SUN BANCORP, INC. LOGO
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Dan Chila, EVP, Chief Financial Officer (856) 691-7700
SUN BANCORP, INC. REPORTS EARNINGS FOR THE FIRST QUARTER
OUR MISSION IS UNCOMPROMISING...
...TO BE THE PREMIER COMMUNITY BANK IN EVERY COMMUNITY WE SERVE
VINELAND, NJ, April 17, 2006 - Sun Bancorp, Inc. (NASDAQ: SNBC) today reported
net income of $4.2 million, or $.21 per share, for the quarter ended March 31,
2006, compared to net income of $5.1 million, or $.26 per share, for the first
quarter 2005.
"The reported first quarter earnings per share is in line with our earnings
expectation announcement of March 20, 2006," said Thomas A. Bracken, president
and chief executive officer of Sun Bancorp, Inc. and its wholly-owned
subsidiary, Sun National Bank. "While the overall interest rate environment and
the intense competition for both loans and deposits present challenges to our
short-term operating results, we continue to be focused on our sound
fundamentals and remain optimistic for our longer-term outlook."
"We are experiencing very positive momentum in our new Advantage Bank
markets of Somerset and Hunterdon counties, and organic loan growth throughout
our entire market for the quarter, excluding the Advantage Bank acquisition and
significant prepayments, was approximately 3.2%," Bracken added. "More
importantly, our pipeline and credit quality remain strong. Our retail banking
strategy that was implemented in late 2005 is progressing with an increasing
growth in new customers. In addition, through our new mortgage subsidiary, Sun
Home Loans, Inc., which went operational in early March, we will provide
consumers with a full range of mortgage loans and services. As discussed in the
March 20 press release, while net interest income and non-interest income are
below original planned expectations for the quarter, we expect continued loan
growth and fee income momentum while we continue to focus on expense
efficiencies throughout the entire organization."
--more--
Sun Bancorp, Inc. o 226 Landis Avenue o Vineland, NJ o 08360
(856) 691-7700 o www.sunnb.com o Member FDIC o Equal Housing Lender
SUN BANCORP 1Q 2006 - PAGE TWO
The following is an overview of the key financial highlights for the quarter:
o Total assets of $3.284 billion at March 31, 2006, compared to $3.108
billion at December 31, 2005, and $3.051 billion at March 31, 2005. On
January 19, 2006, the Company acquired assets of approximately $164
million and recorded purchase adjustments of approximately $21 million
from the acquisition of Advantage Bank.
o Total loans before allowance for loan losses were $2.215 billion at
March 31, 2006, an increase of $307.0 million, or 16.1%, over total
loans at March 31, 2005, and an increase of $164.4 million, or 8.0%,
over December 31, 2005. Linked quarter loan growth normalized for
Advantage Bank and significant prepayments approximated 3.2%.
o Credit quality trends remain stable. Total non-performing assets of
$13.0 million at March 31, 2006, or .59% of total loans and real
estate owned, increased $1.4 million from $11.6 million at December
31, 2005, or .56% of total loans and real estate owned. This linked
quarter increase was due to the Advantage Bank acquisition. Total
non-performing assets decreased $2.2 million, or 14.4%, over the prior
year comparable quarter.
o Total deposits were $2.603 billion at March 31, 2006, an increase of
$218.1 million, or 9.1%, over total deposits at March 31, 2005, and an
increase of $131.4 million, or 5.3%, over December 31, 2005. On a
linked quarter basis, deposit growth normalized for Advantage Bank was
essentially flat.
o Net interest income (tax-equivalent basis) for the first quarter of
$24.6 million decreased $257,000 over the linked quarter. Net interest
margin for the quarter of 3.40% decreased over the linked quarter
margin of 3.54%. While average earning assets increased approximately
$88 million, or 3.1% on a linked quarter basis, and the yield on
earning assets improved 20 basis points quarter-to-quarter, the
overall cost of interest-bearing liabilities increased 37 basis
points. The resultant compression in interest rate spread of 17 basis
points reflects the impact of the continued market competitiveness for
both loans and deposits and the flat yield curve. Additionally, as
noted in the March 20, 2006 press release, as a result of this rate
environment, the Company reduced its planned deposit growth and asset
leverage strategy for the quarter.
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SUN BANCORP 1Q 2006 - PAGE THREE
o Total operating non-interest income for the quarter of $4.4 million
increased 8.1% over the comparable prior year period and is
essentially flat on a linked quarter basis.
o Total operating non-interest expenses for the quarter of $22.3 million
increased $546,000, or 2.5%, over the linked quarter. The increase
over the linked quarter represents primarily the incremental expenses
of Advantage Bank.
"We are not pleased with our results compared to first quarter 2005 and the
linked quarter, but the rate environment and the marketplace can't be ignored.
There are times when prudent business strategy is dictated by restraint and
patience. This is one of those times. During this cycle we are committed to
remaining competitive, adhering to sound fundamentals, maintaining our credit
standards and managing expenses. Our goal is to build sustainable long-term
value for our shareholders. We are controlling our growth in a measured way as
we continue to build out our franchise in one of the most demographically
attractive banking markets in the country," said Bracken.
Sun Bancorp, Inc. will host a conference call with analysts and investment
professionals on Tuesday, April 18, 2006, at 11:30 a.m. ET. Interested parties
may listen to the live call by dialing 1-800-391-2548 and giving the verbal
passcode: vi352014. Listeners may also access the live Web cast through the Sun
Bancorp Web site at www.sunnb.com. An Internet-based replay will be available at
the Web site for 48 hours following the call.
Sun Bancorp, Inc. is a multi-state bank holding company headquartered in
Vineland, New Jersey. Its primary subsidiary is Sun National Bank, serving
customers through 80 branch locations in Southern and Central New Jersey,
Philadelphia, PA, and New Castle County, DE. The bank is an Equal Housing Lender
and its deposits are insured up to the legal maximum by the Federal Deposit
Insurance Corporation (FDIC). For more information about Sun National Bank and
Sun Bancorp, Inc., visit www.sunnb.com.
The foregoing material contains forward-looking statements concerning the
financial condition, results of operations and business of the Company. We
caution that such statements are subject to a number of uncertainties and actual
results could differ materially, and, therefore, readers should not place undue
reliance on any forward-looking statements. The Company does not undertake, and
specifically disclaims, any obligation to publicly release the results of any
revisions that may be made to any forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances after the
date of such statements.
--more--
Page 4
SUN BANCORP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (unaudited)
(Dollars in thousands, except per share data)
Three months ended
-------------------------------------------
March 31, December 31,
--------- ------------
2006 2005 2005
---- ---- ----
Profitability for the period:
Net interest income $ 24,421 $ 24,228 $ 24,692
Provision for loan losses 625 525 520
Non-interest income 4,396 4,185 4,399
Non-interest expense 22,274 20,434 21,728
Income before income taxes 5,918 7,454 6,843
Net income $ 4,172 $ 5,113 $ 4,584
======= ======= =======
Return on average assets (1) 0.52% 0.67% 0.59%
Return on average equity (1) 5.35% 7.27% 6.25%
Return on average tangible equity (1), (2) 10.38% 13.94% 11.60%
Net interest margin (1) 3.40% 3.55% 3.54%
Efficiency ratio 77.30% 71.92% 74.69%
Per share data:
Earnings per common share (3):
Basic $0.22 $0.28 $0.25
Diluted $0.21 $0.26 $0.24
Average equity to average assets 9.67% 9.20% 9.46%
March 31, December 31,
--------- ------------
2006 2005 2005
---- ---- ----
At period-end:
Assets $ 3,284,173 $ 3,050,741 $ 3,107,889
Deposits 2,603,040 2,384,948 2,471,648
Loans, net 2,190,182 1,885,347 2,027,753
Investments 656,456 831,920 729,066
Borrowings 231,618 295,774 243,567
Shareholders' Equity 319,401 281,687 295,653
Credit quality and capital ratios:
ALLL to total loans 1.10% 1.17% 1.10%
Non-performing assets to total loans
and real estate owned 0.59% 0.80% 0.56%
Total allowance for loan losses to
non-performing loans 214.49% 161.74% 223.02%
Total Capital (to Risk-Weighted Assets) (4):
Sun Bancorp, Inc. 11.68% 10.95% 11.11%
Sun National Bank 10.53% 10.41% 10.50%
Tier I Capital (to Risk-Weighted Assets) (4):
Sun Bancorp, Inc. 10.69% 9.95% 10.14%
Sun National Bank 9.54% 9.40% 9.53%
Leverage Ratio (4):
Sun Bancorp, Inc. 8.91% 7.70% 8.20%
Sun National Bank 7.95% 7.27% 7.70%
Book value (3) $16.68 $15.54 $16.27
Tangible book value (3) $8.40 $7.93 $8.85
(1) Three months ended amounts are annualized.
(2) Return on average tangible equity is computed by dividing annualized net
income for the period by average tangible equity. Average tangible equity equals
average equity less average identifiable intangible assets and goodwill.
(3) Data is adjusted for a 5% stock dividend declared in March 2005.
(4) March 31, 2006 Capital ratios are estimated, subject to regulatory filings.
Page 5
SUN BANCORP, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except par value)
March 31, December 31,
2006 2005
---- ----
ASSETS
Cash and due from banks $ 75,539 $ 74,387
Interest bearing bank balances 9,185 2,707
Federal funds sold 54,946 8,368
----------- ----------
Cash and cash equivalents 139,670 85,462
Investment securities available for sale (amortized cost -
$616,203; 3/06, $688,073; 12/05) 605,704 676,630
Investment securities held to maturity 30,318 32,445
Loans receivable (net of allowance for loan losses -
$24,448; 3/06, $22,463; 12/05) 2,190,182 2,027,753
Restricted equity investments 20,434 19,991
Bank properties and equipment, net 43,643 42,110
Real estate owned, net 1,600 1,449
Accrued interest receivable 16,215 15,148
Goodwill 126,358 104,891
Intangible assets, net 32,148 29,939
Deferred taxes, net 5,722 6,761
Bank Owned Life Insurance 56,070 55,627
Other assets 16,109 9,683
----------- ----------
TOTAL ASSETS $ 3,284,173 $3,107,889
=========== ==========
LIABILITIES
Deposits $ 2,603,040 $2,471,648
Advances from the Federal Home Loan Bank 119,382 124,546
Securities sold under agreements to repurchase - FHLB 70,000 60,000
Securities sold under agreements to repurchase - customers 42,236 59,021
Obligations under capital lease 5,367 5,400
Debentures 108,250 77,322
Other liabilities 16,497 14,299
----------- ----------
Total liabilities 2,964,772 2,812,236
SHAREHOLDERS' EQUITY
Preferred stock, $1 par value, 1,000,000 shares authorized, none issued - -
Common stock, $1 par value, shares authorized, 25,000,000
issued, 19,148,670; 3/06, 18,168,530; 12/05 19,149 18,169
Additional paid in capital 282,458 264,152
Retained earnings 24,930 20,757
Accumulated other comprehensive loss (7,136) (7,425)
----------- ----------
Total shareholders' equity 319,401 295,653
----------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,284,173 $3,107,889
=========== ==========
Page 6
SUN BANCORP, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
For the Three Months
Ended March 31,
------------------------
2006 2005
---- ----
INTEREST INCOME:
Interest and fees on loans $ 36,595 $ 29,076
Interest on taxable investment securities 5,577 6,128
Interest on non-taxable investment securities 256 468
Dividends on restricted equity investments 314 188
Interest on federal funds sold 280 40
-------- --------
Total interest income 43,022 35,900
-------- --------
INTEREST EXPENSE:
Interest on deposits 13,647 8,124
Interest on borrowed funds 3,044 2,422
Interest on debentures 1,910 1,126
-------- --------
Total interest expense 18,601 11,672
-------- --------
Net interest income 24,421 24,228
Provision for loan losses 625 525
-------- --------
Net interest income after provision for loan losses 23,796 23,703
-------- --------
NON-INTEREST INCOME:
Service charges on deposit accounts 2,124 2,238
Other service charges 78 45
Gain on sale of fixed assets - 100
Gain on sale of loans 284 341
Loss on sale of investment securities (20) -
Other 1,930 1,461
-------- --------
Total non-interest income 4,396 4,185
NON-INTEREST EXPENSE:
Salaries and employee benefits 11,477 10,244
Occupancy expense 2,944 3,079
Equipment expense 1,927 1,978
Data processing expense 1,059 931
Amortization of intangible assets 1,188 1,147
Other 3,679 3,055
-------- --------
Total non-interest expenses 22,274 20,434
-------- --------
INCOME BEFORE INCOME TAXES 5,918 7,454
INCOME TAXES 1,746 2,341
-------- --------
NET INCOME $ 4,172 $ 5,113
======== ========
Basic earnings per share (1) $ 0.22 $ 0.28
Diluted earnings per share (1) $ 0.21 $ 0.26
(1) Data is adjusted for a 5% stock dividend declared in March 2005.
Page 7
SUN BANCORP, INC. AND SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (unaudited)
(Dollars in thousands, except per share data)
2006 2005 2005 2005 2005
Q1 Q4 Q3 Q2 Q1
-- -- -- -- --
Balance Sheet at quarter end:
Loans:
Commercial and industrial $ 1,846,580 $ 1,732,202 $ 1,674,263 $ 1,657,521 $ 1,631,717
Home equity 183,363 155,561 137,693 134,057 128,045
Second mortgage 72,344 53,881 45,238 46,955 48,643
Residential real estate 28,846 30,162 28,785 26,500 27,630
Installment 83,497 78,410 75,796 73,500 71,549
----------- ----------- ----------- ----------- -----------
Total loans 2,214,630 2,050,216 1,961,775 1,938,533 1,907,584
Allowance for loan losses (24,448) (22,463) (22,310) (22,505) (22,237)
----------- ----------- ----------- ----------- -----------
Net Loans 2,190,182 2,027,753 1,939,465 1,916,028 1,885,347
Goodwill 126,358 104,891 104,891 104,891 104,606
Intangible assets, net 32,148 29,939 31,057 32,174 33,291
Total Assets 3,284,173 3,107,889 3,105,310 3,140,962 3,050,741
Total Deposits 2,603,040 2,471,648 2,507,565 2,541,214 2,384,948
Advances from the Federal Home Loan Bank 119,382 124,546 129,656 134,713 169,717
Federal funds purchased - - - - 2,000
Securities repurchase agreements - FHLB 70,000 60,000 - - 50,000
Securities repurchase agreements - customers 42,236 59,021 86,315 77,488 74,057
Total shareholders' equity 319,401 295,653 291,560 287,632 281,687
Quarterly average balance sheet:
Loans:
Commercial and industrial $ 1,811,832 $ 1,680,757 $ 1,672,481 $ 1,649,491 $ 1,617,334
Home equity 170,523 144,681 134,382 130,754 126,069
Second mortgage 66,426 46,780 46,350 47,846 49,210
Residential real estate 29,472 29,359 27,634 26,728 26,241
Installment 82,450 77,562 74,220 71,477 67,606
----------- ----------- ----------- ----------- -----------
Total loans 2,160,703 1,979,139 1,955,067 1,926,296 1,886,460
Securities and other earning assets 731,744 825,608 899,276 863,176 868,441
Total earning assets 2,892,447 2,804,747 2,854,343 2,789,472 2,754,901
Total assets 3,225,147 3,102,434 3,159,051 3,106,121 3,058,645
Non-interest-bearing demand deposits 496,249 514,783 516,778 487,508 487,915
Total deposits 2,533,158 2,510,918 2,556,947 2,461,027 2,387,990
Total interest-bearing liabilities 2,399,663 2,281,743 2,334,909 2,318,221 2,275,907
Total shareholders' equity 311,755 293,575 292,369 284,654 281,507
Capital and credit quality measures:
Total Capital (to Risk-Weighted Assets) (1):
Sun Bancorp, Inc. 11.68% 11.11% 11.14% 10.89% 10.95%
Sun National Bank 10.53% 10.50% 10.55% 10.33% 10.41%
Tier I Capital (to Risk-Weighted Assets) (1):
Sun Bancorp, Inc. 10.69% 10.14% 10.15% 9.90% 9.95%
Sun National Bank 9.54% 9.53% 9.57% 9.34% 9.40%
Leverage Ratio (1):
Sun Bancorp, Inc. 8.91% 8.20% 7.84% 7.77% 7.70%
Sun National Bank 7.95% 7.70% 7.41% 7.34% 7.27%
Average equity to average assets 9.67% 9.46% 9.25% 9.16% 9.20%
ALLL to total loans 1.10% 1.10% 1.14% 1.16% 1.17%
Non-performing assets to total loans
and real estate owned 0.59% 0.56% 0.71% 0.73% 0.80%
Total allowance for loan losses to
non-performing loans 214.49% 223.02% 179.60% 176.32% 161.74%
Other data:
Net recoveries (charge-offs) $ 101 $ (368) $ (694) $ (497) $ (325)
=========== =========== =========== =========== ===========
Non-performing assets:
Non-accrual loans $ 11,049 $ 9,957 $ 11,848 $ 12,662 $ 13,461
Loans past due 90 days and accruing 349 168 574 102 287
Real estate owned, net 1,600 1,449 1,437 1,437 1,437
----------- ----------- ----------- ----------- -----------
Total non-performing assets $ 12,998 $ 11,574 $ 13,859 $ 14,201 $ 15,185
=========== =========== =========== =========== ===========
(1) March 31, 2006 Capital ratios are estimated, subject to regulatory filings.
Page 8
SUN BANCORP, INC. AND SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (unaudited)
(Dollars in thousands, except per share data)
2006 2005 2005 2005 2005
Q1 Q4 Q3 Q2 Q1
-- -- -- -- --
Profitability for the quarter:
Tax-equivalent interest income $ 43,159 $ 40,458 $ 39,483 $ 37,854 $ 36,140
Interest expense 18,601 15,643 14,840 13,559 11,672
Tax-equivalent net interest income 24,558 24,815 24,643 24,295 24,468
Tax-equivalent adjustment 137 123 127 216 240
Provision for loan losses 625 520 500 765 525
Non-interest income excluding security gains,
branch sales and fixed asset sales 4,416 4,493 4,612 4,283 4,085
Security (loss) gain (20) (36) - 809 -
(Loss) gain on sale of fixed assets - (58) - 3 100
Non-interest expense excluding amortization of
intangible assets 21,086 20,612 20,062 20,205 19,287
Amortization of intangible assets 1,188 1,116 1,117 1,117 1,147
Income before income taxes 5,918 6,843 7,449 7,087 7,454
Income tax expense 1,746 2,259 2,455 2,257 2,341
Net Income $ 4,172 $ 4,584 $ 4,994 $ 4,830 $ 5,113
========== ========== ========== ========== ==========
Financial ratios:
Return on average assets (1) 0.52% 0.59% 0.63% 0.62% 0.67%
Return on average equity (1) 5.35% 6.25% 6.83% 6.79% 7.27%
Return on average tangible equity (1), (2) 10.38% 11.60% 12.83% 13.15% 13.94%
Net interest margin (1) 3.40% 3.54% 3.45% 3.48% 3.55%
Efficiency ratio 77.30% 74.69% 72.71% 73.08% 71.92%
Per share data:
Earnings per common share (3), (4):
Basic $0.22 $0.25 $0.28 $0.27 $0.28
Diluted $0.21 $0.24 $0.26 $0.25 $0.26
Book value (3) $16.68 $16.27 $16.06 $15.86 $15.54
Tangible book value (3) $8.40 $8.85 $8.57 $8.30 $7.93
Average basic shares 18,841,872 18,109,361 18,141,052 18,131,121 18,010,434
Average fully diluted shares 20,011,724 19,235,997 19,341,580 19,306,440 19,371,080
Operating non-interest income breakdown:
Service charges on deposit accounts 2,124 2,174 2,245 2,300 2,238
Other service charges 78 76 88 70 45
Gain on sale of loans 284 241 318 89 341
Other income 1,930 2,002 1,961 1,824 1,461
---------- ---------- ---------- ---------- ----------
Total operating non-interest income 4,416 4,493 4,612 4,283 4,085
Non-operating income items:
(Loss) gain on sale of investment securities (20) (36) - 809 -
Gain on sale of fixed assets relating to branch disposals - - - - 100
(Loss) gain on sale of fixed assets - (58) - 3 -
---------- ---------- ---------- ---------- ----------
Non-operating income before tax effect (20) (94) - 812 100
---------- ---------- ---------- ---------- ----------
Total non-interest income 4,396 4,399 4,612 5,095 4,185
========== ========== ========== ========== ==========
Operating non-interest expense breakdown:
Salaries and employee benefits 11,477 10,823 10,701 10,859 10,244
Occupancy expense 2,944 2,895 2,758 2,648 3,079
Equipment expense 1,927 1,942 1,959 1,883 1,978
Data processing expense 1,059 1,063 1,064 1,061 931
Amortization of intangible assets 1,188 1,116 1,117 1,117 1,147
Other expenses 3,679 3,889 3,580 3,754 3,055
---------- ---------- ---------- ---------- ----------
Total operating non-interest expense 22,274 21,728 21,179 21,322 20,434
Non-operating expense items:
Lease buy-out charges related to branch disposals - - - - -
Write-off of fixed assets related to branch disposals - - - - -
Severance expense relating to branch disposals - - - - -
Gain on sale of branch real estate - - - - -
Branch rationalization costs - - - - -
Litigation Reserve - - - - -
---------- ---------- ---------- ---------- ----------
Total non-operating expense items: - - - - -
---------- ---------- ---------- ---------- ----------
Total non-interest expense 22,274 21,728 21,179 21,322 20,434
========== ========== ========== ========== ==========
(1) Annualized.
(2) Return on average tangible equity is computed by dividing annualized net
income for the period by average tangible equity. Average tangible equity equals
average equity less average identifiable intangible assets and goodwill.
(3) Data is adjusted for a 5% stock dividend declared in March 2005.
(4) Earnings per share is computed by dividing net income by the weighted
average number of shares of common stock outstanding.
Page 9
SUN BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET
(Dollars in thousands)
Three months ended March 31, Three months ended March 31,
---------------------------- ----------------------------
2006 2005
---------------------------- ----------------------------
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
------- -------- ---------- ------- --------- ----------
Interest-earning assets:
Loans receivable (1), (2)
Commercial and industrial $ 1,811,832 $30,594 6.75 % $1,617,334 $ 25,135 6.22 %
Home equity 170,523 2,743 6.43 126,069 1,499 4.76
Second mortgage 66,426 998 6.01 49,210 756 6.15
Residential real estate 29,472 623 8.45 26,241 475 7.24
Installment 82,450 1,637 7.94 67,606 1,211 7.17
----------- ------- ---------- --------
Total loans receivable 2,160,703 36,595 6.77 1,886,460 29,076 6.17
Investment securities (3) 693,637 6,139 3.54 855,347 6,993 3.27
Interest-bearing deposit with banks 12,372 145 4.69 6,428 31 1.93
Federal funds sold 25,735 280 4.35 6,666 40 2.40
----------- ------- ---------- --------
Total interest-earning assets 2,892,447 43,159 5.97 2,754,901 36,140 5.25
Cash and due from banks 80,098 78,500
Bank properties and equipment 43,308 36,792
Goodwill and intangibles 151,005 134,789
Other assets 58,289 53,663
----------- ----------
Non-interest-earning assets 332,700 303,744
----------- ----------
Total assets $ 3,225,147 $3,058,645
=========== ==========
Interest-bearing liabilities:
Interest-bearing deposit accounts:
Interest-bearing demand deposit $ 882,548 5,344 2.42 % $ 804,275 2,708 1.35 %
Savings deposits 372,757 1,366 1.47 442,588 1,121 1.01
Time deposits 781,604 6,937 3.55 653,212 4,295 2.63
----------- ------- ---------- --------
Total interest-bearing deposit accounts 2,036,909 13,647 2.68 1,900,075 8,124 1.71
----------- ------- ---------- --------
Borrowed money
Repurchase agreements with customers 42,219 405 3.84 69,793 320 1.83
FHLB Advances 207,901 2,357 4.53 219,130 2,034 3.71
Federal funds purchased 4,483 53 4.73 9,587 68 2.84
Debentures 102,752 1,910 7.44 77,322 1,126 5.82
Obligations under capital lease 5,399 229 7.27 - - -
----------- ------- ---------- --------
Total borrowings 362,754 4,954 5.46 375,832 3,548 3.78
Total interest-bearing liabilities 2,399,663 18,601 3.10 2,275,907 11,672 2.05
----------- ------- ---------- --------
Non-interest-bearing demand deposits 496,249 487,915
Other liabilities 17,480 13,316
----------- ----------
Total liabilities 2,913,392 2,777,138
Shareholders' equity 311,755 281,507
----------- ----------
Total liabilities and stockholders' equity $ 3,225,147 $3,058,645
=========== ==========
Net interest income $24,558 $ 24,468
======= ========
Interest rate spread (4) 2.87 % 3.20 %
====== ======
Net interest margin (5) 3.40 % 3.55 %
====== ======
Ratio of average interest-earning assets
to average interest-bearing liabilities 120.54 % 121.05 %
====== ======
- ----------------------------------------------------------------------------------------------------------------------
(1)Average balances include non-accrual loans.
(2)Loan fees are included in interest income and the amount is not material for
this analysis.
(3)Interest earned on non-taxable investment securities is shown on a tax
equivalent basis assuming a 35% marginal federal tax rate for all periods.
(4)Interest rate spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing liabilities.
(5)Net interest margin represents net interest income as a percentage of average
interest-earning assets.