1 EXHIBIT (99)ii. LOAN PORTFOLIO RISK ELEMENTS The table below sets forth the amounts and categories of risk elements in the Company's loan portfolio. Loans are placed on nonaccrual status when the collection of principal and/or interest becomes doubtful. In addition, residential mortgage loans and income-producing property loans are placed on nonaccrual status when the loan becomes 90 days or more contractually delinquent. All consumer loans more than 90 days delinquent are charged against the consumer loan allowance for loan losses. Prior to 1992, accruing loans delinquent more than 90 days were loans that the Company considered to be well secured and that were in the process of collection. December 31, September 30, ------------------------------------------ 1995 1994 1993 1992 1991 --------- ------- ------- ------ ------- (Dollars in thousands) Nonaccruing loans $14,200 $17,995 $30,079 $44,537 $51,953 Accruing loans delinquent more than 90 days -- -- -- -- 1,160 Restructured loans -- -- 166 167 2,339 ----------------------------------------------------- Total nonperforming loans 14,200 17,995 30,245 44,704 55,452 Other real estate owned (OREO) 1,360 6,520 13,312 11,186 11,499 ----------------------------------------------------- Total nonperforming assets $15,560 $24,515 $43,557 $55,890 $66,951 ===================================================== Nonperforming loans as a percentage of total loans 1.55% 2.22% 4.73% 6.18% 6.42% ==================================================== Nonperforming assets as a percentage of total assets 1.34% 2.25% 4.18% 4.61% 4.41% ==================================================== Allowance for loan losses as a percentage of nonperforming loans 64.79% 45.56% 37.76% 34.59% 33.71% ==================================================== Allowances for loan and OREO losses as a percentage of nonperforming assets 60.62% 34.79% 27.71% 29.90% 28.67% =====================================================