-- $0.05 Per Share Net Loss Due to $12.8 Million Loan Loss Provision -- Centennial Bank of the West to Merge Into Guaranty Bank & Trust Company
DENVER, July 24, 2007 (PRIME NEWSWIRE) -- Centennial Bank Holdings, Inc. (Nasdaq:CBHI) today reported a second quarter 2007 net loss of $2.8 million, or $0.05 per basic and diluted share, compared to first quarter 2007 net earnings of $5.4 million, or $0.10 per basic and diluted share, and second quarter 2006 net earnings of $5.7 million, or $0.10 per basic and diluted share. The current quarter loss was driven by a provision for loan loss of $12.8 million. Excluding after-tax intangible asset amortization of $1.4 million, the second quarter 2007 cash net loss was $1.4 million, or $0.03 per basic and diluted share. This compares to first quarter 2007 cash net income of $6.8 million, or $0.12 per basic and diluted share, and second quarter 2006 cash net income of $7.6 million, or $0.13 per basic and diluted share.
The Company also announced today that it would merge Centennial Bank of the West, a wholly owned banking subsidiary, into Guaranty Bank & Trust Company, another wholly owned banking subsidiary of the Company by the end of 2007.
Dan Quinn, Centennial Bank Holdings President and CEO, stated, "The level of our nonperforming assets has remained higher than we would like, particularly outside of the metro Denver market. Consequently, the second quarter's loan loss provision was driven in part by the adoption of a more aggressive credit management philosophy, including an accelerated loan disposition strategy for problem credits, as well as adjustments to expected values of impaired loans. Given the measures we have taken, we anticipate a lower level of non-performing assets by year-end and a continued decline into 2008. We also expect a return to a normalized level of provision for loan losses in future quarters."
Mr. Quinn continued, "Beyond credit quality, we remain encouraged by our core performance and continue to execute on our strategy. Year to date, we have decreased our construction and land development loan exposure by $105 million while all other loan categories increased by $51 million. Construction and land development loans decreased over $200 million, or 39%, in the past six quarters and they now make up 17% of our loan portfolio versus 26% at December 31, 2005. We also remain focused on disciplined expense management. Excluding the charge for the merger of our subsidiary banks, our noninterest expense would have declined over the prior quarter."
Regarding the merger, Mr. Quinn stated, "The plan to merge our two banking charters into a single bank will provide greater convenience to our customers. No matter where they are along the Colorado Front Range, customers will be able to walk in to one of our 36 locations and receive the superior service they have come to expect from our banks. This merger will only serve to enhance our position as the premier community bank for consumers and mid-sized and small businesses throughout the Front Range."
The Company's results for the first six months of 2007 declined compared to the same period last year. For the year-to-date period ending June 30, 2007, net income was $2.6 million, or $0.05 per basic and diluted share compared to net income of $13.2 million, or $0.22 per basic and diluted share for the same period in 2006. Cash net income for the first six months of 2007 was $5.4 million, or $0.10 per basic and diluted share excluding after-tax intangible asset amortization of $2.7 million.
The comparability of the Company's year-to-date financial information to periods prior to the fourth quarter of 2006 is affected by the sale of Collegiate Peaks Bank on November 1, 2006, which had been classified as held for sale, as well as the discontinuation of the Company's residential mortgage group at the end of the third quarter of 2006.
Key Financial Measures
Quarter Ended Six Months Ended
------------------------ ---------------
June March June June June
30, 31, 30, 30, 30,
2007 2007 2006 2007 2006
------------------------------------------
Earnings (loss) per
share-basic & diluted $(0.05) $0.10 $0.10 $0.05 $0.22
Cash earnings (loss) per
share-basic & diluted $(0.03) $0.12 $0.13 $0.10 $0.29
Return on average assets (0.42)% 0.82% 0.81% 0.20% 0.92%
Return on tangible average
assets - Cash (0.25)% 1.22% 1.27% 0.48% 1.39%
Net Interest Margin 5.00% 5.16% 5.51% 5.08% 5.47%
Efficiency Ratio 66.26% 62.86% 66.70% 64.54% 61.73%
Increase in Provision for Loan Loss; Asset Quality
The Company took a second quarter 2007 provision for loan loss of $12.8 million, compared to $0.9 million in the first quarter of 2007 and none in the second quarter of 2006. New collateral valuations and sales of existing properties in the second quarter, particularly in Northern Colorado, contributed to this increase due to adjustments to the expected values of impaired loans. In addition, the Company modified its credit management philosophy during the second quarter by implementing a more conservative risk rating methodology and problem loan identification process and instituting more aggressive collection efforts and an accelerated disposition strategy regarding problem credits. The Company also employed more conservative underwriting standards based on its portfolio composition and market trends, in particular with respect to residential construction and land development loans.
The following table presents selected asset quality data as of the dates indicated.
June 30, March 31, Dec 31, Sept 30, June 30,
2007 2007 2006 2006 2006
---------------------------------------------
(Dollars in thousands)
Nonaccrual loans, not
restructured $35,515 $31,940 $32,852 $26,812 $30,684
Accruing loans past due
90 days or more 122 323 3 396 84
--------------------------------------------
Total nonperforming loans
(NPLs) 35,637 32,263 32,855 27,208 30,768
Other real estate owned 1,385 861 1,207 5,090 1,041
--------------------------------------------
Total nonperforming
assets (NPAs) $37,022 $33,124 $34,062 $32,298 $31,809
============================================
Allowance for loan
losses $35,594 $27,492 $27,899 $25,977 $25,297
============================================
Selected ratios:
NPLs to loans, net of
unearned discount 1.88% 1.69% 1.69% 1.37% 1.59%
NPAs to total assets 1.40% 1.23% 1.25% 1.12% 1.12%
Allowance for loan losses
to NPAs 96.14% 83.00% 81.91% 80.43% 79.53%
Allowance for loan losses
to NPLs 99.88% 85.21% 84.92% 95.48% 82.22%
Allowance for loan losses
to loans held for
investment 1.88% 1.46% 1.43% 1.31% 1.31%
Net charge-offs for the quarter were $4.7 million as compared to $1.3 million in the first quarter of 2007, and $1.4 million in the second quarter of 2006.
In addition to the nonperforming loans, other impaired loans were $21.7 million at June 30, 2007, as compared to $8.1 million at March 31, 2007 and $6.0 million at December 31, 2006.
The allowance for loan loss to total loans outstanding is 1.88 percent at June 30, 2007, as compared to 1.46 percent at March 31, 2007 and 1.31 percent at June 30, 2006.
Plan to Merge Subsidiaries into a Single Bank
The Company expects to consummate the merger of Centennial Bank of the West into Guaranty Bank & Trust Company by the end of 2007, subject to state and federal regulatory approval. The Company took a $1.0 million charge for the costs associated with the merger in the second quarter of 2007. The Company expects the total cost of the merger to approximate $1.5 million.
Net Interest Income and Margin
Quarter Ended Six Months Ended
------------------------ ---------------
June March June June June
30, 31, 30, 30, 30,
2007 2007 2006 2007 2006
------------------------------------------
(Dollars in thousands)
Net interest income $25,987 $26,843 $29,388 $52,830 $59,295
Interest rate spread 3.98% 4.16% 4.66% 4.07% 4.66%
Net interest margin 5.00% 5.16% 5.51% 5.08% 5.47%
The decreases in net interest income versus the first quarter of 2007 are due to a $0.5 million unfavorable volume variance and a $0.2 million unfavorable rate variance. Included in these variances is a $0.2 million increase in net interest charge-offs for loans put on nonaccrual status during the second quarter of 2007.
Year-to-date interest income is $1.6 million lower than the prior year. Lower earning assets caused an unfavorable volume variance, while the yield on earning assets increased 18 basis points, driving a $2.6 million favorable rate variance.
Interest expense increased slightly over the first quarter of 2007 and increased by $2.1 million over the second quarter of 2006. The cost of funds increased by 6 basis points in the second quarter of 2007 as compared to the prior quarter and 65 basis points over the second quarter of 2006. The increase over the prior year second quarter is due mostly to higher costs associated with time deposits, which increased by $1.7 million. This was due to continued rate competition and renewals of certificates of deposits at higher prevailing interest rates.
The Company's net interest spread decreased by 18 basis points and the net interest margin decreased by 16 basis points. The difference in net interest margin as compared to the net interest spread is due mostly to the Company's continued high level of noninterest bearing deposits. Noninterest bearing deposits averaged 24.9 percent of total deposits for the second quarter of 2007.
Noninterest Income
The following table presents noninterest income as of the dates indicated.
Quarter Ended Six Months Ended
------------------------------------------
June March June June June
30, 31, 30, 30, 30,
2007 2007 2006 2007 2006
------------------------------------------
(In thousands)
Noninterest income:
Customer service and
other fees $2,409 $2,443 $2,993 $4,852 $5,625
Loss on sale of
securities -- -- -- -- (5)
Gain on sale of loans -- -- 231 -- 545
Other 168 124 381 292 552
-------------------------------------------
Total noninterest income $2,577 $2,567 $3,605 $5,144 $6,717
Noninterest income remained relatively flat as compared to the prior quarter, but is down from the second quarter in 2006, due partly to the discontinuation of the Company's residential mortgage group at the end of the third quarter 2006.
Noninterest Expense
The following table presents noninterest expense as of the dates indicated.
Quarter Ended Six Months Ended
------------------------------------------
June March June June June
30, 31, 30, 30, 30,
2007 2007 2006 2007 2006
------------------------------------------
(In thousands)
Noninterest expense:
Salaries and employee
benefits $10,724 $10,974 $12,082 $21,698 $23,517
Occupancy expense 2,056 2,121 1,994 4,177 4,046
Furniture and equipment 1,231 1,240 1,231 2,471 2,396
Amortization of
intangible assets 2,195 2,195 2,999 4,390 5,997
Other general and
administrative 4,916 4,152 6,698 9,068 10,788
------------------------- ----------------
Total noninterest
expense $21,122 $20,682 $25,004 $41,804 $46,744
========================= ================
Efficiency Ratio 66.26% 62.86% 66.70% 64.54% 61.73%
The increase in the efficiency ratio over the first quarter of 2007 is due to the $1.0 million charge for the merger of the Company's subsidiary banks discussed above. Without this charge to other general and administrative expense, noninterest expense would have been approximately $0.4 million lower than the prior quarter. This would have resulted in a ten basis point improvement in the efficiency ratio over the prior quarter to 62.76%. Further, without this charge for the merger, this would have been the fourth consecutive quarter of decreases to noninterest expense.
For the six-month period ended June 30, 2007, overall noninterest expense decreased by $4.9 million, or 10.6% over the same period in 2006. Key drivers of this decrease include $3.2 million of costs associated with a management transition in May 2006 and lower amortization costs of intangible assets. The remainder of the decrease was due to a $1.8 million decrease in salaries and employee benefits for the six months ending June 30, 2007 as compared to the same period in 2006. This reduction is due mostly to a continuing focus on determining each business unit's appropriate level of staff and managing to that level through attrition.
Balance Sheet
At June 30, 2007, the Company had total assets of $2.6 billion, or $53.9 million less than the total assets at March 31, 2007, and $210.8 million less than total assets at June 30, 2006. The sale of Collegiate Peaks Bank accounted for $94.4 million of the decrease in total assets from June 30, 2006.
June 30, March 31, % June 30, %
2007 2007 Change 2006 Change
----------------------------------------------------------
(In thousands)
Total
loans, net
of unearned
discount $1,893,440 $1,886,613 0.4 % $1,927,222 (1.8)%
Allowance
for loan
losses (35,594) (27,492) 29.5 % (25,297) 40.7 %
Total assets 2,639,463 2,693,384 (2.0)% 2,850,281 (7.4)%
Average
assets 2,654,637 2,687,549 (1.2)% 2,836,432 (6.4)%
Total
deposits 1,938,412 1,971,869 (1.7)% 1,998,054 (3.0)%
At June 30, 2007, total loans, net of unearned discount, of $1.9 billion were $6.8 million greater than at March 31, 2007 and $33.8 million less than at June 30, 2006. The increase over the prior quarter is due primarily to the Company's continued strategy to increase commercial and industrial, consumer and energy loans and reduce the concentration of construction and land development loans. The June 30, 2007 commercial, energy, consumer and small business loan portfolio balances grew from March 31, 2007, while construction and land development loans decreased.
The balances of construction and land development loans were as follows:
June 30, March 31, Dec 31, Dec 31,
2007 2007 2006 2005
--------------------------------------------
(Dollars in thousands)
Construction and Land
Development:
Loan balances -
Northern Colorado $125,774 $146,144 $206,414 $279,361
Loan balances -
All Other 196,207 207,179 221,051 251,355
--------------------------------------------
Total Construction and
Land Development
Loans $321,981 $353,323 $427,465 $530,716
============================================
Percent of Total Loan
Portfolio 17% 19% 22% 26%
At the end of the second quarter 2007, deposits were $1.9 billion, reflecting a decrease of $33.5 million from March 31, 2007, and a decrease of $59.6 million from June 30, 2006. These decreases are due in part to the volatility in our commercial and public deposit base.
Stock Repurchase Program
During the second quarter of 2007, the Company repurchased 696,900 shares at a cost of $6.2 million, or an average price of $8.91 per share, leaving a total of 2,334,300 shares under the Company's two existing stock repurchase programs. As of June 30, 2007, the Company had 54,809,236 shares outstanding, including 1,683,577 shares of unvested stock awards.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, cash net income (loss) and cash earnings (loss) per share, which exclude the after-tax impact of intangible asset amortization expense, and return on average tangible assets (cash), which excludes the after-tax impact of intangible asset amortization expense and average intangible assets. The Company discloses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of the Company's core financial performance. Management believes that these non-GAAP financial measures allow for additional transparency and are used by some investors, analysts and other users of the Company's financial information as performance measures. These non-GAAP financial measures are presented for supplemental informational purposes only for understanding the Company's operating results and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP financial measures presented by the Company may be different from non-GAAP financial measures used by other companies.
Non-GAAP Table
Quarter Ended
June 30, March 31, June 30,
2007 2007 2006
---------------------------------------
(In thousands, except per share data)
GAAP net income (loss) $ (2,764) $ 5,409 $ 5,726
Add: Amortization of
intangible assets 2,195 2,195 2,999
Less: Income tax effect (834) (834) (1,141)
---------------------------------------
Cash net income (loss) $ (1,403) $ 6,770 $ 7,584
=======================================
Weighted average shares -
diluted 53,569 54,902 58,352
Earnings (loss) per share -
diluted $ (0.05) $ 0.10 $ 0.10
Add: Amortization of
intangible assets (after
tax effect) 0.02 0.02 0.03
---------------------------------------
Cash earnings (loss)
per share $ (0.03) $ 0.12 $ 0.13
=======================================
Return on tangible net assets
(cash)
Cash net income (loss) $ (1,403) $ 6,770 $ 7,584
---------------------------------------
Total average assets $ 2,654,637 $ 2,687,549 $ 2,836,432
Less average intangible
assets (431,220) (433,573) (440,197)
---------------------------------------
Average tangible assets $ 2,223,417 $ 2,253,976 $ 2,396,235
---------------------------------------
Return on average assets -
GAAP net income divided by
total average assets (0.42)% 0.82% 0.81%
=======================================
Return on average tangible
assets (cash) - cash net
income divided by average
tangible assets (0.25)% 1.22% 1.27%
Non-GAAP Table
Six Months Ended
June 30, June 30,
2007 2006
-----------------------------
(In thousands, except
per share data)
GAAP net income (loss) $ 2,645 $ 13,155
Add: Amortization of
intangible assets 4,390 5,997
Less: Income tax effect (1,669) (2,279)
-----------------------------
Cash net income (loss) $ 5,366 $ 16,873
=============================
Weighted average shares - diluted 54,247 58,849
Earnings (loss) per share -
diluted $ 0.05 $ 0.22
Add: Amortization of
intangible assets (after tax
effect) 0.05 0.07
-----------------------------
Cash earnings (loss) per share $ 0.10 $ 0.29
=============================
Return on tangible net assets
(cash)
Cash net income (loss) $ 5,366 $ 16,873
-----------------------------
Total average assets $ 2,670,985 $ 2,884,741
Less average intangible assets (432,389) (442,616)
-----------------------------
Average tangible assets $ 2,238,596 $ 2,442,125
-----------------------------
Return on average assets - GAAP
net income divided by total
average assets 0.20% 0.92%
=============================
Return on average tangible
assets (cash) - cash net
income divided by average
tangible assets 0.48% 1.39%
About Centennial Bank Holdings, Inc.
Centennial Bank Holdings, Inc. is a bank holding company that operates 36 branches in Colorado through its two bank subsidiaries, Centennial Bank of the West and Guaranty Bank and Trust Company. The Company provides banking and other financial services including real estate, construction, commercial and industrial, energy, consumer and agricultural loans throughout its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. Centennial Bank of the West also provides trust services, including personal trust administration, estate settlement, investment management accounts and self-directed IRAs. More information about Centennial Bank Holdings, Inc. can be found at www.cbhi.com.
Forward-Looking Statements
Certain statements contained in this press release, including, without limitation, statements containing the words "believes", "anticipates", "intends", "expects", and words of similar import, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in those areas in which the Company operates; demographic changes; competition; fluctuations in interest rates; continued ability to attract and employ qualified personnel; costs and uncertainties related to the outcome of pending litigation; changes in business strategy or development plans; changes that occur in the securities markets; changes in governmental legislation or regulation; changes in credit quality; the availability of capital to fund the expansion of the Company's business; economic, political and global changes arising from natural disasters; the war on terrorism; conflicts in the Middle East; and additional "Risk Factors" referenced in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as supplemented from time to time. When relying on forward-looking statements to make decisions with respect to the Company, investors and others are cautioned to consider these and other risks and uncertainties. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
CENTENNIAL BANK HOLDINGS, INC. AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
June 30, March 31, Dec. 31, June 30,
2007 2007 2006 2006
----------------------------------------------
(In thousands)
Assets
Cash and due from
banks $ 48,255 $ 68,639 $ 45,409 $ 86,073
Federal funds sold 4,200 25,431 4,211 4,626
----------------------------------------------
Cash and cash
equivalents 52,455 94,070 49,620 90,699
----------------------------------------------
Securities available
for sale, at fair
value 143,879 149,631 157,260 170,433
Securities held to
maturity (fair value
of $11,731, $11,122,
$11,157, and $6,719
respectively) 12,160 11,179 11,217 7,012
Bank stocks, at cost 32,176 31,995 31,845 30,265
----------------------------------------------
Total investments 188,215 192,805 200,322 207,710
----------------------------------------------
Loans, net of unearned
discount 1,893,440 1,886,613 1,947,487 1,927,222
Less allowance for
loan losses (35,594) (27,492) (27,899) (25,297)
----------------------------------------------
Net loans 1,857,846 1,859,121 1,919,588 1,901,925
----------------------------------------------
Loans held for sale -- -- -- 4,588
Premises and
equipment, net 72,046 73,599 74,166 76,604
Other real estate
owned and foreclosed
assets 1,385 861 1,207 1,041
Goodwill 392,958 392,958 392,958 391,346
Other intangible
assets, net 37,209 39,404 41,599 47,417
Other assets 37,349 40,566 41,140 34,541
Assets held for sale -- -- -- 94,410
----------------------------------------------
Total assets $2,639,463 $2,693,384 $2,720,600 $2,850,281
==============================================
Liabilities and
Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing
demand $ 472,777 $ 519,951 $ 517,612 $ 528,943
Interest-bearing
demand 798,289 789,921 777,579 810,686
Savings 77,508 81,689 87,265 94,480
Time 589,838 580,308 577,649 563,945
----------------------------------------------
Total deposits 1,938,412 1,971,869 1,960,105 1,998,054
----------------------------------------------
Securities sold under
agreements to
repurchase and 37,391 34,695 25,469 30,371
federal fund
purchases
Borrowings 26,030 29,804 67,632 76,376
Subordinated
debentures 41,239 41,239 41,239 41,239
Interest payable and
other liabilities 24,671 34,680 36,696 30,759
Liabilities associated
with assets held
for sale -- -- -- 77,518
----------------------------------------------
Total liabilities 2,067,743 2,112,287 2,131,141 2,254,317
----------------------------------------------
Stockholders' equity:
Common stock 64 64 64 64
Additional paid-in
capital 616,447 615,356 614,489 613,596
Shares to be issued
for deferred
compensation
obligations 562 798 775 --
Retained earnings 45,540 48,305 42,896 31,633
Accumulated other
comprehensive
income (loss) (522) 680 809 (475)
Treasury Stock (90,371) (84,106) (69,574) (48,854)
----------------------------------------------
Total stockholders'
equity 571,720 581,097 589,459 595,964
----------------------------------------------
Total liabilities
and stockholders'
equity $2,639,463 $2,693,384 $2,720,600 $2,850,281
==============================================
CENTENNIAL BANK HOLDINGS, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
Six Months Ended
Three Months Ended June 30,
-------------------------------- ----------------------
June 30, March 31, June 30,
2007 2007 2006 2007 2006
-------------------------------------------------------
(In thousands, except per share data)
Interest
income:
Loans,
including
fees $ 39,087 $ 39,738 $ 40,644 $ 78,825 $ 81,165
Securities:
Taxable 608 621 718 1,229 1,494
Tax-exempt 1,336 1,412 1,055 2,748 1,966
Dividends 459 475 433 934 860
Federal
funds
sold and
other 213 114 116 327 191
----------------------------------------------------------
Total
interest
income 41,703 42,360 42,966 84,063 85,676
----------------------------------------------------------
Interest
expense:
Deposits 13,738 13,346 11,533 27,084 21,680
Federal
funds
purchased
and
repurchase
agreements 448 301 293 749 554
Borrowings 592 938 851 1,530 2,399
Subordinated
debentures 938 932 901 1,870 1,748
----------------------------------------------------------
Total
interest
expense 15,716 15,517 13,578 31,233 26,381
----------------------------------------------------------
Net
interest
income 25,987 26,843 29,388 52,830 59,295
Provision
for loan
losses 12,766 849 -- 13,615 --
----------------------------------------------------------
Net
interest
income,
after
provision
for loan
losses 13,221 25,994 29,388 39,215 59,295
Noninterest
income:
Customer
service
and other
fees 2,409 2,443 2,993 4,852 5,625
Loss on
sale of
securities -- -- -- -- (5)
Gain on
sale of
loans -- -- 231 -- 545
Other 168 124 381 292 552
----------------------------------------------------------
Total
noninterest
income 2,577 2,567 3,605 5,144 6,717
Noninterest
expense:
Salaries
and
employee
benefits 10,724 10,974 12,082 21,698 23,517
Occupancy
expense 2,056 2,121 1,994 4,177 4,046
Furniture
and
equipment 1,231 1,240 1,231 2,471 2,396
Amortization
of
intangible
assets 2,195 2,195 2,999 4,390 5,997
Other
general
and
adminis-
trative 4,916 4,152 6,698 9,068 10,788
----------------------------------------------------------
Total
noninterest
expense 21,122 20,682 25,004 41,804 46,744
----------------------------------------------------------
Income
(loss)
before
income
taxes (5,324) 7,879 7,989 2,555 19,268
Income tax
expense
(benefit) (2,560) 2,470 2,612 (90) 6,602
----------------------------------------------------------
Income
(loss)
from
continuing
opera-
tions (2,764) 5,409 5,377 2,645 12,666
Income from
discontinued
operations,
net of
tax -- -- 349 -- 489
----------------------------------------------------------
Net
income
(loss) $ (2,764) $ 5,409 $ 5,726 $ 2,645 $ 13,155
==========================================================
Earnings
(loss)
per share
-basic:
Income
(loss)
from
continuing
opera-
tions $ (0.05) $ 0.10 $ 0.09 $ 0.05 $ 0.22
Income
(loss)
from
discontinued
operations,
net of
tax -- -- 0.01 -- --
Net
income
(loss) (0.05) 0.10 0.10 0.05 0.22
Earnings
(loss)
per
share-
diluted:
Income
(loss)
from
continuing
opera-
tions $ (0.05) $ 0.10 $ 0.09 $ 0.05 $ 0.22
Income
(loss)
from
discontinued
operations,
net of
tax -- -- 0.01 -- --
Net
income
(loss) (0.05) 0.10 0.10 0.05 0.22
Weighted
average
shares
outstanding
-basic 53,425,770 54,792,527 58,053,314 54,105,373 58,552,516
Weighted
average
shares
outstanding-
diluted 53,569,371 54,902,229 58,352,355 54,246,862 58,849,243
CENTENNIAL BANK HOLDINGS, INC. AND SUBSIDIARIES
Unaudited Consolidated Average Balance Sheets
QTD Average YTD Average
-------------------------------- ---------------------
June 30, March 31, June 30, June 30, June 30,
2007 2007 2006 2007 2006
-------------------------------- ---------------------
(In thousands)
Assets
Interest
earning
assets
Loans, net
of unearned
discount $1,882,840 $1,909,713 $1,958,639 $1,896,185 $2,003,053
Securities 190,819 197,036 177,860 193,910 176,219
Other
earning
assets 11,282 3,464 4,629 7,638 6,358
-------------------------------- ---------------------
Average
earning
assets 2,084,941 2,110,213 2,141,128 2,097,733 2,185,630
Other
assets 569,696 577,336 695,304 573,253 699,111
-------------------------------- ---------------------
Total
average
assets $2,654,637 $2,687,549 $2,836,432 $2,670,986 $2,884,741
================================ =====================
Liabilities
and
Stockholders'
Equity
Average
liabilities:
Average
deposits:
Noninterest-
bearing
deposits $ 478,520 $ 483,293 $ 519,168 $ 480,875 $ 529,433
Interest-
bearing
deposits 1,443,719 1,448,340 1,474,491 1,446,018 1,474,949
-------------------------------- ---------------------
Average
deposits 1,922,239 1,931,633 1,993,659 1,926,893 2,004,382
Other
interest-
bearing
liabilities 118,147 132,787 133,929 125,431 167,830
Other
liabilities 32,514 34,661 108,888 33,578 110,702
-------------------------------- ---------------------
Total average
liabilities 2,072,900 2,099,081 2,236,476 2,085,902 2,282,914
Average
stockholders'
equity 581,737 588,468 599,956 585,084 601,827
-------------------------------- ---------------------
Total
average
liabilities
and
stockholders'
equity $2,654,637 $2,687,549 $2,836,432 $2,670,986 $2,884,741
================================ =====================
CENTENNIAL BANK HOLDINGS, INC. AND SUBSIDIARIES
Unaudited Credit Quality Measures
Quarter Ended
------------------------------------------------
June 30, March 31, Dec. 31, Sept. 30, June 30,
2007 2007 2006 2006 2006
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(Dollars in thousands)
Nonaccrual loans $ 35,515 $ 31,940 $ 32,852 $ 26,812 $ 30,684
Accruing loans past
due 90 days or
more 122 323 3 396 84
Other real estate
owned 1,385 861 1,207 5,090 1,041
------------------------------------------------
Total
nonperforming
assets $ 37,022 $ 33,124 $ 34,062 $ 32,298 $ 31,809
================================================
Charged-off loans $ (5,473) $ (1,692) $ (1,088) $ (1,736) $ (2,012)
Recoveries 809 436 366 177 593
------------------------------------------------
Net charge-offs $ (4,664) $ (1,256) $ (722) $ (1,559) $ (1,419)
================================================
Provision for loan
loss $ 12,766 $ 849 $ 2,641 $ 2,239 $ --
================================================
Allowance for loan
losses $ 35,594 $ 27,492 $ 27,899 $ 25,977 $ 25,297
Allowance on
unfunded
commitments 610 572 411 328 1,001
------------------------------------------------
Total allowance
for credit losses $ 36,204 $ 28,064 $ 28,310 $ 26,305 $ 26,298
================================================
Allowance for loan
losses to loans,
net of unearned
discount 1.88% 1.46% 1.43% 1.31% 1.31%
Allowance for loan
losses to
nonaccrual loans 100.22% 86.07% 84.92% 96.89% 82.44%
Allowance for loan
losses to
nonperforming
assets 96.14% 83.00% 81.91% 80.43% 79.53%
Allowance for loan
losses to
nonperforming Loans 99.88% 85.21% 84.92% 95.48% 82.22%
Nonperforming assets
to loans, net of
unearned discount,
and other real
estate owned 1.96% 1.76% 1.75% 1.63% 1.65%
Annualized net
charge-offs to
average loans 0.99% 0.27% 0.15% 0.32% 0.29%
Nonaccrual loans to
loans, net of
unearned discount 1.88% 1.69% 1.69% 1.35% 1.59%