Exhibit 99.1
AMCORE FINANCIAL, INC. REPORTS 3RD QUARTER EARNINGS
Flash Results
(Numbers in Thousands, Except Per Share Data)
3rd quarter 3rd quarter 2nd quarter
2005 2004 2005
----------- ----------- -----------
Net Revenues $ 60,399 $ 55,349 $ 57,246
Net Income $ 12,583 $ 12,340 $ 12,157
Diluted Shares 25,138 25,078 25,020
Diluted EPS $ 0.50 $ 0.49 $ 0.49
ROCKFORD, Ill., Oct. 13 -- AMCORE Financial, Inc. (Nasdaq: AMFI) reported
diluted earnings per share of $0.50 for third quarter 2005, a two percent
increase, compared to $0.49 per diluted share in third quarter 2004. Net income
in the third quarter of 2005 was $12.6 million, also a two percent increase from
the $12.3 million in the prior-year period.
"Our deposit growth remained strong in the third quarter, once again
outpacing our loan growth rate," said Kenneth E. Edge, Chairman, President and
CEO of AMCORE. "Reflecting company-wide deposit initiatives and the maturity of
our new branches with full service capabilities, AMCORE continues to attract
more new households. This deposit strength has enabled AMCORE to reduce reliance
on average wholesale funding by $20 million compared to the second quarter in
2005.
Highlights
-- Average bank issued deposits grew 16 percent, or $482 million,
compared to third quarter 2004.
-- Average loan balances grew 11 percent, or $363 million, compared to
third quarter 2004.
-- The net interest margin decreased three basis points to 3.50 percent
in third quarter 2005 from 3.53 percent in third quarter 2004, and
decreased four basis points when compared to second quarter 2005.
-- Net interest income increased seven percent, or $2.7 million, to $41.1
million in third quarter 2005 from $38.4 million during the same
quarter a year ago.
-- Non-interest income increased 14 percent, or $2.4 million, to $19.3
million in the third quarter 2005 from $16.9 million in the third
quarter 2004 as a result of increased mortgage banking income of $1.3
million and a $1.3 million gain on the transition of Vintage Equity
Funds.
-- Branch expansion accretion for the quarter was $0.10 per diluted share
compared to $0.01 in the same period a year ago and $0.08 in second
quarter 2005.
-- Total assets increased eight percent to $5.3 billion at September 30,
2005 compared to $4.9 billion at September 30, 2004.
-- Total non-performing assets increased $2.5 million, or 10 percent, to
$27.9 million, from September 30, 2004, but decreased $1.1 million, or
four percent, from June 30, 2005.
-- Net charge-offs to average loans increased nine basis points to 0.47
percent when compared to the same period a year ago and remained
unchanged when compared to second quarter 2005.
-- Operating expenses increased nine percent, or $3.2 million, compared
to third quarter 2004.
Third Quarter Results
Net interest income in third quarter 2005 grew seven percent, or $2.7
million, to $41.1 million compared to the same quarter in 2004 due to continued
strong loan growth. The net interest margin decreased three basis points to 3.50
percent in third quarter 2005 from 3.53 percent in third quarter 2004, and
decreased four basis points when compared to second quarter 2005. This was a
function of the flatter yield curve, which affected fixed-rate asset repricing
combined with promotional deposit pricing that increased the total cost of
funds.
Return on average equity decreased 71 basis points to 12.51 percent in
third quarter 2005 compared to 13.22 percent in third quarter 2004, and was flat
compared to the previous quarter. Return on average assets decreased to 0.96
percent in third quarter 2005 compared to 1.02 percent in third quarter 2004,
and remained the same as the previous quarter.
Average loans grew 11 percent, or $363 million, to $3.6 billion, compared
to third quarter 2004, despite the sale of $159 million in indirect auto loans
in the second half of 2004. The growth came from average increases of $506
million, or 22 percent, in commercial lending driven by AMCORE's branch
expansion in Chicago suburban and Wisconsin metropolitan markets. Consumer loan
balances decreased $182 million, or 37 percent, compared to the same quarter a
year ago, primarily due to lower volumes of indirect automobile lending and the
loan securitization in 2004.
Average loan yields rose 94 basis points to 6.64 percent in third quarter
2005 compared to the same period a year ago and were up 25 basis points from
second quarter 2005. This is the result of higher short-term rates, as well as a
higher proportion of floating rate loans in the portfolio, compared to third
quarter 2004.
Average bank issued deposits grew to $3.5 billion, an increase of 16
percent, or $482 million, compared to the same quarter a year ago. The average
cost of interest bearing bank issued deposits increased 89 basis points to 2.51
percent from third quarter 2004, and 26 basis points from second quarter 2005,
primarily as a result of deposit attraction strategies and short-term rate
increases. "We are improving our funding as we focus on core deposit growth,
especially in transaction accounts such as checking and money markets," said
Edge. "By growing our base of households and deepening our customer
relationships, we believe we are improving franchise value through additional
core product sales."
Average non-interest bearing deposits increased nine percent to $496
million in third quarter 2005 from $457 million in third quarter 2004. Average
interest-bearing demand and savings deposits grew 31 percent to $1.8 billion in
third quarter 2005 compared to $1.4 billion during the same period a year ago.
Average time deposits increased one percent to $1.1 billion in third quarter
2005. "Because of our stronger core deposit growth, we reduced our average
wholesale funding from 33 percent in third quarter 2004 to 27 percent in third
quarter 2005," said Edge.
Total non-interest income increased 14 percent, or $2.4 million, to $19.3
million over third quarter 2004 and included an increase of $1.3 million in
mortgage banking income and a $1.3 million gain related to the transition of the
Vintage equity funds to Federated Investors, Inc.
Mortgage banking income was $1.6 million in third quarter 2005 compared to
$321,000 during the same period a year ago. Third quarter 2005 included a
mortgage servicing impairment valuation reversal of $702,000 compared to a
$737,000 mortgage servicing rights impairment charge recorded in third quarter
2004, a difference of $1.4 million.
Mortgage closings totaled $146 million in third quarter 2005, a 42 percent
increase from the $103 million in third quarter 2004. The increase in closings
was due to a 94 percent increase in refinancing volume from the same period a
year ago. "We also saw strong growth in our new-purchase mortgages, which
increased 20 percent from the same period a year ago," said Edge.
Revenues associated with company-owned life insurance increased $133,000,
or 10 percent, compared to third quarter 2004. Deposit-related fees from service
charges, bankcards and other consumer services increased $1.3 million, or 17
percent, compared to the same period a year ago. "The increase in
deposit-related fees reflects the growth in transactional account activity,"
said Edge.
There were no security gains recorded in the third quarter compared to
security gains of $250,000 in the prior-year quarter.
Trust and asset management revenues decreased $164,000, or three percent,
to $4.9 million in third quarter 2005 from the third quarter 2004 level due
primarily to changes in the asset mix. Assets under administration totaled $4.6
billion at the end of the quarter compared to $4.2 billion a year ago.
In September, AMCORE completed a transaction with Federated Investors, Inc.
for the transition of $142 million in assets of three Vintage equity funds to
Federated Investors mutual funds. "Our strategic goal is being a provider of
high quality investment products, rather than a developer of proprietary
investment products. In this way, we can offer our customers a full array of
high quality investment options from preferred investment sources," said Edge.
"Our strength and brand are based on blending the right mix of expert financial
planning services, quality investment choices, relationship management and
superior customer service to attract and keep clients long term. By opening our
investment sales platform and offering more high quality investment choices, we
can better address the growing needs of more sophisticated customers in an
investment environment that is continually changing."
Total operating expenses increased nine percent, or $3.2 million, in third
quarter 2005 compared to the same quarter last year. "The increase includes the
impact of accelerating depreciation and other costs related to upcoming data
equipment upgrades and outsourcing payroll processing," said Edge.
Asset Quality & Reserves
Non-accrual loans totaled $23.8 million at September 30, 2005, an increase
of 37 percent, or $6.4 million, from September 30, 2004, and an increase of $1.1
million, or five percent, from June 30, 2005. Loans 90 days past due and still
accruing interest totaled $2.2 million at September 30, 2005, a decrease of
$864,000 from September 30, 2004, and a decrease of $1.8 million from June 30,
2005. The percentage of total non-performing assets to total assets increased to
0.53 percent at September 30, 2005, compared to 0.52 at September 30, 2004, but
decreased from 0.56 percent at June 30, 2005.
Net charge-offs were $4.2 million, an increase of 39 percent, or $1.2
million, from third quarter 2004 and an increase of seven percent, or $267,000,
from second quarter 2005. Net charge-offs were 47 basis points of average loans
on an annualized basis during third quarter 2005, compared to 38 basis points
for third quarter 2004 and flat when compared to second quarter 2005.
The provision for loan losses was $4.5 million in third quarter 2005, an
increase of $1.6 million from third quarter 2004 and an increase of $960,000
from second quarter 2005. The increases were primarily attributable to higher
net charge-offs, an increase in non-accrual loans and increased loan balances.
Total non-accrual loans as a percentage of loans increased to 0.66 percent
from 0.55 percent at September 30, 2004, and 0.65 percent at June 30, 2005. The
allowance for loan losses, as a percentage of ending loans, was 1.11 percent at
September 30, 2005 compared to 1.33 percent at September 30, 2004 and 1.16
percent at June 30, 2005. The allowance to non-accrual loans ratio was 168
percent at September 30, 2005, compared to 242 percent at September 30, 2004 and
179 percent at June 30, 2005.
Branching Update
During third quarter 2005, AMCORE's branch expansion program was accretive
to earnings by $0.10 per share and $0.24 year-to-date. "Branch expansion
continues to exceed our expectations and we believe this will build long-term
value for our shareholders," said Edge. "This year's results reflect the
positive impact on earnings from maturing branches."
In 2005, AMCORE expects to open five branch offices including one full
service and four limited branches. So far this year, AMCORE has opened three
limited branches in the cities of Libertyville, IL, Orland Park, IL and
Wauwatosa, WI, a Milwaukee suburb. In the fourth quarter, a full service branch
is expected to open in Belvidere, IL, and a limited branch office is expected to
open in Joliet, IL.
The 23 (net) new branches opened since April 2001 contributed total loans
of $1.36 billion and total deposits of $640 million at September 30, 2005.
Same-branch contributions, which include new branches opened as of September 30,
2004, were $1.29 billion in loans and $625 million in deposits.
By 2009, AMCORE expects to have added a net total of 34 new offices since
beginning the initiative in 2001. "By the end of 2009, AMCORE is scheduled to
have 84 offices, two-thirds of which will be located in markets that we believe
exhibit strong growth characteristics," said Edge.
AMCORE Financial, Inc. is headquartered in Northern Illinois and has
banking assets of $5.3 billion and investment assets under administration of
$4.6 billion with 73 locations in Illinois, Wisconsin and Iowa.
AMCORE provides a full range of consumer and commercial banking services, a
variety of mortgage lending products and investment services including trust,
brokerage, asset management, mutual fund administration, employee benefit plan
record keeping and is the investment advisor for the Vintage family of mutual
funds.
This news release contains, and our periodic filings with the Securities
and Exchange Commission and written or oral statements made by the Company's
officers and directors to the press, potential investors, securities analysts
and others will contain, forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act
of 1934, and the Company intends that such forward-looking statements be subject
to the safe harbors created thereby with respect to, among other things, the
financial condition, results of operations, plans, objectives, future
performance and business of AMCORE. Statements that are not historical facts,
including statements about beliefs and expectations, are forward-looking
statements. These statements are based upon beliefs and assumptions of AMCORE's
management and on information currently available to such management. The use of
the words "believe," "expect," "anticipate," "plan," "estimate," "should,"
"may," "will" or similar expressions identify forward-looking statements.
Forward-looking statements speak only as of the date they are made, and AMCORE
undertakes no obligation to update publicly any forward-looking statements in
light of new information or future events.
Contemplated, projected, forecasted or estimated results in such
forward-looking statements involve certain inherent risks and uncertainties. A
number of factors -- many of which are beyond the ability of the Company to
control or predict -- could cause actual results to differ materially from those
in its forward-looking statements. These factors include, among others, the
following possibilities: (I) heightened competition, including specifically the
intensification of price competition, the entry of new competitors and the
formation of new products by new or existing competitors; (II) adverse state,
local and federal legislation and regulation; (III) failure to obtain new
customers and retain existing customers; (IV) inability to carry out marketing
and/or expansion plans; (V) ability to attract and retain key executives or
personnel; (VI) changes in interest rates including the effect of prepayment;
(VII) general economic and business conditions which are less favorable than
expected; (VIII) equity and fixed income market fluctuations; (IX) unanticipated
changes in industry trends; (X) unanticipated changes in credit quality and risk
factors; (XI) success in gaining regulatory approvals when required; (XII)
changes in Federal Reserve Board monetary policies; (XIII) unexpected outcomes
on existing or new litigation in which AMCORE, its subsidiaries, officers,
directors or employees are named defendants; (XIV) technological changes; (XV)
changes in U.S. generally accepted accounting principles; (XVI) changes in
assumptions or conditions affecting the application of "critical accounting
estimates"; (XVII) inability of third-party vendors to perform critical services
for the Company or its customers; (XVIII) disruption of operations caused by the
conversion and installation of data processing systems, and (XIX) zoning
restrictions or other limitations at the local level, which could prevent
limited branch offices from transitioning to full-service facilities.
AMCORE common stock is listed on The NASDAQ Stock Market under the symbol
"AMFI." Further information about AMCORE Financial, Inc. can be found at the
Company's website at http://www.AMCORE.com.
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
3Q
($ in 000's, except '05/'04
per share data) 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. Incr
SHARE DATA 2005 2005 2005 2004 2004 (Decr)
- ------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Diluted earnings $ 0.50 $ 0.49 $ 0.48 $ 0.51 $ 0.49 2%
Cash dividends $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17 0%
Book value $ 16.09 $ 16.08 $ 15.38 $ 15.57 $ 15.44 4%
Average diluted shares
outstanding 25,138 25,020 25,061 25,145 25,078 0%
INCOME
STATEMENT
Net interest income $ 41,104 $ 40,220 $ 39,481 $ 39,613 $ 38,431 7%
Provision for loan
losses 4,462 3,502 2,500 4,743 2,830 58%
Non-interest income:
Trust & asset
management 4,853 4,944 5,136 5,079 5,017 (3)%
Service charges on
deposits 6,410 5,871 5,163 5,293 5,388 19%
Mortgage banking
income 1,588 321 1,271 2,029 321 395%
Company owned life
insurance 1,479 1,560 908 1,684 1,346 10%
Brokerage
commission income 575 744 733 749 721 (20)%
Bankcard fee income 1,261 1,211 1,125 1,108 1,111 14%
Gain on sale of
loans 162 185 111 636 1,214 (87)%
Net security gain
(loss) (1) 455 (51) 1,221 250 (100)%
Other 2,968 1,735 2,072 1,454 1,550 91%
Total non-interest
income 19,295 17,026 16,468 19,253 16,918 14%
Operating expenses:
Personnel costs 22,615 21,965 22,069 22,415 21,126 7%
Net occupancy and
equipment expense 5,669 5,030 5,182 4,805 4,645 22%
Data processing
expense 718 618 707 575 580 24%
Professional fees 1,071 1,058 1,020 1,001 1,102 (3)%
Advertising &
business
development 1,624 1,632 1,755 1,640 1,634 (1)%
Communication
expense 1,230 1,192 1,097 1,169 1,155 6%
Other 5,182 5,333 4,378 4,636 4,707 10%
Total operating
expenses 38,109 36,828 36,208 36,241 34,949 9%
Income before income
taxes 17,828 16,916 17,241 17,882 17,570 1%
Income taxes 5,245 4,759 5,191 4,959 5,230 0%
Net income $ 12,583 $ 12,157 $ 12,050 $ 12,923 $ 12,340 2%
Basis
3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. Point
KEY RATIOS AND DATA 2005 2005 2005 2004 2004 Change
- ------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Net interest margin
(FTE) 3.50% 3.54% 3.59% 3.58% 3.53% (3)
Return on average
assets 0.96% 0.96% 0.99% 1.04% 1.02% (6)
Return on average
equity 12.51% 12.51% 12.61% 13.32% 13.22% (71)
Efficiency ratio 63.10% 64.33% 64.72% 61.57% 63.14% (4)
Equity/assets (end of
period) 7.61% 7.73% 7.64% 7.82% 7.86% (25)
Allowance to loans
(end of period) 1.11% 1.16% 1.22% 1.25% 1.33% (22)
Allowance to non-
accrual loans 168.27% 178.89% 138.71% 135.81% 242.36% (74)
Non-accrual loans to
loans 0.66% 0.65% 0.88% 0.92% 0.55% 11
Non-performing assets
to total assets 0.53% 0.56% 0.73% 0.77% 0.52% 1
(in millions)
Total assets under
administration $ 4,576 $ 4,539 $ 4,439 $ 4,430 $ 4,225 8%
Mortgage loans closed $ 146 $ 122 $ 85 $ 112 $ 103 42%
Mortgage servicing
rights, net $ 13.2 $ 12.4 $ 12.8 $ 12.5 $ 11.6 14%
Percentage of mortgage
loans serviced 0.98% 0.94% 0.98% 0.97% 0.92% 6
N/M = not meaningful
AMCORE Financial, Inc.
(Unaudited)
($ in 000's)
AVERAGE BALANCE 3rd Qtr. 2nd Qtr. 1st Qtr.
SHEET 2005 2005 2005
- ---------------------------------------- ------------ ------------ ------------
Assets:
Investment securities $ 1,207,262 $ 1,234,262 $ 1,231,746
Short-term investments 10,411 9,127 4,871
Loans held for sale 35,833 24,457 21,074
Loans: Commercial 804,314 755,104 719,194
Commercial real estate 1,986,672 1,913,179 1,848,867
Residential real estate 445,192 432,613 424,095
Consumer 316,777 316,595 319,705
Total loans $ 3,552,955 $ 3,417,491 $ 3,311,861
Allowance for loan losses (42,598) (41,620) (42,072)
Other non-earning assets 427,874 419,579 416,449
Total assets $ 5,191,737 $ 5,063,296 $ 4,943,929
Liabilities and Stockholders' Equity:
Non-interest bearing deposits $ 495,683 $ 485,796 $ 464,452
Interest-bearing demand and savings 1,814,734 1,725,678 1,563,000
Time deposits 1,140,835 1,107,470 1,101,194
Total Bank issued deposits $ 3,451,252 $ 3,318,944 $ 3,128,646
Wholesale deposits 593,889 624,886 644,732
Short-term borrowings 516,470 505,468 553,176
Long-term borrowings 164,094 164,223 166,889
Other liabilities 67,078 60,129 62,899
Total liabilities $ 4,792,783 $ 4,673,650 $ 4,556,342
Stockholders' equity 404,159 395,607 387,509
Other comprehensive income (5,205) (5,961) 78
Total stockholders' equity 398,954 389,646 387,587
Total liabilities & stockholders'
equity $ 5,191,737 $ 5,063,296 $ 4,943,929
CREDIT QUALITY
Ending allowance for loan losses $ 39,975 $ 40,475 $ 40,954
Net charge-offs 4,248 3,981 2,491
Net charge-offs to avg loans
(annualized) 0.47% 0.47% 0.31%
Non-performing assets:
Non-accrual loans $ 23,757 $ 22,626 $ 29,525
Loans 90 days past due & still
accruing 2,164 4,008 1,900
Total non-performing loans 25,921 26,634 31,425
Foreclosed real estate 1,879 1,959 4,129
Other foreclosed assets 54 357 818
Total non-performing assets $ 27,854 $ 28,950 $ 36,372
YIELD AND RATE
ANALYSIS
Assets:
Investment securities (FTE) 4.54% 4.59% 4.62%
Short-term investments 3.43% 3.04% 2.58%
Loans held for sale 8.33% 10.62% 7.64%
Loans: Commercial 6.73% 6.38% 6.05%
Commercial real estate 6.72% 6.44% 6.14%
Residential real estate 6.22% 6.03% 5.83%
Consumer 6.52% 6.63% 6.47%
Total loans (FTE) 6.64% 6.39% 6.11%
Total interest-earning assets (FTE) 6.12% 5.93% 5.71%
Liabilities:
Interest-bearing demand and savings 2.13% 1.81% 1.38%
Time deposits 3.12% 2.93% 2.69%
Total Bank issued deposits 2.51% 2.25% 1.95%
Wholesale deposits 3.91% 3.65% 3.36%
Short-term borrowings 3.50% 3.05% 2.59%
Long-term borrowings 6.27% 6.05% 5.88%
Total interest-bearing liabilities 2.98% 2.71% 2.41%
Net interest spread 3.14% 3.22% 3.30%
Net interest margin (FTE) 3.50% 3.54% 3.59%
FTE adjustment (000's) $ 1,167 $ 1,232 $ 1,195
AMCORE Financial, Inc.
(Unaudited)
3Q
($ in 000's) '05/'04
AVERAGE BALANCE 4th Qtr. 3rd Qtr. Incr Ending
SHEET 2004 2004 (Decr) Balances
- ---------------------------------------- ------------ ------------ ------------ ------------
Assets:
Investment securities $ 1,221,676 $ 1,233,926 (2)% $ 1,194,922
Short-term investments 19,753 5,249 98% 5,393
Loans held for sale 80,666 32,609 10% 38,612
Loans: Commercial 731,376 735,864 9% 810,992
Commercial real
estate 1,733,023 1,548,689 28% 2,036,758
Residential real
estate 415,927 405,784 10% 436,972
Consumer 335,005 499,241 (37)% 314,144
Total loans $ 3,215,331 $ 3,189,578 11% 3,598,866
Allowance for loan losses (42,537) (44,006) (3)% (39,975)
Other non-earning assets 427,681 412,202 4% 455,299
Total assets $ 4,922,570 $ 4,829,558 7% $ 5,253,117
Liabilities and Stockholders'
Equity:
Non-interest bearing deposits $ 468,962 $ 456,804 9% $ 501,915
Interest-bearing demand and
savings 1,497,778 1,382,348 31% 1,818,467
Time deposits 1,129,816 1,129,726 1% 1,186,582
Total Bank issued deposits $ 3,096,556 $ 2,968,878 16% 3,506,964
Wholesale deposits 646,833 647,561 (8)% 589,112
Short-term borrowings 559,979 606,686 (15)% 516,765
Long-term borrowings 166,074 180,565 (9)% 169,963
Other liabilities 67,094 54,527 23% 70,775
Total liabilities $ 4,536,536 $ 4,458,217 8% 4,853,579
Stockholders' equity 380,152 370,976 9% 408,182
Other comprehensive income 5,882 365 N/M (8,644)
Total stockholders' equity 386,034 371,341 7% 399,538
Total liabilities &
stockholders' equity $ 4,922,570 $ 4,829,558 7% $ 5,253,117
CREDIT QUALITY
Ending allowance for loan losses $ 40,945 $ 41,980 (5)%
Net charge-offs 4,722 3,058 39%
Net charge-offs to avg loans
(annualized) 0.58% 0.38% 24%
Non-performing assets:
Non-accrual loans $ 30,148 $ 17,321 37%
Loans 90 days past due &
still accruing 1,848 3,028 (29)%
Total non-performing
loans 31,996 20,349 27%
Foreclosed real estate 4,940 4,029 (53)%
Other foreclosed assets 923 950 (94)%
Total non-performing
assets $ 37,859 $ 25,328 10%
YIELD AND RATE
ANALYSIS
Assets:
Investment securities (FTE) 4.60% 4.49%
Short-term investments 2.02% 1.23%
Loans held for sale 7.59% 8.66%
Loans: Commercial 5.77% 5.37%
Commercial real
estate 5.81% 5.60%
Residential real
estate 5.73% 5.62%
Consumer 6.57% 6.58%
Total loans (FTE) 5.87% 5.70%
Total interest-earning assets
(FTE) 5.54% 5.38%
Liabilities:
Interest-bearing demand and
savings 1.14% 0.90%
Time deposits 2.58% 2.49%
Total Bank issued deposits 1.76% 1.62%
Wholesale deposits 3.08% 2.86%
Short-term borrowings 2.39% 2.32%
Long-term borrowings 5.62% 5.10%
Total interest-bearing
liabilities 2.22% 2.09%
Net interest spread 3.32% 3.29%
Net interest margin (FTE) 3.58% 3.53%
FTE adjustment (000's) $ 1,170 $ 1,107