Exhibit 99.1
Nara Bancorp Reports $0.28 Earnings Per
Diluted Share for First Quarter 2007
LOS ANGELES--(BUSINESS WIRE)--April 30, 2007--Nara Bancorp, Inc.
(the "Company") (NASDAQ: NARA), the holding company of Nara Bank (the
"Bank") reported net income of $7.3 million, or $0.28 per diluted
share, for first quarter 2007, a 7% decrease compared to net income of
$7.9 million, or $0.30 per diluted share, for first quarter 2006. The
decrease in net income was primarily due to compression in the
Company's net interest margin.
Min Kim, President and Chief Executive Officer, said, "Our first
quarter results were affected by a highly competitive loan pricing
environment, which led to lower than expected loan growth. We have
made adjustments in pricing strategies that we believe are already
having a positive effect on loan production. On the liability side, we
are pleased with our efforts to attract more core deposits. A new
money market product enabled us to generate annualized growth of 68%
in our money market accounts during the first quarter, while keeping
our cost of interest-bearing liabilities stable. Importantly, our
asset quality remains healthy, and we do not see any trends to
indicate that our credit costs will exceed our expected range for the
year."
First Quarter Financial Summary (2007 vs. 2006):
-- Net income decreased 7% to $7.3 million
-- Diluted EPS decreased 7% to $0.28 per share
-- Net interest income increased 1% to $22.7 million
-- Net interest margin decreased 55 basis points to 4.62%
-- Non-interest income decreased 9% to $4.6 million
-- Non-interest expense increased 6% to $13.9 million
-- Net loans receivable increased 15% over prior year to $1.73
billion
-- Deposits increased 6% over prior year to $1.75 billion
-- Non-performing assets to total assets ratio increased to 0.42%
from 0.28%
Operating Results for First Quarter 2007
Net Interest Income and Net Interest Margin. First quarter net
interest income before provision for loan losses increased 1% to $22.7
million from $22.6 million for first quarter 2006. The slight
improvement was attributable to a $37 million increase in the net
average interest-earning assets, which offset the 64 basis points
decline in the net interest spread. The resulting first quarter net
interest margin (net interest income divided by average
interest-earning assets) decreased 55 basis points to 4.62% from
5.17%.
The weighted average yield on the loan portfolio for first quarter
2007 increased 2 basis points to 8.71% from 8.69% for the same period
last year. The increase was the result of the prime rate-based portion
of the loan portfolio repricing upward as interest rates increased
during the first half of 2006, offset by the increase in the
percentage of fixed rate loans in the portfolio that have lower
yields. The weighted average yield on our variable rate and fixed rate
portfolios (excluding loan discount accretion) at March 31, 2007 were
9.27% and 7.67%, respectively, compared to 8.76% and 7.53% at March
31, 2006. At March 31, 2007, 42% of our loan portfolio consisted of
fixed-rate loans, compared to 24% at March 31, 2006. Also, at March
31, 2007, the loan portfolio yield (excluding loan discount accretion)
was 8.65% compared to 8.58% at March 31, 2006.
The weighted average cost of deposits for first quarter 2007
increased 86 basis points to 3.80% from 2.94% for the same period last
year. The cost of time deposits increased 100 basis points to 5.22%
from 4.22%, accounting for a substantial portion of the increase. The
weighted average cost of borrowings for first quarter 2007 decreased
to 5.70% from 6.57% for first quarter 2006, largely due to the $69
million net increase since March 2006 in lower costing FHLB advances,
resulting in an average cost for FHLB advances of 4.21%, compared to
4.33% for first quarter 2006.
Sequentially, first quarter 2007 net interest income before
provision for loan losses decreased $1.5 million, or 6%, from the
fourth quarter 2006. Net average interest-earning assets increased 4%
and the net interest spread decreased by 50 basis points, resulting in
a decline in the net interest margin to 4.62% from 5.10%.
During the first quarter 2007, three loans were transferred to
non-accrual status, resulting in a reversal of $350 thousand in
interest income, which negatively affected the net interest margin by
7 basis points. Excluding these items, the first quarter 2007 net
interest margin would have been 4.69%. During the fourth quarter of
2006, the net interest margin benefited from the recognition of
delinquent interest, totaling $238 thousand, relating to the recovery
of delinquent interest from a non-accrual loan placed back on accrual
status. Excluding this item, the fourth quarter 2006 net interest
margin would have been 5.05%.
In the first quarter of 2007, the Bank was able to maintain the
cost of the time deposits stable at 5.22%, following an upward
re-pricing by 16 basis points during the fourth quarter of 2006. The
cost of the time deposits is anticipated to stabilize or slightly
decrease in future periods as higher costing time deposits re-price
downwards.
Prepayment penalty income for first quarter 2007, first quarter
2006, and fourth quarter 2006 was $142 thousand, $204 thousand and
$553 thousand, respectively. Excluding the effects of non-accrual loan
interest income and prepayment penalty income, the net interest margin
for first quarter 2007, first quarter 2006, and fourth quarter 2006
was 4.66%, 5.13% and 4.94%, respectively.
Non-interest Income. First quarter 2007 non-interest income was
lower by $438 thousand or 9% compared to first quarter 2006. This
decrease was primarily due to a decrease in net gains on sales of SBA
loans. Net gains on sales of SBA loans decreased $497 thousand, or
29%, to $1.2 million for first quarter 2007 from $1.7 million for
first quarter 2006. The decrease was primarily due to a reduction in
the average sale premiums and an increase in commission paid related
to loan originations. The net realized gain on sale for first quarter
2007 was 4.9% of the gross loans sold compared to 7.0% during first
quarter 2006 and 5.6% during fourth quarter 2006.
Sequentially, non-interest income decreased 15%, primarily due to
the recognition of a gain of $1.3 million on the sale of commercial
real estate loans during the fourth quarter 2006. Net gains on sales
of SBA loans increased 12% to $1.2 million during the first quarter
2007, compared to $1.1 million in fourth quarter 2006.
Non-interest Expense. First quarter non-interest expense increased
6% to $13.9 million from $13.2 million for the same period last year.
Compensation expense decreased by 1% over the same quarter of the
prior year. Included in the compensation expense during first quarter
2007 was a reversal of a $600 thousand contingent liability accrual
established during 2002 related to a past compensation matter for
which the Company has now determined that no liability exists.
Excluding this item, compensation expense would have increased 7% over
the same quarter of the prior year due to an increase in the full-time
equivalent employee count from 378 to 407, and a $129 thousand
increase in stock compensation expense. Occupancy expense increased
14%, primarily due to lease renewals at higher lease rates for four
branches and a new lease related to the relocation of our corporate
headquarters during the second half of 2006. Furniture and equipment
expense increased 20%, primarily due to the new Garden Grove branch,
the new corporate headquarters, and IT related equipment purchased to
support and enhance the Company's technology. Advertising and
marketing expense also increased 20%, primarily to support increased
marketing efforts. Professional fees increased by $168 thousand, or
25%, primarily due to expense related to the current arbitration
matter. Other expense increased 12%, primarily due to an increase in
our FDIC insurance premium under the new assessment formula.
Sequentially, non-interest expense in first quarter 2007 increased
2% to $13.9 million from $13.6 million in fourth quarter 2006. This
increase was primarily due to increases in data processing and
professional fees. Data processing fees increased primarily due to the
year-end processing performed during the first quarter of 2007.
Professional fees increased 28% primarily due to legal expense related
to the arbitration matter previously mentioned.
Income Taxes. The effective tax rate was 41.1% for first quarter
2007 compared to 41.0% for first quarter 2006, and 36.2% for fourth
quarter 2006. The lower effective tax rate for fourth quarter 2006 was
due primarily to the resolution of certain tax contingencies during
fourth quarter 2006, resulting in a reduction of deferred tax
liabilities and a credit to income tax expense of $772 thousand.
Balance Sheet Summary
At March 31, 2007 total assets were $2.12 billion compared to
$2.05 billion at December 31, 2006, an increase of 15% (annualized).
Gross loans receivable were $1.75 billion at March 31, 2007, an
increase of 8% (annualized) from the $1.71 billion at December 31,
2006. New loan production was $139 million during first quarter 2007,
compared to $198 million during fourth quarter 2006 and $182 million
during the first quarter 2006. Loan pay-offs were at the same level
during first quarter 2007 and first quarter 2006, but lower than
fourth quarter 2006 at $67 million, $67 million and $92 million,
respectively.
SBA loan originations were $28.1 million during first quarter 2007
compared to $35.4 million during first quarter 2006 and $39.2 million
during fourth quarter 2006. Sales of SBA loans during first quarter
2007 were $25.0 million, compared to $24.5 million during first
quarter 2006 and $19.4 million during fourth quarter 2006.
Total deposits were $1.75 billion at March 31, 2007, an increase
of 9% (annualized) from $1.71 billion at December 31, 2006. The
largest increases came in money market deposits and jumbo certificates
of deposit. Money market deposits increased $31.5 million, or 68%
(annualized), and jumbo CDs increased $40.4 million, or 21%
(annualized), during first quarter of 2007. The increase in money
market accounts was largely due to a new product developed in fourth
quarter 2006 with the rate of 5.0% in an effort to attract core
deposits.
FHLB advances were $100.0 million at March 31, 2007 compared to
$76.0 million at December 31, 2006. FHLB advances during first quarter
2007 were used to augment deposits as a source of match-funding $24
million of fixed-rate loan originations.
Asset Quality
The Company recorded a provision for loan losses of $980 thousand
in first quarter 2007, compared to $1.1 million in the same period of
the prior year, and $1.4 million in fourth quarter 2006.
Non-performing assets at March 31, 2007 were $8.9 million, or
0.42% of total assets, compared to $3.6 million or 0.17% of total
assets at December 31, 2006 and $5.4 million or 0.28% of total assets,
at March 31, 2006
Non-performing loans at March 31, 2007 were $8.7 million, or 0.50%
of total loans, compared to $3.3 million, or 0.19% of total loans, at
December 31, 2006 and $4.6 million, or 0.30% of total loans, at March
31, 2006. The increase in non-performing loans during the quarter was
primarily from three borrowing relationships aggregating $6.4 million,
collateralized by a hotel property, a gas station, and a commercial
retail rental property. All of the above loans have been placed on
non-accrual, resulting in a reversal of accrued interest income this
quarter amounting to $350 thousand. All of these loans are fully
secured, and no loss is anticipated. Although non-performing loans
increased during the first quarter of 2007, the collateral underlying
the loans that moved into non-performing status required that the
Company only establish a nominal specific allowance for loan losses
for these credits.
Net loan charge-offs during first quarter 2007 were $1.3 million,
or 0.31% of average loans on annualized basis, compared to $1.2
million during fourth quarter 2006, or 0.27% of average loans on an
annualized basis, and also compared to $300 thousand, or 0.08% of
average loans on an annualized basis, for first quarter 2006. First
quarter 2007 charge-offs primarily consisted of loans to retail
businesses averaging approximately $100 thousand. The net loan
charge-offs of $1.3 million during the first quarter of 2007 were
substantially reserved at December 31, 2006.
The allowance for loan losses at March 31, 2007 was $18.8 million,
or 1.07% of gross loans receivable, compared to $19.1 million, or
1.11% of gross loans receivable, at December 31, 2006 and $18.4
million, or 1.21% of gross loans receivable, at March 31, 2006. The
Company experienced moderate loan growth during the first quarter of
2007 and a decrease in special mention and classified assets, net of
impaired loans, from $6.6 million at December 31, 2006 to $5.1 million
at March 31, 2007. These items were contributing factors to the
reduction in the allowance for loan losses ratio to gross loans
receivable.
Performance Ratios
The annualized return on average equity (ROE) for first quarter
2007 was 15.26%, compared to 20.56% for fourth quarter 2006 and 20.72%
for first quarter 2006.
The annualized return on average assets (ROA) for first quarter
2007 was 1.41%, compared to 1.88% for fourth quarter 2006 and 1.72%
for first quarter 2006.
The efficiency ratio for first quarter 2007 was 51.01%, compared
to 47.74% for first quarter 2006. The increase in the efficiency ratio
was primarily due to the nominal growth in net interest income, a 9%
decrease in non-interest income and a 6% increase in non-interest
expense.
Capital
At March 31, 2007, the Company continued to exceed the regulatory
capital requirements to be classified as a "well-capitalized
institution." The Leverage Ratio was 11.16% compared to 11.18% at
December 31, 2006. The Tier 1 Risk-based Ratio was 12.29% compared to
12.16% at December 31, 2006. The Total Risk-based Ratio was 13.30%
compared to 13.21% at December 31, 2006.
Earnings Outlook
For the full year of 2007, the Company continues to expect fully
diluted earnings per share to range between $1.29 and $1.33.
Commenting on the outlook, Ms. Kim said, "Since adjusting our loan
pricing strategies, we have seen a meaningful increase in loan
production. We believe that our earning asset growth will help us to
more effectively offset the pressure on our net interest margin in
future quarters. We also expect to generate higher non-interest income
over the course of the year as the additions we have made to our SBA
lending group continue to gain traction. While we expect the operating
environment will remain challenging, we believe we can deliver
improved financial performance over the remainder of 2007."
Conference Call and Webcast
A conference call with simultaneous webcast to discuss the
Company's first quarter 2007 financial results will be held tomorrow,
May 1, 2007 at 9:30 a.m. Pacific / 12:30 p.m. Eastern. Interested
participants and investors may access the conference call by dialing
800-329-9097 (domestic) or 617-614-4929 (international), passcode
36713712. There will also be a live webcast of the call available at
the Investor Relations section of Nara Bank's web site at
www.narabank.com. Web participants are encouraged to go to the web
site at least 15 minutes prior to the start of the call to register,
download and install any necessary audio software.
After the live webcast, a replay will remain available in the
Investor Relations section of Nara Bancorp's web site. A replay of the
call will be available at 888-286-8010 (domestic) or 617-801-6888
(international) through May 8, 2007; the passcode is 79433149.
About Nara Bancorp, Inc.
Nara Bancorp, Inc. is the parent company of Nara Bank, which was
founded in 1989. Nara Bank is a full-service community bank
headquartered in Los Angeles, with 18 branches and 7 loan production
offices in the United States. Nara Bank operates full-service branches
in California and New York, with loan production offices in
California, Washington, Texas, Georgia, Illinois, New Jersey, and
Virginia. Nara Bank was founded specifically to serve the needs of
Korean-Americans, one of the fastest-growing Asian ethnic communities
over the past decade. Presently, Nara Bank serves a diverse group of
customers mirroring its communities. Nara Bank specializes in core
business banking products for small and medium-sized companies, with
emphasis in commercial real estate and business lending, SBA lending
and international trade financing. Nara Bank is a member of the FDIC
and is an Equal Opportunity Lender. For more information on Nara Bank,
visit our website at www.narabank.com. Nara Bancorp, Inc. stock is
listed on NASDAQ under the symbol "NARA."
Forward-Looking Statements
This press release contains forward-looking statements including
statements about future operations and projected full-year financial
results that are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by
such forward looking statements, including, but not limited to
economic, competitive, governmental and technological factors
affecting the Company's operations, markets, products, services, and
pricing. Readers should carefully review the risk factors and the
information that could materially affect the Company's financial
results and business, described in documents the Company files from
time to time with the Securities and Exchange Commission, including
its quarterly reports on Form 10-Q and Annual Reports on Form 10-K,
and particularly the discussion of business considerations and certain
factors that may affect results of operations and stock price set
forth therein. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. The Company undertakes no obligation to revise or
publicly release the results of any revision to these forward-looking
statements.
Nara Bancorp, Inc.
Consolidated Statements of Financial Condition
Unaudited (Dollars in Thousands, Except for Share Data)
Assets % %
3/31/2007 12/31/2006 change 3/31/2006 change
----------- ------------------- -------------------
Cash and due from
banks $31,600 $36,300 -13% $38,306 -18%
Federal funds sold 82,000 44,500 84% 75,500 9%
Term federal funds
sold - - 0% 7,000 -100%
Securities
available for
sale, at fair
value 176,071 162,851 8% 185,653 -5%
Securities held to
maturity, at
amortized cost
(fair value:
December 31, 2006
- $1,002; March
31, 2006 - $1,015) - 1,000 -100% 1,000 -100%
Federal Home Loan
Bank and Federal
Reserve Bank stock 9,868 9,758 1% 8,341 18%
Loans held for
sale, at the lower
of cost or market 7,978 15,162 -47% 15,422 -48%
Loans receivable 1,749,242 1,714,865 2% 1,524,377 15%
Allowance for loan
losses (18,752) (19,112) -2% (18,398) 2%
----------- ---------------------------------------
Net loans 1,730,490 1,695,753 2% 1,505,979 15%
----------- ---------------------------------------
Accrued interest
receivable 8,664 8,974 -3% 7,694 13%
Premises and
equipment, net 11,972 11,941 0% 8,575 40%
Cash surrender
value of life
insurance 15,225 15,113 1% 14,775 3%
Goodwill 2,347 2,347 0% 2,347 0%
Other intangible
assets, net 2,735 2,899 -6% 3,416 -20%
Other assets 44,085 40,387 9% 37,302 18%
----------- ---------------------------------------
Total assets $2,123,035 $2,046,985 4% $1,911,310 11%
=========== =======================================
Liabilities
Deposits $1,750,976 $1,712,235 2% $1,650,623 6%
Borrowings from
Federal Home Loan
Bank 100,000 76,000 32% 31,000 223%
Subordinated
debentures 39,268 39,268 0% 39,268 0%
Accrued interest
payable 10,840 8,258 31% 11,655 -7%
Other liabilities 27,396 24,597 11% 24,307 13%
----------- ---------------------------------------
Total liabilities 1,928,480 1,860,358 4% 1,756,853 10%
----------- ---------------------------------------
Stockholders'
Equity
Common stock,
$0.001 par value;
authorized,
40,000,000 shares;
issued and
outstanding,
26,131,672,
26,107,672 and
25,557,948 shares
at March 31, 2007,
December 31, 2006
and March 31,
2006, respectively $26 $26 0% $25 4%
Capital surplus 78,563 77,939 1% 70,900 11%
Retained earnings 118,567 111,978 6% 88,192 34%
Accumulated other
comprehensive
loss, net (2,601) (3,316) -22% (4,660) -44%
----------- ------------------- -------------------
Total
stockholders'
equity 194,555 186,627 4% 154,457 26%
----------- ------------------- -------------------
Total liabilities
and
stockholders'
equity $2,123,035 $2,046,985 4% $1,911,310 11%
=========== =================== ===================
Nara Bancorp, Inc.
Consolidated Statements of Income
Unaudited (Dollars in Thousands, Except for Share and Per Share Data)
Three Months Ended,
---------------------------------------------------
% %
3/31/2007 12/31/2006 change 3/31/2006 change
----------- ---------------------------------------
Interest income:
Interest and fees
on loans $38,244 $38,950 -2% $32,604 17%
Interest on
securities 2,053 2,151 -5% 1,884 9%
Interest on
federal funds
sold and other
investments 495 324 53% 792 -38%
----------- ---------------------------------------
Total interest
income 40,792 41,425 -2% 35,280 16%
----------- ---------------------------------------
Interest expense:
Interest on
deposits 16,299 15,245 7% 11,589 41%
Interest on other
borrowings 1,758 1,963 -10% 1,122 57%
----------- ---------------------------------------
Total interest
expense 18,057 17,208 5% 12,711 42%
----------- ---------------------------------------
Net interest income
before provision
for loan losses 22,735 24,217 -6% 22,569 1%
Provision for loan
losses 980 1,362 -28% 1,080 -9%
----------- ---------------------------------------
Net interest income
after provision
for loan losses 21,755 22,855 -5% 21,489 1%
----------- ---------------------------------------
Non-interest
income:
Service fees on
deposit accounts 1,620 1,553 4% 1,537 5%
Net gains on
sales of SBA
loans 1,220 1,091 12% 1,717 -29%
Net gains on
sales of other
loans - 1,272 N/A - N/A
Net gains on
sales of
securities
available-for-
sale - 92 N/A - N/A
Other income and
fees 1,764 1,439 23% 1,788 -1%
----------- ---------------------------------------
Total non-
interest
income 4,604 5,447 -15% 5,042 -9%
----------- ---------------------------------------
Non-interest
expense:
Salaries and
employee
benefits 6,714 6,857 -2% 6,811 -1%
Occupancy 2,075 2,087 -1% 1,816 14%
Furniture and
equipment 625 639 -2% 520 20%
Advertising and
marketing 662 655 1% 551 20%
Data processing
and
communications 954 781 22% 953 0%
Professional fees 846 663 28% 678 25%
Other 2,070 1,965 5% 1,853 12%
----------- ---------------------------------------
Total non-
interest
expense 13,946 13,647 2% 13,182 6%
----------- ---------------------------------------
Income before
income taxes 12,413 14,655 -15% 13,349 -7%
Income taxes 5,105 5,298 -4% 5,470 -7%
----------- ---------------------------------------
Net Income $7,308 $9,357 -22% $7,879 -7%
=========== =======================================
Earnings Per Share:
Basic $0.28 $0.36 $0.31
Diluted $0.28 $0.35 $0.30
Average Shares
Outstanding
Basic 26,123,405 26,103,639 25,473,400
Diluted 26,537,416 26,533,757 26,140,846
Nara Bancorp, Inc.
Supplemental Data
Unaudited (Dollars in Thousands)
(Annualized)
At or for the Three Months Ended,
---------------------------------
Profitability measures: 3/31/2007 12/31/2006 3/31/2006
---------- ----------------------
ROA 1.41% 1.88% 1.72%
ROE 15.26% 20.56% 20.72%
Net interest margin, including loan
prepayment fee income 4.62% 5.10% 5.17%
Net interest margin, excluding loan
prepayment fee income 4.59% 4.99% 5.13%
Efficiency ratio 51.01% 46.01% 47.74%
Yield on loan portfolio 8.71% 9.21% 8.69%
Yield on interest-earning assets 8.29% 8.73% 8.09%
Cost of interest-bearing deposits 4.84% 4.78% 3.80%
Cost of total deposits 3.80% 3.68% 2.94%
Cost of interest-bearing
liabilities 4.91% 4.91% 3.95%
Cost of time deposits 5.22% 5.22% 4.22%
Cost of funds 3.93% 3.87% 3.09%
Net interest spread (yield on
average interest-earning assets -
average cost of funds) 4.36% 4.86% 5.00%
For the Three Months Ended,
---------------------------------------------------
% %
3/31/2007 12/31/2006 change 3/31/2006 change
----------- ---------------------------------------
AVERAGE BALANCES
Gross loans,
includes loans
held for sale $1,755,760 $1,691,340 4% $1,500,177 17%
Interest-earning
assets 1,967,142 1,898,348 4% 1,744,924 13%
Total assets 2,066,373 1,995,194 4% 1,836,238 13%
Interest-bearing
deposits 1,348,086 1,276,231 6% 1,218,324 11%
Interest-bearing
liabilities 1,471,577 1,401,350 5% 1,286,621 14%
Non-interest-
bearing demand
deposits 368,043 378,703 -3% 360,460 2%
Stockholders'
Equity 191,604 182,019 5% 152,105 26%
LOAN PORTFOLIO % %
COMPOSITION: 3/31/2007 12/31/2006 change 3/31/2006 change
----------- ---------------------------------------
Commercial loans $562,406 $565,759 -1% $495,080 14%
Real estate loans 1,145,196 1,102,072 4% 973,903 18%
Consumer and other
loans 43,945 49,201 -11% 58,214 -25%
----------- ---------------------------------------
Loans outstanding 1,751,547 1,717,032 2% 1,527,197 15%
Unamortized
deferred loan fees
- net of costs (2,305) (2,167) 6% (2,820) -18%
----------- ---------------------------------------
Loans, net of
deferred loan
fees and costs 1,749,242 1,714,865 2% 1,524,377 15%
Allowance for loan
losses (18,752) (19,112) -2% (18,398) 2%
----------- ---------------------------------------
Loan receivable,
net $1,730,490 $1,695,753 2% $1,505,979 15%
=========== =======================================
For the Three Months Ended,
------------------------------------------------------
ALLOWANCE FOR % %
LOAN LOSSES: 3/31/2007 12/31/2006 Change 3/31/2006 Change
----------- ------------------------------------------
Balance at
Beginning of
Period $19,112 $18,909 1% $17,618 8%
Provision for
Loan Losses 980 1,362 -28% 1,080 -9%
Recoveries 191 108 77% 351 -46%
Charge Offs (1,531) (1,267) 21% (651) 135%
----------- ------------------------------------------
Balance at End
of Period $18,752 $19,112 -2% $18,398 2%
=========== ==========================================
Net charge-
off/Average
gross loans
(annualized) 0.31% 0.27% 0.08%
NON-PERFORMING
ASSETS 3/31/2007 12/31/2006 3/31/2006
----------- ----------------------
Delinquent Loans
90 days or more
on Non-Accrual
Status $8,722 $3,271 $4,589
Delinquent Loans
90 days or more
on Accrual
Status - - -
----------- ----------------------
Total Non-
Performing
Loans 8,722 3,271 4,589
Other real
estate owned - - -
Restructured
Loans 192 298 807
----------- ----------------------
Total Non-
Performing
Assets $8,914 $3,569 $5,396
=========== ======================
Non-Performing
Assets/ Total
Assets 0.42% 0.17% 0.28%
Non-Performing
Loans/Gross
Loans 0.50% 0.19% 0.30%
Allowance for
loan losses/
Gross Loans 1.07% 1.11% 1.21%
Allowance for
loan losses/
Non-Performing
Loans 215% 584% 401%
DEPOSIT % %
COMPOSITION 3/31/2007 12/31/2006 Change 3/31/2006 Change
----------- ------------------------------------------
Non-interest-
bearing
demand
deposits $383,525 $407,519 -6% $375,672 2%
Money market
and other 215,694 184,199 17% 218,235 -1%
Saving
deposits 141,754 141,611 0% 141,327 0%
Time deposits
of $100,000
or more 809,154 768,727 5% 732,348 10%
Other time
deposits 200,849 210,179 -4% 183,041 10%
----------- ----------- ------------------------------
Total
deposit
balances $1,750,976 $1,712,235 2% $1,650,623 6%
=========== =========== ==============================
DEPOSIT
COMPOSITION (%)3/31/2007 12/31/2006 3/31/2006
----------- ----------------------
Non-interest-
bearing
demand
deposits 21.9% 23.8% 22.8%
Money market
and other 12.3% 10.7% 13.2%
Saving
deposits 8.1% 8.3% 8.6%
Time deposits
of $100,000
or more 46.2% 44.9% 44.4%
Other time
deposits 11.5% 12.3% 11.0%
----------- ----------------------
Total
deposit
balances 100.0% 100.0% 100.0%
=========== ======================
CAPITAL RATIOS 3/31/2007 12/31/2006 3/31/2006
----------- ----------------------
Total
stockholders'
equity $194,555 $186,627 $154,457
Tier 1 risk-
based capital
ratio 12.29% 12.16% 11.67%
Total risk-
based capital
ratio 13.30% 13.21% 12.79%
Tier 1
leverage
ratio 11.16% 11.18% 10.45%
Book value per
share $7.45 $7.15 $6.04
Tangible book
value per
share $7.25 $6.95 $5.82
Tangible
equity to
tangible
assets 8.95% 8.88% 7.80%
CONTACT: Investors and Financial Media:
Financial Relations Board
Tony Rossi, 310-854-8317