,930 34,148 11.1
Time deposits 351,332 358,570 (2.0)
-------- -------- -----
Total Deposits $766,449 $ 691,538 10.8 %
======== ========= =====
Exibit 99.4
Earnings Package Distributed to Analysts
Three Months Ended Twelve Months Ended
December 31, December 31,
Percent Percent
2003 2002 change 2003 2002 change
-------- --------- ------------- ---------- ---------- ------------
Per Common Share Data*
- ----------------------
Net income:
Basic $ 0.35 $0.14 150.00% $ 1.25 $0.57 119.30%
Diluted 0.33 $0.14 135.71% 1.19 $0.56 112.50%
Cash dividends declared 0.13 $0.05 160.00% 0.33 $0.10 230.00%
Book value 9.36 9.38 -0.16% 9.36 9.38 -0.16%
Tangible book value 9.28 9.22 0.65% 9.28 9.22 0.65%
Average shares outstanding:
Basic 7,096,178 7,150,092 -0.75% 6,979,332 6,991,517 -0.17%
Diluted 7,427,731 7,365,569 0.84% 7,331,493 7,168,587 2.27%
Financial Ratios
- ----------------
Return on average shareholders' equity 15.18% 6.09% 149.26% 13.57% 6.38% 112.53%
Return on average total assets 0.85% 0.43% 97.67% 0.78% 0.44% 76.35%
Average yield on earning assets 5.26% 5.93% -11.30% 5.39% 6.32% -14.72%
Average rate on interest bearing liabilities 2.37% 3.26% -27.30% 2.59% 3.49% -25.79%
Net interest spread 2.89% 2.67% 8.24% 2.80% 2.83% -1.06%
Net interest margin (FTE) 3.17% 3.09% 2.59% 3.10% 3.23% -4.02%
Efficiency ratio (excluding non-recurring items) 59.56% 73.78% -19.27% 64.25% 75.88% -15.33%
Efficiency ratio (GAAP) 62.81% 75.73% -17.06% 65.34% 75.13% -13.03%
Risk-based capital - Tier 1 13.29% 14.09% -5.68% 13.29% 14.09% -5.68%
- Total capital 14.27% 15.20% -6.12% 14.27% 15.20% -6.12%
Tier 1 leverage ratio 7.64% 7.82% -2.30% 7.64% 7.82% -2.30%
Average shareholders' equity/average total assets 5.60% 7.00% -20.00% 5.75% 6.93% -17.03%
Asset Quality (dollars in thousands)
- ------------------------------------
Allowance for loan losses $ 6,859 $ 6,463 6.13% $ 6,859 $ 6,463 6.13%
Allowance for loan losses/Loans 1.22% 1.39% -12.23% 1.22% 1.39% -12.23%
Net charge-offs (recoveries) $ 924 $ 1,512 -38.89% $ 1,864 $ 7,268 -74.35%
Net charge-offs/Average loans (annualized) 0.64% 1.29% -50.39% 0.35% 1.52% -76.87%
Nonperforming assets $ 2,401 $ 5,447 -55.92% $ 2,401 $ 5,447 -55.92%
Nonperforming assets/Total loans plus OREO 0.43% 1.19% -63.87% 0.43% 1.19% -63.87%
Nonperforming assets/Total assets 0.21% 0.54% -61.11% 0.21% 0.54% -61.11%
Allowance for loan losses/Nonperforming loans 285.67% 118.65% 140.77% 285.67% 118.65% 140.77%
Average Balances (in thousands)
- -------------------------------
Loans and leases (gross of reserves) $570,078 $ 463,363 23.03% $ 531,822 $ 479,604 10.89%
Earning assets 1,126,869 900,209 25.18% 1,069,202 851,250 25.60%
Total assets 1,174,094 953,315 23.16% 1,120,194 903,429 23.99%
Deposits 763,894 671,380 13.78% 732,934 642,496 14.08%
Interest bearing liabilities 995,193 785,719 26.66% 945,154 753,288 25.47%
Shareholders' equity 65,711 66,718 -1.51% 64,392 62,585 2.89%
Period End Balances (in thousands)
- ----------------------------------
Loans and leases (gross of reserves) $564,390 $ 465,813 21.16% $564,390 $ 465,813 21.16%
Total assets 1,169,573 1,017,844 14.91% 1,169,573 1,017,844 14.91%
Deposits 766,449 691,538 10.83% 766,449 691,538 10.83%
Total liabilities 1,102,091 951,115 15.87% 1,102,091 951,115 15.87%
Shareholders' equity 67,482 66,729 1.13% 67,482 66,729 1.13%
*Prior Period Information has been restated to reflect the 5% Stock Dividend distributed 2nd Quarter 2003.
Three Months Three Months Three Months Three Months Twelve Months
Ended Ended Ended Ended Ended
December 31, September 30, June 30, March 31, December 31,
-------------------- ----------------- --------------- ------------------ -------------------
Percent Percent Percent Percent Percent
2003 2002 change 2003 2002 change 2003 2002 change 2003 2002 change 2003 2002 change
---- ---- ------- ---- ---- ------- ---- ---- ------- ---- ---- ------ ---- ---- -------
TAX EQUIVALENT INCOME STATEMENT
- ------------------------------
($ in thousands, except per share data)
Net interest income(FTE) $9,000 $7,008 28% $8,537 $6,965 23% $8,137 $7,021 16% $7,452 $6,479 15% $33,126$27,473 21%
FTE adjustment (431) (179)-141% (402) (145) -177% (309) (128)-141% (245) (111)-121% (1,387) (563)-146%
------ ------ ---- ------ ------ ---- ------ ------ ---- ------ ----- ---- ------- ------- ----
Net interest income 8,569 6,829 25% 8,135 6,820 19% 7,828 6,893 14% 7,207 6,368 13% 31,739 26,910 18%
Provision for losses on loans 500 875 -43% 560 500 12% 500 1,000 -50% 700 1,439 -51% 2,260 3,814 -41%
Non-Interest Income:
Service charges on deposits 917 937 -2% 950 916 4% 867 978 -11% 806 854 -6% 3,540 3,685 -4%
Lease financing fees 32 42 -24% 23 50 -54% 29 63 -54% 37 63 -41% 121 218 -44%
Mutual fund, annuity and
insurance commissions 632 685 -8% 502 478 5% 645 678 -5% 610 940 -35% 2,389 2,781 -14%
Loan brokerage and
advisory fees 276 489 -44% 565 78 624% 641 302 112% 311 273 14% 1,793 1,142 57%
Private equity fund
management fees 65 65 0% 66 65 2% 65 65 0% 65 52 25% 261 247 6%
Gain on securities 573 219 162% 55 84 -35% 723 352 105% 323 - - 1,674 655 156%
Gain on sale of real estate - 76 -100% 1,201 1,570 -24% - - - - - - 1,201 1,646 -27%
Client warrant income 71 20 255% - 466 -100% - 35 -100% 197 1,426 -86% 268 1,947 -86%
Equity (loss) in
unconsolidated entities 40 (14) 386% (10) 1 -1100% 111 6 1750% (12) 95 -113% 129 88 47%
Fees and other income 389 689 -44% (21) 643 -103% 522 737 -29% 499 841 -41% 1,389 2,910 -52%
------ ------ ---- ------ ------ ---- ------ ------ ---- ------ ----- ---- ------- ------- ----
Total non-interest income 2,995 3,208 -7% 3,331 4,351 -23% 3,603 3,216 12% 2,836 4,544 -38% 12,765 15,319 -17%
Non-Interest Expenses:
Salaries and employee
benefits 4,142 3,814 9% 3,847 3,906 -2% 4,035 3,904 3% 3,892 4,401 -12% 15,916 16,025 -1%
Occupancy 740 624 19% 691 720 -4% 565 661 -15% 716 586 22% 2,712 2,591 5%
Data processing 271 209 30% 225 215 5% 243 230 6% 227 257 -12% 966 911 6%
Furniture, fixtures
and equipment 457 505 -10% 459 511 -10% 477 509 -6% 491 546 -10% 1,884 2,071 -9%
Loan and real estate
owned expenses, net 112 231 -52% 196 226 -13% 159 243 -35% (103) 295 -135% 364 995 -63%
Professional services 423 712 -41% 513 597 -14% 678 641 6% 647 578 12% 2,261 2,528 -11%
Other 1,389 1,642 -15% 1,420 2,115 -33% 1,623 1,579 3% 1,451 1,693 -14% 5,883 7,029 -16%
------ ------ ---- ------ ------ ---- ------ ------ ---- ------ ----- ---- ------- ------- ----
Total non-interest expenses 7,534 7,737 -3% 7,351 8,290 -11% 7,780 7,767 0% 7,321 8,356 -12% 29,986 32,150 -7%
------ ------ ---- ------ ------ ---- ------ ------ ---- ------ ----- ---- ------- ------- ----
Income before income taxes 3,530 1,425 148% 3,555 2,381 49% 3,151 1,342 135% 2,022 1,117 81% 12,258 6,265 96%
Provision for income
tax expense 1,016 401 153% 1,153 1,066 8% 774 435 78% 575 367 57% 3,518 2,269 55%
------ ------ ---- ------ ------ ---- ------ ------ ---- ------ ----- ---- ------- ------- ----
Net income $ 2,514 $1,024 146% $2,402 $1,315 83% $2,377 $ 907 162%$1,447 $ 750 93% $ 8,740 $ 3,996 119%
======= ====== ===== ====== ====== ==== ====== ===== ========== ===== === ======= ======= ===
QUARTERLY INCOME STATEMENT
(Unaudited)
($ in thousands, except per share) Fourth Third Second First Year-
2003 Quarter Quarter Quarter Quarter to-date
- ----------------------------- ----------- ----------- ----------- ----------- -----------
FTE interest income $14,940 $14,410 $14,409 $13,825 $57,584
Interest expense 5,940 5,873 6,272 6,373 24,458
------- ------- ------- ------- -------
FTE net interest income 9,000 8,537 8,137 7,452 33,126
Less: FTE adjustment (431) (402) (309) (245) (1,387)
------- ------- ------- ------- -------
Net Interest Income 8,569 8,135 7,828 7,207 31,739
Provision for Losses on Loans 500 560 500 700 2,260
Non-Interest Income:
Service charges on deposits 917 950 867 806 3,540
Lease financing fees 32 23 29 37 121
Mutual fund, annuity and insurance commissions 632 502 645 610 2,389
Loan brokerage and advisory fees 276 565 641 311 1,793
Private equity fund management fees 65 66 65 65 261
Gain on securities 573 55 723 323 1,674
Gain on sale of real estate - 1,201 - - 1,201
Client warrant income 71 - - 197 268
Equity (loss) in unconsolidated entities 40 (10) 111 (12) 129
Fees and other income 389 (21) 522 499 1,389
------- ------- ------- ------- -------
Total non-interest income 2,995 3,331 3,603 2,836 12,765
Non-Interest Expenses:
Salaries and employee benefits 4,142 3,847 4,035 3,892 15,916
Occupancy 740 691 565 716 2,712
Data processing 271 225 243 227 966
Furniture, fixtures and equipment 457 459 477 491 1,884
Loan and real estate owned expenses, net 112 196 159 (103) 364
Professional services 423 513 678 647 2,261
Other 1,389 1,420 1,623 1,451 5,883
------- ------- ------- ------- -------
Total non-interest expenses 7,534 7,351 7,780 7,321 29,986
Income Before Income Taxes 3,530 3,555 3,151 2,022 12,258
Provision for income tax expense 1,016 1,153 774 575 3,518
------- ------- ------- ------- -------
Net Income $ 2,514 $ 2,402 $ 2,377 $ 1,447 $ 8,740
======= ======= ======= ======= =======
Other Data:
EPS - Basic* $ 0.35 $ 0.35 $ 0.34 $ 0.21 $ 1.25
EPS - Diluted* $ 0.33 $ 0.33 $ 0.33 $ 0.20 $ 1.19
ROA 0.85% 0.83% 0.86% 0.56% 0.78%
ROE 15.18% 15.70% 14.65% 8.87% 13.57%
Net interest margin (FTE) 3.17% 3.09% 3.10% 3.02% 3.10%
Dividends declared on common stock * $ 0.13 $ 0.08 $ 0.06 $ 0.06 $ 0.33
FTE employees 248 256 264 266 256
*Prior Period Information has been restated to reflect the 5% Stock Dividend distributed 2nd Quarter 2003.
QUARTERLY INCOME STATEMENT
(Unaudited)
($ in thousands, except per share) Fourth Third Second First Year-
2002 Quarter Quarter Quarter Quarter to-date
- ----------------------------- ----------- ----------- ----------- ----------- -----------
FTE interest income $13,455 $13,618 $13,602 $13,123 $53,798
Interest expense 6,447 6,653 6,581 6,644 26,325
------- ------- ------- ------- -------
FTE net interest income 7,008 6,965 7,021 6,479 27,473
Less: FTE adjustment (179) (145) (128) (111) (563)
------- ------- ------- ------- -------
Net Interest Income 6,829 6,820 6,893 6,368 26,910
Provision for Losses on Loans 875 500 1,000 1,439 3,814
Non-Interest Income:
Service charges on deposits 937 916 978 854 3,685
Lease financing fees 42 50 63 63 218
Mutual fund, annuity and insurance commissions 685 478 678 940 2,781
Loan brokerage and advisory fees 489 78 302 273 1,142
Private equity fund management fees 65 65 65 52 247
Gain on securities 219 84 352 - 655
Gain on sale of real estate 76 1,570 - - 1,646
Client warrant income 20 466 35 1,426 1,947
Equity (loss) in unconsolidated entities (14) 1 6 95 88
Fees and other income 689 643 737 841 2,910
------- ------- ------- ------- -------
Total non-interest income 3,208 4,351 3,216 4,544 15,319
Non-Interest Expenses:
Salaries and employee benefits 3,814 3,906 3,904 4,401 16,025
Occupancy 624 720 661 586 2,591
Data processing 209 215 230 257 911
Furniture, fixtures and equipment 505 511 509 546 2,071
Loan and real estate owned expenses, net 231 226 243 295 995
Professional services 712 597 641 578 2,528
Other 1,642 2,115 1,579 1,693 7,029
------- ------- ------- ------- -------
Total non-interest expenses 7,737 8,290 7,767 8,356 32,150
Income Before Income Taxes 1,425 2,381 1,342 1,117 6,265
Provision for income tax expense 401 1,066 435 367 2,269
------- ------- ------- ------- -------
Net Income $ 1,024 $ 1,315 $ 907 $ 750 $ 3,996
======= ======= ======= ======= =======
Other Data:
EPS - Basic* $0.14 $0.19 $0.13 $0.11 $0.57
EPS - Diluted* $0.14 $0.18 $0.13 $0.11 $0.56
ROA 0.43% 0.57% 0.41% 0.35% 0.44%
ROE 6.09% 8.05% 5.90% 5.33% 6.38%
Net interest margin (FTE) 3.09% 3.24% 3.35% 3.25% 3.23%
Dividends declared on common stock* $0.05 $0.05 $0.00 $0.00 $0.10
FTE employees 268 271 282 277 271
*Restated to reflect the 5% Stock Dividend distributed 2nd Quarter 2003.
ASSET QUALITY
(Unaudited) 2003 2002
-------------------------------------------- --------------------------------------------
($ in thousands) Fourth Third Second First Year- Fourth Third Second First Year-
Allowance for Loan Losses Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date
- ------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Balance at beginning of period $7,283 $7,245 $7,214 $6,463 $6,463 $7,100 $8,024 $8,775 $9,917 $9,917
Provision 500 560 500 700 2,260 875 500 1,000 1,439 3,814
Charge-offs 1,426 600 590 150 2,766 1,689 1,827 1,817 2,721 8,054
Recoveries (502) (78) (121) (201) (902) (177) (403) (66) (140) (786)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net loan charge-offs (recoveries) 924 522 469 (51) 1,864 1,512 1,424 1,751 2,581 7,268
Balance at end of period $6,859 $7,283 $7,245 $7,214 $6,859 $6,463 $7,100 $8,024 $8,775 $6,463
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Allowance as percentage of loans 1.22% 1.30% 1.36% 1.44% 1.22% 1.39% 1.55% 1.67% 1.84% 1.39%
Net charge-offs/average loans 0.16% 0.10% 0.09% -0.01% 0.35% 0.33% 0.30% 0.36% 0.51% 1.52%
Allowance as percentage of
non-performing loans 285.67% 141.06% 142.45% 132.49% 285.67% 118.65% 94.14% 91.83% 93.93% 118.65%
Non-performing assets
Non-accrual loans and leases $2,401 $5,163 $5,086 $5,445 $2,401 $5,447 $7,542 $8,738 $9,342 $5,447
Other real estate owned - - - - - - 872 4,495 4,243 -
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total non-performing assets $2,401 $5,163 $5,086 $5,445 $2,401 $5,447 $8,414 $13,233 $13,585 $5,447
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Non-performing assets to:
Loans and leases plus OREO 0.43% 0.93% 0.97% 1.10% 0.43% 1.19% 1.86% 2.77% 2.87% 1.19%
Total assets 0.21% 0.44% 0.46% 0.49% 0.21% 0.54% 0.91% 1.46% 1.55% 0.54%
Loans past due 90 days $ 3,147 $ 2,682 $ 1,416 $ 2,213 $ 3,147 $ 918 $ 2,735 $ 1,766 $ 3,244 $ 918
Total under-performing assets $ 5,548 $ 7,845 $ 6,502 $ 7,658 $ 5,548 $ 6,365 $11,149 $14,999 $16,829 $ 6,365
AVERAGE BALANCE SHEET DATA
(Unaudited)
2003 2002
----------------------------------------------- ---------------------------------------------
($ in thousands) Fourth Third Second First Year- Fourth Third Second First Year-
Average balances Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date
-------------------------------------------------- ----------------------------------------------
Cash and due from banks
(Interest-earning) $ 9,110 $ 8,293 $ 8,927 $ 8,241 $ 8,644 $ 12,202 $ 14,743 $ 9,022 $ 22,496 $ 14,588
Loans,net of unearned discounts:
Commercial business 81,635 80,590 84,189 83,795 82,541 84,226 87,127 96,440 123,173 97,606
Commercial mortgage 242,524 230,815 231,308 210,014 228,760 199,731 193,867 196,331 193,250 195,807
Construction loans 115,751 112,679 103,781 92,886 106,355 82,566 84,863 86,253 83,831 84,376
Residential real estate 29,226 28,710 27,839 28,651 28,608 27,339 28,764 27,929 25,688 27,438
Consumer 94,500 87,504 63,989 51,826 74,607 49,179 47,547 45,416 44,437 46,660
Lease financing 6,442 8,306 12,805 16,388 10,951 20,322 24,954 30,080 35,712 27,717
--------- --------- --------- -------- -------- -------- -------- ------- ------- --------
Total loans 570,078 548,604 523,911 483,560 531,822 463,363 467,122 482,449 506,091 479,604
Investment securities
(available for sale) 19,011 19,754 13,075 11,362 15,832 10,667 6,110 6,465 5,967 7,312
Investment securities
(held to maturity) 85,624 79,675 62,288 51,555 69,906 37,113 40,600 40,977 38,224 39,229
Mortgage-backed securities 443,046 439,029 444,950 445,032 442,998 376,864 323,706 302,946 236,869 310,517
--------- --------- --------- -------- -------- -------- -------- ------- ------- --------
Earning assets 1,126,869 1,095,355 1,053,151 999,750 1,069,202 900,209 852,281 841,859 809,647 851,250
Cash and due from banks
(non-interest bearing) 22,117 20,298 18,513 17,198 19,547 16,181 15,408 14,445 15,563 15,401
Other non-earning assets 25,108 28,513 36,035 36,279 31,445 36,925 40,436 35,854 33,822 36,778
--------- --------- --------- -------- -------- -------- -------- ------- -------- -------
Total assets $1,174,094 $1,144,166 $1,107,699 $1,053,227 $1,120,194 $953,315 $908,125 $892,158 $859,032 $903,429
========== ========== ========== ========== ========== ======== ======== ======== ======== ========
Deposits:
Demand $ 107,701 $ 106,596 $ 103,741 $ 98,498 $ 104,166 $ 92,744 $ 74,920 $ 77,860 $ 73,734 $ 79,853
Interest bearing:
NOW and Supernow accounts 88,295 90,242 90,092 88,846 89,370 88,918 105,115 116,734 119,129 107,385
Money Market Accounts 172,880 147,489 133,621 109,209 140,993 98,823 89,022 75,009 61,776 81,281
Passbook and Stmt Savings 37,822 38,017 36,966 35,202 37,012 33,470 31,963 33,081 30,956 32,373
Time deposits 357,196 356,854 370,747 360,865 361,393 357,425 357,784 321,895 328,822 341,604
--------- --------- --------- -------- -------- -------- -------- ------- -------- -------
Total interest
bearing deposits 656,193 632,602 631,426 594,122 628,768 578,636 583,884 546,719 540,683 562,643
Federal Home Loan Bank
borrowings 197,837 206,316 180,186 145,539 182,678 133,438 120,500 117,609 120,333 122,999
Other borrowings 112,300 104,221 91,627 111,276 104,857 51,364 36,303 61,377 39,311 47,092
Capital securities 28,863 28,855 28,847 28,839 28,851 22,281 19,394 20,269 20,263 20,554
--------- --------- --------- -------- -------- -------- -------- ------- -------- -------
Interest bearing liabilities 995,193 971,994 932,086 879,776 945,154 785,719 760,081 745,974 720,590 753,288
Non-interest bearing
liabilities 5,489 4,894 6,788 8,814 6,482 8,134 8,316 6,675 7,674 7,703
Total shareholders' equity 65,711 60,682 65,084 66,139 64,392 66,718 64,808 61,649 57,034 62,585
Total Liabilities and
--------- --------- --------- -------- -------- -------- -------- ------- -------- -------
Shareholders' Equity $1,174,094 $1,144,166 $1,107,699 $1,053,227 $1,120,194 $953,315 $908,125 $892,158 $859,032 $903,429
========== ========== ========== ========== ========== ======== ======== ======== ======== ========
AVERAGE BALANCE SHEET DATA - continued
(Unaudited)
2003 2002
------------------------------------------ ------------------------------------------------
Fourth Third Second First Year- Fourth Third Second First Year-
Average yields and rates Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date
- ------------------------ ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Interest - earning assets
Interest-earning deposits 0.83% 0.86% 0.99% 1.03% 0.93% 1.24% 1.59% 1.60% 1.55% 1.50%
Investment securities 5.43% 5.46% 5.75% 5.96% 5.61% 5.91% 6.86% 6.29% 6.47% 6.38%
Mortgage-backed securities 4.26% 3.80% 4.19% 4.57% 4.20% 5.04% 5.50% 5.67% 5.77% 5.45%
Commercial business loans 4.91% 5.13% 5.32% 5.11% 5.12% 5.29% 5.76% 5.50% 6.55% 5.84%
Commercial real estate loans 6.84% 7.33% 7.69% 7.35% 7.30% 7.57% 7.72% 7.85% 7.48% 7.65%
Construction loans 6.06% 6.15% 6.20% 6.17% 6.14% 6.40% 6.40% 6.44% 6.47% 6.42%
Single family residential loans 5.63% 6.32% 5.82% 6.53% 6.07% 6.36% 6.94% 7.07% 7.44% 6.94%
Consumer loans 5.02% 4.96% 5.09% 5.66% 5.13% 5.64% 6.07% 6.44% 6.38% 6.12%
Lease financing 9.85% 9.98% 9.12% 10.12% 9.76% 10.13% 9.98% 10.21% 10.27% 10.16%
------ ------ ------ ------ ----- ------- ------ ------ ------ -----
Total interest - earning assets 5.26% 5.22% 5.49% 5.61% 5.39% 5.93% 6.34% 6.48% 6.57% 6.32%
Interest - bearing liabilities
Interest - bearing deposits
NOW and SuperNOW 0.65% 0.63% 0.88% 1.01% 0.79% 1.14% 1.11% 1.20% 1.40% 1.22%
Money Market 1.66% 1.49% 1.80% 1.85% 1.68% 2.11% 2.26% 2.11% 1.91% 2.11%
Passbook and Statement Savings 0.29% 0.30% 0.60% 0.74% 0.48% 0.85% 0.98% 0.99% 1.02% 0.96%
Time deposits 2.59% 2.68% 2.89% 3.13% 2.82% 3.26% 3.47% 3.76% 4.00% 3.61%
------ ------ ------ ------ ----- ------- ------ ------ ------ -----
Total interest - bearing deposits 1.95% 1.97% 2.24% 2.43% 2.14% 2.60% 2.73% 2.82% 3.02% 2.78%
FHLB borrowings 3.56% 3.52% 3.87% 4.57% 3.56% 4.87% 5.47% 5.52% 5.43% 5.38%
Other borrowings 1.24% 1.22% 1.88% 2.12% 1.60% 3.48% 4.41% 3.39% 4.24% 3.84%
Capital securities 8.00% 8.03% 8.15% 8.30% 8.12% 9.56% 11.21% 11.34% 11.45% 10.85%
------ ------ ------ ------ ----- ------- ------ ------ ------ -----
Total interest - bearing liabilities 2.37% 2.40% 2.70% 2.94% 2.59% 3.26% 3.47% 3.54% 3.74% 3.49%
------ ------ ------ ------ ----- ------- ------ ------ ------ -----
Interest Rate Spread 2.89% 2.82% 2.79% 2.67% 2.80% 2.67% 2.87% 2.94% 2.83% 2.83%
Net Interest Margin 3.17% 3.09% 3.10% 3.02% 3.10% 3.09% 3.24% 3.35% 3.25% 3.23%
Avg Int-earning assets to
int-bearing liabilities 113.23% 112.69% 112.99% 113.64% 113.12% 114.57% 112.13% 112.85% 112.36% 113.00%
PERIOD END BALANCE SHEET DATA
(Unaudited)
2003 2002
--------------------------------------- ---------------------------------------
Fourth Third Second First Fourth Third Second First
($ in thousands) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Assets
Cash and due from bank(interest bearing) $ 1,382 $ 17,506 $ 3,812 $ 6,650 $ 17,570 $ 3,506 $ 5,603 $ 12,130
Loans and lease(net) 557,531 554,924 526,793 494,914 459,350 451,237 473,435 469,173
Investment securities:
Held-to-maturity:
Book 85,178 85,649 73,358 60,257 46,536 29,778 43,912 39,570
Market 85,689 86,083 75,577 61,472 47,134 30,787 44,532 38,660
Available-for-sale 18,625 18,772 19,730 9,385 20,193 5,419 5,962 5,941
Mortgage-backed securities:
Held-to-maturity:
Book 155,917 131,340 82,924 82,429 73,470 59,440 44,870 25,304
Market 155,935 309,344 84,024 83,908 74,834 60,736 45,262 24,952
Available-for-sale 284,143 309,616 339,770 386,218 339,097 298,888 265,056 263,908
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Earning assets 1,102,776 1,117,807 1,046,387 1,039,853 956,216 848,268 838,838 816,026
Cash and due from bank(non-interest bearing) 27,433 22,856 22,161 22,166 20,650 20,434 17,030 11,906
Other non-earning assets 39,364 37,887 41,334 44,915 40,978 58,993 48,134 47,047
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total assets $1,169,573 $1,178,550 $1,109,882 $1,106,934 $1,017,844 $927,695 $904,002 $874,979
========== ========== ========== ========== ========== ======== ======== ========
Liabilities and shareholders' equity
Deposits:
Demand $ 118,757 $ 110,137 $ 108,873 $ 106,799 $ 100,075 $ 74,261 $ 83,538 $ 72,567
Interest bearing 647,692 636,421 631,979 604,751 591,463 588,721 548,084 546,240
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total deposits 766,449 746,558 740,852 711,550 691,538 662,982 631,622 618,807
Federal Home Loan Bank borrowings 195,500 210,500 195,500 150,500 135,500 120,500 120,500 117,000
Other borrowings 102,125 118,279 57,192 138,910 83,109 41,062 55,012 46,087
Capital Securities 28,869 28,861 28,853 28,844 28,836 18,824 20,274 20,267
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Interest bearing liabilities 1,092,943 1,104,198 1,022,397 1,029,804 938,983 843,368 827,408 802,161
Other Liabilities 9,148 10,014 23,029 12,674 12,132 17,815 13,178 13,498
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total liabilities 1,102,091 1,114,212 1,045,426 1,042,478 951,115 861,183 840,586 815,659
Total shareholders' equity 67,482 64,338 64,456 64,456 66,729 66,512 63,416 59,320
---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total liabilities and equity $1,169,576 $1,178,550 $1,109,882 $1,106,934 $1,017,844 $927,695 $904,002 $874,979
========== ========== ========== ========== ========== ======== ======== ========
Other selected balances
Intangible assets -- Goodwill $ 608 $ 722 $ 1,037 $ 1,121 $ 1,164 $ 1,155 $ 1,757 $ 1,865
Amount included in shareholders' equity
for net unrealized gains on investments
available-for-sale $ (1,948) $ (201) $ 2,615 $ 3,404 $ 3,665 $ 3,634 $ 1,643 $ (1,269)
Capital Data
(Unaudited)
2003 2002
------------------------------------------------- --------------------------------------------------
Fourth Third Second First Year- Fourth Third Second First Year-
Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date
---------------------------------------------------- --------------------------------------------------
Per common share*
Shares outstanding:
Average-basic 7,096,178 6,877,012 6,896,326 7,048,410 6,979,332 7,150,092 7,156,448 7,134,571 6,516,178 6,991,517
Average-diluted 7,427,731 7,260,264 7,174,239 7,281,337 7,331,493 7,365,569 7,315,752 7,311,470 6,658,896 7,168,587
Period-end 7,206,342 6,920,918 6,852,203 6,911,130 7,206,342 7,113,359 7,157,013 7,140,092 7,106,573 7,113,359
Book value $ 9.36 $ 9.30 $ 9.41 $ 9.33 $ 9.36 $ 9.38 $ 9.29 $ 8.88 $ 8.35 $ 9.38
Tangible Book Value 9.28 9.19 9.26 9.16 9.28 9.22 9.13 8.64 8.08 9.22
Price:
High $ 30.83 $ 27.85 $ 15.23 $ 12.57 $ 30.83 $ 11.06 $ 9.67 $ 9.90 $ 9.19 $ 11.06
Low 27.92 14.51 12.29 10.88 10.88 9.43 7.10 8.20 7.09 7.09
Close 30.83 27.38 13.80 12.30 30.83 11.06 8.95 9.28 8.51 11.06
Capital ratios
($ in thousands)
Risk-based capital:
Tier 1 capital $88,776 $85,959 $82,843 $79,988 $88,776 $77,879 $76,071 $73,567 $71,957 $77,879
% risk adjusted assets 13.29% 12.95% 12.88% 13.24% 13.29% 14.09% 14.76% 13.97% 13.58% 14.09%
Total capital $95,344 $92,883 $89,726 $86,902 $95,344 $84,028 $82,519 $80,167 $78,606 $84,028
% risk adjusted assets 14.27% 13.99% 13.95% 14.39% 14.27% 15.20% 16.01% 15.22% 14.84% 15.20%
Tier 1 leverage ratio 7.64% 7.33% 7.54% 7.31% 7.64% 7.82% 8.31% 8.23% 8.30% 7.82%
Average shareholders' equity to
total average assets 5.60% 5.30% 5.88% 6.28% 5.75% 7.00% 7.14% 6.91% 6.64% 6.93%
*Prior Period Information has been restated to reflect the 5% Stock Dividend distributed 2nd Quarter 2003.