SAN JOSE, Calif., Jan. 29, 2009 (GLOBE NEWSWIRE) -- Heritage Commerce Corp (Nasdaq:HTBK), parent company of Heritage Bank of Commerce, announced today earnings for 2008 of $1.8 million, or $0.13 per diluted common share. Heritage Commerce Corp earned $14.1 million, or $1.12 per diluted common share, for the year ended December 31, 2007. In the fourth quarter of 2008, net income was $700,000, or $0.04 per diluted common share, compared to $2.8 million, or $0.21 per diluted common share for the same quarter a year ago.
Fourth Quarter Financial Highlights
-- The Company raised $40 million in new capital as a participant
in the U.S. Department of the Treasury's Capital Purchase
Program ("CPP"). The Company has made $32 million (or 80% of CPP
money) in new loan commitments and $46 million in renewed loan
commitments from the date of the investment by the U.S.
Treasury on November 21, 2008 through the end of the year.
-- Capital ratios exceed regulatory well-capitalized standards,
including a leverage ratio of 11.03% at December 31, 2008.
-- Total assets were $1.5 billion, an increase of 11% from
December 31, 2007.
-- Loans increased 20% to $1.25 billion, an increase of $212
million from December 31, 2007.
-- Commercial loans accounted for 42% of the loan portfolio,
compared to 40% a year ago.
-- The Company has no direct exposure to subprime loans or
securities.
"Our focus on building a strong relationship lending team and expanding our East Bay market continues to prove its value to our franchise," said Walter Kaczmarek, President and Chief Executive Officer. "Despite the continuing problems in the national and regional economy, we ended the year with an after-tax profitable quarter and positive earnings for the full year. We anticipate some of the issues that impacted operations in 2008 will continue in 2009, including pressure on margins from low interest rates, declining real estate values and overall economic contraction. Our focus on relationship lending, coupled with the CPP capital infusion completed in November 2008, has allowed us to continue to provide lending to our customers and build value for our shareholders."
Balance Sheet and Capital Management
Heritage's assets totaled $1.5 billion at December 31, 2008, compared to $1.35 billion a year ago, and $1.51 billion at September 30, 2008. Total loans were $1.25 billion at December 31, 2008, compared to $1.04 billion at December 31, 2007, and $1.25 billion at September 30, 2008. Deposits totaled $1.15 billion at December 31, 2008, compared to $1.06 billion at December 31, 2007, and $1.19 billion at September 30, 2008.
The securities portfolio of $104.5 million at December 31, 2008 consisted primarily of short term U.S. Treasury securities, U.S. government sponsored entities' debt securities, mortgage-backed securities, collateralized mortgage obligations, and municipal bonds. The Company has no direct exposure to so-called subprime loans or securities, nor does it own any Fannie Mae or Freddie Mac equity securities.
The Company's loan portfolio at December 31, 2008 consisted of 42% commercial loans, 32% commercial real estate mortgage loans, 21% land and construction, and 5% home equity and consumer loans.
Total deposits decreased $32.1 million in the fourth quarter of 2008, compared to the third quarter of 2008, primarily due to lower balances in title insurance company, escrow, and real estate exchange facilitators' accounts. These decreases were partially offset by an $11.2 million increase in brokered deposits.
Shareholders' equity increased to $184.3 million, or $8.37 tangible book value per common share, at December 31, 2008, compared to $164.8 million, or $9.20 tangible book value per share, a year ago, and increased from $144.3 million, or $8.18 tangible book value per share, at September 30, 2008. Capital ratios continue to be above the well-capitalized guidelines established by regulatory agencies. The leverage ratio at December 31, 2008 was 11.03%, compared to 11.05% at December 31, 2007, and 8.27% at September 30, 2008.
On November 21, 2008, the Company completed its $40 million capital raise through the issuance of preferred stock and common stock warrants to the U.S. Department of Treasury. This transaction was part of the U.S. Treasury's Capital Purchase Program to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. The preferred shares will pay a 5% dividend for the first five years, after which the rate will increase to 9% if the preferred shares are not redeemed by the Company. Proceeds from this capital infusion enhanced the Company's already well-capitalized position and increased our ability to meet the needs of our customers and the communities we serve.
From the time the Company received the investment from the Treasury through December 31, 2008, the Company made $32 million (or 80% of CPP money) in new loan commitments and $46 million in renewed loan commitments. Total loans increased $212 million, or 20%, for the year ended December 31, 2008.
Credit Quality
Primarily due to a softening in the real estate market, which is expected to continue well into 2009, nonperforming assets ("NPAs") increased by $16.0 million from September 30, 2008 to December 31, 2008. Nonperforming assets totaled $41.1 million, or 2.74% of total assets, at December 31, 2008, compared to $4.5 million, or 0.34% of total assets at December 31, 2007, and $25.1 million, or 1.66% of total assets at September 30, 2008.
Other real estate owned ("OREO") was $660,000 at December 31, 2008, compared to $1.1 million at December 31, 2007, and $970,000 at September 30, 2008. Two OREO properties were sold during the fourth quarter of 2008, resulting in a net loss of $93,000.
Net charge-offs in the fourth quarter of 2008 were $1.8 million or 0.59% of average loans, compared to net recoveries of $21,000 or (0.01%) of average loans in the fourth quarter of 2007. Net charge-offs in the third quarter of 2008 were $129,000 or 0.04% of average loans. For the full year, net charge-offs totaled $2.7 million, or 0.23% of average loans, compared to net recoveries of $825,000 or (0.10%) of average loans in 2007.
The allowance for loan losses was $25.0 million at December 31, 2008, representing 2.00% of total loans and 62% of nonperforming loans, compared to $12.2 million at December 31, 2007, representing 1.18% of total loans and 353% of nonperforming loans. At September 30, 2008, the allowance for loan losses was $22.3 million or 1.79% of total loans and 93% of nonperforming loans.
Operating Results
Net income during 2008 was impacted by the net interest margin compression, a higher provision for loan losses, and lower noninterest income resulting from the Company's strategic decision to retain, rather than sell, SBA loan production.
Net interest income decreased to $12.4 million in the fourth quarter of 2008 from $13.8 million in the fourth quarter of 2007, and $13.0 million in the third quarter of 2008. The fourth quarter of 2008 net interest margin was 3.64%, down 19 basis points, compared to 3.83% for the third quarter this year, and down 106 basis points from 4.70% in the fourth quarter a year ago. For 2008, the net interest margin decreased 92 basis points to 3.94% from 4.86% in 2007. Decreases in the net interest margin are primarily the result of the 500 basis points decline in short-term interest rates from September 18, 2007 through December 31, 2008.
Noninterest income was $1.8 million for the fourth quarter of 2008, compared to $1.6 million for the fourth quarter of 2007, and $1.7 million for the prior quarter. Noninterest income was $6.8 million in 2008, compared to $8.1 million a year ago. Gains on sales of SBA loans were $0 in 2008, compared to $1.8 million in 2007. Noninterest income was primarily comprised of loan servicing income, the increase in cash surrender value of Company owned life insurance, and service charges on deposit accounts.
Noninterest expense was $10.4 million for the fourth quarter of 2008, compared to $10.2 million for the fourth quarter of 2007, and $10.4 million for the third quarter of 2008. Noninterest expense increased to $42.4 million in 2008, compared to $37.5 million in 2007. Operating expenses increased in 2008 due to the full year impact of the acquisition of Diablo Valley Bank on June 20, 2007, the new office in Walnut Creek, the addition of experienced banking professionals, the write-off of leasehold improvements in the third quarter of 2008 due to the consolidation of our two offices in Los Altos, higher regulatory assessments, and an increase in legal fees and OREO expense.
The income tax benefit for the quarter and the year ended December 31, 2008 was $1.4 million, as compared to income tax expense of $1.7 million and $8.1 million for the same periods in 2007. The negative effective income tax rates for the quarter and year ended December 31, 2008 were due to reduced pre-tax earnings. The negative tax rates correspond to a benefit, rather than expense, of $1.4 million for the quarter and for the year ended December 31, 2008. The effective income tax rates for the fourth quarter and year ended 2007 were 37.5% and 36.6%, respectively. The difference in the effective tax rate compared to the combined federal and state statutory tax rate of 42% is primarily the result of the Company's investment in life insurance policies whose earnings are not subject to taxes, tax credits related to investments in low income housing limited partnerships and investments in tax-free municipal securities. The effective tax rates in 2008 are lower compared to 2007 because pre-tax income decreased substantially while benefits from tax advantaged investments did not.
The efficiency ratio was 73.40% in the fourth quarter of 2008, compared to 70.56% in the third quarter of 2008, and 66.17% in the fourth quarter of 2007. The efficiency ratio in 2008 increased to 72.71% from 62.81% a year ago. The efficiency ratio increased in 2008 primarily due to compression of the net interest margin, a decrease in noninterest income, and an increase in expenses, as discussed above.
The annualized returns on average assets (ROAA) and average equity (ROAE) for the fourth quarter of 2008 were 0.19% and 1.71%, compared to 0.84% and 6.62% for the fourth quarter of 2007, respectively. ROAA and ROAE were 0.12% and 1.15% for 2008, compared to 1.18% and 9.47% for 2007, respectively. The annualized returns on average tangible assets (ROATA) and average tangible equity (ROATE) for the fourth quarter of 2008 were 0.19% and 2.42%, compared to 0.87% and 9.26% for the fourth quarter of 2007, respectively. ROATA and ROATE were 0.13% and 1.67% for 2008, compared to 1.21% and 11.43% for 2007, respectively.
Heritage Commerce Corp, a bank holding company established in February 1998, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose with full-service branches in Los Gatos, Fremont, Danville, Pleasanton, Walnut Creek, Morgan Hill, Gilroy, Mountain View, and Los Altos. Heritage Bank of Commerce is an SBA Preferred Lender with loan production offices in Fresno, Sacramento, Oakland and Santa Rosa, California. For more information, please visit www.heritagecommercecorp.com.
Forward Looking Statement Disclaimer
Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the company's possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the company's ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) difficult and adverse conditions in the global and domestic capital and credit markets, (2) continued volatility and further deterioration of the capital and credit markets, (3) significant changes in banking laws or regulations, including, without limitation, as a result of the Emergency Economic Stabilization Act and the creation of and possible amendments to the Troubled Asset Relief Program (TARP), including the Capital Purchase Program and related executive compensation requirements, (4) continued uncertainty about the impact of TARP and other recent federal programs on the financial markets including levels of volatility and credit availability, (5) a more adverse than expected decline or continued weakness in general business and economic conditions, either nationally, regionally or locally in areas where the company conducts its business, which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense, (6) changes in interest rates, reducing interest rate margins or increasing interest rate risks, (7) changes in market liquidity which may reduce interest margins and impact funding sources, (8) increased competition in the company's markets, (9) changes in the financial performance and/or condition of the company's borrowers, (10) current and further deterioration in the housing and commercial real estate markets particularly in California and (11) increases in Federal Deposit Insurance Corporation premiums due to market developments and regulatory changes. For a discussion of factors which could cause results to differ, please see the Company's reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission and the Company's press releases. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Member FDIC
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CONSOLIDATED INCOME STATEMENTS
(in $000's, unaudited)
Percent Change
For the Three Months Ended: From:
---------------------------------- ------------------
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007 2008 2007
------------------------------------------------- ------------------
Interest
Income $ 18,166 $ 19,197 $ 21,056 -5% -14%
Interest
Expense 5,771 6,151 7,261 -6% -21%
----------------------------------
Net Interest
Income 12,395 13,046 13,795 -5% -10%
Provision for
Loan Losses 4,500 1,587 725 184% 521%
----------------------------------
Net Interest
Income after
Provision for
Loan Losses 7,895 11,459 13,070 -31% -40%
Noninterest
Income:
Gain on Sale
of SBA Loans -- -- -- N/A N/A
Servicing
Income 443 491 584 -10% -24%
Increase in
Cash
Surrender
Value of Life
Insurance 413 416 373 -1% 11%
Service
Charges and
Fees on
Deposit
Accounts 550 505 329 9% 67%
Other 391 276 350 42% 12%
----------------------------------
Total
Noninterest
Income 1,797 1,688 1,636 6% 10%
----------------------------------
Noninterest
Expense:
Salaries &
Employee
Benefits 4,930 5,665 5,747 -13% -14%
Occupancy &
Equipment 1,112 1,348 1,262 -18% -12%
Other 4,375 3,384 3,202 29% 37%
----------------------------------
Total
Noninterest
Expense 10,417 10,397 10,211 0% 2%
----------------------------------
Income (Loss)
Before Income
Taxes (725) 2,750 4,495 -126% -116%
Income Tax
Expense
(Benefit) (1,425) 309 1,687 -561% -184%
----------------------------------
Net Income 700 2,441 2,808 -71% -75%
Dividends and
Discount
Accretion on
Preferred
Stock 255 -- -- N/A N/A
----------------------------------
Net Income
Available to
Common
Shareholders $ 445 $ 2,441 $ 2,808 -82% -84%
==================================
PER COMMON
SHARE DATA
(unaudited)
Basic Earnings
Per Share $ 0.04 $ 0.21 $ 0.22 -81% -82%
Diluted
Earnings Per
Share $ 0.04 $ 0.21 $ 0.21 -81% -81%
Common Shares
Outstanding at
Period End 11,820,509 11,820,509 12,774,926 0% -7%
Book Value Per
Share $ 12.38 $ 12.21 $ 12.90 1% -4%
Tangible Book
Value Per
Share $ 8.37 $ 8.18 $ 9.20 2% -9%
KEY FINANCIAL
RATIOS
(unaudited)
Annualized
Return on
Average Equity 1.71% 6.78% 6.62% -75% -74%
Annualized
Return on
Average
Tangible
Equity 2.42% 10.15% 9.26% -76% -74%
Annualized
Return on
Average Assets 0.19% 0.65% 0.84% -71% -77%
Annualized
Return on
Average
Tangible
Assets 0.19% 0.67% 0.87% -72% -78%
Net Interest
Margin 3.64% 3.83% 4.70% -5% -23%
Efficiency
Ratio 73.40% 70.56% 66.17% 4% 11%
AVERAGE
BALANCES
(in $000's,
unaudited)
Average Assets $1,494,245 $1,499,734 $1,324,242 0% 13%
Average
Tangible
Assets $1,446,732 $1,452,044 $1,276,392 0% 13%
Average Earning
Assets $1,354,829 $1,353,730 $1,165,127 0% 16%
Average Total
Loans $1,233,763 $1,231,931 $ 978,310 0% 26%
Average Loans
Held-For-Sale $ -- $ -- $ -- N/A N/A
Average
Deposits $1,179,456 $1,191,151 $1,092,387 -1% 8%
Average Demand
Deposits -
Noninterest
Bearing $ 263,301 $ 261,578 $ 264,404 1% 0%
Average
Interest
Bearing
Deposits $ 916,155 $ 929,573 $ 827,983 -1% 11%
Average
Interest
Bearing
Liabilities $1,039,814 $1,066,264 $ 867,965 -2% 20%
Average Equity $ 162,465 $ 143,318 $ 168,207 13% -3%
Average
Tangible
Equity $ 114,952 $ 95,628 $ 120,357 20% -4%
At and For the Year
Ended:
----------------------
Dec. 31, Dec. 31, Percent
2008 2007 Change
---------------------- -------
Interest Income $ 75,957 $ 78,712 -4%
Interest Expense 24,444 27,012 -10%
----------------------
Net Interest Income 51,513 51,700 0%
Provision for Loan Losses 15,537 (11) 141345%
----------------------
Net Interest Income after Provision
for Loan Losses 35,976 51,711 -30%
Noninterest Income:
Gain on Sale of SBA Loans -- 1,766 -100%
Servicing Income 1,790 2,181 -18%
Increase in Cash Surrender Value of
Life Insurance 1,645 1,443 14%
Service Charges and Fees on Deposit
Accounts 2,007 1,284 56%
Other 1,349 1,378 -2%
----------------------
Total Noninterest Income 6,791 8,052 -16%
----------------------
Noninterest Expense:
Salaries & Employee Benefits 22,624 21,160 7%
Occupancy & Equipment 4,623 4,195 10%
Other 15,145 12,175 24%
----------------------
Total Noninterest Expense 42,392 37,530 13%
----------------------
Income (Loss) Before Income Taxes 375 22,233 -98%
Income Tax Expense (Benefit) (1,387) 8,137 -117%
----------------------
Net Income 1,762 14,096 -88%
Dividends and Discount Accretion on
Preferred Stock 255 -- N/A
----------------------
Net Income Available to Common
Shareholders $ 1,507 $ 14,096 -89%
========== ==========
PER COMMON SHARE DATA
(unaudited)
Basic Earnings Per Share $ 0.13 $ 1.14 -89%
Diluted Earnings Per Share $ 0.13 $ 1.12 -88%
Common Shares Outstanding at
Period End 11,820,509 12,774,926 -7%
Book Value Per Share $ 12.38 $ 12.90 -4%
Tangible Book Value Per Share $ 8.37 $ 9.20 -9%
KEY FINANCIAL RATIOS
(unaudited)
Annualized Return on Average Equity 1.15% 9.47% -88%
Annualized Return on Average Tangible
Equity 1.67% 11.43% -85%
Annualized Return on Average Assets 0.12% 1.18% -90%
Annualized Return on Average Tangible
Assets 0.13% 1.21% -89%
Net Interest Margin 3.94% 4.86% -19%
Efficiency Ratio 72.71% 62.81% 16%
AVERAGE BALANCES
(in $000's, unaudited)
Average Assets $1,456,361 $1,193,890 22%
Average Tangible Assets $1,408,573 $1,168,380 21%
Average Earning Assets $1,308,358 $1,063,062 23%
Average Total Loans $1,178,194 $ 835,712 41%
Average Loans Held-For-Sale $ -- $ 9,216 -100%
Average Deposits $1,160,926 $ 981,713 18%
Average Demand Deposits - Noninterest
Bearing $ 258,624 $ 242,308 7%
Average Interest Bearing Deposits $ 902,302 $ 739,405 22%
Average Interest Bearing Liabilities $1,016,515 $ 779,362 30%
Average Equity $ 153,216 $ 148,835 3%
Average Tangible Equity $ 105,428 $ 123,504 -15%
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(in $000's, unaudited)
Percent Change
End of Period: From:
---------------------------------- ------------------
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2008 2008 2007 2008 2007
------------------------------------------------- ------------------
ASSETS
Cash and Due
from Banks $ 29,996 $ 35,718 $ 39,793 -16% -25%
Federal Funds
Sold 100 100 9,300 0% -99%
Securities
Available-for-
Sale, at Fair
Value 104,475 107,565 135,402 -3% -23%
Loans:
Commercial
Loans 525,080 532,367 411,251 -1% 28%
Real Estate-
Mortgage 405,530 405,897 361,211 0% 12%
Real Estate-
Land and
Construction 256,567 253,134 215,597 1% 19%
Home Equity 55,490 51,981 44,187 7% 26%
Consumer Loans 4,310 5,549 3,044 -22% 42%
----------------------------------
Loans 1,246,977 1,248,928 1,035,290 0% 20%
Deferred Loan
Costs, Net 1,654 1,412 1,175 17% 41%
----------------------------------
Total Loans,
Net of
Deferred
Costs 1,248,631 1,250,340 1,036,465 0% 20%
Allowance for
Loan Losses (25,007) (22,323) (12,218) 12% 105%
----------------------------------
Net Loans 1,223,624 1,228,017 1,024,247 0% 19%
Company Owned
Life Insurance 40,649 40,236 38,643 1% 5%
Premises &
Equipment, Net 9,517 9,318 9,308 2% 2%
Goodwill 43,181 43,181 42,614 0% 1%
Intangible
Assets 4,231 4,407 4,696 -4% -10%
Accrued
Interest
Receivable and
Other Assets 43,454 43,339 43,469 0% 0%
----------------------------------
Total Assets $1,499,227 $1,511,881 $1,347,472 -1% 11%
==================================
LIABILITIES &
SHAREHOLDERS'
EQUITY
Liabilities:
Deposits
Demand
Deposits-
Noninterest
Bearing $ 261,337 $ 257,739 $ 268,005 1% -2%
Demand
Deposits-
Interest
Bearing 134,814 139,377 150,527 -3% -10%
Savings and
Money Market 344,767 400,863 432,293 -14% -20%
Time
Deposits,
Under $100 45,615 34,792 34,092 31% 34%
Time
Deposits,
$100 and
Over 171,269 168,361 139,562 2% 23%
Brokered
Deposits 196,248 185,052 39,747 6% 394%
----------------------------------
Total Deposits 1,154,050 1,186,184 1,064,226 -3% 8%
Securities Sold
Under
Agreement to
Repurchase 35,000 35,000 10,900 0% 221%
Note Payable 15,000 15,000 -- 0% N/A
Other Short-
term
Borrowings 55,000 80,000 60,000 -31% -8%
Notes Payable
To Subsidiary
Grantor Trusts 23,702 23,702 23,702 0% 0%
Accrued
Interest
Payable and
Other
Liabilities 32,208 27,711 23,820 16% 35%
----------------------------------
Total
Liabilities 1,314,960 1,367,597 1,182,648 -4% 11%
Shareholders'
Equity:
Preferred
Stock, Net 37,900 -- -- N/A N/A
Common Stock 78,854 76,490 92,414 3% -15%
Accumulated
Other
Comprehensive
Loss (291) (512) (888) -43% -67%
Retained
Earnings 67,804 68,306 73,298 -1% -7%
----------------------------------
Total
Shareholders'
Equity 184,267 144,284 164,824 28% 12%
----------------------------------
Total
Liabilities &
Shareholders'
Equity $1,499,227 $1,511,881 $1,347,472 -1% 11%
==================================
CREDIT QUALITY
DATA
(in $000's,
unaudited)
Nonaccrual
Loans $ 39,981 $ 23,095 $ 3,363 73% 1089%
Loans Over 90
Days Past Due
and Still
Accruing 460 1,016 101 -55% 355%
----------------------------------
Total
Nonperforming
Loans 40,441 24,111 3,464 68% 1067%
Other Real
Estate Owned 660 970 1,062 -32% -38%
----------------------------------
Total
Nonperforming
Assets $ 41,101 $ 25,081 $ 4,526 64% 808%
==================================
Net Charge-offs
(Recoveries) $ 1,816 $ 129 $ (21) 1308% 8748%
Net Charge-offs
as Percent of
Average Loans 0.59% 0.04% -0.01% 1375% 6000%
Allowance for
Loan Losses to
Total Loans 2.00% 1.79% 1.18% 12% 69%
Allowance for
Loan Losses to
Nonperforming
Loans 61.84% 92.58% 352.71% -33% -82%
Nonperforming
Assets to
Total Assets 2.74% 1.66% 0.34% 65% 706%
Nonperforming
Loans to Total
Loans 3.24% 1.93% 0.33% 68% 882%
OTHER PERIOD-
END
STATISTICS
(unaudited)
Shareholders'
Equity / Total
Assets 12.29% 9.54% 12.23% 29% 0%
Loan to Deposit
Ratio 108.20% 105.41% 97.39% 3% 11%
Noninterest
Bearing
Deposits /
Total Deposits 22.65% 21.73% 25.18% 4% -10%
Leverage Ratio 11.03% 8.27% 11.05% 33% 0%
----------------------------------------------------------------------
For the Three Months Ended
December 31, 2008
------------------------------
NET INTEREST INCOME AND Interest Average
NET INTEREST MARGIN Average Income/ Yield/
(in $000's, unaudited) Balance Expense Rate
------------------------------------- ---------- -------- ------
Assets:
Loans, gross $1,233,763 $16,964 5.47%
Securities 116,256 1,193 4.08%
Interest bearing deposits in other
financial institutions 1,814 7 1.54%
Federal funds sold 2,996 2 0.27%
---------- --------
Total interest earning assets 1,354,829 $18,166 5.33%
--------
Cash and due from banks 29,137
Premises and equipment, net 9,486
Goodwill and other intangible assets 47,513
Other assets 53,280
----------
Total assets $1,494,245
==========
Liabilities and shareholders' equity:
Deposits:
Demand, interest bearing $134,861 $237 0.70%
Savings and money market 376,344 1,304 1.38%
Time deposits, under $100 42,142 285 2.69%
Time deposits, $100 and over 157,846 963 2.43%
Brokered time deposits 204,962 1,962 3.81%
Notes payable to subsidiary grantor
trusts 23,702 537 9.01%
Securities sold under agreement to
repurchase 35,000 263 2.99%
Note payable 15,000 108 2.86%
Other short-term borrowings 49,957 112 0.89%
---------- --------
Total interest bearing liabilities 1,039,814 $5,771 2.21%
--------
Demand, noninterest bearing 263,301
Other liabilities 28,665
----------
Total liabilities 1,331,780
Shareholders' equity 162,465
----------
Total liabilities and shareholders'
equity $1,494,245
==========
Net interest income / margin $12,395 3.64%
========
For the Three Months Ended
December 31, 2007
------------------------------
NET INTEREST INCOME AND Interest Average
NET INTEREST MARGIN Average Income/ Yield/
(in $000's, unaudited) Balance Expense Rate
------------------------------------- ---------- -------- ------
Assets:
Loans, gross $ 978,310 $ 18,864 7.65%
Securities 151,588 1,783 4.67%
Interest bearing deposits in other
financial institutions 3,744 37 3.92%
Federal funds sold 31,485 372 4.69%
---------- --------
Total interest earning assets 1,165,127 $ 21,056 7.17%
--------
Cash and due from banks 40,843
Premises and equipment, net 9,483
Goodwill and other intangible assets 47,850
Other assets 60,939
----------
Total assets $1,324,242
==========
Liabilities and shareholders' equity:
Deposits:
Demand, interest bearing $ 144,149 $ 745 2.05%
Savings and money market 467,199 3,647 3.10%
Time deposits, under $100 33,164 326 3.90%
Time deposits, $100 and over 138,164 1,287 3.70%
Brokered time deposits 45,307 537 4.70%
Notes payable to subsidiary grantor
trusts 23,702 580 9.71%
Securities sold under agreement to
repurchase 10,900 76 2.77%
Note payable -- -- N/A
Other short-term borrowings 5,380 63 4.65%
---------- --------
Total interest bearing liabilities 867,965 $ 7,261 3.32%
--------
Demand, noninterest bearing 264,404
Other liabilities 23,666
----------
Total liabilities 1,156,035
Shareholders' equity 168,207
----------
Total liabilities and shareholders'
equity $1,324,242
==========
Net interest income / margin $13,795 4.70%
========
For the Year Ended
December 31, 2008
------------------------------
NET INTEREST INCOME AND Interest Average
NET INTEREST MARGIN Average Income/ Yield/
(in $000's, unaudited) Balance Expense Rate
------------------------------------- ---------- -------- ------
Assets:
Loans, gross $1,178,194 $ 70,488 5.98%
Securities 126,223 5,395 4.27%
Interest bearing deposits in other
financial institutions 881 16 1.82%
Federal funds sold 3,060 58 1.90%
---------- --------
Total interest earning assets 1,308,358 $ 75,957 5.81%
--------
Cash and due from banks 34,339
Premises and equipment, net 9,273
Goodwill and other intangible assets 47,788
Other assets 56,603
----------
Total assets $1,456,361
==========
Liabilities and shareholders' equity:
Deposits:
Demand, interest bearing $ 145,785 $ 1,513 1.04%
Savings and money market 433,839 7,679 1.77%
Time deposits, under $100 36,301 1,101 3.03%
Time deposits, $100 and over 162,298 4,853 2.99%
Brokered time deposits 124,079 4,889 3.94%
Notes payable to subsidiary grantor
trusts 23,702 2,148 9.06%
Securities sold under agreement to
repurchase 32,030 937 2.93%
Note payable 10,243 292 2.85%
Other short-term borrowings 48,238 1,032 2.14%
---------- --------
Total interest bearing liabilities 1,016,515 $ 24,444 2.40%
--------
Demand, noninterest bearing 258,624
Other liabilities 28,006
----------
Total liabilities 1,303,145
Shareholders' equity 153,216
----------
Total liabilities and shareholders'
equity $1,456,361
==========
Net interest income / margin $ 51,513 3.94%
========
For the Year Ended
December 31, 2007
------------------------------
NET INTEREST INCOME AND Interest Average
NET INTEREST MARGIN Average Income/ Yield/
(in $000's, unaudited) Balance Expense Rate
------------------------------------- ---------- -------- ------
Assets:
Loans, gross $ 844,928 $ 68,405 8.10%
Securities 165,884 7,636 4.60%
Interest bearing deposits in other
financial institutions 3,132 141 4.50%
Federal funds sold 49,118 2,530 5.15%
---------- --------
Total interest earning assets 1,063,062 $ 78,712 7.40%
--------
Cash and due from banks 37,435
Premises and equipment, net 6,218
Goodwill and other intangible assets 25,331
Other assets 61,844
----------
Total assets $1,193,890
==========
Liabilities and shareholders' equity:
Deposits:
Demand, interest bearing $ 143,801 $ 3,154 2.19%
Savings and money market 393,750 12,368 3.14%
Time deposits, under $100 32,196 1,243 3.86%
Time deposits, $100 and over 119,812 5,151 4.30%
Brokered time deposits 49,846 2,295 4.60%
Notes payable to subsidiary grantor
trusts 23,702 2,329 9.83%
Securities sold under agreement to
repurchase 14,504 387 2.67%
Note payable -- -- N/A
Other short-term borrowings 1,751 85 4.85%
---------- --------
Total interest bearing liabilities 779,362 $ 27,012 3.47%
--------
Demand, noninterest bearing 242,308
Other liabilities 23,385
----------
Total liabilities 1,045,055
Shareholders' equity 148,835
----------
Total liabilities and
shareholders' equity $1,193,890
==========
Net interest income / margin $ 51,700 4.86%
========