Anthony C. Weagley, Vice President & Treasurer
FOR IMMEDIATE RELEASE
CENTER BANCORP, INC. REPORTS 8.47% INCREASE IN SECOND QUARTER EARNINGS
- -----------------------------------------------------------------------
Union, New Jersey, July 28, 2005 ---Center Bancorp, Inc. (NASDAQ, NM: CNBC),
parent company to Union Center National Bank of Union, New Jersey, today
reported earnings results for the second quarter ended June 30, 2005.
Highlights for the quarter:
o Successful completion of the acquisition of Red Oak Bank, a $98.3
million commercial bank, on May 20, 2005. This merger serves to
strengthen the Corporation's presence in the Morris County market.
o Second Quarter EPS of $.18 per share.
o Total assets increased to $1.2 billion and positions Center as one
of the largest New Jersey headquartered commercial banks.
o Consummation of a $20.0 million private placement of the
Corporation's stock on June 30, 2005.
o Continued growth in the Corporation's loan portfolio. Excluding the
impact of the merger with Red Oak, the Corporation achieved a net
growth in loan volume on average of 11.06% for the second quarter
and 9.2%, annualized for the six months ended June 30, 2005.
o Credit quality continues to remain high.
o Deposit growth continues to remain strong with total deposits
increasing to $721.2 million at June 30, 2005. o Payment of a 5%
stock dividend to shareholders on June 15, 2005. o Book value
increased to $7.57 at June 30, 2005 from $5.41 a year ago.
Net income for the second quarter of 2005 amounted to $1,933,000, an increase of
8.47% or $151,000 from the $1,782,000 earned for the comparable quarter of the
previous year. On a per share basis, basic and fully diluted earnings per share
were $.18; a 5.26% decrease from $.19 earned in the comparable three month
period ended June 30, 2004. All common stock per share amounts in this press
release have been restated to reflect all previously declared and paid common
stock splits and common stock dividends.
For the six months ended June 30, 2005, net income amounted to $3,678,000, an
increase of $172,000 or 4.91% as compared with the comparable six month period
ended June 30, 2004. On a per share basis, basic and fully diluted earnings per
share were $.34; a decrease of 8.11% from $.37 earned in the comparable six
month period ended June 30, 2004. The Corporation's earnings per share figures
include the increase in shares as a result of the acquisition of Red Oak Bank on
May 20, 2005, the issuance of 1,904,761 shares of the holding company's common
stock on June 30, 2005 in a private placement of its securities and the issuance
of 888,888 shares of the holding company's common stock in a private placement
of its securities on September 29, 2004.
John J. Davis, President & CEO of Center Bancorp, welcomed the shareholders and
customers of Red Oak Bank, which was merged into the Corporation's Union Center
National Bank subsidiary on May 20, 2005. He stated: "We welcome the opportunity
to continue to expand our franchise in the attractive Morris County market with
the addition of a true community bank. The merger with Red Oak was consistent
with our company's continued strategy of highly focused growth within
approximately 50 miles of our headquarters, through new branches and
acquisitions of other financial institutions with a similar customer culture. In
our view, Red Oak represented Center's best possible acquisition candidate
currently in Morris County. This compliments our existing business strategies
and core focus of providing personalized service to local markets through a
diversified product line. We additionally see significant loan and core deposit
growth opportunities as a result of an expanded market."
Commenting on the financial results for the quarter, he noted: "Results are
consistent with prior periods, an achievement given the challenges resulting
from both a highly competitive marketplace and the uncertainties of the economy.
We did continue to experience some margin compression as a result of the
continued flattening of the yield curve and increased cost of funds. We continue
to make progress in sustaining positive trends such as loan and core deposit
growth and an increase in noninterest income. Other factors which contributed to
the results for the second quarter included a reduction in the provision for
loan losses, offset by an increase in other expense."
Total interest income, on a fully tax-equivalent basis, for the second quarter
of 2005, increased $2.8 million or 27.4% over the comparable 2004 quarterly
period. Total interest expense increased by $2.3 million or 69.7% over the same
quarterly period of 2004. For the six months ended June 30, 2005 total interest
income on a fully tax-equivalent increased $4.3 million or 21.3% as compared to
the comparable six month period in 2004. For the six months ended June 30, 2005
total interest expense increased $3.6 million or 56.2% as compared to the
comparable six month period in 2004.
The Corporation's net interest margin declined by 30 basis points to 2.93% for
the second quarter period ended June 30, 2005 as compared to the comparable
period in 2004; on a linked sequential quarter, the Corporation's net interest
margin declined 4 basis points from 2.97% for the first quarter of 2005. For the
six months ended June 30, 2005, the Corporation's net interest margin declined
26 basis points from 3.21% for the comparable six month period in 2004. The
decline in margin for both periods was in part due to the recent actions by the
Federal Reserve Board raising rates 50 basis points in the second quarter of
2005 and 200 basis points since June 30, 2004; the flattening of the yield curve
and a shift toward higher costing funds as part of the funding mix also
contributed to the increase in interest expense in both periods. Continued
efforts to improve the yield on interest earning-assets and to control the cost
of funds have helped to mitigate some of the effects of the current margin
compression. Management believes that the margin can be stabilized; however, a
protracted flat yield curve is expected to have further impact on compression.
Management believes that continuing growth in the loan portfolio can be expected
in 2005, which should help to support margins as the yield curve continues to
moderate and short term rates continue to rise.
The impact on net interest margins was to some extent mitigated by non-interest
income, which increased by 12.8%, net of gains on securities sold, for the
quarter and continues to be a strong contributing factor to the performance of
the Corporation. Mr. Davis noted: "The Corporation continues to seek strategic
initiatives to develop new sources of noninterest income to enhance current
earnings and to create long-term sustainable quality earnings performance."
Interest expense for the second quarter increased $2.3 million or 69.7%. Mr.
Davis stated: "As we had noted in the first quarter, the flattening of the yield
curve has had a negative effect on our ability to increase spreads. We
experienced an increase in the cost of funds during the second quarter, which
increased at a faster pace (as a result of the Federal Reserve's rate tightening
policy) than our ability to substantially increase asset yields."
Mr. Davis added: "We remain encouraged by the prospects for continued revenue
growth in subsequent quarters in light of the sustained growth of the loan
portfolio and increased opportunities to further increase the size of the loan
portfolio with the completion of the Red Oak acquisition. The continued change
in the earning asset mix should have a positive impact on net interest income."
Total average loan volumes for the second quarter of 2005 increased to $435.5
million, an increase of $74.0 million or 20.5% on average from $361.5 million on
average for the comparable prior year quarter. On a linked sequential quarter
comparison, total average loans increased by $54.8 million or 14.4% from $380.7
million on average during the first quarter of 2005. The merger with Red Oak
Bank contributed $89.6 million in net loans. Strong growth in commercial and
commercial real estate related loans provided the bulk of the loan growth in the
second quarter.
For the six months ended June 30, 2005, total average loan volumes increased to
$408.3 million, an increase of $53.6 million on average (up 15.1% from $354.7
million on average for the comparable six months ended June 30, 2004).
Mr. Davis stated: "We are encouraged by the key credit quality trends, which
have been maintained during a period of strong loan growth and national economic
instability." Asset quality continues to remain high and no additional
provisions were made to the allowance for loan losses during the quarter. At
June 30, 2005, the total allowance for loan and lease losses amounted to $4.9
million or 1.0% of total loans. The acquisition of Red Oak Bank contributed $1.2
million to the allowance. Net recoveries amounted to $6,000 for the six month
period. Non-performing assets at June 30, 2005 consisted of non-accrual loans
totaling $350,000 comprised of five commercial loans, $300,000 was related to
assets acquired from Red Oak Bank; no loans were on non-accrual status at
December 31, 2004 or March 31, 2005.
Interest-bearing liabilities increased $139.8 million on average during the
second quarter of 2005, as compared to the second quarter in 2004. Total
non-interest bearing core deposits increased $10.4 million on average in the
second quarter of 2005 in comparison to the comparable quarter in 2004. At June
30, 2005 this source of funding amounted to $148.7 million or 20.6% of total
deposits. The Corporation acquired $70.8 million total deposits with the merger
with Red Oak Bank.
Non-interest income, increased $101,000, exclusive of gains on securities sold
(which decreased $8,000). This was an increase of 12.8% for the second quarter
compared with the comparable quarter in 2004. Noninterest income, including
gains on securities sold, increased $93,000 or 11.3% for the second quarter
compared with the comparable quarter in 2004. The increased revenue was
primarily driven by the increase in other income, which includes loan fees, and
annuity and insurance sales fees.
Total non-interest expense in the second quarter of 2005 was $5.4 million, up
10.58% as compared to the second quarter of 2004. Personnel-related expenses,
the Corporation's largest non-interest operating expense component, increased
13.7% from a year ago. The increase was driven primarily by increased staffing
levels, coupled with merit and promotional pay increases and certain employee
related expenses. Red Oak Bank added $38,465 to personnel-related expenses
during the second quarter. Full time equivalent staffing levels were 212 for the
quarter compared to 189 in the second quarter of 2004. The 11.08% increase in
other expense in the second quarter was primarily attributable to increased
audit, legal and consulting expenses, in part due to continued compliance with
Sarbanes Oxely.
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 June 30, 2005 reached $1.2 billion, an increase of $245.6
million or 26.3% from assets of $933.8 million at June 30, 2004 and $169.6
million or 16.8% from December 31, 2004. The acquisition of Red Oak Bank on May
20, 2005 contributed to this growth.
On June 30, 2005 Center Bancorp, Inc. announced that it issued 1,904,761 shares
of the holding company's common stock to a limited number of accredited
investors in a private placement of its securities. The shares were issued at a
purchase price of $10.50 per share. Net proceeds to the holding company were
approximately $18.9 million, after commissions and expenses. Center Bancorp
intends to utilize the net proceeds from this offering for general working
capital purposes and to expand the Company's capital position in order to
support future asset growth, to fund bank and non-bank acquisitions and to
supply capital at the holding company (as distinct from the bank subsidiary)
level.
At June 30, 2005, the total Tier 1 capital leverage ratio was 9.45%, the total
Tier 1 Risk Based Capital ratio was 14.67% and the Total Risk Based Capital
ratio was 15.39%. Total Tier 1 capital increased to approximately $101.4 million
at June 30, 2005 from $67.7 million at June 30, 2004. These ratios continue to
exceed those necessary to be considered a well-capitalized institution under
Federal Regulatory guidelines.
At June 30, 2005, book value per common share was $7.57 as compared with $5.41 a
year ago. At June 30, 2005, tangible book value per common share was $6.32 as
compared to $5.19 a year ago. The Corporation recorded approximately $15.3
million in goodwill resulting from the merger with Red Oak Bank. Annualized
return on average stockholders' equity for the three months ended June 30, 2005
was 10.45% compared to 13.25% for the comparable period in 2004.
Mr. Davis concluded: "Our challenge will be to continue to grow our commercial
business base and increase loans while containing operating expense and the more
significant cost of funds as we make progress in driving more revenue to the
bottom line. We believe that the second quarter results are supportive of the
Company's stated goals to deliver consistent earnings performance."
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 recently received
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.
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 loan and core deposit growth, interest rates and the Corporation's net
interest margin) 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, Inc. and Subsidiaries
Consolidated Statements of Condition
June 30, December 31,
- ------------------------------------------ ----------- -----------
(Dollars In Thousands) 2005 2004
- ------------------------------------------ ----------- -----------
(unaudited)
- ------------------------------------------ ----------- -----------
ASSETS
Cash and due from banks $ 32,001 $ 12,033
Federal funds sold and securities
purchased under agreement to resell 0 0
- ------------------------------------------ ----------- -----------
Total cash and cash equivalents $ 32,001 12,033
Investment securities held to maturity
(approximate market value of $154,017
in 2005 and $127,898 in 2004) 151,088 124,162
Investment securities available-for-sale 436,670 453,524
- ------------------------------------------ ----------- -----------
Total investment securities 587,758 577,686
Loans, net of unearned income 498,602 377,304
Less--Allowance for loan losses 4,995 3,781
- ------------------------------------------ ----------- -----------
Net loans 493,607 373,523
Premises and equipment, net 18,110 17,622
Accrued interest receivable 5,649 4,533
Bank owned separate account life
insurance 18,215 17,848
Other assets 6,452 3,679
Goodwill 16,776 2,091
- ------------------------------------------ ----------- -----------
Total assets $ 1,178,568 $ 1,009,015
========================================== =========== ============
LIABILITIES
Deposits:
Non-interest-bearing $ 148,742 $ 127,226
Interest-bearing:
Certificates of deposit $100,000
and over 118,126 163,810
Interest-bearing demand, savings
and time deposits 454,338 411,236
- ------------------------------------------ ----------- -----------
Total deposits 721,206 702,272
Short-term borrowings 164,934 101,357
Long-term borrowings 168,555 115,000
Subordinated debentures 15,465 15,465
Accounts payable and accrued
liabilities 6,724 6,278
- ------------------------------------------ ----------- -----------
Total liabilities 1,076,884 940,372
- ------------------------------------------ ----------- -----------
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 14,467,962
and 11,475,446 shares in 2005 and 2004,
respectively 65,592 30,441
Additional paid in capital 3,775 4,477
Retained earnings 37,081 36,973
Treasury stock at cost (1,041,920
and 1,056,972 shares in 2005 and
2004, respectively) (3,721) (3,775)
Restricted stock 0 0
Accumulated other comprehensive (loss)/income (1,043) 527
- ------------------------------------------ ----------- -----------
Total stockholders' equity 101,684 68,643
- ------------------------------------------ ----------- -----------
Total liabilities and stockholders' equity $ 1,178,568 $ 1,009,015
========================================== =========== ============
All per common share amounts have been adjusted retroactively for common stock
splits and common stock dividends impacting the periods presented.
Center Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
Three Months Ended Six Months Ended
(Unaudited) June 30, June 30,
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
(In Thousands, Except Per Share Data) 2005 2004 2005 2004
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Interest income:
Interest and fees on loans $ 5,928 $ 4,490 $ 10,961 $ 8,866
Interest and dividends on investment securities:
Taxable interest income 4,935 4,119 9,423 8,099
Non-taxable interest income 992 853 1,965 1,733
Dividends 465 270 915 604
Interest on Federal funds sold and securities purchased
under agreement to resell 17 0 29 0
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Total interest income 12,337 9,732 23,293 19,302
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Interest expense:
Interest on certificates of deposit $100,000 and over 987 92 1,986 193
Interest on other deposits 1,896 1,561 3,456 3,202
Interest on borrowings 2,605 1,580 4,587 3,025
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Total interest expense 5,488 3,233 10,029 6,420
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Net interest income 6,849 6,499 13,264 12,882
Provision for loan losses 0 205 0 410
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Net interest income after provision for loan losses 6,849 6,294 13,264 12,472
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Other income:
Service charges, commissions and fees 475 477 970 958
Other income 159 109 255 211
Annuity & Insurance 72 12 114 20
Bank Owned Life Insurance 185 192 367 358
Gain on securities sold 23 31 36 157
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Total other income 914 821 1,742 1,704
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Other expense:
Salaries and employee benefits 3,004 2,641 5,881 5,278
Occupancy, net 442 459 1,012 1,022
Premises and equipment 483 475 941 920
Stationery and printing 181 144 302 296
Marketing and advertising 160 147 332 296
Other 1,153 1,038 2,294 2,083
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Total other expense 5,423 4,904 10,762 9,895
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Income before income tax expense 2,340 2,211 4,244 4,281
Income tax expense 407 429 566 775
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Net income $ 1,933 $ 1,782 $ 3,678 $ 3,506
============================================================= =========== =========== =========== ===========
Earnings per share: (Note 4)
Basic $ .18 $ .19 $ .34 $ .37
Diluted $ .18 $ .19 $ .34 $ .37
- ------------------------------------------------------------- ----------- ----------- ----------- -----------
Weighted average common shares outstanding:
Basic 10,962,507 9,422,960 10,697,411 9,410,420
Diluted 11,005,043 9,482,201 10,741,239 9,481,883
============================================================= =========== =========== =========== ===========
All per common share amounts have been adjusted retroactively for common stock
splits and common stock dividends impacting the periods presented.
Center Bancorp, Inc. and Subsidiaries
Average Balance Sheet with Interest and Average Rates
Period Ended June 30
(unaudited)
Six Month Period Ended June 30,
-------------------------------------------------------------------------------
2005 2004
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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 $ 425,932 $ 9,676 4.54% $ 409,582 $ 8,676 4.24%
Non-taxable 145,900 3,846 5.27% 93,883 2,663 5.67%
Loans, net of unearned income (2) 408,292 10,961 5.37% 354,665 8,865 5.00%
Federal funds sold and securities
purchased under agreement to resell 2,201 29 2.64% 0 0 0.00%
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total interest-earning assets 982,325 24,512 4.99% 858,130 20,204 4.71%
Non-interest-earning assets
Cash and due from banks 19,840 19,841
BOLI 18,013 16,062
Other assets 33,541 27,380
Allowance for possible loan losses (4,082) (3,205)
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total non-interest-earning assets 67,312 60,078
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total assets $ 1,049,637 $ 918,208
============================================ =========== =========== ========= =========== =========== =========
Liabilities and stockholders' equity
Interest-bearing liabilities:
Money market deposits $ 87,849 932 2.12% $ 86,634 497 1.15%
Savings deposits 113,732 765 1.35% 113,220 693 1.12%
Time deposits 240,274 3,311 2.76% 154,383 2,013 2.61%
Other interest - bearing deposits 120,873 434 0.72% 109,365 192 0.35%
Short-term Borrowings & FHLB Advances 260,048 4,125 3.17% 242,323 2,683 2.21%
Subordinated Debentures 15,465 462 5.97% 15,465 342 4.42%
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total interest-bearing liabilities 838,241 10,029 2.39% 731,390 6,420 1.76%
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Non-interest-bearing liabilities:
Demand deposits 132,781 125,327
Other non-interest-bearing deposits 2,224 1,220
Other liabilities 5,042 5,655
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total non-interest-bearing liabilities 140,047 132,202
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Stockholders' equity 71,349 54,616
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total liabilities and stockholders' equity $ 1,049,637 $ 918,208
============================================ =========== =========== ========= =========== =========== =========
Net interest income (tax-equivalent basis) $ 14,483 $ 13,784
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net Interest Spread 2.60% 2.95%
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net interest income as percent
of earning-assets (net interest margin) 2.95% 3.21%
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Tax-equivalent adjustment (3) (1,219) (902)
- -------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net interest income $ 13,264 $ 12,882
============================================ =========== =========== ========= =========== =========== =========
(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
Center Bancorp, Inc. and Subsidiaries
Average Balance Sheet with Interest and Average Rates
Period Ended June 30
(unaudited)
Three Month Period Ended June 30,
- ------------------------------------------------------------------------------------------------------------------------------------
2005 2004
----------------------------------------------------------------------------------
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 $ 437,799 $ 5,041 4.61% $ 409,893 $ 4,384 4.28%
Non-taxable 143,506 1,974 5.50% 89,277 1,299 5.82%
Loans, net of unearned income (2) 435,539 5,928 5.44% 361,523 4,490 4.97%
Federal funds sold and securities
purchased under agreement to resell 2,397 17 2.84% 0 0 0.00%
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total interest-earning assets 1,019,241 12,960 5.09% 860,693 10,173 4.73%
Non-interest-earning assets
Cash and due from banks 20,478 18,743
BOLI 18,103 16,062
Other assets 38,143 30,027
Allowance for possible loan losses (4,343) (3,315)
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total non-interest-earning assets 72,381 61,517
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total assets $ 1,091,622 $ 922,210
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Liabilities and stockholders' equity
Interest-bearing liabilities:
Money market deposits $ 91,206 526 2.31% $ 95,255 235 0.99%
Savings deposits 137,004 410 1.20% 141,138 339 0.96%
Time deposits 235,311 1,672 2.84% 151,299 977 2.58%
Other interest - bearing deposits 109,153 275 1.01% 75,424 102 0.54%
Short-term Borrowings & FHLB Advances 286,144 2,364 3.30% 255,941 1,411 2.21%
Subordinated Debentures 15,465 241 6.23% 15,465 169 4.37%
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total interest-bearing liabilities 874,283 5,488 2.51% 734,522 3,233 1.76%
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Non-interest-bearing liabilities:
Demand deposits 135,433 127,222
Other non-interest-bearing deposits 2,785 631
Other liabilities 5,150 6,047
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total non-interest-bearing liabilities 143,368 133,900
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Stockholders' equity 73,971 53,788
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Total liabilities and stockholders' equity $ 1,091,622 $ 922,210
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net interest income (tax-equivalent basis) $ 7,472 $ 6,940
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net Interest Spread 2.58% 2.97%
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net interest income as percent
of earning-assets (net interest margin) 2.93% 3.23%
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Tax-equivalent adjustment (3) (623) (441)
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Net interest income $ 6,849 $ 6,499
- ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
(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