UNION, N.J., Jan. 30, 2009 (GLOBE NEWSWIRE) -- Center Bancorp, Inc. (Nasdaq:CNBC), parent company of Union Center National Bank, (UCNB) today reported operating results for the fourth quarter ended December 31, 2008. Earnings amounted to $1.7 million, or $0.13 per fully diluted common share, for the quarter ended December 31, 2008, as compared with earnings of $532,000, or $0.04 per fully diluted common share, for the quarter ended December 31, 2007.
Highlighted items reported in the fourth quarter:
* Net income of $1.7 million for the fourth quarter of 2008
compared with net income of $532,000 for the fourth quarter of
2007.
* EPS of $0.13 per fully diluted common share, compared with $0.04
per fully diluted common share for the comparable fourth quarter
period of 2007.
* Continued improvement in earning asset mix from the same quarter
last year, as average loans increased by $117.7 million while
average investment securities declined by $72.6 million.
* Double digit loan growth, with average loans increasing to
$5670.2 million for the quarter ended December 31, 2008 compared
with $552.5 million for the comparable quarter in 2007.
* Continued high credit quality. Non-performing assets amounted to
0.46% of total assets at December 31, 2008 compared to 0.43% at
December 31, 2007.
* Strong Tier 1 capital ratio was 7.71% at December 31, 2008, 7.78%
at September 30, 2008, and 8.13% at December 31, 2007.
* An improvement in net interest margin by 53 basis points for the
fourth quarter of 2008 to 3.01%, compared to 2.48% for the
comparable quarter of 2007. On a linked sequential quarter basis,
net interest margin declined 8 basis points.
* Efficiency ratio improved in the fourth quarter to 59.7% compared
with 92.7% at December 31, 2007.
* Total assets of $1.0 billion at December 31, 2008, which
positions the Corporation as one of the largest New Jersey
headquartered financial institutions.
* A decline in deposits to $659.5 million at December 31, 2008 from
$699.1 million at December 31, 2007, reflecting outflows of high
cost single service volatile funding.
* The common stock dividend declaration for the fourth quarter
maintained the common stock cash dividend at $0.09 per common
share payable February 1, 2009.
* Book value per common share amounting to $6.29 at December 31,
2008 compared to $6.48 a year ago. Tangible book value per common
share was $4.97 at December 31, 2008 compared to $5.17 at
December 31, 2007.
Anthony C. Weagley, President and Chief Executive Officer, commenting on the fourth quarter results, indicated, "Center continues to achieve growth in core earnings performance and strength in the balance sheet, despite the global financial crisis and the difficult economic climate. The results for the period announced today reflect our continued progress in improving balance sheet asset mix, revenue growth and expense control. With these actions, we enter 2009 well positioned, despite adverse market conditions, to meet the challenges we face to our continued growth. Our sustained improvement in our balance sheet, continued growth in earnings, capital strength, strong liquidity and overall asset quality provides us a strong underpinning to further expand market share and to take advantage of any opportunities that arise in the future."
Average loans for the fourth quarter grew by 21.3% over the comparable period in 2007 and 2.8% from the prior quarter in 2008. "The Corporation continues to focus on fundamentals with an emphasis on credit and asset quality. Our adequate allowance for loan loss levels, our ability to reduce credit exposures and our low credit losses provide us the opportunity to continue to manage risk exposures as we grow the loan portfolio. The increase in this quarter's loan loss provision was primarily related to one non-performing commercial real estate loan. Total loans grew by $15.0 million during the fourth quarter and are up $124.5 million from year-end 2007. At December 31, 2008, our non-performing loans equaled 0.11% of total loans, down from 0.71% a year ago. Net charge-offs for the fourth quarter were 0.15% of average loans on an annualized basis and 0.08% for the full-year 2008, well below industry peer levels," added Mr. Weagley.
During the fourth quarter, the Corporation recorded gains related to employee benefit plans, which were fully offset by charges related to a termination of its lease obligation to build a branch in Cranford, New Jersey, coupled with impairment charges taken on investment holdings as a result of the market turmoil. Nonetheless, the results for the period continue to reflect the core growth in key performance areas of the Corporation -- asset growth, margin expansion and a reduction in operating overhead.
Quarterly Condensed Consolidated Income Statements (unaudited) (Dollars in thousands,except per share data) For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Net interest income $ 6,823 $ 6,860 $ 6,429 $ 5,687 Provision for loan losses 425 465 521 150 --------------------------------------------------------------------- Net interest income after provision for loan losses 6,398 6,395 5,908 5,537 Other income 615 47 1,116 866 Other expense (4,754) (4,578) (5,188) (4,953) Income (loss) before income tax 2,259 1,864 1,836 1,450 Income tax expense (benefit) 560 346 428 233 NET INCOME $ 1,699 $ 1,518 $ 1,408 $ 1,217 Earnings per share (basic) $ 0.13 $ 0.12 $ 0.11 $ 0.09 Earnings per share (diluted) $ 0.13 $ 0.12 $ 0.11 $ 0.09 Weighted average common shares outstanding: Basic 12,989,304 12,990,441 13,070,868 13,144,747 Diluted 12,995,134 13,003,954 13,083,558 13,163,586 (Dollars in thousands, except per share data) For the quarter ended: 12/31/07 9/30/07 ------------------------------ ------------ ------------ Net interest income $ 5,172 $ 5,481 Provision for loan losses 150 100 ------------------------------------------------------------- Net interest income after provision for loan losses 5,022 5,381 Other income 874 911 Other expense (6,034) (6,080) Income (loss) before income tax (138) 212 Income tax expense (benefit) (670) (786) NET INCOME $ 532 $ 998 Earnings per share (basic) $ 0.04 $ 0.07 Earnings per share (diluted) $ 0.04 $ 0.07 Weighted average common shares outstanding: Basic 13,441,082 13,864,272 Diluted 13,469,764 13,913,919
For the year ended December 31, 2008, net income amounted to $5.8 million, an increase of $2.0 million compared to the year ended December 31, 2007. Diluted earnings per common share for the year ended December 31, 2008 were $0.45 as compared with $0.28 for the same period in 2007. Earnings for both the current period and year-to-date reflect the progress that the Corporation is making in building a stronger balance sheet, maintaining strong credit quality and improving the future stability of revenue streams through expense reductions and building long term sustainable revenue growth.
As of or for the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Return on average assets 0.66% 0.60% 0.57% 0.50% Return on average equity 8.38% 7.55% 6.69% 5.60% Net interest margin (tax equivalent basis) 3.01% 3.09% 3.00% 2.74 Loan/Deposit ratio 102.53% 97.64% 101.61% 90.71% Stockholders' equity/total assets 7.99% 7.73% 8.15% 8.58% Efficiency ratio 59.7% 55.4% 67.7% 70.9% Book value per share $ 6.29 $ 6.21 $ 6.18 $ 6.51 Return on average tangible stockholders' equity 10.62% 9.60% 8.41% 6.98% Tangible stockholders' equity/tangible assets 6.42% 6.19% 6.52% 6.98% Tangible book value per share $ 4.97 $ 4.89 $ 4.86 $ 5.20 As of or for the quarter ended: 12/31/07 09/30/07 ------------------------------ -------- -------- Return on average assets 0.22% 0.40% Return on average equity 2.44% 4.21% Net interest margin (tax equivalent basis) 2.48% 2.63% Loan/Deposit ratio 78.91% 84.62% Stockholders' equity/total assets 8.38% 9.49% Efficiency ratio 92.7% 89.3% Book value per share $ 6.48 $ 6.85 Return on average tangible stockholders' equity 3.04% 5.15% Tangible stockholders' equity/tangible assets 6.80% 7.88% Tangible book value per share $5.17 $5.59
Interest Income and Expense
The Corporation recorded net interest income on a fully taxable equivalent basis of $7.1 million for the three months ended December 31, 2008 as compared to $5.6 million for the comparable quarter in 2007. Interest income declined by $0.3 million while interest expense decreased by $1.8 million from the same period last year. Compared to 2007, average interest earning assets increased by $38.9 million while the net interest spread and net interest margin improved by 73 basis points and 53 basis points, respectively, due primarily to reduced funding costs. On a linked quarter basis, the net interest spread and margin decreased by 5 basis points and 8 basis points, respectively.
The Corporation recorded net interest income on a fully taxable equivalent basis of $27.1 million for the year ended December 31, 2008 as compared to $23.3 million for the comparable twelve-month period in 2007. Interest income declined by $2.7 million while interest expense decreased by $6.5 million from the same period last year. Compared to 2007, net interest earning assets declined by $8.8 million while the net interest spread and net interest margin improved by 66 basis points and 44 basis points, respectively, due primarily to reduced funding costs.
Steps were taken during the fourth quarter of 2008 to improve the Corporation's net interest margin by continuing to lower rates in concert with the decline in market benchmark rates, allowing a runoff of single service high rate deposits and more volatile municipal funding, thereby lowering the overall cost of funds without impairing the Corporation's liquidity cash position. The result was an improvement in margin from the comparable period in 2007. The recent actions of the Federal Open Market Committee (FOMC), lowering its benchmark interest rate to .25%, allowed the Corporation to further reduce liability costs in the later part of the fourth quarter. During the full twelve months of 2008, the Corporation was able to reduce rates in concert with FOMC actions and at the same time, improve its liability mix. During 2008, the Corporation secured approximately $55 million of longer-term funding with a weighted average rate of 2.90% in an effort to support continued loan growth.
The $6.5 million decline in interest expense for the year ended December 31, 2008 as compared with the same period last year reflects the runoff of higher cost deposits and the replacement with lower cost funding, due primarily to recent actions by the FOMC in lowering the target Federal funds rate. Compared to 2007, the Corporation's average interest bearing deposits declined by $49.4 million in 2008, due primarily to the planned runoff of high cost deposits, while average borrowings, generally placed at favorable terms and rates, increased by $64.7 million.
Other Income
Total other income decreased $259,000 for the fourth quarter of 2008 compared with the comparable quarter of 2007, primarily as a result of net securities losses during the fourth quarter of 2008. During the fourth quarter of 2008, the Corporation incurred impairment charges of $370,000 in its securities portfolio. Excluding net securities gains (losses), the Corporation recorded other income of $871,000 in the three months ended December 31, 2008, compared to $917,000 in the three months ended December 31, 2007, a decrease of $46,000 or 5.0%. This decrease was due primarily to lower levels of service charges, commissions and fees and a decline in commissions from sales of mutual funds and annuities, offset in part by higher earnings from the appreciation in the cash surrender value of the Corporation's BOLI investment.
For the year ended December 31, 2008, total other income decreased $1.7 million as compared to 2007, primarily as a result of net securities losses and impairment charges in 2008 as compared to net securities gains in 2007. Excluding net securities gains (losses), the Corporation recorded other income of $3.8 million in the year ended December 31, 2008, compared to $3.5 million in 2007, an increase of 8.0%. This increase was primarily attributable to the recognition of $230,000 in tax-free proceeds in excess of contract value on the Corporation's BOLI due to the death of one insured participant. Additionally, the Corporation recognized higher service charges, commissions and fees and higher earnings from the appreciation in the cash surrender value of the Corporation's BOLI investment, partially offset by a decline in commissions from sales of mutual funds and annuities.
Quarterly Consolidated Non-Interest Income (unaudited) (Dollars in thousands) For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Service charges on deposit accounts $ 376 $ 360 $ 383 $ 404 Commissions from mortgage broker 7 6 17 12 activities Loan related fees (LOC) 53 46 37 41 Commissions from sale of mutual funds 22 35 38 17 and annuities Debit card and ATM fees 113 124 130 125 Bank owned life insurance 247 507 228 221 Net securities gains (losses) (256) (1,075) 225 -- Other service charges and fees 53 44 58 46 --------------------------------------------------------------------- Total other income $ 615 $ 47 $ 1,116 $ 866 ---------------------------------------------------------------------
(Dollars in thousands) For the quarter ended: 12/31/07 9/30/07 ---------------------- -------- ------- Service charges on deposit accounts $ 399 $ 312 Commissions from mortgage broker activities 16 15 Loan related fees (LOC) 31 49 Commissions from sale of mutual funds and annuities 44 131 Debit card and ATM fees 132 126 Bank owned life insurance 217 223 Net securities gains (losses) (43) 14 Other service charges and fees 78 41 ----------------------------------------------------------------- Total other income $ 874 $ 911 -----------------------------------------------------------------
Other Expense
Other expense for the fourth quarter of 2008 totaled $4.8 million, a decrease of $1.3 million, or 21.2%, from the comparable period in 2007. Salary and benefit expense decreased by $0.6 million, or 27.3%, to $1.7 million. Other expense for the year ended December 31, 2008 totaled $19.5 million, a decrease of $5.1 million, or 20.8%, from 2007. Salary and benefit expense decreased by $2.9 million, or 25.6%, to $8.5 million for the year ended December 31, 2008. These reductions were primarily attributable to reductions in staff, pension curtailment and elimination of certain benefit plans. Full-time equivalent staffing levels were 160 at December 31, 2008 compared to 172 at December 31, 2007. During the third quarter of 2008, the Corporation recognized a $272,000 benefit relating to a lump-sum payment and termination of the directors retirement plan. During the fourth quarter of 2008, the Corporation recognized a $483,000 benefit relating to a lump-sum payment and termination of the benefit equalization plan. These benefits represented the difference between the actuarial present value of the lump-sum payments and the accrued liability previously recorded on the Corporation's balance sheet. Other decreases were recognized in premises and equipment, professional fees and other general expenses, offset in part by an increase in occupancy costs. The increase in occupancy costs was due primarily to a $200,000 charge taken during the fourth quarter of 2008 relating to the termination of the Corporation's lease obligation to build a branch in Cranford, New Jersey.
The efficiency ratio for the fourth quarter of 2008 was 59.7% as compared to 92.7% in the fourth quarter of 2007. For the full-year 2008, the efficiency ratio was 63.1% as compared to 91.9% in the same period of 2007. The Corporation has moved ahead on its previously announced strategic outsourcing agreements, to aid in the realization of its goal to reduce operating overhead and shrink the infrastructure of the Corporation. The cost reduction plans resulted in the reduction of workforce by 12 staff positions in the second quarter, which in turn resulted in a one-time charge of $145,000 for the three-month period ended June 30, 2008 for severance and termination benefits. Additionally, the Corporation completed its outsourcing arrangement with Atlantic Central Bankers Bank, BITS program and the migration of its telecommunications lines to their service platform. The result of these initiatives is expected to result in annual cost savings of $600,000.
Quarterly Consolidated Non-Interest Expense (unaudited) (Dollars in thousands) For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Employee salaries and wages $ 1,777 $ 1,752 $ 2,013 $ 1,896 Employee stock option expense 23 23 36 45 Health insurance and other employee (246) (32) 285 218 benefits Payroll taxes 139 167 182 179 Other employee related expenses 17 9 8 14 --------------------------------------------------------------------- Total salaries and employee benefits $ 1,710 $ 1,919 $ 2,524 $ 2,352 Occupancy, net 983 803 734 759 Premises and equipment 362 352 356 366 Professional and consulting 152 189 190 172 Stationary and printing 97 87 118 95 Marketing and advertising 144 145 188 160 Computer expense 229 238 226 141 Bank regulatory related expenses 55 54 55 58 Postage and delivery 69 67 65 78 ATM related expenses 59 61 62 60 Amortization of core deposit intangible 23 23 24 25 Other expenses 871 640 646 687 --------------------------------------------------------------------- Total other expense $ 4,754 $ 4, 578 $ 5,188 $ 4,953 ---------------------------------------------------------------------
(Dollars in thousands) For the quarter ended: 12/31/07 9/30/07 ---------------------- -------- ------- Employee salaries and wages $ 1,932 $ 3,551 Employee stock option expense 46 46 Health insurance and other employee benefits 237 (687) Payroll taxes 124 183 Other employee related expenses 14 14 ---------------------------------------------------------------- Total salaries and employee benefits $ 2,353 $ 3,107 Occupancy, net 799 692 Premises and equipment 437 442 Professional and consulting 690 311 Stationary and printing 104 87 Marketing and advertising 179 152 Computer expense 150 151 Bank regulatory related expenses 58 60 Postage and delivery 57 73 ATM related expenses 59 63 Amortization of core deposit intangible 25 26 Other expenses 1,123 916 ---------------------------------------------------------------- Total other expense $ 6,034 $ 6,080 ----------------------------------------------------------------
Quarterly Condensed Consolidated Balance Sheets (unaudited) (Dollars in thousands) At quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Cash and due from banks $ 15,031 $ 15,952 $ 16,172 $ 15,155 Fed funds and money market funds -- -- -- 45,300 Investments 242,714 284,349 253,780 281,746 Loans 676,203 661,157 631,221 565,025 Allowance for loan losses (6,254) (6,080) (5,660) (5,245) Restricted investment in bank stocks, at cost 10,230 10,277 10,325 10,036 Premises and equipment, net 18,488 18,545 18,203 17,404 Goodwill 16,804 16,804 16,804 16,804 Core deposit intangible 306 328 350 375 Bank owned life insurance 22,938 22,690 22,710 22,483 Other real estate owned 3,949 -- -- -- Other assets 22,884 18,756 22,531 26,084 --------------------------------------------------------------------- TOTAL ASSETS $1,023,293 $1,042,778 $ 986,436 $ 995,167 --------------------------------------------------------------------- Deposits 659,537 677,144 621,190 622,924 Borrowings 273,595 281,046 279,585 279,024 Other liabilities 8,448 3,964 5,268 7,818 Stockholders' equity 81,713 80,624 80,393 85,401 --------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,023,293 $1,042,778 $ 986,436 $ 995,167 ---------------------------------------------------------------------
(Dollars in thousands) At quarter ended: 12/31/07 9/30/07 ----------------- ---------- -------- Cash and due from banks $ 20,541 $ 15,277 Fed funds and money market funds 49,490 -- Investments 314,194 343,979 Loans 551,669 550,847 Allowance for loan losses (5,163) (5,021) Restricted investment in bank stocks, at cost 8,467 7,347 Premises and equipment, net 17,419 17,662 Goodwill 16,804 16,804 Core deposit intangible 400 426 Bank owned life insurance 22,261 22,044 Other real estate owned -- -- Other assets 21,563 18,425 -------------------------------------------------------------- TOTAL ASSETS $1,017,645 $987,790 -------------------------------------------------------------- Deposits 699,070 650,999 Borrowings 223,264 237,744 Other liabilities 10,033 5,317 Stockholders' equity 85,278 93,730 -------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,017,645 $987,790 --------------------------------------------------------------
Condensed Consolidated Average Balance Sheets (unaudited)
(Dollars in thousands)
For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08
------------------ ---------- ---------- ---------- ----------
Investments, Fed
funds, and other $ 272,507 $ 273,337 $ 301,118 $ 326,397
Loans 670,212 651,766 601,655 565,654
Allowance for
loan losses (6,235) (5,840) (5,404) (5,237)
All other assets 95,514 93,535 91,631 93,088
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TOTAL ASSETS $1,031,998 $1,012,798 $ 989,000 $ 979,902
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Deposits-interest
bearing 554,652 521,459 499,342 519,295
Deposits-non
interest bearing 112,936 118,623 114,744 112,695
Borrowings 278,524 288,002 284,264 251,222
Other liabilities 4,798 4,321
6,508 9,769
Stockholders' equity 81,088 80,393 94,833 84,142
---------------------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,031,998 $1,012,798 $ 989,000 $ 979,902
---------------------------------------------------------------------
(Dollars in thousands) For the quarter ended: 12/31/07 9/30/07 ---------------------- --------- --------- Investments, Fed funds, and other $ 351,302 $ 362,119 Loans 552,521 538,798 Allowance for loan losses (5,077) (4,984) All other assets 91,016 90,533 ---------------------------------------------------------- TOTAL ASSETS $ 989,762 $ 986,466 ---------------------------------------------------------- Deposits-interest bearing 564,334 557,555 Deposits-non interest bearing 115,859 128,449 Borrowings 216,761 200,257 Other liabilities 5,543 5,372 Stockholders' equity 87,265 94,833 ---------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 989,762 $ 986,466 ----------------------------------------------------------
Loans
The Corporation had total loans of $676.2 million at December 31, 2008, a $124.5 million, or 22.6%, increase from December 31, 2007. Loan growth continued during the quarter in the Corporation's commercial real estate related segment of the portfolio. At December 31, 2008, the Corporation had $9.8 million in overall undispersed loan commitments which are expected to fund over the next 90 days.
Loan originations and pipelines for the quarter increased in the commercial sector, primarily in the commercial real estate segment of the loan portfolio. "We continue to gain a high profile presence in New Jersey and as a result continue to achieve loan and customer growth. The growth has been client relationship oriented which allows our Bank to continue to grow the portfolio with high asset quality. Our current pipelines reflect a continued demand for loans and we are confident that we will continue to build our loan volume throughout 2009. The current financial crisis and overall economic climate could dampen activity in all sectors of the portfolio; however, we feel that our positioning as a strong commercial Bank will support continued growth in the portfolio and improvement in our earning-asset mix. As we continue to move through this economic downturn, we are focused on aggressively managing the risks associated with the current credit cycle while maintaining our underwriting standards," said Mr. Weagley.
Loan Mix:
(unaudited)
(Dollars in thousands)
At quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08
------------------ ---------- ---------- ---------- ----------
Real estate loans
Residential $ 240,316 $ 249,258 $ 255,817 $ 260,237
Commercial 256,527 246,089 224,990 163,664
Construction 42,075 47,722 50,638 48,494
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Total real
estate loans 538,918 543,069 531,445 472,395
Commercial loans 135,232 116,891 98,845 91,492
Consumer and
other loans 1,481 672 339 592
---------------------------------------------------------------------
Total loans before
unearned fees
and costs 675,631 660,632 630,629 564,479
Unearned fees and
costs, net 572 525 592 546
---------------------------------------------------------------------
Total loans $ 676,203 $ 661,157 $ 631,221 $ 565,025
=====================================================================
(Dollars in thousands) At quarter ended: 12/31/07 9/30/07 ----------------- -------- -------- Real estate loans Residential $265,597 $265,301 Commercial 137,585 136,289 Construction 51,367 53,286 ---------------------------------------------------------- Total real estate loans 454,549 454,876 Commercial loans 95,978 94,444 Consumer and other loans 563 960 ---------------------------------------------------------- Total loans before unearned fees and 551,090 550,280 costs Unearned fees and costs, net 579 567 ---------------------------------------------------------- Total loans $551,669 $550,847 ==========================================================
Asset Quality
The Corporation has been successful in maintaining loan credit quality throughout 2008. At December 31, 2008, non-performing assets totaled $4.7 million, or 0.46% of total assets, as compared with $4.4 million, or 0.43%, at December 31, 2007. A decrease in non-accrual loans from December 31, 2007 was primarily attributable to the repayment during the first quarter of 2008 of principal of $2.5 million and interest of $83,277 on one commercial mortgage. During the fourth quarter of 2008, other real estate owned (OREO) increased $3.9 million due solely to the addition of a commercial real estate condominium project in Union County, New Jersey.
"The Corporation is well positioned to weather the unprecedented volatility in the credit markets as we do not have exposure to the sub prime home mortgage business or to other sub prime issues such as collateralized debt obligations. Our home equity portfolio is sound and was originated with conservative underwriting practices," remarked Mr. Weagley.
At December 31, 2008, the total allowance for loan losses amounted to approximately $6.3 million, or 0.92% of total loans. The allowance for loan losses as a percent of total non-performing loans amounted to 809.1% at December 31, 2008 as compared to 132.2% at December 31, 2007.
Selected credit quality ratios (unaudited)
(Dollars in thousands)
As of or for the
quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08
------------------ ---------- ---------- ---------- ----------
Non-accrual loans $ 541 $ 541 $ 265 $ 1,215
Troubled debt
restructuring 93 95 97 0
Past due loans
90 days or more and
still accruing
interest 139 18 0 0
---------------------------------------------------------------------
Total non performing
loans 773 654 362 1,215
Other real estate
owned ("OREO") 3,949 0 0 478
Repossessed assets
other than
real-estate 0 0 0 0
---------------------------------------------------------------------
Total non performing
assets $ 4,722 $ 654 $ 362 $ 1,693
---------------------------------------------------------------------
Non performing
assets as a
percentage of
total assets 0.46% 0.06% 0.04% 0.17%
Non performing loans
as a percentage
of total loans 0.11% 0.10% 0.06% 0.22%
Net charge-offs $ 251 $ 45 $ 106 $ 68
Net charge-offs as a
percentage of average
loans for the period
(annualized) 0.15% 0.03% 0.07% 0.05%
Allowance for loan
losses as a
percentage of period
end loans 0.92% 0.92% 0.90% 0.93%
Allowance for loan
losses as a
percentage of
non-performing loans 809.1% 929.7% 1,563.5% 431.7%
---------------------------------------------------------------------
Total Assets $1,023,293 $1,042,778 $ 986,436 $ 995,167
Total Loans 676,203 661,157 631,221 565,025
Average loans for
the quarter 670,212 651,766 601,655 565,654
Allowance for
loan losses 6,254 6,080 5,660 5,245
---------------------------------------------------------------------
(Dollars in thousands)
As of or for the quarter ended: 12/31/07 9/30/07
------------------------------- ---------- ----------
Non-accrual loans $ 3,907 $ 986
Troubled debt restructuring 0 0
Past due loans 90 days or more and still
accruing interest 0 0
---------------------------------------------------------------------
Total non performing loans 3,907 986
Other real estate owned ("OREO") 501 586
Repossessed assets other than real-estate 0 0
---------------------------------------------------------------------
Total non performing assets $ 4,408 $ 1,572
---------------------------------------------------------------------
Non performing assets as a percentage of
total assets 0.43% 0.16%
Non performing loans as a percentage of
total loans 0.71% 0.18%
Net charge-offs $ 8 $ 53
Net charge-offs as a percentage of
average loans for the period (annualized) 0.01% 0.04%
Allowance for loan losses as a percentage
of period end loans 0.94% 0.91%
Allowance for loan losses as a percentage
of non-performing loans 132.2% 509.2%
---------------------------------------------------------------------
Total Assets $1,017,645 $ 987,790
Total Loans 551,669 550,847
Average loans for the quarter 552,521 538,798
Allowance for loan losses 5,163 5,021
---------------------------------------------------------------------
Securities
Investment securities declined by $71.5 million at December 31, 2008 compared to December 31, 2007. The decline is consistent with maintaining the balance sheet strategies the Corporation has previously outlined in seeking to reduce the size of its investment securities portfolio while increasing loans as a percentage of the earning-asset mix.
The reduction in the volume of the investment portfolio provided cash flow for loan funding and forecasted liability outflows. This action had a positive impact on net interest income in the quarter and year ended December 31, 2008.
Deposits/Funding Sources
Deposits totaled $659.5 million at December 31, 2008, a decrease of $17.6 million from September 30, 2008 and a decrease of $39.5 million from December 31, 2007.
The following table reflects the Corporation's deposits for the periods specified.
Deposit Mix (unaudited) (Dollars in thousands) At quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Checking accounts Non interest bearing $ 113,319 $ 114,631 $ 110,891 $ 117,053 Interest bearing 139,349 129,070 124,469 125,152 Savings deposits 66,359 61,623 63,918 68,028 Money market accounts 111,308 140,533 147,202 170,742 Time Deposits 229,202 231,287 174,710 141,949 --------------------------------------------------------------------- Total Deposits $ 659,537 $ 677,144 $ 621,190 $ 622,924 =====================================================================
(Dollars in thousands) At quarter ended: 12/31/07 9/30/07 ---------------- -------- -------- Checking accounts Non interest bearing $111,422 $121,884 Interest bearing 155,406 110,177 Savings deposits 86,341 92,789 Money market accounts 196,601 167,442 Time Deposits 149,300 158,707 ------------------------------------------------- Total Deposits $699,070 $650,999 =================================================
Non-interest bearing deposits totaled $113.3 million at December 31, 2008, a decrease of $1.3 million from September 30, 2008 and an increase of $1.9 million from December 31, 2007. Interest-bearing demand, savings, money market accounts and time deposits decreased $16.3 million from September 30, 2008 as customers' preference in seeking safety and more liquidity became paramount in light of the financial crisis, seeking full FDIC insured core bank products as a safe haven. These interest-bearing deposits declined $41.4 million from December 31, 2007 as a result of a decision to continue to reduce the Corporation's dependency on more rate sensitive high costing funds, which were subject to maturity and repricing in favor of lower costing wholesale funds available. Time certificates of deposit of $100,000 and over decreased $72.1 million and $19.1 million as compared to September 30, 2008 and December 31, 2007, respectively, as the cost of this type of funding source became competitive with wholesale funds and less attractive as a funding source. Total deposit funding sources, including overnight repurchase agreements (which agreements are part of the demand deposit base), amounted to $689.7 million at December 31, 2008, which represents a decrease of $57.9 million as compared to December 31, 2007. The Corporation expects its deposit gathering efforts to remain strong, supported in part by the recent actions by the FDIC in temporarily raising the deposit insurance limits. The Corporation is a participant in the FDIC's Transaction Account Guarantee Program. Under this program, all non-interest bearing deposit transaction accounts are fully guaranteed by the FDIC, regardless of dollar amount, through December 31, 2009.
Borrowings totaled $273.6 million at December 31, 2008, reflecting an increase of $50.3 million from December 31, 2007. Overnight customer repurchase transactions covering commercial customer sweep accounts totaled $30.1 million at December 31, 2008 as compared with $48.5 million at December 31, 2007. This shift in the volume of repurchase agreements also accounted for a portion of the change in non-interest bearing commercial checking accounts during the period.
Stockholders' Equity
Total stockholders' equity amounted to $81.7 million, or 7.99% of total assets, at December 31, 2008. Tangible stockholders' equity was $64.6 million, or 6.42% of tangible assets. Book value per common share was $6.29 at December 31, 2008, compared to $6.48 at December 31, 2007. Tangible book value per common share was $4.97 at December 31, 2008 compared to $5.17 at December 31, 2007.
During the three months ended December 31, 2008, the Corporation did not purchase any shares of its common stock. The total shares purchased to date in 2008 totaled 193,083 shares of common stock at an average price of $9.96 per share. At December 31, 2008, there were 652,868 shares available for repurchase under the Corporation's stock buyback program. Any purchases by the Corporation pursuant to that program may be made, from time to time, in the open market, in privately negotiated transactions or otherwise.
At December 31, 2008, the Corporation's Tier 1 Capital Leverage ratio was 7.71%, the Corporation's total Tier 1 Risk Based Capital ratio was 10.20% and the Corporation's Total Risk Based Capital ratio was 11.01%. Total Tier 1 capital decreased to approximately $78.2 million at December 31, 2008 from $79.1 million at December 31, 2007. At December 31, 2008, the Corporation's capital ratios continued to exceed each of the minimum Federal requirements for a bank holding company, and Union Center National Bank's capital ratios continued to exceed each of the minimum levels required for classification as a "well capitalized institution" under the Federal Deposit Insurance Corporation Improvement Act.
On January 12, 2009, the Corporation issued $10 million in nonvoting senior preferred stock to the U.S. Department of Treasury under the Capital Purchase Program. As part of the transaction, the Corporation also issued warrants to the Treasury to purchase 173,410 shares of common stock of the Corporation at an exercise price of $8.65 per share. As previously announced, the Corporation's voluntary participation in the Capital Purchase Program amounted to approximately 50 percent of what the Corporation had qualified for under the Treasury program. The Corporation believes that its participation in this program will strengthen its current well-capitalized position. The funding will be used to support future loan growth.
The Corporation did not repurchase any shares during the fourth quarter ended December 31, 2008 under its current stock buyback program. At December 31, 2008, 652,868 shares remain available for repurchase under the plan. As a condition of the Corporation's participation under the U.S. Treasury's Capital Purchase Program, shares may not be repurchased for the next three years without approval of the U.S Treasury unless preferred shares are redeemed or transferred to a third party. At present the Corporation has not requested approval to the Treasury to repurchase shares.
About Center Bancorp
Center Bancorp, Inc. is a financial services holding company and operates Union Center National Bank, its main subsidiary. Chartered in 1923, Union Center National Bank is one of the oldest national banks headquartered in the state of New Jersey and currently the largest commercial bank headquartered in Union County. Its primary market niche is its commercial banking business. The Bank focuses its lending activities on commercial lending to small and medium sized businesses, real estate developers and high net worth individuals.
The Bank, through its Private Wealth Management Division which includes its wholly owned subsidiary, Center Financial Group LLC, and through a strategic partnership with American Economic Planning Group, provides financial services, including brokerage services, insurance and annuities, mutual funds, financial planning, estate and tax planning, trust, elder care and benefit plan administration. Center additionally offers title insurance services in connection with the closing of real estate transactions, through two subsidiaries, Union Title Company and Center Title Company.
The Bank currently operates 13 banking locations in Union and Morris counties in New Jersey. Banking centers are located in Union Township (6 locations), Berkeley Heights, Boonton/Mountain Lakes, Madison, Millburn/Vauxhall, Morristown, Springfield, and Summit, New Jersey. The Bank also operates remote ATM locations in the Chatham and Madison, New Jersey Transit train stations, and the Boys and Girls Club of Union.
While the Bank's primary market area is comprised of Morris and Union Counties, New Jersey, the Corporation has expanded to northern and central New Jersey. At December 31, 2008, the Bank had total assets of $1.0 billion, total deposit funding sources, which includes overnight repurchase agreements, of $689.7 million and stockholders' equity of $83.8 million. For further information regarding Center Bancorp, Inc., call 1-(800)-862-3683. For information regarding Union Center National Bank, visit our web site at http://www.centerbancorp.com
Non-GAAP Financial Measures
"Return on average tangible stockholders' equity" is a non-GAAP financial measure and is defined as net income as a percentage of tangible stockholders equity. This measure may be important to investors that are interested in analyzing our return on equity exclusive of the effect of changes in intangible assets on equity. The following table presents a reconciliation of return on average stockholders equity and return on average tangible stockholders equity for the periods presented:
(Dollars in thousands) For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 Net income $ 1,699 $ 1,518 $ 1,408 $ 1,217 --------------------------------------------------------------------- Average stockholders' equity $ 81,088 $ 80,393 $ 84,142 $ 86,921 Less: Average goodwill and other intangible assets 17,123 17,145 17,169 17,194 --------------------------------------------------------------------- Average tangible stockholders' equity $ 63,965 $ 63,248 $ 66,973 $ 69,727 --------------------------------------------------------------------- Return on average stockholders' equity 8.38% 7.55% 6.69% 5.60% Add: Average goodwill and other intangible assets 2.24 2.05 1.72 1.38 --------------------------------------------------------------------- Return on average tangible stockholders' equity 10.62% 9.60% 8.41% 6.98% ---------------------------------------------------------------------
(Dollars in thousands) For the quarter ended: 12/31/07 9/30/07 ---------------------- -------- -------- Net income $ 532 $ 998 ----------------------------------------------------------- Average stockholders' equity $87,265 $94,833 Less: Average goodwill and other intangible assets 17,220 17,245 ----------------------------------------------------------- Average tangible stockholders' equity $70,045 $77,588 ----------------------------------------------------------- Return on average stockholders' equity 2.44% 4.21% Add: Average goodwill and other intangible assets 0.60 0.94 ----------------------------------------------------------- Return on average tangible stockholders' equity 3.04% 5.15% -----------------------------------------------------------
"Tangible book value per share" is also a non-GAAP financial measure and represents tangible stockholders' equity (or tangible book value) calculated on a per common share basis. The Corporation believes that a disclosure of tangible book value per share may be helpful for those investors who seek to evaluate the Corporation's book value per share without giving effect to goodwill and other intangible assets. The following table presents a reconciliation of total book value per share to tangible book value per share as of the dates presented:
(Dollars in thousands) At quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Common shares outstanding 12,991,312 12,988,284 13,016,075 3,113,760 Stockholders' equity $ 81,713 $ 80,624 $ 80,393 $ 85,401 Less: Goodwill and other intangible assets 17,110 17,132 17,154 17,179 --------------------------------------------------------------------- Tangible stockholders' equity $ 64,603 $ 63,492 $ 63,239 $ 68,222 --------------------------------------------------------------------- Book value per share $ 6.29 $ 6.21 $ 6.18 $ 6.51 Less: Goodwill and other intangible assets 1.32 1.32 1.32 1.31 --------------------------------------------------------------------- Tangible book value per share $ 4.97 $ 4.89 $ 4.86 $ 5.20 ---------------------------------------------------------------------
(Dollars in thousands) At quarter ended: 12/31/07 9/30/07 ----------------- ----------- ----------- Common shares outstanding 13,155,784 13,692,534 Stockholders' equity $ 85,278 $ 93,730 Less: Goodwill and other intangible assets 17,204 17,230 --------------------------------------------------------------- Tangible stockholders' equity $ 68,074 $ 76,500 --------------------------------------------------------------- Book value per share $ 6.48 $ 6.85 Less: Goodwill and other intangible assets 1.31 1.26 --------------------------------------------------------------- Tangible book value per share $ 5.17 $ 5.59 ---------------------------------------------------------------
"Tangible stockholders' equity/tangible assets" is a non-GAAP financial measure and is defined as tangible stockholders' equity as a percentage of total assets minus goodwill and other intangible assets. This measure may be important to investors that are interested in analyzing the financial condition of the Corporation without consideration for intangible assets, inasmuch as tangible stockholders' equity and tangible assets both back out goodwill and other intangible assets. The following table presents a reconciliation of total assets to tangible assets and then presents a reconciliation of total stockholders' equity/total assets to tangible stockholders' equity/tangible assets as of the dates presented:
(Dollars in thousands) At quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Total assets $1,023,293 $1,042,778 $ 986,436 $ 995,167 Less: Goodwill and other intangible assets 17,110 17,132 17,154 17,179 Tangible assets $1,006,183 $1,025,646 $ 969,282 $ 977,988 --------------------------------------------------------------------- Total stockholders' equity/total assets 7.99% 7.73% 8.15% 8.58% Tangible stockholders' equity/tangible assets 6.42% 6.19% 6.52% 6.98%
(Dollars in thousands) At quarter ended: 12/31/07 9/30/07 ----------------- ---------- ---------- Total assets $1,017,645 $ 987,790 Less: Goodwill and other intangible assets 17,204 17,230 -------------------------------------------------------------- Tangible assets $1,000,441 $ 970,560 -------------------------------------------------------------- Total stockholders' equity/total assets 8.38% 9.49% Tangible stockholders' equity/tangible assets 6.80% 7.88%
Total non-interest income is presented both including and excluding net securities gains (losses). We believe that many investors desire to evaluate non-interest income without regard for securities transactions. The following table presents a reconciliation of total non-interest (or other) income with total non-interest (or other) income excluding the impact of securities transactions.
(Dollars in thousands) For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Total non-interest income $ 615 $ 47 $ 1,116 $ 866 Net securities gains (losses) (256) (1,075) 225 -- --------------------------------------------------------------------- Total non-interest income, excluding net securities gains (losses) $ 871 $ 1,122 $ 891 $ 866 ---------------------------------------------------------------------
(Dollars in thousands) For the quarter ended: 12/31/07 9/30/07 ---------------------- -------- ------- Total non-interest income $ 874 $ 911 Net securities gains (losses) (43) 14 ----------------------------------------------------------- Total non-interest income, excluding net securities gains (losses) $ 917 $ 897 -----------------------------------------------------------
"Efficiency ratio" is a non-GAAP financial measure and is defined as non-interest expense as a percentage of net interest income on a tax equivalent basis plus non-interest income, excluding net securities gains (losses), as follows:
(Dollars in thousands) For the quarter ended: 12/31/08 9/30/08 6/30/08 3/31/08 ------------------ ---------- ---------- ---------- ---------- Other expense $ 4,754 $ 4,578 $ 5,188 $ 4,953 --------------------------------------------------------------------- Net interest income (tax equivalent basis) $ 7,086 $ 7,148 $ 6,776 $ 6,117 Other income, excluding net 871 1,122 891 866 --------------------------------------------------------------------- securities gains (losses) $ 7,957 $ 8,270 $ 7,667 $ 6,983 --------------------------------------------------------------------- Efficiency ratio 59.7% 55.4% 67.7% 70.9% ---------------------------------------------------------------------
(Dollars in thousands)
For the quarter ended: 12/31/07 9/30/07
---------------------- -------- -------
Other expense $6,034 $6,080
---------------------------------------------------------
Net interest income (tax equivalent $5,594 $5,915
basis)
Other income, excluding net
securities gains (losses) 917 897
---------------------------------------------------------
$6,511 $6,812
---------------------------------------------------------
Efficiency ratio 92.7% 89.3%
---------------------------------------------------------
Forward-Looking Statements
All non-historical statements in this press release (including statements regarding positioning to weather the global financial crisis and to continue the Corporation's growth, the Corporation's ability to further expand market share, to take advantage of future opportunities and to experience long term sustainable revenue growth, anticipated loan growth and improvement in the earning-asset mix and the use of proceeds from the Capital Purchase Program) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may use such forward-looking terminology such as "expect," "look," "believe," "plan," "anticipate," "may," "will" or similar statements or variations of such terms or otherwise express views concerning trends and the future. Such forward-looking statements involve certain risks and uncertainties. These include, but are not limited to, the direction of interest rates, continued levels of loan quality and origination volume, continued relationships with major customers including sources for loans, as well as the effects of international, national, regional and local economic conditions and legal and regulatory barriers and structure, including those relating to the current global financial crisis and the deregulation of the financial services industry, and other risks cited in reports filed by the Corporation with the Securities and Exchange Commission. Actual results may differ materially from such forward-looking statements. Center Bancorp, Inc. assumes no obligation for updating any such forward-looking statement at any time.
CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited)
December 31, December 31,
(Dollars in Thousands) 2008 2007
--------------------------------------------------------------------
ASSETS
Cash and due from banks $ 15,031 $ 20,541
Federal funds sold and securities
purchased under agreement to resell -- 49,490
--------------------------------------------------------------------
Total cash and cash equivalents 15,031 70,031
--------------------------------------------------------------------
Investment securities available-for sale 242,714 314,194
Loans, net of unearned income 676,203 551,669
Less -- Allowance for loan losses 6,254 5,163
--------------------------------------------------------------------
Net Loans 669,949 546,506
Restricted investment in bank stocks,
at cost 10,230 8,467
Premises and equipment, net 18,488 17,419
Accrued interest receivable 4,154 4,535
Bank owned life insurance 22,938 22,261
Other real estate owned 3,949 --
Other assets 18,730 17,028
Goodwill and other intangible assets 17,110 17,204
--------------------------------------------------------------------
Total assets $ 1,023,293 $ 1,017,645
====================================================================
LIABILITIES
Deposits:
Non-interest bearing $ 113,319 $ 111,422
Interest-bearing
Time deposits $100 and over 44,878 63,997
Interest-bearing transactions, savings
and time deposits $100 and less 501,340 523,651
--------------------------------------------------------------------
Total deposits 659,537 699,070
Securities sold under agreement to
repurchase 30,143 48,541
Short-term borrowings 15,000 1,123
Long-term borrowings 223,297 168,445
Subordinated debentures 5,155 5,155
Accounts payable and accrued liabilities 8,448 10,033
--------------------------------------------------------------------
Total liabilities 941,580 932,367
--------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Preferred stock, no par value:
Authorized 5,000,000 shares; none issued -- --
Common stock, no par value:
Authorized 20,000,000 shares; issued
15,190,984 shares in 2008 and 2007;
outstanding 12,991,312 shares in 2008
and 13,155,784 shares in 2007 86,908 86,908
Additional paid in capital 5,204 5,133
Retained earnings 16,309 15,161
Treasury stock, at cost (2,199,672 shares
in 2008 and 2,035,200 shares in 2007) (17,796) (16,100)
Accumulated other comprehensive loss (8,912) (5,824)
--------------------------------------------------------------------
Total stockholders' equity 81,713 85,278
--------------------------------------------------------------------
Total liabilities and stockholders'
equity $ 1,023,293 $ 1,017,645
====================================================================
CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------------------------------------------------
(Dollars in
Thousands, Except
Per Share Data) 2008 2007 2008 2007
---------------------------------------------------------------------
Interest income:
Interest and fees
on loans 9,535 $ 8,440 36,110 $ 33,527
Interest and
dividends on
investment
securities:
Taxable interest
income 2,439 3,241 10,353 13,585
Non-taxable
interest income 511 772 2,547 3,171
Dividends 126 261 771 1,242
Interest on
Federal funds
sold and
securities
purchased under
agreement to
resell 4 83 113 604
---------------------------------------------------------------------
Total interest
income 12,615 12,797 49,894 52,129
---------------------------------------------------------------------
Interest expense:
Interest on
certificates of
deposit $100 or
more 551 942 2,381 3,964
Interest on other
deposits 2,604 4,167 10,906 16,871
Interest on
borrowings 2,637 2,516 10,808 9,795
---------------------------------------------------------------------
Total interest
expense 5,792 7,625 24,095 30,630
---------------------------------------------------------------------
Net interest
income 6,823 5,172 25,799 21,499
Provision for loan
losses 425 150 1,561 350
---------------------------------------------------------------------
Net interest income
after provision
for loan losses 6,398 5,022 24,238 21,149
---------------------------------------------------------------------
Other income:
Service charges,
commissions and
fees 489 531 2,015 1,824
Annuity and
insurance 22 44 112 298
Bank owned life
insurance 247 217 1,203 893
Net securities
gains (losses) (256) (43) (1,106) 900
Other income 113 125 420 457
---------------------------------------------------------------------
Total other income 615 874 2,644 4,372
---------------------------------------------------------------------
Other expense:
Salaries and
employee benefits 1,710 2,353 8,505 11,436
Occupancy, net 983 799 3,279 2,843
Premises and
equipment 362 437 1,436 1,777
Professional and
consulting 152 690 703 2,139
Stationery and
printing 97 104 397 465
Marketing and
advertising 144 179 637 603
Computer expense 229 150 834 614
Other 1,077 1,322 3,682 4,721
---------------------------------------------------------------------
Total other expense 4,754 6,034 19,473 24,598
---------------------------------------------------------------------
Income before
income tax expense
(benefit) 2,259 (138) 7,409 923
Income tax expense
(benefit) 560 (670) 1,567 (2,933)
---------------------------------------------------------------------
Net income $ 1,699 $ 532 $ 5,842 $ 3,856
=====================================================================
Earnings per share:
Basic $ 0.13 $ 0.04 $ 0.45 $ 0.28
Diluted $ 0.13 $ 0.04 $ 0.45 $ 0.28
---------------------------------------------------------------------
Weighted average
common shares
outstanding:
Basic 12,989,304 13,441,082 13,048,518 13,780,504
Diluted 12,995,134 13,469,764 13,061,410 13,840,756
=====================================================================
SUMMARY SELECTED QUARTERLY STATISTICAL INFORMATION AND FINANCIAL DATA
(Dollars in Thousands, Except per Share Data)
Three Months Ended
-------------------------------------
12/31/2008 9/30/2008 12/31/2007
----------- ----------- -----------
Statements of Income Data:
Interest income $ 12,615 $ 12,689 $ 12,797
Interest expense 5,792 5,829 7,625
Net interest income 6,823 6,860 5,172
Provision for loan losses 425 465 150
Net interest income after
provision for loan losses 6,398 6,395 5,022
Other income 615 47 874
Other expense 4,754 4,578 6,034
Income before income tax
expense (benefit) 2,259 1,864 (138)
Income tax expense (benefit) 560 346 (670)
Net income $ 1,699 $ 1,518 $ 532
Earnings per share:
Basic $ 0.13 $ 0.12 $ 0.04
Diluted $ 0.13 $ 0.12 $ 0.04
Statements of Condition Data
(Period End):
Investments $ 242,714 $ 284,349 $ 314,194
Total loans 676,203 661,157 551,669
Goodwill and other intangibles 17,110 17,132 17,204
Total assets 1,023,293 1,042,778 1,017,645
Deposits 659,537 677,144 699,070
Borrowings 273,595 281,046 223,264
Stockholders' equity $ 81,713 $ 80,624 $ 85,278
Dividend Data:
Cash dividends $ 1,169 $ 1,169 $ 1,171
Dividend payout ratio 68.81% 77.01% 220.01%
Cash dividends per share $ 0.09 $ 0.09 $ 0.09
Weighted Average Common
Shares Outstanding:
Basic 12,989,304 12,990,441 13,441,082
Diluted 12,995,134 13,003,954 13,469,764
Operating Ratios:
Return on average assets 0.66% 0.60% 0.22%
Average stockholders' equity
to average assets 7.86% 7.94% 8.82%
Return on average equity 8.38% 7.55% 2.44%
Return on average tangible
stockholders' equity 10.62% 9.60% 3.04%
Book value per common share $ 6.29 $ 6.21 $ 6.48
Tangible book value per common
share $ 4.97 $ 4.89 $ 5.17
Non-Financial Information
(Period End):
Common stockholders of record 640 649 679
Staff-full time equivalent 160 156 172