Exhibit 99.1
Harrington West Announces Record 2005 Earnings and Declares Regular
Quarterly Dividend of 12.5 Cents Per Share
SOLVANG, Calif.--(BUSINESS WIRE)--Jan. 24, 2006--Harrington West
Financial Group, Inc. (Nasdaq:HWFG), the holding company for Los
Padres Bank, FSB (LPB) and its division, Harrington Bank, today
announced that it earned $2.1 million or 36 cents per share on a fully
diluted basis in the December 2005 quarter and $8.3 million or $1.48
per share for the full year of 2005. These results compare to the $2.2
million or 39 cents per share recorded in the December 2004 quarter
and $8.2 million or $1.46 per share for the full year of 2004. Return
on average equity was 13.8% in the December 2005 quarter and 14.6% for
the full year of 2005. Book value was $11.06 at December 31, 2005
compared to $10.85 at September 30, 2005 and $9.98 at December 31,
2004.
Given the favorable earnings, the Board of Directors declared a
regular quarterly dividend of 12.5 cents per share payable on February
14, 2006 to holders of record on February 3, 2006. The HWFG share
repurchase program of up to 200,000 shares announced on May 3, 2005
remains in effect. No HWFG shares have been repurchased under this
program.
HWFG made considerable progress in its mission to expand its
multiple market banking operations, diversify its loan portfolio and
business lines, and grow its core banking franchise of loans and
deposits. As such, net loan balances grew $21.7 million or 3.3% in the
December 2005 quarter and $74.5 million or 12.4% for the full year of
2005 to $672.9 million. Deposit balances grew $71.0 million or 11.9%
in 2005 from $598.2 million at December 31, 2004 to $669.1 million at
December 31, 2005. This growth included the $32.7 million of deposits
from the May 2005 acquisition of a banking office in Thousand Oaks,
California and the $23.5 million in deposits from the new Scottsdale,
Arizona banking office opened in April 2005 in the Airpark area.
Investment balances declined $43.9 million or 10.2% in 2005 to $388.4
million, as in the tighter spread environment, HWFG reduced
investments to capture investment gains and to fund the strong loan
growth.
Financial Performance Analysis
HWFG seeks to maintain its exposure to changes in interest rates
at a low level by hedging the effective duration of its liabilities to
match its assets. This hedging should result in a market value of
equity that has low volatility to changes in rates. However, minor
repricing differences remain between HWFG's earning assets and
liabilities, in that some floating rate loans and securities are
pegged to lagging indexes, and hedges of borrowings reprice at a
slightly different frequency (3 months) than the borrowings (daily).
In the steadily rising interest rate environment experienced over the
last eighteen months, this lag in repricing has the effect of slightly
narrowing net interest margins, until the pace of the Federal Funds
rate increases subside or cease. HWFG's net interest margin was 2.83%
for the year ended December 31, 2005 compared to 2.96% for the year
ended December 31, 2004, and 2.81% in the December 2005 quarter
compared to 2.84% and 2.89% in the September 2005 and December 2004
quarters, respectively.
Over the last few quarters, the net interest margin has stabilized
near the 2.80% level. Net interest income was $7.6 million in the
December 2005 quarter and $30.2 million for the full year of 2005
compared to $7.6 million and $29.5 million for the same periods last
year, respectively. Net interest income growth from 2004 to 2005 was
affected by a slightly lower net interest margin and the reduction of
the investment portfolio in 2005.
Banking fee income was $3.9 million in 2005 and improved markedly
from the $3.1 million recorded in 2004. For the December 2005 quarter,
banking fee income was $957 thousand, increasing 18.7% over the $806
thousand recorded in the same period a year ago. Banking fee income
has improved due to the implementation of a Bank Owned Life Insurance
(BOLI) program in April 2005 and further growth in Harrington Wealth
Management (HWM) and deposit fees. With much lower refinancing
activity in the December 2005 quarter, prepayment penalty fees
declined by $122 thousand from the September 2005 quarter and $109
thousand from the December 2004 quarter. BOLI income in the December
2005 quarter was reduced for the annual performance based fee of $36
thousand for investment management. Shown in the following chart are
the comparable period results for banking fee income:
(Dollars in thousands)
- ----------------------------------------------------------------------
December December December December
2005 2004 2005 2004
Banking Fee Type Quarter Quarter % Change YTD YTD % Change
- ----------------------------------------------------------------------
Mortgage Brokerage
Fee, Prepayment
Penalties & Other
Loan Fees $270 $354 -23.7% $1,310 $1,516 -13.6%
- ----------------------------------------------------------------------
Deposit, Other
Retail Banking Fees
& Other Fee Income 325 289 12.5% 1,293 1,022 26.5%
- ----------------------------------------------------------------------
Harrington Wealth
Management Fees 188 163 15.3% 724 610 18.7%
- ----------------------------------------------------------------------
BOLI Income, net 174 - n/a 621 - n/a
- ----------------------------------------------------------------------
Total $957 $806 18.7% $3,948 $3,148 25.4%
- ----------------------------------------------------------------------
HWFG continued to record net gains on its securities and total
return swap portfolio during all of 2005 including the fourth quarter.
These gains emanate from the purchase of securities and total return
swaps at relatively wide spreads to comparable duration, LIBOR based
benchmarks, and as these spreads tighten, gains are realized. In 2005,
net gains on securities, hedges, total return swaps, and borrowings
were $936 thousand compared to $1.3 million in 2004. For the December
2005 quarter, net gains were $64 thousand compared to $386 thousand in
the December 2004 quarter.
Operating expenses were $21.1 million in 2005 compared to $19.4
million in 2004, a 8.6% increase. In the fourth quarter 2005,
operating expenses were $5.4 million compared to $5.0 million in the
same quarter a year ago, a 7.4% increase. The operating expense growth
has been largely a function of the investment in personnel and
facilities to support HWFG's expansion plan, the cost of corporate
governance regulations, and the general increase in the cost of
operations, as well as the cost to attract and retain quality
personnel. In 2005, HWFG hired five new commercial and two
mortgage-focused loan officers and opened or acquired two new banking
offices.
The Company's combined state and federal income tax rate continued
to decline in 2005 due to the growth and apportionment of income to
states with lower tax rates, the purchase of BOLI and the origination
of tax advantaged loans. The Company's combined tax rate in 2005 was
38.3% compared to 39.8% in 2004.
Community Banking Update
HWFG made steady progress in growing both its loans and deposits
in 2005 and added strategically located banking offices to its
franchise. The $74.5 million of net loan growth emanated largely from
commercial and industrial and construction related loans. The growth
and mix of HWFG's portfolio is shown in the following table:
HWFG Net Loan Growth and Mix
(Dollars in millions)
- ----------------------------------------------------------------------
December 31, September 30, December 31,
2005 2005 2004
- ----------------------------------------------------------------------
% of % of % of
Loan Type Total Total Total Total Total Total
- ----------------------------------------------------------------------
Commercial Real Estate $253.2 37.6%$260.7 40.0%$260.8 43.6%
- ----------------------------------------------------------------------
Multi-family Real Estate 80.9 12.0% 76.0 11.7% 84.9 14.2%
- ----------------------------------------------------------------------
Construction (1) 70.9 10.5% 55.5 8.5% 35.0 5.8%
- ----------------------------------------------------------------------
Single-family Real Estate 115.9 17.2% 109.0 16.7% 100.5 16.8%
- ----------------------------------------------------------------------
Commercial and industrial loans 96.5 14.3% 94.3 14.5% 72.2 12.1%
- ----------------------------------------------------------------------
Land acquisition and
development 36.1 5.4% 34.5 5.3% 27.5 4.6%
- ----------------------------------------------------------------------
Consumer loans 26.7 4.0% 28.1 4.3% 23.7 4.0%
- ----------------------------------------------------------------------
Other loans (2) 1.3 0.2% 1.3 0.2% 1.0 0.2%
- ----------------------------------------------------------------------
Allowance, Deferred Fees &
Discounts/Premiums (8.6) -1.2% (8.2) -1.2% (7.2) -1.3%
- ----------------------------------------------------------------------
Net loans receivable $672.9 100.0% $651.2 100.0% $598.4 100.0%
- ----------------------------------------------------------------------
(1) Includes loans collateralized by residential, commercial and
land properties.
(2) Includes loans collateralized by deposits and consumer line of
credit loans.
HWFG's asset quality remained favorable with no nonperforming
loans at December 31, 2005 compared to $20 thousand at September 30,
2005 and $95 thousand at December 2004. HWFG did increase its reserves
for loan losses by $85 thousand during the fourth quarter 2005 based
on its analysis of the loan portfolio and its growth.
Deposits grew in 2005 from both organic and acquisition sources.
Average deposits were $672.0 million for the quarter ended December
31, 2005, up 16.9% from the $574.6 million for the same quarter of
2004. Average non-interest bearing deposits continued to grow at a
steady pace and were $50.0 million for the quarter ended December 31,
2005 compared to $47.5 million and $36.4 million for the quarters
ended September 30, 2005 and December 31, 2004, respectively. HWFG did
experience strong competition for certificates of deposits as market
rates increased. The cost of interest bearing deposits was 3.10% for
the December 2005 quarter compared to 1.99% for the December 2004
quarter, increasing 111 basis points over the comparative periods. The
Federal Funds rate, by comparison, increased 200 basis points in 2005.
HWFG continues to pursue the controlled growth of its franchise
through new banking offices and selected acquisitions. In 2005, HWFG
acquired a banking office and its deposits in Thousand Oaks,
California and opened a second banking office in the Scottsdale,
Arizona Airpark area. In 2006, HWFG will open its third Harrington
Bank office in Johnson County, Kansas in the Kansas City metro and a
Los Padres banking office in Surprise, Arizona. HWFG currently has two
letters of intent, which have been accepted, to acquire parcels in
Chandler, Arizona and the Phoenix, Arizona Deer Valley Airpark for
banking office expansion in 2007.
Closing Comments
In commenting on HWFG's results for the December 2005 quarter and
full year 2005, Craig J. Cerny, Chairman and CEO, stated, "2005 marked
HWFG's tenth year of operations and was highlighted by a high degree
of success in executing our strategy to grow our core banking
franchise of loans, deposits and HWM fees, while we made further
progress in identifying and acquiring new banking sites in our markets
for future expansion. Although our 2005 earnings growth did not meet
our double digit target due to the repricing lag in some of our
earning assets relative to liabilities and hedges, the strategic
reduction of our investment portfolio as spreads tightened, and the
promotional deposit rates paid in some of our new offices to attract
new customers, we increased earnings, controlled our banking risks,
and enhanced our franchise. Since HWFG's acquisition of Los Padres
Bank almost 10 years ago, we have approximately increased our loans by
4 times, our deposits by 4 times and our earnings by 18 times. We have
had a great deal of success over these 10 years and look forward to
more positive results in the future."
Harrington West Financial Group, Inc. is a $1.1 billion,
diversified, financial institution holding company for Los Padres Bank
and its division Harrington Bank. HWFG operates 15 full service
banking offices on the central coast of California, Scottsdale,
Arizona, and the Kansas City metro. The Company also owns Harrington
Wealth Management Company, a trust and investment management company
with $143.1 million in assets under management or custody.
This Release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act. All of the statements
contained in the Release, other than statements of historical fact,
should be considered forward-looking statements, including, but not
limited to, those concerning (i) the Company's strategies, objectives
and plans for expansion of its operations, products and services, and
growth of its portfolio of loans, investments and deposits, (ii) the
Company's beliefs and expectations regarding actions that may be taken
by regulatory authorities having oversight of the operation, (iii) the
Company's beliefs as to the adequacy of its existing and anticipated
allowances for loan and real estate losses, (iv) the Company's beliefs
and expectations concerning future operating results and (v) other
factors referenced in the Company's filings with the Securities and
Exchange Commission. Although the Company believes the expectations
reflected in those forward-looking statements are reasonable, it can
give no assurance that those expectations will prove to have been
correct. Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof and
are not intended to give any assurance as to future results. The
Company undertakes no obligation to publicly release any revisions to
these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
Consolidated Financial Data - Harrington West Financial Group, Inc.
(Unaudited)
(In thousands, except Quarter ended Year-to-date
per share data) Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
- ------------------------ ---------------------- ----------------------
Interest income $16,738 $14,021 $62,056 $52,266
Interest expense 9,186 6,432 31,898 22,718
---------------------- ----------------------
Net interest income 7,552 7,589 30,158 29,548
Provision for loan
losses 85 100 435 650
---------------------- ----------------------
Net interest income
after provision for
loan losses 7,467 7,489 29,723 28,898
Non-interest income:
Income (loss)
from trading
assets 64 386 936 1,261
Other gain
(loss) (2) (10) (15) (246)
Banking fee
income 957 806 3,948 3,148
---------------------- ----------------------
Non-
interest
income 1,019 1,182 4,869 4,163
Non-interest expense 5,349 4,979 21,076 19,416
---------------------- ----------------------
Income before income
taxes 3,137 3,692 13,516 13,645
Provision for income
taxes 1,085 1,501 5,180 5,436
---------------------- ----------------------
Net income $2,052 $2,191 $8,336 $8,209
====================== ======================
Quarter ended Year-to-date
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
---------------------- ----------------------
Per share:
Net income - basic $0.38 $0.42 $1.56 $1.56
Net income - diluted $0.36 $0.39 $1.48 $1.46
Weighted average shares
used in Basic EPS
calculation 5,373,936 5,278,934 5,347,757 5,256,030
Weighted average shares
used in Diluted EPS
calculation 5,642,716 5,644,904 5,620,556 5,603,680
Cash dividends $0.13 $0.10 $0.47 $0.88
Book value at period-end $11.06 $9.98
Ending shares 5,384,843 5,278,934
Financial ratios
Return on average assets 0.72% 0.80% 0.75% 0.82%
Return on average equity 13.76% 16.94% 14.61% 16.37%
Average equity to
average assets
(leverage ratio) 5.23% 4.75% 5.14% 4.93%
Net interest margin 2.81% 2.89% 2.83% 2.90%
Efficiency ratio 62.86% 59.29% 61.80% 59.04%
Period averages
Total assets $1,132,138 $1,083,097 $1,109,893 $1,032,466
Total loans, net of
allowance 659,093 597,726 636,490 561,665
Total earning assets 1,086,463 1,058,051 1,060,287 1,007,896
Total deposits 672,020 574,638 636,695 563,032
Total equity 59,181 51,462 57,076 50,372
Balance sheet at period-end
Cash and due from banks $19,311 $13,238
Investments and fed
funds sold 388,407 432,345
Loans, before allowance for loan
losses 678,551 603,670
Allowance for loan
losses (5,661) (5,228)
Goodwill and core deposit
intangibles 6,683 4,904
Other assets 52,644 32,401
----------------------
Total assets $1,139,935 $1,081,330
======================
Interest bearing
deposits $619,344 $564,552
Non-interest bearing
deposits 49,801 33,630
Other borrowings 403,787 421,463
Other liabilities 7,429 9,025
Shareholders' equity 59,574 52,660
----------------------
Total liabilities and
shareholders' equity $1,139,935 $1,081,330
======================
Asset quality and capital - at
period-end
Non-accrual loans $- $95
Loans past due 90 days or more - -
Other real estate owned - -
----------------------
Total non performing assets $- $95
======================
Allowance for losses to
loans 0.84% 0.87%
Non-accrual loans to
total loans 0.00% 0.02%
Non-performing assets total assets 0.00% 0.01%
Quarter Ended
-------------------------------------------------------
(In thousands,
except per Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
share data) 2005 2005 2005 2005 2004
- ----------------------------------------------------------------------
Interest income $16,738 $15,847 $15,163 $14,308 $14,021
Interest
expense 9,186 8,285 7,680 6,747 6,432
-------------------------------------------------------
Net interest
income 7,552 7,562 7,483 7,561 7,589
Provision for
loan losses 85 - 200 150 100
-------------------------------------------------------
Net interest
income after
provision for
loan losses 7,467 7,562 7,283 7,411 7,489
Non-interest
income:
Income (loss)
from trading
assets 64 89 71 712 386
Other gain
(loss) (2) (7) 1 (7) (10)
Banking fee
income 957 1,159 974 858 806
-------------------------------------------------------
Non-interest
income 1,019 1,241 1,046 1,563 1,182
Non-interest
expense 5,349 5,379 5,138 5,210 4,979
-------------------------------------------------------
Income before
income taxes 3,137 3,424 3,191 3,764 3,692
Provision for
income taxes 1,085 1,326 1,240 1,529 1,501
-------------------------------------------------------
Net income $2,052 $2,098 $1,951 $2,235 $2,191
=======================================================
Per share:
Net income -
basic $0.38 $0.39 $0.36 $0.42 $0.42
Net income -
diluted $0.36 $0.37 $0.35 $0.40 $0.39
Weighted
average shares
used
in Basic EPS
calculation 5,373,936 5,364,077 5,360,331 5,291,640 5,278,934
Weighted
average shares
used
in Diluted EPS
calculation 5,642,716 5,649,134 5,639,756 5,616,246 5,644,904
Cash dividends
per share $0.13 $0.12 $0.11 $0.11 $0.10
Book value at
period-end $11.06 $10.85 $10.46 $10.47 $9.98
Ending shares 5,384,843 5,364,498 5,363,853 5,337,828 5,278,934
Financial
ratios
Return on
average assets 0.72% 0.75% 0.71% 0.82% 0.80%
Return on
average equity 13.76% 14.68% 13.94% 16.47% 16.94%
Average equity
to average
assets
(leverage
ratio) 5.23% 5.24% 5.06% 4.98% 4.75%
Net interest
margin 2.81% 2.84% 2.82% 2.84% 2.89%
Efficiency
ratio 62.86% 61.68% 60.76% 61.88% 59.29%
Period averages
Total assets 1,132,138 1,113,282 1,106,249 1,090,606 1,083,097
Total loans,
net of
allowance 659,093 641,446 631,198 614,185 597,726
Total earning
assets 1,086,463 1,067,568 1,065,574 1,064,977 1,058,051
Total deposits 672,020 662,787 608,855 603,755 574,638
Total equity 59,181 56,002 56,002 54,286 51,462
Balance sheet
at period-end
Cash and due
from banks $19,311 $18,314 $14,271 $11,589 $13,238
Investments and
fed funds sold 388,407 391,671 402,085 422,963 432,345
Loans, before
allowance for
loan losses 678,551 656,822 640,466 626,797 603,670
Allowance for
loan losses (5,661) (5,576) (5,576) (5,377) (5,228)
Goodwill and
core deposit
intangibles 6,683 6,686 6,783 4,856 4,904
Other assets 52,644 53,730 51,237 32,418 32,401
-------------------------------------------------------
Total assets $1,139,935 $1,121,647 $1,109,266 $1,093,246 $1,081,330
=======================================================
Interest
bearing
deposits $619,344 $622,961 $605,259 $562,713 $564,552
Non-interest
bearing
deposits 49,801 48,741 40,056 38,800 33,630
Other
borrowings 403,787 377,939 400,954 430,253 421,463
Other
liabilities 7,429 13,783 6,895 5,585 9,025
Shareholders'
equity 59,574 58,223 56,102 55,895 52,660
Total
liabilities
and
shareholders'
-------------------------------------------------------
equity $1,139,935 $1,121,647 $1,109,266 $1,093,246 $1,081,330
=======================================================
Asset quality and capital
- at period-end
Non-accrual
loans $- $20 $608 $112 $95
Loans past due
90 days or
more - - - - -
Other real
estate owned - - - - -
-------------------------------------------------------
Total non
performing
assets $- $20 $608 $112 $95
=======================================================
Allowance for
losses to
loans 0.84% 0.85% 0.87% 0.86% 0.87%
Non-accrual
loans to total
loans 0.00% 0.00% 0.10% 0.02% 0.02%
Non-performing
assets total
assets 0.00% 0.00% 0.05% 0.01% 0.01%
Three months ended Three months ended
(In thousands) December 31, 2005 December 31, 2004
---------------------------- ---------------------------
Rate Rate
Balance Income (6) Balance Income (6)
---------------------------- ---------------------------
Interest earning
assets:
Loans receiv-
able
(1) $659,093 $11,641 7.05% $597,726 $9,640 6.44%
FHLB stock 16,293 193 4.70% 14,780 117 3.15%
Securities and
trading account
assets (2) 400,823 4,856 4.85% 434,035 4,216 3.89%
Cash and cash
equivalents (3) 10,254 48 1.86% 11,509 35 1.21%
------------------- ------------------
Total interest
earning assets 1,086,463 16,738 6.15% 1,058,050 14,008 5.29%
-------- -------
Non-interest-
earning assets 45,675 25,046
----------- -----------
Total assets $1,132,138 $1,083,096
=========== ===========
Interest bearing
liabilities:
Deposits:
NOW and money
market accounts $117,873 $562 1.89% $122,840 $340 1.10%
Passbook accounts
and certificates
of deposit 504,099 4,291 3.38% 451,798 2,530 2.23%
------------------- ------------------
Total deposits 621,972 4,853 3.10% 574,638 2,870 1.99%
FHLB advances (4) 308,696 3,444 4.43% 308,819 2,735 3.52%
Reverse
repurchase
agreements 59,064 447 2.96% 79,908 525 2.57%
Other
borrowings (5) 25,774 442 6.71% 25,000 304 4.76%
------------------- ------------------
Total
interest-
bearing
liabili-
ties 1,015,506 9,186 3.57% 988,365 6,434 2.57%
-------- -------
Non-interest-bearing
deposits 50,048 36,381
Non-interest-bearing
liabilities 7,403 6,888
----------- -----------
Total
liabilities 1,072,957 1,031,634
Stockholders' equity 59,181 51,462
----------- -----------
Total liabilities
and stockholders'
equity $1,132,138 $1,083,096
=========== ===========
Net interest-earning
assets
(liabilities) $70,957 $69,685
=========== ===========
Net
interest
income/interest
rate spread $7,552 2.58% $7,574 2.72%
=============== ==============
Net interest margin 2.81% 2.89%
======= =======
Ratio of average
interest-earning
assets to
average interest-
bearing
liabilities 106.99% 107.05%
======= =======
1) Balance includes non-accrual loans. Income includes fees earned
on loans originated and accretion of deferred loan fees.
2) Consists of securities classified as available for sale, held
to maturity and trading account assets.
3) Consists of cash and due from banks and Federal funds sold.
4) Interest on FHLB advances is net of hedging costs. Hedging
costs include interest income and expense and ineffectiveness
adjustments for cash flow hedges. The Company uses pay-fixed, receive
floating LIBOR swaps to hedge the short term repricing characteristics
of the floating FHLB advances.
5) Consists of other debt and a note payable under a revolving
line of credit.
6)Annualized.
Twelve months ended Twelve months ended
(In thousands) December 31, 2005 December 31, 2004
---------------------------- ----------------------------
Rate Rate
Balance Income (6) Balance Income (6)
---------------------------- ----------------------------
Interest earning
assets:
Loans
receivable
(1) $636,490 $43,269 6.80% $561,665 $36,166 6.44%
FHLB stock 16,237 709 4.37% 14,197 573 4.04%
Securities and
trading
account
assets (2) 408,753 17,914 4.38% 419,716 15,439 3.68%
Cash and cash
equivalents
(3) 9,602 164 1.71% 12,318 88 0.71%
----------- -------- ----------- --------
Total
interest
earning
assets 1,071,082 62,056 5.79% 1,007,896 52,266 5.19%
-------- --------
Non-interest-
earning
assets 38,811 24,570
----------- -----------
Total
assets $1,109,893 $1,032,466
=========== ===========
Interest
bearing
liabilities:
Deposits:
NOW and money
market
accounts $119,742 $1,945 1.62% $120,353 $1,154 0.96%
Passbook
accounts
and
certificates
of
deposit 475,374 13,723 2.89% 442,679 9,475 2.14%
----------- -------- ----------- --------
Total
deposits 595,116 15,668 2.63% 563,032 10,629 1.89%
FHLB advances
(4) 314,066 12,732 4.05% 284,977 9,285 3.26%
Reverse
repurchase
agreements 69,720 1,928 2.73% 75,541 1,981 2.58%
Other
borrowings
(5) 25,774 1,570 6.01% 17,623 823 4.59%
----------- -------- ----------- --------
Total
interest-
bearing
liabi-
lities 1,004,676 31,898 3.16% 941,173 22,718 2.39%
-------- --------
Non-interest-
bearing
deposits 41,579 31,563
Non-interest-
bearing
liabilities 6,562 9,358
----------- -----------
Total
liabi-
lities 1,052,817 982,094
Stockholders'
equity 57,076 50,372
----------- -----------
Total
liabilities
and
stockholders'
equity $1,109,893 $1,032,466
=========== ===========
Net interest-
earning assets
(liabilities) $66,406 $66,723
=========== ===========
Net interest
income/interest rate
spread $30,158 2.63% $29,548 2.80%
======== ======= ======== =======
Net interest
margin 2.83% 2.96%
======= =======
Ratio of average interest-
earning assets to
average
interest-
bearing
liabilities 106.61% 107.09%
======= =======
1) Balance includes non-accrual loans. Income includes fees earned
on loans originated and accretion of deferred loan fees.
2) Consists of securities classified as available for sale, held
to maturity and trading account assets.
3) Consists of cash and due from banks and Federal funds sold.
4) Interest on FHLB advances is net of hedging costs. Hedging
costs include interest income and expense and ineffectiveness
adjustments for cash flow hedges. The Company uses pay-fixed, receive
floating LIBOR swaps to hedge the short term repricing characteristics
of the floating FHLB advances.
5) Consists of other debt and a note payable under a revolving
line of credit.
6) Annualized.
CONTACT: Harrington West Financial Group, Inc.
Craig J. Cerny, 480-596-6555
Lisa F. Watkins 805-688-6644 (share transfer information)