EXHIBIT 99.1
American River Bankshares Reports Consistent Earnings Per Share
Sacramento, CA, July 17, 2008 - American River Bankshares (NASDAQ-GS: AMRB)
today reported diluted earnings per share for the second quarter of 2008 of
$0.36, a 9.1% increase from the $0.33 recorded in the first quarter of 2008 and
consistent with the $0.36 reported in the second quarter of 2007. Net income for
the second quarter of 2008 increased $148,000 (8.1%) to $1,981,000 from
$1,833,000 for the first quarter of 2008 but decreased $117,000 (5.6%) from the
second quarter of 2007. Diluted earnings per share for the six months ended June
30, 2008 decreased 4.2% to $0.68 from $0.71 for the first half of 2007. Net
income decreased 8.8% to $3,814,000 for the six months ended June 30, 2008 from
$4,184,000 for the same period in 2007.
"Our second quarter results have many bright spots to talk about, including a
significant increase in EPS quarter over quarter, growth in our core business
and strong financial metrics," said David Taber, President and CEO of American
River Bankshares. "The fact that we're able to show these types of results
despite dealing with the current economic and lending environment and an
increase in non-performing assets tells me that we're doing the right things and
doing them well."
Net Interest Margin
Net interest margin as a percentage was 4.99% for the second quarter of 2008
compared to 4.94% for the first quarter of 2008 and 5.10% from the second
quarter of 2007. Net interest income for the second quarter of 2008 increased
slightly to $6,395,000 from $6,342,000 for the first quarter of 2008 but
decreased $214,000 (3.2%) from the second quarter of 2007. Interest income for
the second quarter of 2008 decreased 3.8% to $8,252,000 from $8,578,000 for the
first quarter of 2008 and decreased 13.1% from $9,498,000 for the second quarter
of 2007. Net interest margin for the six months ended June 30, 2008 was 4.96%
compared to 5.07% for the six months ended June 30, 2007. Net interest income
for the six months ended June 30, 2008 decreased 3.2% to $12,737,000 from
$13,156,000 at June 30, 2008 and interest income decreased 11.2% to $16,830,000
from $18,962,000 for the six months ended June 30, 2007.
The average yield on earning assets declined from 7.30% in the second quarter of
2007 to 6.42% for the second quarter of 2008. Much of the decline in yields can
be attributed to the overall lower interest rate environment, in response to the
Federal Reserve Board (the "FRB") decreases in the Federal funds and discount
rates. Decreases by the FRB have resulted in a 325 basis point decline in
short-term interest rates since September 2007. The average balance of earning
assets also decreased slightly by 0.8% from $526,783,000 in the second quarter
of 2007 to $522,550,000 in the second quarter of 2008. The increased level of
non-accrual loans also contributed to the decrease in the yield on loans by
approximately 25 basis points, which declined from 8.20% in the second quarter
of 2007 to 6.90% for the second quarter of 2008.
Interest expense for the second quarter of 2008 decreased 16.9% to $1,857,000
from $2,236,000 for the first quarter of 2008 and decreased 35.7% from
$2,889,000 for the second quarter of 2007. For the six months ended June 30,
2008, interest expense decreased 29.5% to $4,093,000 from $5,806,000 for the six
months ended June 30, 2007. The average cost of funds decreased from 3.18% in
the second quarter of 2007 to 1.96% for the second quarter of 2008. The average
balance of interest bearing liabilities increased from $363,947,000 in the
second quarter of 2007 to $380,969,000 in the second quarter of 2008. The
Company continues to focus on attracting lower cost business relationships,
particularly business checking and money market accounts. In addition, the
Company has taken advantage of the lower borrowing rates by locking in one to
two year funding from its financial partners and letting maturing time deposits,
that were seeking above market rates, run-off. The Company also brought in
additional funds, in the form of time deposits, from the State of California at
an average rate of 1.64%.
Page 4 of Page 12
Loan Growth and Asset Quality
Net loans as of June 30, 2008 increased $4,007,000 (1.0%) to $402,431,000 from
$398,424,000 as of March 31, 2008 and increased $16,846,000 (4.4%) from
$385,585,000 as of June 30, 2007. The largest contributor to this increase was
in commercial loans which increased $2,392,000 (2.2%) to $111,945,000 as of June
30, 2008 from $109,553,000 as of March 31, 2008 and increased $13,183,000
(13.3%) from $98,762,000 as of June 30, 2007. In addition to the $111,945,000 in
commercial loans (representing 27.4% of the portfolio) the loan portfolio at
June 30, 2008 included: business property loans of $115,181,000 (28.2% of the
portfolio), investor commercial real estate of $82,620,000 (20.2% of the
portfolio), construction and land development of $59,917,000 (13.9% of the
portfolio) and other, which consists of consumer and residential and
multi-family real estate of $42,347,000 (10.3% of the portfolio).
American River Bank's offices in the Greater Sacramento Area and Placer County
experienced an increase in net loans of 1.0% to $251,707,000 at June 30, 2008
from $249,261,000 at March 31, 2008 and an increase of 8.5% from $231,961,000
from June 30, 2007. North Coast Bank, a division of American River Bank with
three offices in Sonoma County, experienced an increase in net loans of 4.5% to
$92,100,000 at June 30, 2008 from $88,102,000 at March 31, 2008 and an increase
of 8.6% from $84,832,000 from June 30, 2007. Bank of Amador, a division of
American River Bank with three offices in Amador County, experienced a decrease
in net loans of 4.0% to $58,624,000 at June 30, 2008 from $61,062,000 at March
31, 2008 and a decrease of 12.7% from $67,163,000 at June 30, 2007.
At June 30, 2008, the allowance for loan and lease losses was $6,111,000
compared with $6,017,000 at March 31, 2008 and $5,972,000 at June 30, 2007. The
provision for loan and lease losses was $190,000 for the second quarter of 2008,
compared to $337,000 for the first quarter of 2008 and $144,000 for the second
quarter of 2007. The allowance as a percentage of loans and leases was 1.50% at
June 30, 2008, compared to 1.49% at March 31, 2008 and 1.53% at June 30, 2007.
Net chargeoffs for the second quarter of 2008 were $96,000 compared to $203,000
for the first quarter of 2008 and $107,000 for the second quarter of 2007.
Non-performing loans and leases as of June 20, 2008 were 3.49% of total loans
and leases compared to 2.89% at March 31, 2008 and 0.21% one year ago.
Non-performing assets were $14,236,000 at June 30, 2008 compared to $11,688,000
at March 31, 2008 and $7,501,000 at December 31, 2007. At June 30, 2008, four
loan relationships made up $12,131,000 or 85.2% of the non-performing assets. Of
these four relationships three continue from last quarter, the $1,352,000
development loan for residential lots, the $5,286,000 loan for a mini storage
facility, and the multiple loans to a developer. In April 2008, the Company
confirmed that the borrower on the mini storage facility loan had filed for
reorganization under Chapter 11 bankruptcy. The business has appointed new
management and we have received current operating cash flow statements
indicating their ability to service our loan at a market rate of interest. The
borrower is current on its payments under a court-confirmed agreement having
made two interest payments during the second quarter of 2008 and one interest
payment subsequent to quarter end. These payments have been recorded as interest
income. One of the eight individual loans to the developer, in the amount of
$825,000, paid off during the second quarter and another in the amount of
$504,000 paid off subsequent to quarter end. Both loans included full pay-off of
our principal, interest and associated fees. Six loans remain from this
relationship--loans on two finished homes totaling $1,424,000 and four on
finished lots for $999,000. In April 2008, the Company filed notices of default
on all six properties. During the second quarter of 2008 the Company identified
an additional non-performing loan in the amount of $2,566,000. This loan is
secured by an assignment of a real estate secured note covering a former mobile
home park, intended for apartment development. Management believes this loan is
adequately secured and backed by creditworthy guarantors.
The Company evaluates non-performing loans for impairment and assigns specific
reserves when necessary. At June 30, 2008, specific reserves in the amount of
$1,189,000 were held on the nonperforming loans considered to be impaired.
Page 5 of Page 12
Deposits and Borrowed Funds
Total deposits as of June 30, 2008 decreased $2,765,000 (0.6%) to $459,200,000
from $461,965,000 as of March 31, 2008 and decreased $22,553,000 (4.7%) from
$481,753,000 as of June 30, 2007.
American River Bank's Sacramento region experienced a decrease in total deposits
of 1.5% to $284,526,000 at June 30, 2008 from $288,731,000 at March 31, 2008 and
a decrease of 9.3% from $313,565,000 at June 30, 2007. North Coast Bank
experienced a slight decrease in total deposits to $60,399,000 at June 30, 2008
from $60,420,000 at March 31, 2008 and a decrease of 11.3% from $68,106,000 at
June 30, 2007. Bank of Amador experienced a decrease in total deposits of 5.1%
to $86,766,000 at June 30, 2008 from $91,459,000 at March 31, 2008 and a
decrease of 13.0% from $99,676,000 at June 30, 2007.
"Deposit levels remain a challenge but not because of retention issues," said
Taber. "We continue to build on our existing client base by bringing in new,
high-quality deposit relationships." He continued, "In line with current
economic conditions, our average account balances have dropped. This shift in
our client's cash flow is reflected in our increase in business loans as they
draw on lines of credit to fund their businesses."
Total borrowings decreased $2,088,000 (3.7%) from $55,891,000 at March 31, 2008
to $53,803,000 at June 30, 2008 but increased $25,108,000 (87.5%) from June 30,
2007. The average rates paid on the other borrowings decreased 0.62% from 3.58%
during the first quarter of 2008 to 2.96% during the second quarter of 2008.
Noninterest Income and Expense
Noninterest income for the second quarter of 2008 increased $54,000 (9.2%) to
$639,000 from $585,000 for the first quarter of 2008 but decreased $85,000
(11.7%) from $724,000 for the second quarter of 2007. Noninterest income for the
six months ended June 30, 2008 decreased $141,000 (10.3%) to $1,224,000 from
$1,365,000 for the same period in 2007. Noninterest expense for the second
quarter of 2008 increased slightly by $13,000 (0.4%) to $3,642,000 from
$3,629,000 for the first quarter of 2008 and decreased $137,000 (3.6%) from
$3,779,000 for the second quarter of 2007. Noninterest expense for the six
months ended June 30,2008 decreased $200,000 (2.7%) from $7,471,000 to
$7,271,000. The efficiency ratio for the second quarter of 2008 decreased
slightly to 50.13% from 50.73% for the first quarter of 2008 but increased from
49.87% for the second quarter of 2008. For the six months ended June 30, 2008,
the efficiency ratio was 50.43%, an increase from 49.77% at June 30, 2007.
Income Taxes
Income taxes for the second quarter of 2008 increased $93,000 (8.2%) to
$1,221,000 from $1,128,000 for the first quarter of 2008 but decreased $91,000
(6.9%) from $1,312,000 for the second quarter of 2007. For the six months ended
June 30, 2008, income taxes decreased $252,000 (9.7%) from $2,601,000 to
$2,349,000. The effective tax rate for the quarter ended June 30, 2008 was 38.1%
consistent with 38.1% during the first quarter of 2008 and down slightly from
the 38.5% during the second quarter of 2007. The effective tax rate for the six
months ended June 30, 2008 was 38.1% compared to 38.3% during the first six
months of 2007.
Capital
Total shareholders' equity at June 30, 2008 was $61,067,000, up $668,000 (1.1%)
from March 31, 2008 but down $65,000 (0.1%) from June 30, 2007. During the
second quarter of 2008, the Company did not repurchase any shares of its common
stock compared to repurchasing 80,500 in the first quarter of 2008. The Company
also declared a quarterly cash dividend of $0.15 per share, which will be paid
on July 18, 2008. American River Bank, remains above the well-capitalized
regulatory requirements. At June 30, 2008, the Company's leverage ratio was
7.8%, the Tier 1 risk based ratio was 9.7% and the Total Risk Based Capital
ratio was 11.0%.
Page 6 of Page 12
Performance Metrics
American River Bankshares continues a long history of enhancing shareholder
value with its 98th consecutive profitable quarter. Performance measures for the
second quarter of 2008 (annualized): the Return on Average Assets (ROAA) was
1.38%, Return on Average Equity (ROAE) was 13.11% and Return on Average Tangible
Equity (ROATE) was 18.38%. For the six months ended June 30, 2008, the Company
had a ROAA of 1.33%, ROAE of 12.69% and ROATE of 17.84%.
Company Highlights
o American River Bank, Bank of Amador and North Coast Bank are
experiencing continued success with Remote Deposit Capture. In June,
76 units were active, processing 7,700 transactions equaling $35
million in 5 different states.
o The Company completed a Client Service Evaluation Campaign in the
second quarter, which resulted in almost 400 face-to-face visits
with current business clients. Relationship Managers met with key
decision makers to discuss the challenges and opportunities being
faced in their business as well as product and service satisfaction.
o In 2007, the employees of American River Bankshares donated over
2,800 hours of volunteer time, the equivalent of 21 hours per
employee. The Company's award-winning volunteer program allows all
employees from the date of hire 40 hours of volunteer time a year
without taking time off and offers matching grants that recognize
the time commitment employees have made to an organization.
Earnings Conference Call
The second quarter earnings conference call will be held Thursday, July 17, 2008
at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). David T. Taber, President
and CEO, and Mitchell A. Derenzo, Executive Vice President and Chief Financial
Officer, both of American River Bankshares, will lead a live forty-five minute
presentation and answer questions. Shareholders, analysts and other interested
parties are invited to join the call by dialing (877) 584-2599 and entering
Conference ID 54511222.
About American River Bankshares
American River Bankshares [NASDAQ - GS: AMRB] is the parent company of American
River Bank ("ARB"), a community business bank serving Sacramento, CA that
operates a family of financial services providers, including North Coast Bank [a
division of "ARB"] in Sonoma County and Bank of Amador [a division of "ARB"] in
Amador County. For more information, please call 916-851-0123 or visit
www.amrb.com; www.americanriverbank.com; www.northcoastbank.com; or
www.bankofamador.com.
Forward-Looking Statement
Certain statements contained herein are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 that involve risks and uncertainties. Actual
results may differ materially from the results in these forward-looking
statements. Factors that might cause such a difference include, among other
matters, changes in interest rates, economic conditions, governmental regulation
and legislation, credit quality, and competition affecting the Company's
businesses generally; the risk of natural disasters and future catastrophic
events including terrorist related incidents; and other factors discussed in the
Company's Annual Report on Form 10-K for the year ended December 31, 2007, and
in reports filed on Form 8-K. The Company does not undertake any obligation to
publicly update or revise any of these forward-looking statements, whether to
reflect new information, future events or otherwise.
Page 7 of Page 12
American River Bankshares
Condensed Consolidated Balance Sheet (Unaudited)
June 30 December 31 June 30
2008 2007 2007
ASSETS
Cash and due from banks $ 24,042,000 $ 16,245,000 $ 19,827,000
Federal funds sold - 1,700,000 -
Interest-bearing deposits in banks 4,941,000 4,951,000 4,951,000
Investment securities 111,233,000 116,524,000 127,662,000
Loans and leases:
Real estate 273,615,000 272,911,000 269,731,000
Commercial 111,945,000 105,467,000 98,762,000
Lease financing 3,569,000 4,070,000 5,143,000
Other 19,882,000 18,927,000 18,548,000
Deferred loan and lease originations fees, net (469,000) (517,000) (627,000)
Allowance for loan and lease losses (6,111,000) (5,883,000) (5,972,000)
----------------------------------------------
Total loans and leases, net 402,431,000 394,975,000 385,585,000
----------------------------------------------
Bank premises and equipment 2,058,000 1,983,000 1,829,000
Accounts receivable servicing receivable, net 1,372,000 1,666,000 1,750,000
Goodwill and intangible assets 17,371,000 17,514,000 17,667,000
Accrued interest and other assets 16,902,000 18,127,000 17,326,000
----------------------------------------------
$ 580,350,000 $ 573,685,000 $ 576,597,000
==============================================
LIABILITIES & SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $ 127,720,000 $ 132,666,000 $ 149,682,000
Interest checking 44,179,000 43,577,000 38,157,000
Money market 124,963,000 127,397,000 135,094,000
Savings 39,159,000 35,639,000 37,267,000
Time deposits 123,179,000 116,366,000 121,553,000
----------------------------------------------
Total deposits 459,200,000 455,645,000 481,753,000
----------------------------------------------
Short-term borrowings 36,303,000 51,603,000 28,695,000
Long-term borrowings 17,500,000 - -
Accrued interest and other liabilities 6,280,000 6,464,000 5,017,000
----------------------------------------------
Total liabilities 519,283,000 513,712,000 515,465,000
Total shareholders' equity 61,067,000 59,973,000 61,132,000
----------------------------------------------
$ 580,350,000 $ 573,685,000 $ 576,597,000
==============================================
Operating Ratios:
Nonperforming loans and leases to total loans and leases 3.49% 1.86% 0.21%
Net chargeoffs to average loans and leases (annualized) 0.15% 0.11% 0.09%
Allowance for loan and lease loss to total loans and leases 1.50% 1.47% 1.53%
Leverage Ratio 7.83% 7.72% 7.89%
Tier 1 Risk-Based Capital Ratio 9.74% 9.45% 10.08%
Total Risk-Based Capital Ratio 10.99% 10.70% 11.33%
Page 8 of Page 12
American River Bankshares
Condensed Consolidated Statement of Income (Unaudited)
Second Second For the Six Months
Quarter Quarter % Ended June 30 %
2008 2007 Change 2008 2007 Change
---------------------------------------------------------------------------------
Interest income $ 8,252,000 $ 9,498,000 (13.1%) $ 16,830,000 $ 18,962,000 (11.2%)
Interest expense 1,857,000 2,889,000 (35.7%) 4,093,000 5,806,000 (29.5%)
---------------------------------------------------------------------------------
Net interest income 6,395,000 6,609,000 (3.2%) 12,737,000 13,156,000 (3.2%)
Provision for loan and lease losses 190,000 144,000 31.9% 527,000 265,000 98.9%
Total noninterest income 639,000 724,000 (11.7%) 1,224,000 1,365,000 (10.3%)
Total noninterest expense 3,642,000 3,779,000 (3.6%) 7,271,000 7,471,000 (2.7%)
---------------------------------------------------------------------------------
Income before taxes 3,202,000 3,410,000 (6.1%) 6,163,000 6,785,000 (9.2%)
Income taxes 1,221,000 1,312,000 (6.9%) 2,349,000 2,601,000 (9.7%)
---------------------------------------------------------------------------------
Net income $ 1,981,000 $ 2,098,000 (5.6%) $ 3,814,000 $ 4,184,000 (8.8%)
---------------------------------------------------------------------------------
Basic earnings per share $ 0.36 $ 0.36 - $ 0.69 $ 0.72 (4.2%)
Diluted earnings per share $ 0.36 $ 0.36 - $ 0.68 $ 0.71 (4.2%)
Average diluted shares outstanding 5,548,861 5,868,598 5,570,756 5,896,829
Net interest margin as a percentage 4.99% 5.10% 4.96% 5.07%
Operating Ratios:
Return on average assets 1.38% 1.46% 1.33% 1.45%
Return on average equity 13.11% 13.91% 12.69% 13.97%
Return on average tangible equity 18.38% 19.67% 17.84% 19.78%
Efficiency ratio (fully taxable equivalent) 50.13% 49.87% 50.43% 49.77%
Earnings per share have been adjusted for a 5% stock dividend declared in 2007.
Page 9 of Page 12
American River Bankshares
Condensed Consolidated Statement of Income (Unaudited)
Trailing Four Quarters
Second First Fourth Third
Quarter Quarter Quarter Quarter
2008 2008 2007 2007
---------------------------------------------------------
Interest income $ 8,252,000 $ 8,578,000 $ 9,062,000 $ 9,454,000
Interest expense 1,857,000 2,236,000 2,496,000 2,774,000
---------------------------------------------------------
Net interest income 6,395,000 6,342,000 6,566,000 6,680,000
Provision for loan and lease losses 190,000 337,000 135,000 50,000
Total noninterest income 639,000 585,000 565,000 669,000
Total noninterest expense 3,642,000 3,629,000 3,566,000 3,796,000
---------------------------------------------------------
Income before taxes 3,202,000 2,961,000 3,430,000 3,503,000
Income taxes 1,221,000 1,128,000 1,288,000 1,351,000
---------------------------------------------------------
Net income $ 1,981,000 $ 1,833,000 $ 2,142,000 $ 2,152,000
=========================================================
Basic earnings per share $ 0.36 $ 0.33 $ 0.38 $ 0.37
Diluted earnings per share $ 0.36 $ 0.33 $ 0.38 $ 0.37
Average diluted shares for the period 5,548,861 5,592,158 5,685,788 5,823,480
Shares outstanding-end of period 5,542,415 5,531,528 5,590,277 5,744,754
Net interest margin as a percentage 4.99% 4.94% 5.10% 5.17%
Quarterly Operating Ratios:
Return on average assets 1.38% 1.28% 1.50% 1.50%
Return on average equity 13.11% 12.26% 14.10% 13.99%
Return on average tangible equity 18.38% 17.29% 19.89% 19.68%
Efficiency ratio (fully tax equivalent) 50.13% 50.73% 48.37% 50.02%
Earnings per share have been adjusted for a 5% stock dividend declared in 2007.
Page 10 of Page 12
American River Bankshares
Analysis of Net Interest Margin on Earning Assets
(Taxable Equivalent Basis)
Three months ended June 30, 2008 2007
Avg Avg Avg Avg
Balance Interest Yield Balance Interest Yield
ASSETS
Loans and leases $ 405,097,000 $ 6,945,000 6.90% $ 390,311,000 7,982,000 8.20%
Taxable investment securities 83,410,000 962,000 4.64% 103,098,000 1,162,000 4.52%
Tax-exempt investment securities 27,664,000 355,000 5.16% 27,666,000 358,000 5.19%
Corporate stock 235,000 13,000 22.25% 528,000 14,000 10.64%
Federal funds sold 1,202,000 6,000 2.01% 230,000 3,000 5.23%
Interest-bearing deposits in banks 4,942,000 59,000 4.80% 4,950,000 68,000 5.51%
----------------------------- -----------------------------
Total earning assets $ 522,550,000 $ 8,340,000 6.42% $ 526,783,000 $ 9,587,000 7.30%
----------------------------- -----------------------------
Cash & due from banks 21,204,000 16,293,000
Other assets 38,145,000 39,731,000
Allowance for loan & lease losses (6,072,000) (5,995,000)
------------- -------------
$ 575,827,000 $ 576,812,000
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
Interest checking and money market $ 168,788,000 $ 471,000 1.12% $ 168,221,000 $ 971,000 2.32%
Savings 35,902,000 64,000 0.72% 39,793,000 168,000 1.69%
Time deposits 122,871,000 929,000 3.04% 123,887,000 1,331,000 4.31%
Other borrowings 53,408,000 393,000 2.96% 32,046,000 419,000 5.24%
----------------------------- -----------------------------
Total interest bearing liabilities $ 380,969,000 $ 1,857,000 1.96% $ 363,947,000 $ 2,889,000 3.18%
----------------------------- -----------------------------
Noninterest bearing demand deposits 128,266,000 147,010,000
Other liabilities 5,837,000 5,359,000
------------- -------------
Total liabilities 515,072,000 516,316,000
Shareholders' equity 60,755,000 60,496,000
------------- -------------
$ 575,827,000 $ 576,812,000
=================================================================================
Net interest income & margin $ 6,483,000 4.99% $ 6,698,000 5.10%
================================================================
Page 11 of Page 12
American River Bankshares
Analysis of Net Interest Margin on Earning Assets
(Taxable Equivalent Basis)
Six months ended June 30, 2008 2007
Avg Avg Avg Avg
Balance Interest Yield Balance Interest Yield
ASSETS
Loans and leases $ 404,301,000 $ 14,189,000 7.06% $ 388,862,000 $ 15,830,000 8.21%
Taxable investment securities 85,689,000 1,962,000 4.60% 106,860,000 2,411,000 4.55%
Tax-exempt investment securities 27,140,000 703,000 5.21% 28,736,000 734,000 5.15%
Corporate stock 240,000 17,000 14.24% 545,000 23,000 8.51%
Federal funds sold 725,000 8,000 2.22% 234,000 6,000 5.17%
Interest-bearing deposits in banks 4,942,000 124,000 5.05% 4,957,000 136,000 5.53%
----------------------------- -----------------------------
Total earning assets 523,037,000 17,003,000 6.54% 530,194,000 19,140,000 7.28%
----------------------------- -----------------------------
Cash & due from banks 19,046,000 18,594,000
Other assets 38,790,000 39,930,000
Allowance for loan & lease losses (5,994,000) (5,957,000)
------------- -------------
$ 574,879,000 $ 582,761,000
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
Interest checking and money market $ 168,644,000 $ 1,068,000 1.27% $ 166,779,000 $ 1,877,000 2.27%
Savings 36,101,000 150,000 0.84% 38,670,000 298,000 1.55%
Time deposits 120,424,000 1,989,000 3.32% 127,724,000 2,742,000 4.33%
Other borrowings 54,372,000 886,000 3.28% 34,646,000 889,000 5.17%
----------------------------- -----------------------------
Total interest bearing liabilities $ 379,541,000 $ 4,093,000 2.17% $ 367,819,000 $ 5,806,000 3.18%
----------------------------- -----------------------------
Noninterest bearing demand deposits 128,572,000 148,872,000
Other liabilities 6,321,000 5,655,000
------------- -------------
Total liabilities 514,434,000 522,346,000
Shareholders' equity 60,445,000 60,415,000
------------- -------------
$ 574,879,000 $ 582,761,000
=================================================================================
Net interest income & margin $ 12,910,000 4.96% $ 13,334,000 5.07%
================================================================
Page 12 of Page 12