Exhibit 99.1
CONTACT: ANTHONY C. WEAGLEY, VICE PRESIDENT & TREASURER
/ CORRECTION - CENTER BANCORP, INC. REPORTS 22.7% INCREASE IN FOURTH QUARTER
2004 EARNINGS
UNION, NJ -- (MARKET WIRE) -- 01/27/2005 -- In the news release, "Center
Bancorp, Inc. Reports 22.7% Increase in Fourth Quarter 2004 Earnings," issued
earlier today by Center Bancorp, Inc., we are advised by the company that there
are several changes to the release.
In the seventh paragraph, the second sentence should read "Total average loan
volumes for the fourth quarter of 2004 increased to $380.3 million, an increase
of $49.3 million (up 14.9% from $331.0 million for the comparable prior year
quarter)," rather than "Total average loan volumes for the fourth quarter of
2004 increased to $376.6 million, an increase of $45.6 million (up 13.8% from
$331.0 million for the comparable prior year quarter)" and the third sentence
should read "...$9.7 million from $370.6 million on average or an increase of
2.62% as compared to the third quarter of 2004," rather than "...$6.0 million
from $370.6 million on average or an increase of 1.62% as compared to the third
quarter of 2004" as originally issued.
In the ninth paragraph, the third sentence should read "...decreased 4 basis
points to 3.10% from 3.14% for the fourth quarter in 2003," rather than
"...decreased 3 basis points to 3.11% from 3.14% for the fourth quarter in
2003," as originally issued.
In the table with the heading "AVERAGE STATEMENTS OF CONDITION WITH INTEREST AND
AVERAGE RATES" for the Three Month Period Ended December 31, in the first
column, "Average Balances" for 2004, the "Loans, net of unearned income (2)"
should be "380,287" rather than "376,575"; "Total interest-earning assets"
should be "928,911" rather than "925,199"; "BOLI" should be "17,735" rather than
"14,509"; "Other assets" should be "29,526" rather than "35,569"; "Allowance for
possible loan losses" should be "(3,724)" rather than "(2,829)"; "Total
non-interest earning assets" should be "65,117" rather than "68,829"; and, in
the third column, "Average Yield/Rate" for 2004, the " Loans, net of unearned
income (2)" should be "5.22%" rather than "5.27%"; "Total interest-earning
assets" should be "4.83%" rather than"4.84%"; "Net Interest Spread" should be
"2.79%" rather than "2.80%"; "Net interest income as percent of earning-assets
(net interest margin)" should be "3.10%" rather than "3.11%"; as originally
issued.
In addition, the company has added a paragraph to the end of the body of the
release as an addendum to the existing forward-looking statements.
CENTER BANCORP, INC. REPORTS 22.7% INCREASE IN FOURTH QUARTER 2004 EARNINGS
Union, NJ, January 27, 2005 UNION, N.J., January 27, 2005 -- Center Bancorp,
Inc. (CNBC), parent company to Union Center National Bank, today reported
earnings results for the fourth quarter and year ended December 31, 2004.
Net income for the fourth quarter of 2004 amounted to $2,099,000 or $.21 per
fully diluted common share, an increase of $388,000 or 22.68% over the
$1,711,000 or $.19 per fully diluted common share earned for the comparable
quarter of the previous year. Net income for the twelve-months ended December
31, 2004 amounted to $7,622,000 or $.82 per fully diluted common share, an
increase of $1,203,000 or 18.74% over the $6,419,000 or $.71 per fully diluted
common share earned for the comparable twelve-month period ended December 31,
2003. All common stock per share amounts have been restated to reflect all
previously declared and paid common stock splits and common stock dividends.
Commenting on Center Bancorp's financial results for the fourth quarter 2004,
John J. Davis, President and Chief Executive Officer, said "We are pleased with
Center's results achieved in the fourth quarter and for the full year in 2004,
particularly given the challenges resulting from the economic and competitive
environment that we have faced. We believe we have made significant progress in
maintaining positive trends throughout 2004. Growth trends for the Corporation
continued in the fourth quarter of 2004, with the loan portfolio reflecting
healthy increases while strong credit quality was maintained. Most encouraging
are the key credit quality trends, which have been maintained during a period of
strong credit growth and national economic instability."
Mr. Davis further indicated, "We believe these positive performance trends,
together with increased interest income and a stable margin, which has been on
the rise since the end of the
fourth quarter of 2004, should have a continued visible impact on net income in
2005." Other areas cited which contributed to fourth quarter results included
increased non interest income, exclusive of securities gains, and a lower
effective tax rate.
Looking ahead to 2005, Mr. Davis noted, that "notwithstanding the impact of
future economic and political conditions, our present estimate of earnings
performance is attainable." He further noted that "the acquisition of Red Oak
Bank would serve to create synergies and operational efficiencies that will
further enhance performance in 2005. As previously noted we expect to complete
the transaction in the first half of 2005 and that the acquisition would be
accretive to earnings in the latter part of 2005. Further, we anticipate that
the merger will serve to allow Center Bancorp to benefit from Red Oak's past net
operating loss carry forward, enabling us to deliver increased value to our
shareholders. We additionally expect to continue to expand our commercial
lending business as we continue to see growing opportunities for commercial
lending and to hire seasoned lenders in our marketplace to support that business
opportunity."
Total interest income on a fully taxable-equivalent basis for the fourth quarter
of 2004 increased by $1,483,000 or 15.25% to $11.2 million, from the comparable
2003 quarterly period, while total interest expense increased by $844,000 or
26.6%. For the full year total interest income on a fully taxable-equivalent
basis increased $4.66 million or 12.47%, while total interest expense increased
by $1.2 million as compared to 2003.
The Corporation continues to experience good levels of loan demand. Total
average loan volumes for the fourth quarter of 2004 increased to $380.3 million,
an increase of $49.3 million (up 14.9% from $331.0 million for the comparable
prior year quarter). On a linked sequential quarter comparison, total average
loans increased by $9.7 million from $370.6 million on average or an increase of
2.62% as compared to the third quarter of 2004.
While asset quality remains strong, during the fourth quarter of 2004 the
Corporation made a provision of $137,000 to the allowance for loan and lease
losses, to maintain adequate loan loss reserves in relationship with loan
portfolio growth. At December 31, 2004, the total allowance for loan and lease
losses amounted to $3.8 million or 1.0% of total loans. During the fourth
quarter and year ended December 31, 2004, we had a net recovery to the allowance
of $1,000 and $28,000, respectively.
Net interest margins for the fourth quarter were in line with expectations, and
remained stable despite the recent actions by the Federal Reserve Board raising
rates 75 basis points in the latter part of the year; 25 basis points each on
September 21st, November 10th, and December 14th. Ongoing efforts to improve the
yield on earning-assets and to control the cost of funds have helped to sustain
the current margin. For the three months ended December 31, 2004, the net
interest margin (net interest income as a percentage of earning assets),
decreased 4 basis points to 3.10% from 3.14% for the fourth quarter in 2003; and
decreased 12 basis points from 3.23% in comparison to the third quarter of 2004.
For the full twelve months ended December 31, 2004 the net interest margin
increased 15 basis points to 3.19% as compared to 3.04% for the comparable 12
months in 2003.
Management believes that the margin can be maintained at or near the current
levels into 2005 and that continuing growth in the loan portfolio can be
expected in 2005, which should help to support margins as rates continue to
rise.
Other non-interest income, exclusive of gains on securities sold (which
decreased $55,000 during the quarter), increased $159,000 or 22.9% for the
fourth quarter compared with the comparable quarter in 2003. The change from the
comparable period in 2003 was driven primarily by increased loan and letter of
credit fees and increased levels of core service charges, commissions and fees
derived from the check safe program launched during the fourth quarter of 2003.
Other non-interest income increased $104,000 or 14.03% for the fourth quarter
compared with the comparable quarter in 2003.
Total non-interest expense in the fourth quarter of 2004 was $4.8 million, up
5.49% from the fourth quarter of 2003. Personnel-related expenses, the
Corporation's largest non-interest operating expense component, decreased 16.0%
from a year ago, as a result of a credit of $478,000 to benefits expense
representing a reduction in the corporation's obligation related to certain
long-term benefit plans. Excluding the above, expenses increased $64,000 or
2.47% from the comparable quarterly period in 2003. The increase was related to
increased staffing levels, merit and promotional pay increases and moderating
employee related expenses offset in certain cases by expense reductions, such as
employee health insurance costs. Full time equivalent staffing levels were 192
for the quarter compared to 191 in the fourth quarter of 2003. The increase of
4.56% in occupancy and premises and equipment in the fourth quarter of 2004
compared to the comparable quarter in 2003 was attributable primarily to the new
operations center, which commenced operations in October 2004. The 75.7%
increase in other expense in the fourth quarter was primarily attributable to
the increased accounting, legal, and consulting fees related to the
implementation of section 404 of Sarbanes Oxley. Additionally the expense
increase for the quarter was increased computer, telephone, appraisal, and
correspondent fees in 2004.
The effective tax rate continues to be less than the statutory rates
substantially as a result of tax free income generated from the Corporation's
municipal and other tax advantaged securities.
Total assets at December 31, 2004, reached $1.0 billion, an increase of $87.3
million or 9.47% from assets of $921.8 million at December 31, 2003. Average
deposits increased $61.0 million or 10.06% for the three months ended December
31, 2004 as compared to the comparable period in 2003. The growth in average
deposits was reflected in core interest bearing and non-interest demand
accounts, and time deposits.
At December 31, 2004, the total Tier 1 capital leverage ratio was 8.22%, the
total Tier 1 Risk Based Capital ratio was 14.03% and the Total Risk Based
Capital ratio was 14.88%. Total Tier 1 capital increased to approximately $81.1
million at December 31, 2004 from $66.3 million at December 31, 2003. The
increase in Tier 1 capital reflects the issuance of 888,888 common shares to a
limited number of accredited investors in a private placement of the
Corporation's shares on September 29, 2004. These shares were issued at a
purchase price of $11.25 per share. Net proceeds to the Corporation were
approximately $9.4 million, after commissions and expenses. The growth in Tier 1
capital also reflects the impact of the issuance of Trust Preferred
Securities in 2003. At December 31, 2004, book value per common share was $6.96
as compared with $6.06 a year ago. At December 31, 2004, tangible book value per
common share was at $6.75 as compared to $5.82 a year ago. Annualized return on
average stockholders' equity for the three months ended December 31, 2004 was
12.36% compared to 13.28% for the comparable period in 2003. For the full twelve
months in 2004 the return on average stockholder's equity amounted to 13.17%
compared to 12.35% for full twelve months in 2003.
Center Bancorp, Inc., through its wholly owned subsidiary, Union Center National
Bank, Union, New Jersey, currently operates thirteen banking locations. Banking
centers are located in Union Township (6 locations), Berkeley Heights, Madison,
Millburn/Vauxhall, Morristown (2 locations), Springfield, and Summit, New
Jersey. The Bank also operates remote ATM locations in the Union New Jersey
Transit train station and in Union Hospital. The Bank also received recent
approvals to install and operate two additional off-premise ATM locations in the
Chatham and Madison New Jersey Transit Stations.
Union Center National Bank is the largest commercial Bank headquartered in Union
County; it was chartered in 1923 and is a full-service banking company.
The acquisition of Red Oak Bank will add to Union Center National Bank's branch
network another location in Morristown and potentially another branch location
that Red Oak is currently developing in Mountain Lakes/Boonton and an on premise
ATM location at the Giralada farms office campus in Madison.
For further information regarding Center Bancorp Inc., call 1-(800)-862-3683.
For information regarding Union Center National Bank visit our web site at
"http://www.centerbancorp.com" ~http://www.centerbancorp.com.
All non-historical statements in this press release (including statements
regarding future net interest margin, anticipated growth in the loan portfolio
and overall performance) constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may use such forward-looking terminology as "expect,"
"look," "believe," "plan," "anticipate," "may," "will" or similar statements or
variations of such terms or otherwise express views concerning trends and the
future. Such forward-looking statements involve certain risks and uncertainties.
These include, but are not limited to, the direction of interest rates,
continued levels of loan quality and origination volume, continued relationships
with major customers including sources for loans, as well as the effects of
international, national, regional and local economic conditions and legal and
regulatory barriers and structure, including those relating to the deregulation
of the financial services industry, and other risks cited in reports filed by
the Corporation with the Securities and Exchange Commission. Actual results may
differ materially from such forward-looking statements. Center Bancorp, Inc.
assumes no obligation for updating any such forward-looking statement at any
time.
Center Bancorp plans to file a Registration Statement on SEC Form S-4 in
connection with the merger and the parties expect to mail a Proxy
Statement/Prospectus to shareholders containing information about the merger.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND
THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE. THE
REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS WILL CONTAIN IMPORTANT
INFORMATION ABOUT CENTER BANCORP, RED OAK, THE MERGER AND RELATED MATTERS.
Investors and security holders will be able to obtain free copies of these
documents through the web site maintained by the U.S. Securities and Exchange
Commission at http//www.sec.gov. In addition to the Registration Statement and
the Proxy Statement/Prospectus, Center Bancorp files annual, quarterly and
special reports, proxy statements and other information with the Securities and
Exchange Commission. You may read and copy any reports, statements and other
information filed by Center Bancorp at the SEC public reference rooms at 450
Fifth Street, N.W., Washington, D.C. 20549 or at the Commission's other public
reference rooms in New York, New York and Chicago, Illinois. Please call the
Commission at 1-800-SEC-0330 for further information on public reference rooms.
Center Bancorp's filings with the Commission also are available to the public
from commercial document-retrieval services and at the web site maintained by
the Commission at http//www.sec.gov. Red Oak, its directors, executive officers
and certain members of management and employees may be soliciting proxies from
Red Oak's stockholders in favor of the adoption of the merger agreement. A
description of any interests that Red Oak's directors and executive officers
have in the merger will be available in the Proxy Statement/Prospectus. This
press release does not constitute an offer of any securities for sale.
CONSOLIDATED STATEMENTS OF CONDITION
DECEMBER 31 DECEMBER 31
- -----------------------------------------------------------------------------------
(DOLLARS IN THOUSANDS) 2004 2003
- -----------------------------------------------------------------------------------
(UNAUDITED)
ASSETS
Cash and due from banks $ 12,033 $ 16,509
------------ ------------
Investment securities held to maturity
(approximate market value of $127,898
in 2004, $159,989 in Dec. 2003 ) 124,162 155,149
Investment securities available-for-sale 454,099 364,085
------------ ------------
Total investment securities 578,261 519,234
Loans, net of unearned income 377,304 349,525
Less-Allowance for loan losses 3,781 3,002
------------ ------------
Net loans 373,523 346,523
Premises and equipment, net 17,622 15,610
Accrued interest receivable 4,533 4,485
Bank owned separate account life insurance 17,848 14,614
Other assets 3,679 3,223
Goodwill 2,091 2,091
------------ ------------
Total assets $ 1,009,590 $ 922,289
============ ============
LIABILITIES
Deposits:
Non-interest bearing $ 127,226 $ 120,526
Interest bearing:
Certificates of deposit $100,000 and over 163,810 58,245
Savings and time deposits 411,236 454,150
------------ ------------
Total deposits 702,272 632,921
Federal funds purchased and securities
sold under agreements to repurchase 101,357 99,724
Federal Home Loan Bank advances 115,000 115,000
Subordinated debentures 15,465 15,465
Accounts payable and accrued liabilities 6,474 4,999
------------ ------------
Total liabilities 940,568 868,109
------------ ------------
STOCKHOLDERS' EQUITY
PREFERRED STOCK, NO PAR VALUE, Authorized
5,000,000 shares; None Issued 0 0
COMMON STOCK, NO PAR VALUE:
Authorized 20,000,000 shares; issued
10,928,996 in 2004, and 10,003,580
shares in 2003 30,441 19,405
Additional paid in capital 4,477 4,677
Retained earnings 36,973 33,268
Treasury stock at cost (1,006,640 and
1,059,138 in 2004 and 2003 respectively) (3,775) (3,978)
Restricted stock 0 (14)
Accumulated other comprehensive income 906 822
------------ ------------
Total stockholders' equity 69,022 54,180
------------ ------------
Total liabilities and stockholders' equity $ 1,009,590 $ 922,289
============ ============
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED YEAR ENDED
(Unaudited) DECEMBER 31, DECEMBER 31,
- -------------------------------------------------------------------------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans $ 4,958 $ 4,183 $ 18,529 $ 15,131
Interest and dividends on investment
securities:
Taxable interest income 3,868 3,542 16,459 17,096
Non-taxable interest income 938 908 3,596 2,775
Dividends 862 620 1,465 916
----------- ----------- ----------- -----------
Total interest income 10,626 9,253 40,049 35,919
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Interest on certificates of deposit
$100,000 and over 740 106 1,278 461
Interest on other deposits 1,445 1,679 6,137 6,712
Interest on borrowings 1,832 1,388 6,553 5,553
----------- ----------- ----------- -----------
Total interest expense 4,017 3,173 13,968 12,726
----------- ----------- ----------- -----------
Net interest income 6,609 6,080 26,081 23,193
Provision for loan losses 137 260 752 522
----------- ----------- ----------- -----------
Net interest income after provision
for loan losses 6,472 5,820 25,329 22,671
----------- ----------- ----------- -----------
OTHER INCOME:
Service charges, commissions and fees 477 444 1,948 1,683
Other income 155 37 499 457
Annuity & Insurance 34 43 59 43
Bank Owned Life Insurance 188 171 734 798
Gain (Loss) on securities sold (9) 46 148 266
----------- ----------- ----------- -----------
TOTAL OTHER INCOME 845 741 3,388 3,247
----------- ----------- ----------- -----------
Other expense:
Salaries and employee benefits 2,177 2,591 10,140 10,425
Occupancy, net 466 470 1,943 1,835
Premises and equipment 475 430 1,852 1,708
Stationery and printing 116 123 539 559
Marketing and advertising 121 124 529 533
Other 1,471 837 4,468 3,276
----------- ----------- ----------- -----------
TOTAL OTHER EXPENSE 4,826 4,575 19,471 18,336
----------- ----------- ----------- -----------
Income before income tax expense 2,491 1,986 9,246 7,582
Income tax expense 392 275 1,624 1,163
Net income $ 2,099 $ 1,711 $ 7,622 $ 6,419
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.21 $0. 19 $ 0.83 $ 0.72
Diluted $ 0.21 $0. 19 $ 0.82 $ 0.71
Weighted average common shares outstanding:
Basic 9,917,283 8,904,684 9,218,933 8,899,164
Diluted 9,959,106 8,999,418 9,274,006 8,992,354
=========== =========== =========== ===========
All per common share amounts have been adjusted retroactively for common stock
splits and common stock dividends impacting the periods presented.
AVERAGE STATEMENTS OF CONDITION WITH INTEREST AND AVERAGE RATES
YEAR ENDED DECEMBER 31,
- ------------------------------------------------------------------------------------------------------------------------
2004 2003
- ------------------------------------------------------------------------------------------------------------------------
INTEREST AVERAGE INTEREST AVERAGE
(TAX-EQUIVALENT BASIS, AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
DOLLARS IN THOUSANDS) BALANCE EXPENSE RATE BALANCE EXPENSE RATE
- ------------------------------------------------------------------------------------------------------------------------
Assets
Interest-earning assets:
Investment securities: (1)
Taxable $ 404,641 $ 17,565 4.34% $ 461,012 $ 17,993 3.90%
Non-taxable 110,225 5.37% 72,914 4,231 5.80%
Loans, net of unearned income (2) 365,104 18,529 5.07% 276,457 15,131 5.47%
-- --------- ------ ---- --------- ------ ----
Total interest-earning assets $ 879,970 42,013 4.77% $ 810,383 37,355 4.61%
========= ====== ==== ========= ====== ====
Non-interest earning assets
Cash and due from banks 20,006 21,720
BOLI 16,857 14,390
Other assets 28,220 27,617
Allowance for possible loan losses (3,414) (2,664)
Total non-interest earning assets 61,669 61,063
--------- ---------
Total assets $ 941,639 $ 871,446
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Money market deposits $ 95,071 978 1.03% $ 94,579 1,024 1.08%
Savings deposits 139,406 1,368 0.978 153,856 1,877 1.22%
Time deposits 181,094 4,560 2.52% 147,941 3,881 2.62%
Other interest - bearing deposits 77,203 509 0.66% 70,522 391 0.55%
Short-term Borrowings 241,536 5,811 2.41% 216,615 5,058 2.34%
Subordinated Debentures 15,465 742 4.95% 10,466 495 4.88%
-- --------- ------ ---- --------- ------ ----
Total interest-bearing liabilities 749,775 13,968 1.86% 693,979 9,553 1.83%
========= ====== ==== ========= ====== ====
Non-interest-bearing liabilities:
Demand deposits 127,617 120,607
Other non-interest-bearing deposits 763 422
Other liabilities 5,630 4,479
--------- ---------
Total non-interest-bearing liabilities 134,010 125,508
========= =========
Stockholders' equity 57,854 51,959
--------- ---------
Total liabilities and stockholders' equity $ 941,639 $ 871,446
--------- ---------
Net interest income (tax-equivalent basis) $ 28,045 $ 24,629
--------- ---------
Net Interest Spread 2.91% 2.78%
---- ----
Net interest income as percent
of earning-assets (net interest margin) 3.19% 3.04%
---- ----
Tax equivalent adjustment (3) (1,964) (1,436)
--------- ---------
Net interest income $ 26,081 $ 23,193
========= =========
(1) Average balances for available-for-sale securities are based on amortized
cost
(2) Average balances for loans include loans on non-accrual status
(3) The tax-equivalent adjustment was computed based on a statutory Federal
income tax rate of 34 percent
AVERAGE STATEMENTS OF CONDITION WITH INTEREST AND AVERAGE RATES
THREE MONTH PERIOD ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------
2004 2003
- -----------------------------------------------------------------------------------------------------------------------------
INTEREST AVERAGE INTEREST AVERAGE
(TAX-EQUIVALENT BASIS, AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
DOLLARS IN THOUSANDS) BALANCE EXPENSE RATE BALANCE EXPENSE RATE
- -----------------------------------------------------------------------------------------------------------------------------
Assets
Interest-earning assets:
Investment securities: (1)
Taxable $ 394,653 $ 4,424 4.48% $ 407,109 $ 4,159 4.09%
Non-taxable 153,971 1,823 4.74% 95,763 1,380 5.76%
Loans, net of unearned income (2) 380,287 4,958 5.22% 331,017 4,183 5.05%
--------- --------- ---- --------- --------- ----
Total interest-earning assets 928,911 11,205 4.83% $ 833,889 9,722 4.66%
--------- --------- ---- --------- --------- ----
Non-interest earning assets
Cash and due from banks 21,580 21,006
BOLI 17,735
14,509
Other assets 29,526
26,456
Allowance for possible loan losses (3,724) (2,829)
--------- ---------
Total non-interest earning assets 65,117 59,142
--------- ---------
Total assets $ 994,028 $ 893,031
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Money market deposits $ 88,746 250 1.13% $ 99,080 245 0.99%
Savings deposits 132,680 341 1.03% 149,227 415 1.11%
Time deposits 226,353 1,403 2.48% 158,031 1,045 2.65%
Other interest - bearing deposits 87,173 191 0.88% 73,708 80 0.43%
Short-term Borrowings 236,810 1,625 2.74% 220,677 1,260 2.28%
Subordinated Debentures 15,465 207 5.52% 10,927 128 4.83%
--------- --------- --------- ----
Total interest-bearing liabilities 787,227 4,017 2.04% 711,650 3,173 1.78%
--------- --------- --------- ----
Non-interest-bearing liabilities:
Demand deposits 132,266 126,160
Other non-interest-bearing deposits 338 332
Other liabilities 6,293 3,372
--------- ---------
Total non-interest-bearing liabilities 138,897 129,864
--------- ---------
Stockholders' equity 67,904 51,517
--------- ---------
Total liabilities and stockholders' equity $ 994,028 $ 893,031
--------- --------- --------- ---------
Net interest income (tax-equivalent basis) $ 7,188 $ 6,549
--------- ---- --------- ----
Net Interest Spread 2.79% 2.88%
---- ----
Net interest income as percent
of earning-assets (net interest margin) 3.10% 3.14%
--------- ---- --------- ----
Tax equivalent adjustment (3) (579) (469)
--------- ---------
Net interest income $ 6,609 $ 6,080
========= =========
(1) Average balances for available-for-sale securities are based on amortized
cost
(2) Average balances for loans include loans on non-accrual status
(3) The tax-equivalent adjustment was computed based on a statutory Federal
income tax rate of 34 percent