PASO ROBLES, Calif., July 13, 2007 (PRIME NEWSWIRE) -- Heritage Oaks Bancorp (Nasdaq:HEOP), the parent company of Heritage Oaks Bank, today reported solid core deposit growth contributing to record second quarter profits. Preliminary results indicate that second quarter net income increased 8% to $1.8 million, or $0.27 per diluted share, compared to $1.7 million, or $0.25 per diluted share, in the second quarter of 2006. For the first six months of 2007, net income was $3.3 million, level with the first six months of 2006.
"We are continuing our focus of building a well-rounded community bank franchise," stated Lawrence P. Ward, President and CEO. "Our business fundamentals are improving as our revenues, loans and deposits are showing tremendous growth. Our second quarter and year-to-date profits reflect exceptional loan production and our growing ability to attract and retain core deposits despite this challenging interest rate environment. Looking forward we think we will continue to generate steady loan growth as the loan pipeline remains full and economic conditions in our market areas remain stable."
In May, Heritage Oaks Bancorp entered into a definitive agreement with Business First National Bank of Santa Barbara in a stock and cash transaction valued at approximately $20.6 million. In connection with the transaction, Business First National Bank will be merged with and into Heritage Oaks Bank and will operate as a division of Heritage Oaks Bancorp. The merger is scheduled to be completed during the fourth quarter of 2007 and is expected to be accretive to earnings during the first year.
Second Quarter 2007 Highlights: * Net income increased 8% to $1.8 million. * Core deposits increased by 24% over a year ago. * Revenues increased 10% to $8.6 million. * Return on average equity improved to 13.8% and return on average assets improved to 1.25%. * Net interest margin was 5.56%. * Efficiency ratio improved to 64.3%. * Net loans increased 18% to $454 million. * Asset quality remained strong, non-performing assets were just 0.09% of total assets.
Operating Results
Total revenues, consisting of net interest income before the provision for loan losses and non-interest income, increased 10% to $8.6 million in the second quarter of 2007 compared to $7.8 million in the same quarter of 2006. In the first half of 2007, revenues increased 9% to $16.9 million compared to $15.5 million in the first half of 2006. In the second quarter, net interest income increased 9% to $7.3 million compared to $6.6 million in the second quarter a year ago. Year-to-date, net interest income increased 9% to $14.3 million compared to $13.1 million in the same period a year ago. "Our solid net interest income is a product of our strong loan growth, which we see continuing," said Ward. Interest and fees on loans increased 27% to $10.2 million in the second quarter compared to $8.0 million in the second quarter last year, and year-to-date, increased 29% to $20.0 million compared to $15.5 million in the first six months of 2006.
Non-interest income for the second quarter of 2007 increased 15% to $1.4 million, compared to $1.2 million in the second quarter of 2006. For the first half of 2007, non-interest income increased 8% to $2.6 million compared to $2.4 million for the first half of 2006.
"Our margin came under pressure again this quarter as costs associated with borrowing from the FHLB increased faster than loan yields," said Ward. "As long as interest rates stay the same we will continue to see margin pressure during the second half of the year. However, our new deposit strategy of growing variable interest rate money market accounts is proving to be very successful as we have already increased the balances in these accounts by 32% year-to-date." Second quarter net interest margin was 5.56% compared to 5.66% in the previous quarter and 6.06% in the second quarter a year ago. For the first six months of 2007, net interest margin was 5.61% compared to 6.02% for the first six months of 2006.
"The current consolidation of banks along the Central Coast continues to create an excellent marketing opportunity for us to attract new customers," stated Ward. "Year-to-date, we have increased our marketing and advertising expenditures to compete for this new business and we are already seeing this expenditure pay off with deposit increases, which we expect will help lower our funding costs as we move through the year." In the second quarter of 2007, non-interest expenses totaled $5.6 million compared to $5.0 million in the second quarter of 2006. For the first six months of 2007, non-interest expense was $11.3 million compared to $10.0 million in the same period a year ago. In addition to marketing costs, the increase was due to salary and employee benefits, which increased 15% in the first quarter of 2007 and 16% year-to-date compared to the respective periods last year.
The efficiency ratio improved to 64.3% in the second quarter of 2007 compared to 68.9% in the first quarter of 2007 and 64.3% in the second quarter a year ago. Year-to-date, the efficiency ratio was 66.6% compared to 64.7% in the first half of 2006. The efficiency ratio measures operating expenses as a percent of revenues.
Return on average assets was 1.25% in the second quarter and 1.17% for the first half of the year, compared to 1.38% and 1.37% for the respective periods last year. Return on average equity was 13.8% for the second quarter of 2007 and 13.0% year-to-date, compared to 14.4% and 14.3% in their respective periods a year ago.
Balance Sheet
"We have increased savings, NOW and money market balances 32% and increased total deposits 16% since the end of 2006," Ward said. "During the first quarter we implemented a new strategy of funding our loan demand through a new variable interest rate money market account." Total deposits were $489 million at the end of June, compared to $445 million at the end of March, and $430 million at June 30, 2006. Non-interest bearing accounts represent 31% of total deposits and savings, money market and NOW accounts now account for 40% of total deposits.
The loan portfolio grew 18% to $460 million at June 30, 2007, from $391 million a year earlier. The growth was fueled by a 46% increase in commercial, financial and agricultural loans, as well as a 16% increase in commercial real estate loans. Total assets increased 13% to $590 million at quarter-end, compared to $520 million a year earlier. Total assets were $542 million at December 31, 2006.
Due to the significant deposit growth, the Bank reduced its FHLB borrowing by $20 million during the latter part of June 2007. During the second quarter, the trust preferred securities issued by Heritage Oaks Capital Trust I and related subordinated debentures of the Company were called. It is anticipated that due to the pending acquisition, the company plans to issue $8 million in trust preferred securities prior to the close of the merger of Business First Bank of Santa Barbara.
Asset Quality
Asset quality remains strong with non-performing assets at $555,000, or 0.09% of total assets at June 30, 2007. The allowance for loan losses increased to $4.5 million, or 0.98% of total loans held for investment at quarter-end compared to $3.7 million or 0.95% of net loans outstanding at June 30, 2006. "We are keeping a close eye on all delinquent loans and do not see any major changes in the make up or quantity of late loans," Ward said.
Book value per share was $ 8.10 at June 30, 2007, compared to $7.34 per share a year earlier. Tangible book value per share was $7.21 at June 30, 2007, compared to $6.37 a year earlier. Shareholders' equity increased 13% to $52.5 million compared to $46.6 million a year ago.
Heritage Oaks Bancorp is the holding company for Heritage Oaks Bank. Heritage Oaks Bank has its headquarters plus two branch offices in Paso Robles, two branch offices in San Luis Obispo, single branch offices in Cambria, Arroyo Grande, Atascadero, Templeton and Morro Bay and three branch offices in Santa Maria. Heritage conducts commercial banking business in San Luis Obispo County and Northern Santa Barbara County. Visit Heritage Oaks Bancorp on the Web at www.heritageoaksbancorp.com.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, increased profitability, continued growth, the Bank's beliefs as to the adequacy of its existing and anticipated allowances for loan losses, beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank's operations, interest rates and financial policies of the United States government, general economic conditions and California's energy crisis. Additional information on these and other factors that could affect financial results are included in Heritage Oaks Bancorp's Securities and Exchange Commission filings. If any of these risks or uncertainties materialize or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Heritage Oaks Bancorp's results could differ materially from those expressed in, implied or projected by such forward-looking statements. Heritage Oaks Bancorp assumes no obligation to update such forward-looking statements.
This News Release may be deemed to be solicitation material in respect of the proposed transaction between Heritage Oaks Bancorp and Business First National Bank pursuant to an Agreement to Merge and Plan of Reorganization, dated as of May 29, 2007 by and among Heritage Oaks Bancorp and Business First National Bank (the "Agreement"). Filing of this News Release is being made in connection with Rule 165 and 425 promulgated by the Securities and Exchange Commission ("SEC").
In connection with the proposed transaction, Heritage Oaks Bancorp will file with the SEC a registration statement on SEC Form S-4. The registration statement will contain a proxy statement/prospectus which will describe the proposed transaction and its proposed terms and conditions. Shareholders are encouraged to read the registration material and proxy statement/prospectus before making any voting or investment decisions because these documents will contain important information about the transaction. A definitive proxy statement will be sent to the shareholders of Business First National Bank seeking required shareholder approval. A copy of the Agreement was filed with the SEC as an exhibit to Heritage Oaks Bancorp's 8-K, a separate filing from the Form S-4. The registration statement, the Form 8-K and all other documents filed with the SEC in connection with the transaction will be available for free when filed, both on the SEC's web-site (www.sec.gov) or by contacting Tana Eade, Vice President and Investor Relations Officer, Heritage Oaks Bancorp, 545 Twelfth Street, Paso Robles, California 93446. Additionally, all forms filed with the SEC and additional shareholder information is available free of charge on Heritage Oaks Bancorp's web-site: www.heritageoaksbancorp.com. Heritage Oaks Bancorp posts these reports to its web-site as soon as reasonably practicable after filing them with the SEC. None of the information on or hyper-linked from Heritage Oaks Bancorp's web-site is incorporated into this press release.
Heritage Oaks Bancorp
Consolidated Balance Sheets
(dollars in thousands except share data)
Percentage
(unaudited) (audited) (unaudited) Change vs.
-------- -------- -------- -----------------
6/30/07 12/31/06 6/30/06 12/31/06 6/30/06
-------- -------- -------- ------------------
Assets
Cash and due from
banks $ 20,945 $ 19,164 $ 21,448 9.3% -2.3%
Federal funds sold 43,505 3,870 27,500 1024.2% 58.2%
-------- -------- -------- ----------------
Total cash and
cash equivalents 64,450 23,034 48,948 179.8% 31.7%
-------- -------- -------- ----------------
Interest bearing
deposits with
other banks 318 318 318 -- --
Securities avail-
able for sale 36,018 38,445 41,410 -6.3% -13.0%
Federal Home Loan
Bank Stock,
at cost 3,119 2,350 1,930 32.7% 61.6%
Loans held for
sale 3,329 1,764 6,116 88.7% -45.6%
Loans, net (a) 453,900 439,277 385,808 3.3% 17.6%
Property, premises
and equipment 5,057 14,581 14,493 -65.3% -65.1%
Cash surrender
value of life
insurance 9,621 9,435 9,242 2.0% 4.1%
Deferred tax
assets 4,656 2,414 2,944 92.9% 58.2%
Goodwill 4,864 4,865 4,865 0.0% 0.0%
Core deposit
intangible 971 1,148 1,298 -15.4% -25.2%
Other assets 3,562 4,143 2,847 -14.0% 25.1%
-------- -------- -------- ----------------
Total assets $589,865 $541,774 $520,219 8.9% 13.4%
======== ======== ======== ================
Liabilities
Deposits:
Non-interest
bearing demand $153,485 $153,005 $163,453 0.3% -6.1%
Savings, NOW, and
money market 193,720 146,110 155,848 32.6% 24.3%
Time deposits of
$100K or more 44,141 30,630 25,673 44.1% 71.9%
Time deposits
under $100K 97,761 90,776 85,186 7.7% 14.8%
-------- -------- -------- ----------------
Total deposits 489,107 420,521 430,160 16.3% 13.7%
-------- -------- -------- ----------------
FHLB advances and
other borrowings 30,000 50,000 30,000 -40.0% 0.0%
Securities sold
under agreements
to repurchase 1,358 1,364 2,015 -0.4% -32.6%
Junior subordinated
debentures 8,248 16,496 8,248 -50.0% 0.0%
Other liabilities 8,631 3,921 3,217 120.1% 168.3%
-------- -------- -------- ----------------
Total liabilities 537,344 492,302 473,640 9.1% 13.4%
-------- -------- -------- ----------------
Stockholders' equity
Common stock, no par
value; 20,000,000
shares authorized;
issued and out-
standing 6,476,403;
6,345,639 and
6,348,196 for June
30, 2007; December
31, 2006 and June
30, 2006
respectively 30,072 29,247 29,652 2.8% 1.4%
Additional paid in
capital 520 336 -- 54.8% --
Retained earnings 22,096 19,809 17,442 11.5% 26.7%
Accumulated other
comprehensive
income (167) 80 (515) -308.8% --
-------- -------- -------- ----------------
Total stock-
holders' equity 52,521 49,472 46,579 6.2% 12.8%
-------- -------- -------- ----------------
Total liabilities
and stockholders'
equity $589,865 $541,774 $520,219 8.9% 13.4%
======== ======== ======== ================
(a) Loans are net of deferred loan fees of $1,559; $1,625; $1,428
and allowance for loan losses of $4,520; $4,081; $3,695 for June
30, 2007, December 31, 2006, and June 30, 2006 respectively.
Heritage Oaks Bancorp
Consolidated Statements of Income
(dollars in thousands except share data)
(unaudited) Percentage
For the Three Months Ended Change Vs.
------------------------------- ---------------
6/30/07 3/31/07 6/30/06 3/31/07 6/30/06
------------------------------- ---------------
Interest Income:
Interest and fees
on loans $ 10,214 $ 9,816 $ 8,018 4.1% 27.4%
Investment
securities 437 448 490 -2.5% -10.8%
Federal funds sold
and commercial paper 162 31 156 422.6% 3.8%
Time certificates
of deposit 10 8 2 25.0% 400.0%
--------- --------- --------- ----- -----
Total interest
income 10,823 10,303 8,666 5.0% 24.9%
--------- --------- --------- ----- -----
Interest Expense:
NOW accounts 43 28 23 53.6% 87.0%
MMDA accounts 946 667 549 41.8% 72.3%
Savings accounts 23 24 26 -4.2% -11.5%
Time deposits of
$100K or more 301 209 117 44.0% 157.3%
Other time deposits 1,276 1,212 846 5.3% 50.8%
Other borrowed funds 976 1,129 470 -13.6% 107.7%
--------- --------- --------- ----- -----
Total interest
expense 3,565 3,269 2,031 9.1% 75.5%
--------- --------- --------- ----- -----
Net interest income
before provision for
loan losses 7,258 7,034 6,635 3.2% 9.4%
Provision for loan
losses 170 140 180 21.4% -5.6%
--------- --------- --------- ----- -----
Net interest income
after provision
for loan losses 7,088 6,894 6,455 2.8% 9.8%
--------- --------- --------- ----- -----
Non-Interest Income:
Service charges on
deposit accounts 686 613 613 11.9% 11.9%
Other income 705 618 598 14.1% 17.9%
--------- --------- --------- ----- -----
Total non-interest
income 1,391 1,231 1,211 13.0% 14.9%
--------- --------- --------- ----- -----
Non-Interest Expense:
Salaries and
employee benefits 3,194 3,250 2,786 -1.7% 14.6%
Occupancy and
equipment 706 715 665 -1.3% 6.2%
Other expenses 1,663 1,729 1,597 -3.8% 4.1%
--------- --------- --------- ----- -----
Total non-interest
expenses 5,563 5,694 5,048 -2.3% 10.2%
--------- --------- --------- ----- -----
Income before
provision for income
taxes 2,916 2,431 2,618 20.0% 11.4%
Provision for
income taxes 1,116 921 945 21.2% 18.1%
--------- --------- --------- ----- -----
Net Income $ 1,800 $ 1,510 $ 1,673 19.2% 7.6%
========= ========= ========= ===== =====
Average basic shares
outstanding 6,432,687 6,384,150 6,337,712
Average diluted
shares outstanding 6,692,467 6,605,942 6,670,942
Basic earnings
per share $ 0.28 $ 0.24 $ 0.26
Fully diluted
earnings per share $ 0.27 $ 0.23 $ 0.25
Heritage Oaks Bancorp
Consolidated Statements of Income
(dollars in thousands except share data)
(unaudited)
For the Percentage
Six Months Ended Change
--------------------- ----------
6/30/2007 6/30/2006 6/30/2006
--------- --------- ---------
Interest Income:
Interest and fees on loans $ 20,029 $ 15,507 29.2%
Investment securities 885 978 -9.5%
Federal funds sold and
commercial paper 193 382 -49.5%
Time certificates of deposit 18 5 260.0%
--------- --------- -------
Total interest income 21,125 16,872 25.2%
--------- --------- -------
Interest Expense:
NOW accounts 71 44 61.4%
MMDA accounts 1,613 1,120 44.0%
Savings accounts 47 53 -11.3%
Time deposits of $100K or more 510 256 99.2%
Other time deposits 2,488 1,539 61.7%
Other borrowed funds 2,105 778 170.6%
--------- --------- -------
Total interest expense 6,834 3,790 80.3%
--------- --------- -------
Net interest income before
provision for loan losses 14,291 13,082 9.2%
Provision for loan losses 310 300 3.3%
--------- --------- -------
Net interest income after
provision for loan losses 13,981 12,782 9.4%
--------- --------- -------
Non Interest Income:
Service charges on deposit
accounts 1,299 1,181 10.0%
Other income 1,324 1,248 6.1%
--------- --------- -------
Total non-interest income 2,623 2,429 8.0%
--------- --------- -------
Non-Interest Expense:
Salaries and employee benefits 6,444 5,568 15.7%
Occupancy and equipment 1,421 1,268 12.1%
Other expenses 3,391 3,195 6.1%
--------- --------- -------
Total non-interest expenses 11,256 10,031 12.2%
--------- --------- -------
Income before provision for
income taxes 5,348 5,180 3.2%
Provision for income taxes 2,037 1,900 7.2%
--------- --------- -------
Net Income $ 3,311 $ 3,280 0.9%
========= ========= =======
Average basic shares outstanding 6,408,419 6,300,499
Average diluted shares outstanding 6,684,067 6,653,951
Basic earnings per share $ 0.52 $ 0.52
Fully diluted earnings per share $ 0.50 $ 0.49
Additional Financial Information
(dollars in thousands)
Percentage
For the Quarters Ended Change vs.
---------------------------- -----------------
6/30/07 12/31/06 6/30/06 12/31/06 6/30/06
-------- -------- -------- -----------------
LOANS (including loans
held for sale)
Commercial, financial
and agricultural $ 98,440 $ 84,976 $ 67,475 15.8% 45.9%
Real estate -
construction/land 100,998 105,712 93,919 -4.5% 7.5%
Real estate - other 245,110 237,401 211,597 3.2% 15.8%
Home equity lines
of credit 9,330 10,792 12,196 -13.5% -23.5%
Installment loans
to individuals 5,711 5,598 5,376 2.0% 6.2%
All other loans
(including overdrafts) 390 504 368 -22.6% 6.0%
-------- -------- -------- ---------------
Total loans $459,979 $444,983 $390,931 3.4% 17.7%
======== ======== ======== ===============
ALLOWANCE FOR
LOAN LOSSES
Balance, beginning
of period $ 4,312 $ 3,881 $ 3,881 11.1% 11.1%
Provision expense 170 600 300 -71.7% -43.3%
Credit losses charged
against allowance (19) (561) (502) -96.6% -96.2%
Recoveries of loans
previously charged off 57 161 16 -64.6% 256.3%
-------- -------- -------- ---------------
Balance, end of
period $ 4,520 $ 4,081 $ 3,695 10.8% 22.3%
======== ======== ======== ===============
Net (charge-offs) /
recoveries $ 38 $ (400) $ (486) -- --
Net charge-offs /
average loans
outstanding 0.00% 0.09% 0.13% -95.6% -96.8%
Allowance for loan
losses/total loans
outstanding 0.98% 0.92% 0.95% 7.1% 4.0%
NON-PERFORMING ASSETS
Loans on non-accrual
status $ 555 $ 55 $ 232 909.1% 139.2%
Loans more than 90
days delinquent,
still accruing -- -- -- -- --
-------- -------- -------- ---------------
Total non-performing
loans 555 55 232 909.1% 139.2%
-------- -------- -------- ---------------
Other real estate
owned (OREO)/re-
possessed assets -- -- -- -- --
-------- -------- -------- ---------------
Total non-performing
assets $ 555 $ 55 $ 232 909.1% 139.2%
======== ======== ======== ===============
Total non-performing
assets to total
assets 0.09% 0.01% 0.04% 840.9% 111.0%
DEPOSITS
Non-interest bearing
demand $153,485 $153,005 $163,453 0.3% -6.1%
-------- -------- -------- ---------------
Interest-bearing
demand 57,288 45,164 48,909 26.8% 17.1%
Regular savings
accounts 23,240 23,406 25,438 -0.7% -8.6%
Money market accounts 113,192 77,540 81,501 46.0% 38.9%
-------- -------- -------- ---------------
Total interest-bearing
transaction and
savings accounts 193,720 146,110 155,848 32.6% 24.3%
-------- -------- -------- ---------------
Time deposits under
$100 thousand 97,761 90,776 85,186 7.7% 14.8%
Time deposits of
$100 thousand or more 44,141 30,630 25,673 44.1% 71.9%
-------- -------- -------- ---------------
Total time deposits 141,902 121,406 110,859 16.9% 28.0%
-------- -------- -------- ---------------
Total deposits $489,107 $420,521 $430,160 16.3% 13.7%
======== ======== ======== ===============
PROFITABILITY / PERFORMANCE RATIOS
For the For the
Three Months Ended Six Months Ended
------------------------- ----------------
6/30/07 3/31/07 6/30/06 6/30/07 6/30/06
------------------------- ----------------
Operating efficiency 64.32% 68.89% 64.34% 66.55% 64.67%
Return on average equity 13.84% 12.10% 14.37% 12.99% 14.25%
Return on average tangible
equity 15.58% 13.71% 16.56% 14.66% 16.43%
Return on average assets 1.25% 1.10% 1.38% 1.17% 1.37%
Other operating income to
average assets 0.96% 0.89% 1.00% 0.93% 1.01%
Other operating expense
to average assets 3.86% 4.14% 4.16% 3.99% 4.18%
Net interest income to
average assets 5.03% 5.11% 5.47% 5.07% 5.45%
Non-interest income to
total net revenue 16.08% 14.89% 15.43% 15.51% 15.66%
ASSET QUALITY AND
CAPITAL RATIOS
Non-performing loans to
total loans, net 0.12% 0.03% 0.06%
ALLL to total loans, net 1.00% 0.94% 0.96%
Non-performing loans as
a % of ALLL 12.28% 3.36% 6.28%
Net charge-offs to
average loans -0.01% -0.02% 0.13%
Non-performing loans to
primary capital 1.06% 0.28% 0.50%
Leverage ratio 9.52% 10.87% 9.83%
Tier I Risk-Based
Capital Ratio 10.58% 11.42% 10.73%
Total Risk-Based
Capital Ratio 11.48% 12.28% 11.58%
AVERAGE BALANCES AND RATES
(dollars in thousands)
For the For the
Three Months Ended Six Months Ended
---------------------------- ------------------
6/30/07 12/31/06 6/30/06 6/30/07 6/30/06
---------------------------- ------------------
Average Investments $ 40,575 $ 41,981 $ 45,073 $ 40,878 $ 45,640
Average Fed funds
sold 13,198 2,534 11,791 7,834 16,195
Average loans 469,719 437,623 382,470 465,297 376,308
-------- -------- -------- -------- --------
Average earning
assets 523,492 482,138 439,334 514,009 438,143
-------- -------- -------- -------- --------
Average non-earning
assets 59,619 52,629 51,573 58,630 50,299
Allowance for loan
losses (4,417) (3,938) (4,077) (4,299) (4,010)
-------- -------- -------- -------- --------
Average assets 578,694 530,829 486,830 568,340 484,432
======== ======== ======== ======== ========
Average non-interest
bearing demand
deposits 138,696 142,582 147,058 139,878 147,642
Average interest
bearing deposits 315,031 274,081 258,238 299,958 260,365
Average borrowings 66,979 60,638 31,157 71,895 26,065
Average non-interest
bearing liabilities 5,818 5,186 3,683 5,218 3,941
-------- -------- -------- -------- --------
Average liabilities 526,524 482,487 440,136 516,949 438,013
-------- -------- -------- -------- --------
Average equity 52,170 48,342 46,694 51,391 46,419
-------- -------- -------- -------- --------
Average liabilities
and equity $578,694 $530,829 $486,830 $568,340 $484,432
======== ======== ======== ======== ========
Interest rate yield
on loans 8.72% 8.61% 8.41% 8.68% 8.31%
Interest rate yield
on investments 4.42% 4.52% 4.38% 4.45% 4.34%
Interest rate yield
on federal funds
sold 4.92% 5.52% 5.31% 4.97% 4.77%
Interest rate yield
on interest-earning
assets 8.29% 8.24% 7.91% 8.29% 7.77%
Interest rate expense
on deposits 2.29% 1.96% 1.54% 2.17% 1.49%
Interest rate expense
on other borrowings 5.84% 6.22% 6.05% 5.90% 6.02%
Interest rate expense
on interest-bearing
liabilities 3.74% 3.56% 2.81% 3.71% 2.67%
Average equity to
average assets 9.02% 9.11% 9.59% 9.04% 9.58%
Net interest margin 5.56% 5.77% 6.06% 5.61% 6.02%