BLOOMINGTON, Ind., Jan. 29, 2008 (PRIME NEWSWIRE) -- Monroe Bancorp (the "Company"), (Nasdaq:MROE), the independent Bloomington-based holding company for Monroe Bank (the "Bank"), reported net income of $7,806,000 or $1.235 per diluted common share, for the year ended December 31, 2007, compared to $7,586,000 or $1.150 per diluted common share for 2006. This represents a 2.9 percent increase in net income and a 7.4 percent increase in diluted earnings per share.
Return on average shareholders' equity (ROE) for 2007 was 14.79 percent, compared to 14.59 percent for the year ended December 31, 2006. Return on average assets (ROA) for the year ended December 31, 2007 was 1.04 percent, which matched the Company's 2006 performance.
"I am pleased by the earnings growth that we achieved during 2007 considering the downturn in economic conditions during the second half of the year," said Mark D. Bradford, President and Chief Executive Officer of Monroe Bancorp and Monroe Bank.
Financial Performance
Net interest income before the provision for loan losses increased 1.7 percent to $23,039,000 for the year ended December 31, 2007 compared to $22,665,000 for 2006. The tax equivalent net interest margin declined during 2007, decreasing from 3.42 percent for the year ended December 31, 2006, to 3.37 percent for 2007. A significant factor contributing to the decline in the Company's net interest margin is interest expense associated with Trust Preferred Stock that was issued primarily to fund the repurchase of stock. The average balance of the subordinated debentures supporting the Trust Preferred Stock was $7,146,000 in 2007 compared to $1,364,000 for 2006. Trust preferred interest expense totaled $483,000 in 2007 compared to $96,000 in 2006. The increase in non-performing assets discussed later in this release was also significant to the decrease in the Company's net interest margin. See the table called "Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis" for a reconcilement of GAAP net interest margin to Non-GAAP net interest margin on a tax equivalent basis.
Noninterest income totaled $10,251,000 for the year ended December 31, 2007, compared to $9,492,000 in 2006. Excluding the effect of the Company's deferred compensation plan, noninterest income totaled $10,086,000 for 2007 compared to $9,285,000 during 2006. The $801,000 increase (8.6 percent) was achieved even though revenues from the sale of mortgages declined by $228,000 or 21.8 percent due to a reduction in real estate transactions and a less favorable rate environment. See the table called "Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan" for a reconcilement of GAAP noninterest income and expense to noninterest income and expense without the financial impact of the deferred compensation plan.
The trust and asset management area continues to be a strong contributor to the success of the Company. Trust fees grew to $2,243,000 for the year ended December 31, 2007, an increase of $542,000 or 31.9 percent. Trust assets under management totaled $353,668,000 at December 31, 2007 compared to $271,766,000 at December 31, 2006, which represents a 30.1 percent increase. Management does not anticipate that trust assets will sustain this rate of growth on an ongoing basis.
Driven primarily by increasing transaction volumes, interchange fees earned on Visa Check Cards increased to $950,000, a 22.4 percent increase over the $776,000 earned for 2006. Interchange fees earned on Visa Check Card transactions are included in Other Operating Income in the attached financials.
Commissions from the sale of investment products increased from $785,000 in 2006 to $910,000 in 2007. This was largely due to increased sales resulting from branch based sales initiatives and the favorable impact of the transition of this business from a transaction based commission business into one that is management fees based.
"Growing noninterest income in areas such as trust fees, commissions on the sale of investment products and Visa Check Card interchange is very important to our overall success. The increase in noninterest income helped offset the pressure on our net interest margin," said Mr. Bradford.
Total noninterest expense increased 2.6 percent to $20,626,000 for the year ended December 31, 2007, as compared to $20,098,000 for 2006. Noninterest expense, excluding the effect of the Company's deferred compensation plan, was $20,344,000 for 2007, compared to $19,784,000 for 2006. The $560,000, or 2.8 percent increase is largely the result of increases in salary and legal expense, which were partially offset by reductions in incentive compensation and benefit expense.
Asset Quality
The Company's loan delinquency ratio, which is loan balances past due 30 days or more as a percent of total loans, was 1.72 percent at December 31, 2007, up from 1.26 percent at December 31, 2006. Two real estate development loans contributed $4,990,000 or 0.85% to the delinquency ratio. At December 31, 2007, non-performing assets and 90-day past due loans totaled $8,214,000 (1.06 percent of total assets) compared to $2,497,000 (0.33 percent of total assets) one year earlier. Net charge-offs as a percentage of loans totaled 0.26 percent for 2007 compared to 0.11 percent for 2006. The ratio of the allowance for loan losses to total loans increased from 1.10% at year-end 2006 to 1.14% at year-end 2007.
Financial Condition
Total assets at December 31, 2007 were $778,080,000, an increase of 4.0 percent from $748,193,000 at December 31, 2006. Total loans, including loans held for sale, totaled $584,831,000 on December 31, 2007, a 4.5 percent increase from total loans on December 31, 2006, which were $559,463,000.
Total deposits at December 31, 2007 were $619,717,000 compared to $589,328,000 at December 31, 2006, an increase of $30,389,000 or 5.2 percent.
Stock Repurchase Activity
The Company purchased a total of 287,792 shares of its stock during 2007 at an average price of $17.59. The Company's most recent purchase was 1,042 shares on August 7, 2007 for $17.20 per share including commission.
Fourth Quarter Results
Net income for the fourth quarter of 2007 totaled $1,606,000 compared to $1,998,000 for the third quarter of 2007, and $1,819,000 for the fourth quarter of 2006. The decrease in fourth quarter earnings is largely the result of an increase in the provision for loan losses. The provision for loan losses totaled $1,150,000 for the fourth quarter of 2007, $805,000 (233.3 percent) above the third quarter of 2007 and $850,000 (283.3 percent) above the fourth quarter of 2006. The increase in the Company's provision for loan losses resulted from Management's regular assessment of asset quality (e.g., level of non-performing assets and loan delinquencies), evaluation of specific credits, economic trends and other factors. Charts included in the attached financial information provide additional insights into year over year changes in asset quality.
Other Company News
December 11, 2007 saw the Plainfield Banking Center in Hendricks County open its doors for business and the Avon Banking Center followed shortly after, opening officially on January 14, 2008. Both of these full-service banking centers follow the January 2006 opening of the full-service banking center in Brownsburg which marked the start of the Company's transition from less visible, limited service branches in Hendricks County to more visible, strategically located full-service banking centers. A fourth new banking center, to be located in Noblesville, in Hamilton County, is expected to open during the summer of 2008.
While the Bank's expansion into Central Indiana remained a primary focus during 2007, the Bank is anticipating expanding its presence in all markets by offering customers the opportunity to open accounts online. Starting January 2, 2008, this convenient online account opening alternative will broaden the delivery channel for checking and savings products in a fashion that allows customers to open accounts in a time, place and manner of their choosing. Comments Mr. Bradford: "We feel that our current customer base will enjoy the convenience of online account opening, and we also believe this service will allow us to compete in the online market to attract new customers."
The Company will hold its Annual Meeting of Shareholders at 10 a.m., Thursday, April 24, 2008 at the Bloomington/Monroe County Convention Center in downtown Bloomington, Indiana.
About Monroe Bancorp
Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with Monroe Bank as its wholly owned subsidiary. Monroe Bank was established in Bloomington in 1892, and offers a full range of financial, trust and investment services through its locations in Central and South Central Indiana. The Company's common stock is traded on the NASDAQ(r) Global Stock Market under the symbol MROE.
The Monroe Bancorp logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4316
See attachment for additional financial information. For further information, contact: Mark D. Bradford, President and Chief Executive Officer, (812) 331-3455.
Use of Non-GAAP Financial Information
To supplement the Company's consolidated condensed financial statements presented on a GAAP basis, the Company has used the following non-GAAP measures of reporting:
1) The net interest margin is reported on a tax equivalent basis. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate of 34%. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. A table called 'Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis,' included at the end of the attached financial summary, reconciles the non-GAAP financial measure "net interest income (tax-equivalent)" with net interest income calculated and presented in accordance with GAAP.The table also reconciles the non-GAAP financial measure "net interest margin (tax-equivalent)" with net interest margin calculated and presented in accordance with GAAP.
2) Noninterest income and noninterest expense are reported without the effect of income and expenses related to securities held in a rabbi trust for the deferred compensation plan. A table called 'Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan,' included at the end of the attached financial summary, details all the items included in noninterest income and expense associated with the deferred compensation plan / rabbi trust and reconciles the GAAP numbers to the non-GAAP numbers. The activity in the rabbi trust has no effect on the Company's net income, therefore, management believes a more accurate comparison of current and prior year noninterest income and noninterest expense can be made if items related to the rabbi trust are removed.
The Company believes these adjustments are appropriate to enhance an overall understanding of the Company's past financial performance and also its prospects for the future. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the underlying operational results and trends and the Company's marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with generally accepted accounting principles in the United States.
Forward-Looking Statements
This release contains forward-looking statements about the Company which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. This release contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may" or words of similar meaning. These forward-looking statements, by their nature, are subject to risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions; (2) changes in the interest rate environment; (3) prepayment speeds, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the markets in which the Company does business; (5) legislative or regulatory changes adversely affecting the business of the Company; (6) changes in real estate values or the real estate markets; and (7) the Company's business development efforts in new markets in and around Hendricks and Hamilton Counties. Further information on other factors which could affect the financial results of the Company is included in the Company's filings with the Securities and Exchange Commission.
Monroe Bancorp (MROE)
Financial Summary
(dollar amounts in thousands except per share data)
----------------------------------------------------------
Quarters Ended
----------------------------------------------------------
Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
----------------------------------------------------------
BALANCE
SHEET*
Cash and
Interest-
earning
deposits $ 24,563 $ 15,071 $ 18,732 $ 27,006 $ 27,743
Federal
Funds Sold 1,077 10,149 20,533 4,210 5,803
Securities 125,658 125,998 121,530 122,372 120,250
Total Loans 584,831 564,904 563,989 562,724 559,463
Loans
Held for
Sale 2,974 1,875 3,091 2,363 2,545
Commercial &
Industrial 104,611 98,596 104,226 98,979 93,912
Real
Estate:
Commercial &
Residen-
tial 332,664 309,952 305,692 318,381 320,789
Construc-
tion &
Vacant
Land 101,011 109,951 107,684 99,560 97,006
Home
Equity 25,222 25,756 24,642 25,350 26,515
Installment
Loans 18,349 18,774 18,654 18,091 18,696
Reserve for
Loan
Losses 6,654 6,147 6,487 6,216 6,144
Bank
Premises
and
Equipment 20,029 18,343 17,674 15,138 15,411
Federal
Home Loan
Bank Stock 2,312 2,312 2,312 2,312 2,312
Interest
Receivable
and Other
Assets 26,264 24,156 25,094 24,075 23,355
Total
Assets $ 778,080 $ 754,786 $ 763,377 $ 751,621 $ 748,193
Total
Deposits $ 619,717 $ 611,504 $ 614,592 $ 595,061 $ 589,328
Noninterest
Checking 81,542 77,874 83,136 84,775 79,783
Interest
Bearing
Checking
& NOW 131,295 133,233 121,169 120,339 138,418
Regular
Savings 17,712 17,636 18,127 18,354 17,884
Money
Market
Savings 99,135 97,910 98,966 98,692 105,702
CDs Less
than
$100,000 160,456 149,127 147,693 131,060 122,037
CDs Greater
than
$100,000 128,602 134,683 145,142 131,741 112,401
Other Time 975 1,041 359 10,100 13,103
Total
Borrowings 96,421 80,628 89,204 95,143 98,079
Federal
Funds
Purchased 24,850 -- -- -- 2,075
Securities
Sold Under
Repurchase
Agreement 43,195 52,167 58,699 65,589 70,784
FHLB
Advances 18,273 18,349 19,408 19,419 19,430
Loans Sold
Under
Repurchase
Agreement
& Other
Debt 1,855 1,864 2,849 1,887 2,697
Subordinated
Debentures
- Trust
Preferred 8,248 8,248 8,248 8,248 3,093
Interest
Payable
and Other
Liabilities 7,490 9,732 7,986 9,516 7,281
Total
Liabil-
ities 723,628 701,864 711,782 699,720 694,688
Shareholders'
Equity 54,452 52,922 51,595 51,901 53,505
Total
Liabil-
ities
and
Share-
holders'
Equity $ 778,080 $ 754,786 $ 763,377 $ 751,621 $ 748,193
Book Value
Per Share $ 8.76 $ 8.52 $ 8.23 $ 8.19 $ 8.24
End of
period
shares
issued and
outstand-
ing 6,227,550 6,227,550 6,283,592 6,353,342 6,515,342
Less:
Unearned
ESOP
shares 13,100 15,100 17,500 19,900 22,300
End of
Period
Shares
Used to
Calculate
Book Value 6,214,450 6,212,450 6,266,092 6,333,442 6,493,042
----------------------
Years Ended
----------------------
Dec 2007 Dec 2006
----------------------
BALANCE SHEET*
Cash and Interest-earning deposits $ 24,563 $ 27,743
Federal Funds Sold 1,077 5,803
Securities 125,658 120,250
Total Loans 584,831 559,463
Loans Held for Sale 2,974 2,545
Commercial & Industrial 104,611 93,912
Real Estate:
Commercial & Residential 332,664 320,789
Construction & Vacant Land 101,011 97,006
Home Equity 25,222 26,515
Installment Loans 18,349 18,696
Reserve for Loan Losses 6,654 6,144
Bank Premises and Equipment 20,029 15,411
Federal Home Loan Bank Stock 2,312 2,312
Interest Receivable and Other Assets 26,264 23,355
Total Assets $ 778,080 $ 748,193
Total Deposits $ 619,717 $ 589,328
Noninterest Checking 81,542 79,783
Interest Bearing Checking & NOW 131,295 138,418
Regular Savings 17,712 17,884
Money Market Savings 99,135 105,702
CDs Less than $100,000 160,456 122,037
CDs Greater than $100,000 128,602 112,401
Other Time 975 13,103
Total Borrowings 96,421 98,079
Federal Funds Purchased 24,850 2,075
Securities Sold Under Repurchase Agreement 43,195 70,784
FHLB Advances 18,273 19,430
Loans Sold Under Repurchase Agreement &
Other Debt 1,855 2,697
Subordinated Debentures - Trust Preferred 8,248 3,093
Interest Payable and Other Liabilities 7,490 7,281
Total Liabilities 723,628 694,688
Shareholders' Equity 54,452 53,505
Total Liabilities and Shareholders'
Equity $ 778,080 $ 748,193
Book Value Per Share $ 8.76 $ 8.24
End of period shares issued and outstanding 6,227,550 6,515,342
Less: Unearned ESOP shares 13,100 22,300
End of Period Shares Used to Calculate Book
Value 6,214,450 6,493,042
* period end numbers
Monroe Bancorp (MROE)
Financial Summary
(dollar amounts in thousands except per share data)
-----------------------------------------------
Quarters Ended
-----------------------------------------------
INCOME STATEMENT Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
-----------------------------------------------
Interest Income $12,141 $12,232 $12,249 $11,852 $11,922
Interest Expense 6,390 6,528 6,396 6,121 6,165
Net Interest Income 5,751 5,704 5,853 5,731 5,757
Loan Loss Provision 1,150 345 255 285 300
Total Noninterest
Income 2,468 2,651 2,685 2,447 2,375
Service Charges on
Deposit Accounts 964 917 932 867 867
Trust Fees 604 617 537 485 453
Commission Income 229 210 239 232 187
Gain on Sale of
Loans 147 231 262 177 232
Realized Gains on
Securities 5 2 41 1 3
Unrealized Gains
(Losses) on
Trading Securities
Associated with
Directors'
Deferred Comp Plan (154) 55 83 33 23
Other Operating
Income 673 619 591 652 610
Total Noninterest
Expense 4,984 5,283 5,266 5,093 5,313
Salaries & Wages 2,189 2,178 2,152 2,102 2,054
Commissions,
Options &
Incentive
Compensation 277 427 581 452 486
Employee Benefits 393 481 465 435 591
Premises &
Equipment 765 799 717 819 806
Advertising 131 149 162 225 105
Legal Fees 208 85 118 155 78
Appreciation
(Depreciation) in
Directors' Deferred
Compensation Plan (23) 78 148 64 135
Other Operating
Expenses 1,043 1,086 923 841 1,058
Income Before Income
Tax 2,085 2,727 3,017 2,800 2,519
Income Tax Expense 479 729 827 788 700
Net Income After Tax
& Before
Extraordinary Items 1,606 1,998 2,190 2,012 1,819
Extraordinary Items -- -- -- -- --
Net Income $ 1,606 $ 1,998 $ 2,190 $ 2,012 $ 1,819
Basic Earnings Per
Share $ 0.259 $ 0.321 $ 0.348 $ 0.312 $ 0.280
Diluted Earnings Per
Share $ 0.258 $ 0.319 $ 0.346 $ 0.311 $ 0.279
-----------------
Years Ended
-----------------
INCOME STATEMENT Dec 2007 Dec 2006
-----------------
Interest Income $48,474 $44,643
Interest Expense 25,435 21,978
Net Interest Income 23,039 22,665
Loan Loss Provision 2,035 1,200
Total Noninterest Income 10,251 9,492
Service Charges on Deposit Accounts 3,680 3,614
Trust Fees 2,243 1,701
Commission Income 910 785
Gain on Sale of Loans 817 1,045
Realized Gains on Securities 49 115
Unrealized Gains (Losses) on Trading Securities
Associated with Directors' Deferred Comp Plan 17 74
Other Operating Income 2,535 2,158
Total Noninterest Expense 20,626 20,098
Salaries & Wages 8,621 8,077
Commissions, Options & Incentive Compensation 1,737 1,862
Employee Benefits 1,774 2,055
Premises & Equipment 3,100 3,151
Advertising 667 712
Legal Fees 566 307
Appreciation (Depreciation) in Directors'
Deferred Compensation Plan 267 301
Other Operating Expenses 3,894 3,633
Income Before Income Tax 10,629 10,859
Income Tax Expense 2,823 3,273
Net Income After Tax & Before Extraordinary Items 7,806 7,586
Extraordinary Items -- --
Net Income $ 7,806 $ 7,586
Basic Earnings Per Share $ 1.240 $ 1.154
Diluted Earnings Per Share $ 1.235 $ 1.150
Monroe Bancorp (MROE)
Financial Summary
(dollar amounts in thousands except per share data)
-----------------------------------------------
Quarters Ended
-----------------------------------------------
ASSET QUALITY Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
-----------------------------------------------
Net Charge-Offs
(Recoveries) $ 643 $ 686 $ (17) $ 213 $ 250
OREO Expenses 10 46 3 8 5
-----------------------------------------------
Total Credit
Charges $ 653 $ 732 $ (14) $ 221 $ 255
Nonperforming Loans $ 6,938 $ 4,821 $ 2,701 $ 2,308 $ 1,712
OREO 841 141 212 141 141
---------------------------------------------------------------------
Nonperforming
Assets 7,779 4,962 2,913 2,449 1,853
90 Day Past Due
Loans net of
Nonperforming Loans 435 197 484 550 644
---------------------------------------------------------------------
Nonperforming
Assets + 90 day
PD/Assets $ 8,214 $ 5,159 $ 3,397 $ 2,999 $ 2,497
RATIO ANALYSIS -
CREDIT QUALITY*
---------------------------------------------------------------------
NCO/Loans 0.44% 0.49% -0.01% 0.15% 0.18%
Credit Charges/
Loans & OREO 0.45% 0.52% -0.01% 0.16% 0.18%
Nonperforming Loans/
Loans 1.19% 0.85% 0.48% 0.41% 0.31%
Nonperforming Assets/
Loans & OREO 1.33% 0.88% 0.52% 0.44% 0.33%
Nonperforming Assets/
Assets 1.00% 0.66% 0.38% 0.33% 0.25%
Nonperforming Assets
+ 90 day PD/Assets 1.06% 0.68% 0.44% 0.40% 0.33%
Reserve/Nonperforming
Loans 95.91% 127.50% 240.17% 269.32% 358.88%
Reserve/Total Loans 1.14% 1.09% 1.15% 1.10% 1.10%
Equity & Reserves/
Nonperforming Assets 785.53% 1190.43% 1993.89% 2373.09% 3219.05%
OREO/Nonperforming
Assets 10.81% 2.84% 7.28% 5.76% 7.61%
RATIO ANALYSIS -
CAPITAL ADEQUACY*
---------------------------------------------------------------------
Equity/Assets 7.00% 7.01% 6.76% 6.91% 7.15%
Equity/Loans 9.31% 9.37% 9.15% 9.22% 9.56%
RATIO ANALYSIS -
PROFITABILITY
---------------------------------------------------------------------
Return on Average
Assets 0.83% 1.05% 1.17% 1.10% 0.97%
Return on Average
Equity 11.89% 15.27% 16.93% 15.33% 13.63%
Net Interest Margin
(tax-equivalent)(1) 3.29% 3.31% 3.44% 3.45% 3.39%
-----------------
Years Ended
-----------------
ASSET QUALITY Dec 2007 Dec 2006
-----------------
Net Charge-Offs (Recoveries) $ 1,525 $ 641
OREO Expenses 67 24
-----------------
Total Credit Charges $ 1,592 $ 665
Nonperforming Loans $ 6,938 $ 1,712
OREO 841 141
---------------------------------------------------------------------
Nonperforming Assets 7,779 1,853
90 Day Past Due Loans net of Nonperforming Loans 435 644
---------------------------------------------------------------------
Nonperforming Assets + 90 day PD/Assets $ 8,214 $ 2,497
RATIO ANALYSIS - CREDIT QUALITY*
---------------------------------------------------------------------
NCO/Loans 0.26% 0.11%
Credit Charges/Loans & OREO 0.27% 0.12%
Nonperforming Loans/Loans 1.19% 0.31%
Nonperforming Assets/Loans & OREO 1.33% 0.33%
Nonperforming Assets/Assets 1.00% 0.25%
Nonperforming Assets + 90 day PD/Assets 1.06% 0.33%
Reserve/Nonperforming Loans 95.91% 358.88%
Reserve/Total Loans 1.14% 1.10%
Equity & Reserves/Nonperforming Assets 785.53% 3219.05%
OREO/Nonperforming Assets 10.81% 7.61%
RATIO ANALYSIS - CAPITAL ADEQUACY*
---------------------------------------------------------------------
Equity/Assets 7.00% 7.15%
Equity/Loans 9.31% 9.56%
RATIO ANALYSIS - PROFITABILITY
---------------------------------------------------------------------
Return on Average Assets 1.04% 1.04%
Return on Average Equity 14.79% 14.59%
Net Interest Margin (tax-equivalent)(1) 3.37% 3.42%
* Based on period end numbers
(1) Interest income on tax-exempt securities has been adjusted to a
tax-equivalent basis using a marginal income tax rate of 34%.
Reclassification of amounts from prior periods were made to
conform to the September 2007 presentation.
Monroe Bancorp (MROE)
Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest
Margin on a Tax-Equivalent Basis
(dollar amounts in thousands except per share data)
------------------------------------------------
Quarters Ended
------------------------------------------------
Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
------------------------------------------------
Net interest income $ 5,751 $ 5,704 $ 5,853 $ 5,731 $ 5,757
Tax equivalent
adjustment 180 176 179 161 176
------------------------------------------------
Net interest income
- tax equivalent $ 5,931 $ 5,880 $ 6,032 $ 5,892 $ 5,933
Average earning
assets $714,737 $703,681 $702,664 $693,384 $694,081
Net interest margin 3.19% 3.22% 3.34% 3.35% 3.29%
Net interest margin
- tax equivalent 3.29% 3.31% 3.44% 3.45% 3.39%
------------------
Years Ended
------------------
Dec 2007 Dec 2006
------------------
Net interest income $ 23,039 $ 22,665
Tax equivalent adjustment 696 632
------------------
Net interest income - tax equivalent $ 23,735 $ 23,297
Average earning assets $703,675 $681,999
Net interest margin 3.27% 3.32%
Net interest margin - tax equivalent 3.37% 3.42%
------------------------------------------------
Year-to-Date
------------------------------------------------
Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
------------------------------------------------
Net interest income $ 23,039 $ 17,288 $ 11,584 $ 5,731 $ 22,665
Tax equivalent
adjustment 696 515 340 161 632
------------------------------------------------
Net interest income
- tax equivalent $ 23,735 $ 17,803 $ 11,924 $ 5,892 $ 23,297
Average earning
assets $703,675 $699,948 $698,050 $693,384 $681,999
Net interest margin 3.27% 3.30% 3.35% 3.35% 3.32%
Net interest margin
- tax equivalent 3.37% 3.40% 3.44% 3.45% 3.42%
Monroe Bancorp (MROE)
Financial Impact on Net Income of Deferred Compensation Plan
(dollar amounts in thousands except per share data)
------------------------------------------------
Quarters Ended
------------------------------------------------
Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
------------------------------------------------
Interest and Dividend
Income $ 38 $ 25 $ 27 $ 27 $ 42
Realized and
Unrealized Gains
(Losses) (148) 57 124 33 25
Other Income 91 -- 1 7 71
Total Income From
Plan: (19) 82 152 67 138
Change in Deferred
Compensation
Liability (23) 78 148 64 135
Trustee Fees 4 4 4 3 3
Total Expense of
Plan: (19) 82 152 67 138
Net Impact of
Plan: $ -- $ -- $ -- $ -- $ --
------------------
Years Ended
------------------
Dec 2007 Dec 2006
------------------
Interest and Dividend Income $ 117 $ 107
Realized and Unrealized Gains (Losses) 66 129
Other Income 99 78
Total Income From Plan: 282 314
Change in Deferred Compensation Liability 267 301
Trustee Fees 15 13
Total Expense of Plan: 282 314
Net Impact of Plan: $ -- $ --
Reconciliation of GAAP Noninterest Income & Expense to Noninterest
Income & Expense Without the Financial Impact of the Deferred
Compensation Plan
(dollar amounts in thousands except per share data)
------------------------------------------------
Quarters Ended
------------------------------------------------
Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
------------------------------------------------
Total Noninterest
Income $ 2,468 $ 2,651 $ 2,685 $ 2,447 $ 2,375
Income of Deferred
Comp Plan Incl. in
Noninterest Income (57) 57 125 40 96
Adjusted
Noninterest
Income: 2,525 2,594 2,560 2,407 2,279
Total Noninterest
Expense 4,984 5,283 5,266 5,093 5,313
Expense of Deferred
Compensation Plan (19) 82 152 67 138
Adjusted
Noninterest
Expense: 5,003 5,201 5,114 5,026 5,175
------------------
Years Ended
------------------
Dec 2007 Dec 2006
------------------
Total Noninterest Income $ 10,251 $ 9,492
Income of Deferred Comp Plan Incl. in Noninterest
Income 165 207
Adjusted Noninterest Income: 10,086 9,285
Total Noninterest Expense 20,626 20,098
Expense of Deferred Compensation Plan 282 314
Adjusted Noninterest Expense: 20,344 19,784
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Year-to-Date
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Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
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Total Noninterest
Income $ 10,251 $ 7,783 $ 5,132 $ 2,447 $ 9,492
Income of Deferred
Comp Plan Incl. in
Noninterest Income 165 222 165 40 207
Adjusted
Noninterest
Income: 10,086 7,561 4,967 2,407 9,285
Total Noninterest
Expense 20,626 15,642 10,359 5,093 20,098
Expense of Deferred
Compensation Plan 282 301 219 67 314
Adjusted
Noninterest
Expense: 20,344 15,341 10,140 5,026 19,784
Monroe Bancorp (MROE)
Select Average Balance Sheet Information
(dollar amounts in thousands except per share data)
------------------------------------------------
Quarters Ended
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Dec 2007 Sept 2007 Jun 2007 Mar 2007 Dec 2006
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Total Average Loans $574,273 $560,590 $565,373 $557,556 $558,826
Average Commercial
& Industrial 100,360 100,268 103,368 95,482 96,029
Average Real
Estate: 455,269 441,705 443,617 443,912 444,260
Average
Commercial &
Residential 321,287 308,890 314,317 321,911 325,203
Average
Construction &
Vacant Land 108,417 107,976 103,870 95,909 94,798
Average Home
Equity 25,565 24,839 25,430 26,092 24,259
Average
Installment Loans 18,644 18,617 18,388 18,162 18,537
Average Federal
Funds Sold 9,445 15,837 9,693 9,381 10,068
Average Federal
Home Loan Bank
Stock 2,312 2,312 2,312 2,312 2,368
Total Average
Deposits $625,656 $618,615 $609,420 $593,511 $596,838
Average
Noninterest
Checking 74,875 80,001 79,405 76,615 77,460
Average Interest
Bearing Checking
& NOW 137,218 124,280 125,390 132,673 135,225
Average Regular
Savings 17,790 17,854 18,229 17,888 18,029
Average Money
Market Savings 99,049 101,648 99,894 103,949 104,966
Average CDs Less
than $100,000 138,900 138,865 134,244 127,222 120,111
Average CDs
Greater than
$100,000 141,244 141,530 138,247 122,234 128,345
Average Other
Time 16,580 14,437 14,011 12,930 12,702
Average Federal
Funds Purchased 2,281 387 3,053 2,640 3,316
Average Securities
Sold Under
Repurchase
Agreement 49,305 44,933 48,180 57,259 58,315
Average FHLB
Advances 18,304 19,350 19,412 19,423 20,119
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Years Ended
------------------
Dec 2007 Dec 2006
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Total Average Loans $564,483 $549,464
Average Commercial & Industrial 99,884 97,043
Average Real Estate: 446,144 433,386
Average Commercial & Residential 316,578 323,019
Average Construction & Vacant Land 104,088 83,895
Average Home Equity 25,478 26,472
Average Installment Loans 18,455 19,035
Average Federal Funds Sold 11,102 9,002
Average Federal Home Loan Bank Stock 2,312 2,467
Total Average Deposits $611,907 $582,762
Average Noninterest Checking 77,725 77,647
Average Interest Bearing Checking & NOW 129,887 129,142
Average Regular Savings 17,940 19,448
Average Money Market Savings 101,123 97,763
Average CDs Less than $100,000 134,851 119,652
Average CDs Greater than $100,000 135,882 127,377
Average Other Time 14,499 11,733
Average Federal Funds Purchased 2,085 1,858
Average Securities Sold Under Repurchase Agreement 49,884 54,644
Average FHLB Advances 19,120 27,451