* Commercial Loan Growth Continues -- Up $76 Million or 21.1% Annualized from Second Quarter of 2007 * Net Interest Income Increases $1.1 Million -- Margin Increased 12 basis points to 3.52% * Positive Operating Leverage of 3% * Net Charge-Offs Remain Low at 13 Basis Points
EVANSVILLE, Ind., Oct. 16, 2007 (PRIME NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) today reported net income for the third quarter of 2007 of $9.2 million, an increase of $0.9 million or 10.5% over second quarter 2007 results. Diluted earnings per share were $0.45, compared to $0.41 for both the first and second quarters of 2007. Returns on assets and equity were 1.13% and 11.34% for the third quarter of 2007, as compared to 1.04% and 10.71% for the second quarter of 2007.
Third quarter 2007 results included increases in net interest income of $1.1 million and non-interest income of $0.5 million, partially offset by increases in non-interest expense of $0.4 million, the provision for loan losses of $0.3 million and an increase in tax expense of $0.1 million. Operating leverage was a positive 3.0% for the third quarter of 2007.
"We are pleased with our growth in net interest income, the expansion of our margin, continued strong commercial loan growth and our increase in operating leverage during the quarter," stated Mike Vea, Chairman, President and CEO. "Our financial results in these areas indicate that we are achieving our goals to improve our earning asset mix and grow our customer base and do more with them."
"We are also very excited about our announcement during the quarter of the signing of a definitive agreement to acquire Peoples Community Bancorp, of Cincinnati, Ohio," Vea added. "Peoples has a solid customer base and excellent locations in high growth sections within the Greater Cincinnati MSA. The merger is consistent with our strategy to expand in faster growing, higher income, more densely populated markets that complement our existing franchise and provide growth and expansion opportunities."
Commercial Loan Growth Continues
Higher yielding commercial loan average balances increased $76.0 million during the third quarter, as compared to the preceding quarter, a 21.1% annualized growth rate. This growth came in the areas of commercial real estate and Cincinnati commercial. Commercial loan average balances were 52.1% of earning assets for the third quarter of 2007, up from 49.7% for the second quarter of 2007, and 42.3% for the first quarter of 2007.
Direct consumer loan average balances increased $4.8 million in the third quarter, or 12.0% annualized. The increases in commercial and direct consumer loans more than offset planned declines of $7.0 million in indirect consumer loans and residential mortgage loans of $26.9 million. Both the indirect and residential mortgage reductions were in line with the company's strategy to improve its earning asset mix.
Net Interest Margin and Net Interest Income
The net interest margin was 3.52% for the third quarter of 2007, compared to 3.40% for the second quarter of 2007, while net interest income increased $1.1 million from the second quarter.
The yield on earning assets for the third quarter increased by 18 basis points from the second quarter to 7.19%. The improved yield was driven by the improved asset mix, as well as increases in yields on commercial loans of 8 basis points to 7.98% and consumer loans of 17 basis points to 7.46%. Time deposit rates increased only 1 basis point during the third quarter to 4.75%, in part due to the maturity or repricing of higher cost certificates of deposit across Integra's footprint.
Non-Interest Income
Third quarter 2007 non-interest income was $10.4 million, an increase of $0.5 million, or 4.6%, from the second quarter. Third quarter results included a gain of $1.0 million on the sale of Mastercard stock, offset by losses on the sale of securities of $0.8 million. Deposit service charges were $5.4 million for both the second and third quarters of 2007.
Non-Interest Expense
Third quarter 2007 non-interest expense was $22.2 million, a $0.4 million or 1.7% increase from the second quarter of 2007. Personnel expenses declined by $0.4 million, but were offset by slight increases in other areas.
Credit Quality
The provision for loan losses was $0.7 million for the third quarter of 2007, compared to $0.5 million for the second quarter. Net charge-offs totaled $0.7 million, resulting in a net charge-off ratio of 0.13% for the third quarter, compared to $1.2 million or 0.22% for the second quarter. The year to date net charge-off ratio declined to 0.17%.
The allowance for loan losses at September 30, 2007 was 164% of non-performing and 1.15% of total loans, compared to 192% and 1.19% at June 30, 2007. The ratio of non-performing loans to total loans at September 30, 2007 was 0.70%, compared to 0.62% at June 30, 2007 and 0.50% at March 31, 2007. Non-performing loans in our Chicago region represented 47.8% of the company's total non-performing loans at September 30, 2007. Non-performing loans increased $2.3 million from June 30, 2007.
Income Taxes
The effective tax rate for the third quarter of 2007 was 24.0%, compared to the 25.4% for the second quarter of 2007. The effective tax rate for the remainder of 2007 is expected to be between 24% and 25%.
Capital
Integra's capital ratios all remain strong and within the regulatory requirements for being well capitalized as well as Integra's internal policy guidelines.
Definitive Agreement to Acquire Peoples Community Bancorp
On September 13, 2007, Integra announced that it had entered into a definitive agreement to acquire Peoples Community Bancorp, Inc. of Cincinnati, Ohio ("Peoples"). Peoples is the holding company for Peoples Community Bank, a federally chartered stock savings bank, with 19 offices and 24 ATMs in the Greater Cincinnati metropolitan area. Under the terms of the merger agreement, which has been approved by both companies' boards of directors, each share of Peoples stock will be converted into the right to receive 0.6175 shares of Integra common stock and $6.30 in cash. Based upon Integra's closing price on September 12, 2007 of $18.45 per share, the merger consideration is equivalent to $17.69 per share of Peoples common stock or $85.6 million in total. Integra will also pay approximately $0.7 million for Peoples stock options.
The transaction is expected to close in the first quarter of 2008, pending Peoples' shareholder approval, regulatory approvals and other customary closing conditions. Based upon financial data for Integra and Peoples as of June 30, 2007, the combined company will have approximately $4.2 billion in total assets, $3.2 billion in deposits and $2.9 billion in loans.
Conference Call
Integra executive management will hold a conference call to discuss the contents of this news release, business highlights and its financial outlook on Tuesday, October 16, 2007, at 8:00 a.m. CDT. The telephone number for the conference call is (888) 298-3451, confirmation code 9473135. The conference call will also be available by webcast at http://www.integrabank.com/webcasts.
About Integra
Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of September 30, 2007, Integra has $3.3 billion in total assets and operates 80 banking centers and 135 ATMs at locations in Indiana, Kentucky, Illinois and Ohio. Moody's Investors Service has assigned an investment grade rating of A3 for Integra Bank's long-term deposits. Integra Bank Corporation's Corporate Governance Quotient (CGQ) rating as of October 1, 2007, has IBNK outperforming 91.5% of the companies in the Russell 3000 Index and 92.8% of the companies in the banking group. This rating is updated monthly by Institutional Shareholder Services and measures public companies' corporate governance performance to a set of corporate governance factors that reflects the current regulatory environment. Integra Bank Corporation's common stock is listed on the Nasdaq Global Market under the symbol IBNK. Additional information may be found at Integra's web site, www.integrabank.com.
The Integra Bank Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3858
Safe Harbor
Certain statements made in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words "may," "will," "should," "would," "anticipate," "expect," "plan," "believe," "intend," and similar expressions identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions, either national or in the markets in which Integra does business, are less favorable than expected; (2) changes in the interest rate environment that reduce net interest margin; (3) charge-offs and loan loss provisions; (4) the ability of Integra to maintain required capital levels and adequate sources of funding and liquidity; (5) changes and trends in capital markets; (6) competitive pressures among depository institutions increase significantly; (7) effects of critical accounting policies and judgments; (8) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (9) legislative or regulatory changes or actions, or significant litigation that adversely affect Integra or the business in which Integra is engaged; (10) ability to attract and retain key personnel; (11) difficulties in combining the operations of Peoples; (12) ability to secure confidential information through the use of computer systems and telecommunications network; and (13) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity, and other factors described in our periodic reports filed with the SEC. We undertake no obligation to revise or update these risks, uncertainties and other factors except as may be set forth in our periodic reports.
Summary Operating Results Data
Here is a summary of Integra's third quarter 2007 operating results:
Net income of $9.2 million for third quarter of 2007
* Compared with $8.3 million for second quarter 2007
* Compared with $8.2 million for third quarter 2006
Diluted net income per share of $0.45 for third quarter 2007
* Compared with $0.41 for second quarter 2007
* Compared with $0.46 for third quarter 2006
Return on assets of 1.13% for third quarter 2007
* Compared with 1.04% for second quarter 2007
* Compared with 1.19% for third quarter 2006
Return on equity of 11.34% for third quarter 2007
* Compared with 10.71% for second quarter 2007
* Compared with 14.06% for third quarter 2006
Net interest margin of 3.52% for third quarter 2007
* Compared with 3.40% for second quarter 2007
* Compared with 3.41% for third quarter 2006
Allowance for loan losses of $26.4 million or 1.15% of loans at
September 30, 2007
* Compared with $26.4 million or 1.19% at June 30, 2007
* Compared with $21.4 million or 1.19% at September 30, 2006
* Equaled 164.5% of non-performing loans at September 30, 2007,
compared with 191.6% at June 30, 2007 and 271.0% at September 30,
2006
Non-performing loans of $16.1 million or 0.70% of loans at
September 30, 2007
* Compared with $13.8 million or 0.62% of loans at June 30, 2007
* Compared with $7.9 million or 0.44% at September 30, 2006
Annualized net charge-off rate of 0.13% for third quarter 2007
* Compared with 0.22% for second quarter 2007
* Compared with 0.13% for third quarter 2006
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Sept. 30, Dec. 31, Sept. 30,
ASSETS 2007 2006 2006
--------------------------------------------------------------------
Cash and due from banks $ 64,079 $ 65,400 $ 65,402
Federal funds sold and other
short-term investments 7,895 3,998 2,455
Loans held for sale (at lower of
cost or market value) 6,711 1,764 1,399
Securities available for sale 589,384 614,718 636,437
Regulatory stock 29,187 24,410 26,620
Loans:
Commercial loans 1,572,013 1,018,930 1,013,833
Consumer loans 422,737 421,957 424,468
Mortgage loans 305,238 350,089 360,714
Less: Allowance for loan losses (26,401) (21,155) (21,403)
--------------------------------------------------------------------
Net loans 2,273,587 1,769,821 1,777,612
Premises and equipment 51,297 46,157 47,310
Goodwill 123,309 44,491 44,491
Other intangible assets 12,106 6,832 7,065
Other assets 159,765 106,888 102,515
--------------------------------------------------------------------
TOTAL ASSETS $3,317,320 $2,684,479 $2,711,306
====================================================================
LIABILITIES
Deposits:
Non-interest-bearing demand $ 269,441 $ 252,851 $ 250,303
Savings & interest checking 509,793 497,548 490,630
Money market 393,612 296,732 290,138
Certificates of deposit and other
time deposits 1,211,107 906,721 960,794
--------------------------------------------------------------------
Total deposits 2,383,953 1,953,852 1,991,865
Short-term borrowings 222,422 217,518 202,598
Long-term borrowings 327,167 254,521 255,271
Other liabilities 58,688 23,114 22,864
--------------------------------------------------------------------
TOTAL LIABILITIES 2,992,230 2,449,005 2,472,598
SHAREHOLDERS' EQUITY
Preferred stock - 1,000 shares
authorized - None outstanding
Common stock - $1.00 stated value
- 29,000 shares authorized 20,649 17,794 17,704
Additional paid-in capital 206,582 135,054 132,714
Retained earnings 102,815 88,355 93,980
Accumulated other comprehensive
income (loss) (4,956) (5,729) (5,690)
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 325,090 235,474 238,708
--------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $3,317,320 $2,684,479 $2,711,306
====================================================================
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2007 2007 2007 2006 2006
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees on
loans and leases $43,586 $41,486 $32,130 $32,860 $32,836
Interest and dividends
on securities 7,294 7,495 7,289 7,521 7,817
Dividends on regulatory
stock 314 281 346 328 298
Interest on loans held
for sale 77 45 28 31 44
Interest on federal funds
sold and other
investments 56 60 49 62 40
---------------------------------------------------------------------
Total interest income 51,327 49,367 39,842 40,802 41,035
INTEREST EXPENSE
Interest on deposits 19,790 20,017 14,684 15,138 14,901
Interest on short-term
borrowings 2,648 2,264 2,018 2,147 2,418
Interest on long-term
borrowings 4,191 3,519 2,811 2,889 2,899
---------------------------------------------------------------------
Total interest expense 26,629 25,800 19,513 20,174 20,218
---------------------------------------------------------------------
NET INTEREST INCOME 24,698 23,567 20,329 20,628 20,817
Provision for loan
losses 723 455 735 18,091 950
---------------------------------------------------------------------
Net interest income
after provision for
loan losses 23,975 23,112 19,594 2,537 19,867
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on
deposit accounts 5,408 5,408 4,218 4,842 4,946
Trust income 588 602 614 595 576
Debit card income-
interchange 1,136 1,064 895 954 809
Other service charges
and fees 1,286 1,133 1,204 939 976
Securities gains (losses) 219 56 166 589 (13)
Gain (Loss) on sale of
other assets (5) 60 539 6 (39)
Other 1,755 1,608 1,579 1,518 1,951
---------------------------------------------------------------------
Total non-interest income 10,387 9,931 9,215 9,443 9,206
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and employee
benefits 11,319 11,693 10,765 9,564 10,003
Occupancy 2,474 2,388 2,107 2,143 1,971
Equipment 832 822 824 813 898
Professional fees 1,073 893 1,137 859 614
Communication and
transportation 1,490 1,303 1,171 1,218 1,235
Other 5,054 4,771 4,163 4,263 3,878
---------------------------------------------------------------------
Total non-interest
expense 22,242 21,870 20,167 18,860 18,599
---------------------------------------------------------------------
Income before income
taxes 12,120 11,173 8,642 (6,880) 10,474
Income taxes expense
(benefit) 2,914 2,840 1,286 (4,280) 2,274
---------------------------------------------------------------------
NET INCOME (LOSS) $ 9,206 $ 8,333 $ 7,356 $(2,600) $ 8,200
---------------------------------------------------------------------
Earnings per share:
Basic $ 0.45 $ 0.41 $ 0.42 $ (0.15) $ 0.47
Diluted 0.45 0.41 0.41 (0.15) 0.46
Weighted average shares
outstanding:
Basic 20,527 20,331 17,678 17,697 17,589
Diluted 20,545 20,407 17,786 17,864 17,752
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-----------------------------------------
2007 2006 2007 2006
--------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans
and leases $ 43,586 $ 32,836 $117,202 $ 92,644
Interest and dividends on
securities 7,294 7,817 22,078 23,416
Dividends on regulatory
stock 314 298 941 1,151
Interest on loans held
for sale 77 44 150 109
Interest on federal funds
sold and other
investments 56 40 165 271
--------------------------------------------------------------------
Total interest income 51,327 41,035 140,536 117,591
INTEREST EXPENSE
Interest on deposits 19,790 14,901 54,491 39,283
Interest on short-term
borrowings 2,648 2,418 6,930 6,427
Interest on long-term
borrowings 4,191 2,899 10,521 10,203
--------------------------------------------------------------------
Total interest expense 26,629 20,218 71,942 55,913
--------------------------------------------------------------------
NET INTEREST INCOME 24,698 20,817 68,594 61,678
Provision for loan losses 723 950 1,913 2,203
--------------------------------------------------------------------
Net interest income after
provision for loan losses 23,975 19,867 66,681 59,475
NON-INTEREST INCOME
--------------------------------------------------------------------
Service charges on deposit
accounts 5,408 4,946 15,034 14,037
Trust income 588 576 1,804 1,766
Debit card income-
interchange 1,136 809 3,095 2,347
Other service charges and
fees 1,286 976 3,623 3,216
Securities gains (losses) 219 (13) 441 (12)
Gain on sale of other
assets (5) (39) 594 87
Other 1,755 1,951 4,942 4,943
--------------------------------------------------------------------
Total non-interest income 10,387 9,206 29,533 26,384
NON-INTEREST EXPENSE
--------------------------------------------------------------------
Salaries 11,319 10,003 33,777 30,426
Occupancy 2,474 1,971 6,969 6,039
Equipment 832 898 2,478 2,599
Professional fees 1,073 614 3,103 2,096
Communication and
transportation 1,490 1,235 3,964 3,715
Other 5,054 3,878 13,988 12,142
--------------------------------------------------------------------
Total non-interest expense 22,242 18,599 64,279 57,017
--------------------------------------------------------------------
Income before income taxes 12,120 10,474 31,935 28,842
Income taxes expense 2,914 2,274 7,040 6,695
--------------------------------------------------------------------
NET INCOME $ 9,206 $ 8,200 $ 24,895 $ 22,147
--------------------------------------------------------------------
Earnings per share:
Basic $ 0.45 $ 0.47 $ 1.28 $ 1.27
Diluted 0.45 0.46 1.27 1.26
Weighted average shares
outstanding:
Basic 20,527 17,589 19,523 17,496
Diluted 20,545 17,752 19,583 17,644
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except for per share data)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2007 2007 2007 2006 2006
---------- ---------- ---------- ---------- ----------
EARNINGS DATA
Net Interest
Income (tax-
equivalent) $ 25,495 $ 24,366 $ 20,945 $ 21,286 $ 21,490
Net Income
(Loss) 9,206 8,333 7,356 (2,600) 8,200
Basic Earnings
Per Share 0.45 0.41 0.42 (0.15) 0.47
Diluted
Earnings Per
Share 0.45 0.41 0.41 (0.15) 0.46
Dividends
Declared 0.18 0.18 0.17 0.17 0.17
Book Value 15.74 15.33 13.51 13.23 13.48
Tangible Book
Value 9.19 8.92 10.61 10.35 10.57
PERFORMANCE
RATIOS
Return on
Assets 1.13% 1.04% 1.12% (0.38)% 1.19%
Return on
Equity 11.34 10.71 12.62 (4.26) 14.06
Net Interest
Margin (tax-
equivalent) 3.52 3.40 3.48 3.41 3.41
Tier 1 Capital
to Risk Assets 9.30 9.41 11.01 10.80 11.23
Capital to
Risk Assets 11.52 11.76 12.71 12.51 12.95
Tangible
Equity to
Tangible
Assets 5.96 5.97 7.20 6.99 7.04
Efficiency
Ratio 61.09 62.65 66.46 61.80 59.81
AT PERIOD END
Assets $3,317,320 $3,214,362 $2,656,211 $2,684,479 $2,711,306
Interest-
Earning
Assets 2,933,165 2,862,520 2,415,717 2,435,866 2,465,926
Commercial
Loans 1,572,013 1,467,730 1,040,004 1,018,930 1,013,833
Consumer
Loans 422,737 426,086 412,576 421,957 424,468
Mortgage
Loans 305,238 324,411 337,480 350,089 360,714
Total Loans 2,299,988 2,218,227 1,790,060 1,790,976 1,799,015
Deposits 2,383,953 2,415,619 1,995,728 1,953,852 1,991,865
Low Cost
Deposits (a) 779,234 791,587 742,645 750,399 740,933
Interest-
Bearing
Liabilities 2,664,101 2,585,213 2,141,347 2,173,040 2,199,431
Shareholders'
Equity 325,090 316,313 238,707 235,474 238,708
Unrealized
Gains
(Losses) on
Market
Securities
(FASB 115) (4,171) (6,848) (3,294) (4,879) (5,747)
AVERAGE
BALANCES
Assets $3,232,918 $3,198,981 $2,658,785 $2,707,539 $2,724,641
Interest-
Earning
Assets (b) 2,882,412 2,866,946 2,417,417 2,469,010 2,487,752
Commercial
Loans 1,501,430 1,425,439 1,021,373 1,028,889 1,010,665
Consumer
Loans 423,607 427,419 416,532 423,325 425,651
Mortgage
Loans 313,535 340,430 342,344 355,412 361,837
Total Loans 2,238,572 2,193,288 1,780,249 1,807,626 1,798,153
Deposits 2,377,662 2,435,682 1,980,454 2,016,184 2,025,797
Low Cost
Deposits (a) 794,157 799,513 738,439 742,090 742,405
Interest-
Bearing
Liabilities 2,595,245 2,572,178 2,148,320 2,187,665 2,219,894
Shareholders'
Equity 322,028 312,063 236,333 242,248 231,330
Basic Shares 20,527 20,331 17,678 17,697 17,589
Diluted
Shares 20,545 20,407 17,786 17,864 17,752
(a) Defined as interest checking, demand deposit and savings
accounts.
(b) Includes securities available for sale at amortized cost.
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA-con't
(In thousands, except ratios and yields)
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2007 2007 2007 2006 2006
-------- -------- -------- -------- --------
ASSET QUALITY
Non-Performing
Assets:
Non Accrual
Loans $ 14,543 $ 12,975 $ 8,816 $ 8,625 $ 7,844
Loans 90+ Days
Past Due 1,508 801 49 228 54
-------- -------- -------- -------- --------
Non-Performing
Loans 16,051 13,776 8,865 8,853 7,898
Other Real
Estate Owned 4,016 3,563 1,246 936 779
-------- -------- -------- -------- --------
Non-Performing
Assets $ 20,067 $ 17,339 $ 10,111 $ 9,789 $ 8,677
======== ======== ======== ======== ========
Allowance for
Loan Losses:
Beginning
Balance $ 26,390 $ 21,165 $ 21,155 $ 21,403 $ 21,043
Allowance
Associated
with
Acquisition -- 5,982 -- -- --
Provision for
Loan Losses 723 455 735 18,091 950
Recoveries 362 426 348 463 343
Loans Charged
Off (1,074) (1,638) (1,073) (18,802) (933)
-------- -------- -------- -------- --------
Ending Balance $ 26,401 $ 26,390 $ 21,165 $ 21,155 $ 21,403
======== ======== ======== ======== ========
Ratios:
Allowance for
Loan Losses to
Loans 1.15% 1.19% 1.18% 1.18% 1.19%
Allowance for
Loan Losses
to Average
Loans 1.18 1.20 1.19 1.17 1.19
Allowance to
Non-performing
Loans 164.48 191.57 238.75 238.96 270.99
Non-performing
Loans to
Loans 0.70 0.62 0.50 0.49 0.44
Non-performing
Assets to
Loans and
Other Real
Estate Owned 0.87 0.78 0.56 0.55 0.48
Net Charge-Off
Ratio 0.13 0.22 0.17 4.03 0.13
NET INTEREST
MARGIN
Yields (tax-
equivalent)
Loans 7.67% 7.52% 7.25% 7.18% 7.21%
Securities 5.28 5.16 5.17 5.17 5.13
Regulatory
Stock 4.80 4.36 5.68 5.05 4.40
Other Earning
Assets 6.16 4.60 5.92 5.68 6.58
-------- -------- -------- -------- --------
Total Earning
Assets 7.19 7.01 6.76 6.64 6.63
Cost of Funds
Interest
Bearing
Deposits 3.75 3.73 3.44 3.41 3.34
Other Interest
Bearing
Liabilities 5.35 5.45 4.64 4.64 4.66
Total Interest
Bearing
Liabilities 4.07 4.02 3.68 3.65 3.60
-------- -------- -------- -------- --------
Total Interest
Expense to
Earning
Assets 3.67 3.61 3.28 3.23 3.22
-------- -------- -------- -------- --------
Net Interest
Margin 3.52% 3.40% 3.48% 3.41% 3.41%
======== ======== ======== ======== ========
(a) Defined as interest checking, demand deposit and savings
accounts.
(b) Includes securities available for sale at amortized cost.