ROCKLAND, Mass., May 5, 2008 (PRIME NEWSWIRE) -- Independent Bank Corp., (Nasdaq:INDB), parent of Rockland Trust Company, today announced net income of $6.3 million and diluted earnings per share of $0.44 for the quarter ending March 31, 2008. This represents a decrease of $0.01, or (2.2%), on a per share basis, from the $0.45 diluted earnings per share recorded in the same quarter a year ago. Net income for the quarter decreased $318,000 as compared to the same period last year.
Certain non-core items are included in the computation of earnings in accordance with United States of America generally accepted accounting principles ("GAAP") in both 2008 and 2007 as indicated by the table below. In an effort to provide investors with information regarding the Company's results, the Company has disclosed certain non-GAAP information, which management believes provides useful information to the investor. This information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies.
Dollars in Thousands, Except Per Share Data
Three Months Ending
March 31,
----------------------------------------
RECONCILIATION TABLE -
NON-GAAP FINANCIAL
INFORMATION 2008 2007 $ Variance % Variance
------- ------- ---------- -----------
NET INCOME (GAAP) $ 6,308 $ 6,626 $ (318) -4.80%
Non-Interest Income
Components
Add - Net Loss on Sale
of Securities, net of tax 396 -- 396 n/a
Non-Interest Expense Components
Add - Executive Early
Retirement Costs, net
of tax -- 264 (264) n/a
Add - Merger & Acquisition
Expenses, net of tax 484 -- 484 n/a
Less - WorldCom Bond Loss
Recovery, net of tax (272) -- (272) n/a
---------------------------- -----------
NET OPERATING EARNINGS
(NON-GAAP) $ 6,916 $ 6,890 $ 26 0.38%
============================ ===========
Diluted Operating
Earnings Per Share $ 0.48 $ 0.47 $ 0.01 2.13%
============================ ===========
Net operating earnings were $6.9 million, or $0.48 on a per diluted share basis for the three months ending March 31, 2008, compared to net operating earnings and diluted earnings per share for the three months ending March 31, 2007 of $6.9 million and $0.47, respectively, which represents an increase of $26,000, or $0.01 per diluted share.
Comparing the three months ending March 31, 2008 to the same period last year, net interest income increased $1.8 million, or 7.4%, from the year ago period due to the continued strategic repositioning of the Company's balance sheet and the acquisition of Slade's Ferry Bancorp. in the first quarter of this year.
The net interest margin for the three month period ending March 31, 2008 was 3.90% as compared to 3.84% for the three month period ending March 31, 2007.
The Company's allowance for loan losses as a percentage of loans was 1.29% and 1.34% at March 31, 2008 and March 31, 2007, respectively. The provision for loan losses was $1.3 million for the quarter ended March 31, 2008 compared to $891,000 for the year ago comparative period. Net charge-offs were $1.1 million for the first three months of 2008 as compared to $891,000 for the first three months of 2007.
Non-interest income increased by $446,000, or 5.7%, during the three months ended March 31, 2008, as compared to the same period in the prior year. Excluding the net losses on sale of securities during the first quarter of 2008, non-interest income grew by $1.1 million, or 13.5%, in the three-month period ending March 31, 2008, when compared to 2007. See the table below for a reconciliation of non-interest income as adjusted.
Three Months Ended
March 31,
2008 2007 $ Variance % Variance
--------------- ---------- ----------
(Dollars in Thousands)
Non-Interest Income GAAP $8,238 $7,792 $ 446 5.72%
Add - Net Loss on Sale
of Securities 609 -- $ 609 n/a
--------------- ---------- ----------
Non-Interest Income
as Adjusted $8,847 $7,792 $1,055 13.54%
=============== ========== ==========
The change is attributable to the following:
-- Service charges on deposit accounts increased by $226,000,
or 6.6%, for the three months ended March 31, 2008, as
compared to the same period in 2007, primarily due to
increased overdraft fees.
-- Wealth management revenue increased by $862,000, or 47.5%,
for the three months ended March 31, 2008, as compared to the
same period in 2007. Investment management revenue increased
by $942,000, or 60.9%, for the three months ended March 31,
2008 as compared to the three months ended March 31, 2007.
Assets under management at March 31, 2008 were $1.3 billion,
an increase of $448.9 million, or 53.0%, as compared to March
31, 2007. On November 1, 2007 Rockland Trust completed its
acquisition of assets from the Lincoln, Rhode Island-based
O'Connell Investment Services, Inc. The closing of this
transaction added approximately $200 million to assets under
management. Retail wealth management revenue decreased by
$80,000, or (30.0%), for the three months ended March 31,
2008, as compared to the three months ended March 31, 2007.
-- Mortgage banking income increased by $340,000, or 43.9%,
for the three months ended March 31, 2008, as compared to the
same period in 2007. The balance of the mortgage servicing asset
was $2.0 million and loans serviced amounted to $265.6 million
as of March 31, 2008, as compared to a mortgage servicing asset
balance of $2.3 million and loans serviced amounting to $281.7
million at March 31, 2007.
-- There was a net loss on the sale of securities of $609,000
during the first quarter of 2008. Of this loss, $742,000 is
associated with the sale of the majority of the Slade's Ferry
Bancorp. securities portfolio, which was offset by gains on
agency securities recorded in the quarter. There were no gains
or losses on the sale of securities during the first quarter of
2007.
-- Other non-interest income decreased by $405,000, or (31.0%),
for the three months ended March 31, 2008, as compared to the
same period in 2007. The decrease is primarily attributable
to declines in 1031 exchange income of $294,000, due to the
slowdown in national commercial real estate markets, and
declines in trading revenue of $68,000.
Non-interest expense increased by $2.6 million, or 12.0%, for the three months ended March 31, 2008, as compared to the same periods in 2007. Excluding executive early retirement costs in 2007 and merger & acquisition expenses and the WorldCom Bond loss recovery in 2008, non-interest expense increased $2.5 million, or 11.4%, for the three months ending March 31, 2008, as compared to the same period in 2007. See the table below for a reconciliation of non-interest expense as adjusted.
Three Months Ended
------------------
March 31,
2008 2007 $ Variance % Variance
----------------- ---------- ----------
(Dollars in Thousands)
Non-Interest Expense GAAP $24,032 $21,452 $2,580 12.03%
Add - Executive Early
Retirement Costs -- 406 (406) n/a
Add - Merger & Acquisition
Expenses 744 -- 744 n/a
Less - WorldCom Bond Loss
Recovery (418) -- (418) n/a
----------------- ---------- ----------
Non-Interest Expense as
Adjusted $24,358 $21,858 $2,500 11.44%
================= ========== ==========
-- Salaries and employee benefits increased by $1.0 million,
or 7.5%, for the three months ended March 31, 2008, as
compared to the same period in 2007. The increase in salaries
and benefits is attributable to the Slade's Ferry Bancorp.
acquisition, annual merit increases, incentive programs, and
the O'Connell acquisition in the fourth quarter of 2007.
-- Occupancy and equipment expense increased by $349,000, or
13.7%, for the three-month period ending March 31, 2008, as
compared to the same period in 2007 mainly due to increases in
rent expense of $136,000 due to new locations, $78,000 for
increased cost for snow removal and sanding, and the effects
of the Slade's Ferry Bancorp. acquisition.
-- Data processing and facilities management expense increased
by $196,000, or 18.0%, for the three-month period ending
March 31, 2008, as compared to the same period in 2007. The
increase is partially a result of new functionality as well
as an increase in volume.
-- Due to the Slade's Ferry Bancorp. acquisition, there was
$744,000 of merger and acquisition expenses in the first quarter
of 2008.
-- Other non-interest expense increased by $300,000, or 6.4%,
for the three-month period ending March 31, 2008, as compared
to the same period in 2007. The increase in the three-month
period is primarily attributable to advertising expenses of
$208,000, consulting fees of $197,000 and intangible
amortization of $170,000, partially offset by a recovery on the
WorldCom bond loss of $418,000.
The Company's effective tax rate was 27% and 30% in the first quarter periods ended March 31, 2008 and 2007, respectively. The reduction in the effective tax rate is a result of the impact of the Company's New Markets Tax Credit program.
Total assets increased by $561.8 million, or 20.3%, to $3.3 billion in total assets at March 31, 2008 as compared to March 31, 2007. This increase is primarily a result of the closing of the acquisition of Slade's Ferry Bancorp. during the first quarter of 2008.
-- Securities decreased by $20.7 million, or (4.1%), during the
three months ended March 31, 2008, due to the sale of
$50.0 million in agency securities resulting in a gain of
$133,000 in January 2008. In addition, associated with the
Slade's Ferry Bancorp. acquisition, the Company sold
the majority of Slades investment portfolio incurring a loss
of $742,000. The ratio of securities to total assets as of
March 31, 2008 was 14.6%, compared to 18.3% at December 31, 2007.
-- Total loans grew by $481.0 million, or 23.5%, in the first
quarter of 2008 as compared to December 31, 2007. The
acquisition of Slade's Ferry Bancorp. added $471.2 million in
growth, as shown in the table below.
------------------------------------------------
March 31, December 31, Slade's Organic
2008 2007 Acquisition Growth
-------------------------------------- ---------
(Dollars in Thousands)
Loans
Commercial and
Commercial
Real Estate Loans $ 1,453,300 $ 1,121,310 $ 316,081 $ 15,909
Business Banking 73,853 69,977 -- 3,876
Residential Real
Estate 449,873 341,090 114,432 (5,649)
Consumer - Home
Equity 355,367 308,744 38,723 7,900
Consumer - Other 191,549 201,831 2,009 (12,291)
----------- ----------- ---------- ---------
Total Loans $ 2,523,942 $ 2,042,952 $ 471,245 $ 9,745
============ =========== ========== =========
Excluding the Slade's Ferry Bancorp. acquisition, organic growth achieved amounted to $9.7 million, or 1.9% on an annualized basis, and was concentrated in the business and home equity lending categories while the residential real estate and consumer (primarily indirect automobile lending) categories were reduced. Total commercial loans (including business banking) following the Slade's Ferry Bancorp. acquisition now represents 60.5% of the total loan portfolio.
-- Total deposits of $2.5 billion increased 21.2% at March 31,
2008 compared to $2.0 billion at December 31, 2007. Of the
increase, $410.8 million is a result of the Slades acquisition.
Excluding the impact of the acquisition, deposits grew at an
annualized rate of 3.9%. See the table below for the deposits
that transferred from Slade's Ferry Bancorp.
------------------------------------------------
March 31, December 31, Slade's Organic
2008 2007 Acquisition Growth
-------------------------------------- ---------
(Dollars in Thousands)
Deposits
Demand Deposits $ 549,581 $ 471,164 $ 74,584 $ 3,833
Savings and
Interest
Checking Accounts 686,808 587,474 119,908 (20,574)
Money Market 484,634 435,792 38,668 10,174
Time Certificates
of Deposit 735,922 532,180 177,609 26,133
----------- ----------- ---------- ---------
Total Deposits $ 2,456,945 $ 2,026,610 $ 410,769 $ 19,566
=========== =========== ========== =========
-- Borrowings increased by $38.8 million, or 7.7%, during the
three months ending March 31, 2008, compared to December 31,
2007, due to retaining a portion of the borrowings acquired
from Slade's Ferry Bancorp., $10.3 million of which are junior
subordinated debentures.
The Company reported return on average assets and return on average equity in the first quarter of 2008 of 0.87% and 10.01%, respectively, as compared to 0.96% and 11.73% for the same period in 2007. Operating return on average assets and return on average equity in the first quarter of 2008 was 0.95% and 10.98%, respectively, as compared to 1.00% and 12.20% for the same period in 2007.
Stockholders' equity at March 31, 2008 totaled $300.7 million, as compared to $220.5 million at December 31, 2007. The Tier 1 leverage capital ratio at March 31, 2008 was 8.55%, maintaining the Company's well-capitalized position.
At March 31, 2008 the balance of goodwill was $116.6 million and other intangible assets, primarily core deposit intangibles, were $10.8 million. The amount of goodwill and core deposit intangible assets that were due to the Slade's Ferry Bancorp. acquisition was $58.1 million and $9.0 million, respectively.
The allowance for loan losses was $32.6 million at March 31, 2008 and $26.8 million at December 31, 2007. The majority of the increase in allowance for loan losses is due to the Slade's Ferry Bancorp. acquisition which closed in the first quarter of 2008. Nonperforming assets totaled $11.9 million at March 31, 2008, or 0.36% of total assets, as compared to $8.3 million reported at December 31, 2007, or 0.30% of total assets.
Christopher Oddleifson, President and Chief Executive Officer, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss first quarter earnings at 4:30 p.m. Eastern Time on Monday, May 5, 2008. Internet access to the call is available on the Company's website at http://www.RocklandTrust.com or by telephonic access by dial-in at 1-800-860-2442 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Passcode: 416741. The web cast replay will be available until May 5, 2009 and the telephone replay will be available until May 12, 2008.
Independent Bank Corp.'s sole bank subsidiary, Rockland Trust Company, currently has approximately $3.3 billion in assets. Rockland Trust offers commercial banking, retail banking, investment management, and insurance sales services from: 63 retail branches, 9 commercial lending centers, and 5 mortgage origination offices located throughout southeastern Massachusetts and on Cape Cod; and, from 4 investment management offices located throughout southeastern Massachusetts, on Cape Cod, and in Rhode Island. To find out more about the products and services available at Rockland Trust, please visit https://www.RocklandTrust.com.
This press release contains certain "forward-looking statements" with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities losses. Because these gains and losses and their impact on the Company's performance are difficult to predict, management believes that presentations of adjusted financial measures excluding the impact of these gains and losses provide useful information that is essential to a proper understanding of the operating results of the Company. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------
(Unaudited - Dollars in Thousands)
CONSOLIDATED BALANCE ---------------------------------------
SHEETS March 31, Dec. 31, $ %
2008 2007 Variance Change
---------------------------------------------------------------------
Assets
Cash and Due From Banks 80,598 $ 67,416 13,182 19.55%
Fed Funds Sold and Short
Term Investments -- -- -- --
Securities
Trading Assets 3,305 1,687 1,618 95.91%
Securities Available
for Sale 419,491 444,258 (24,767) -5.57%
Securities Held to
Maturity 39,335 45,265 (5,930) -13.10%
Federal Home Loan Bank
Stock 24,603 16,260 8,343 51.31%
---------------------------------------
Total Securities 486,734 507,470 (20,736) -4.09%
---------------------------------------
Loans
Commercial and Industrial 259,430 190,522 68,908 36.17%
Commercial Real Estate 1,030,085 797,416 232,669 29.18%
Commercial Construction 163,785 133,372 30,413 22.80%
Business Banking 73,853 69,977 3,876 5.54%
Residential Real Estate 426,674 323,847 102,827 31.75%
Residential Construction 7,622 6,115 1,507 24.64%
Residential Loans Held
for Sale 15,577 11,128 4,449 39.98%
Consumer - Home Equity 355,367 308,744 46,623 15.10%
Consumer - Auto 147,232 156,006 (8,774) -5.62%
Consumer - Other 44,317 45,825 (1,508) -3.29%
---------------------------------------
Total Loans 2,523,942 2,042,952 480,990 23.54%
Less - Allowance for
Loan Losses (32,609) (26,831) (5,778) 21.53%
---------------------------------------
Net Loans 2,491,333 2,016,121 475,212 23.57%
---------------------------------------
Bank Premises and
Equipment 51,559 39,085 12,474 31.92%
Goodwill and Core
Deposit Intangible 127,391 60,411 66,980 110.87%
Other Assets 92,616 77,910 14,706 18.88%
---------------------------------------
Total Assets 3,330,231 $2,768,413 561,818 20.29%
=======================================
Liabilities and
Stockholders' Equity
Deposits
Demand Deposits 549,581 $ 471,164 78,417 16.64%
Savings and Interest
Checking Accounts 686,808 587,474 99,334 16.91%
Money Market 484,634 435,792 48,842 11.21%
Time Certificates of
Deposit 735,922 532,180 203,742 38.28%
---------------------------------------
Total Deposits 2,456,945 2,026,610 430,335 21.23%
---------------------------------------
Borrowings
Federal Home Loan Bank
Borrowings 332,105 311,125 20,980 6.74%
Fed Funds Purchased and
Assets Sold Under
Repurchase Agreements 138,633 138,603 30 0.02%
Junior Subordinated
Debentures 61,857 51,547 10,310 20.00%
Other Borrowings 10,516 3,069 7,447 242.65%
---------------------------------------
Total Borrowings 543,111 504,344 38,767 7.69%
---------------------------------------
Total Deposits and
Borrowings 3,000,056 2,530,954 469,102 18.53%
Other Liabilities 29,518 16,994 12,524 73.70%
Stockholders' Equity 300,657 220,465 80,192 36.37%
---------------------------------------
Total Liabilities
and Stockholders'
Equity $3,330,231 $2,768,413 561,818 20.29%
=======================================
--------------------------------------
March 31, 2008
March 31, vs. March 31, 2007 %
2007 Variance Change
---------------------------------------------------------------------
Assets
Cash and Due From Banks $ 63,382 $ 17,216 27.16%
Fed Funds Sold and Short
Term Investments 41,000 (41,000) -100.00%
Securities
Trading Assets 1,646 1,659 100.79%
Securities Available
for Sale 405,866 13,625 3.36%
Securities Held to
Maturity 61,973 (22,638) -36.53%
Federal Home Loan Bank
Stock 16,260 8,343 51.31%
----------- -----------------------
Total Securities 485,745 989 0.20%
----------- -----------------------
Loans
Commercial and Industrial 171,650 87,780 51.14%
Commercial Real Estate 740,591 289,494 39.09%
Commercial Construction 114,183 49,602 43.44%
Business Banking 64,568 9,285 14.38%
Residential Real Estate 362,644 64,030 17.66%
Residential Construction 5,838 1,784 30.56%
Residential Loans Held
for Sale 12,298 3,279 26.66%
Consumer - Home Equity 285,381 69,986 24.52%
Consumer - Auto 192,064 (44,832) -23.34%
Consumer - Other 47,999 (3,682) -7.67%
----------- -----------------------
Total Loans 1,997,216 526,726 26.37%
Less - Allowance for
Loan Losses (26,815) (5,794) 21.61%
----------- -----------------------
Net Loans 1,970,401 520,932 26.44%
----------- -----------------------
Bank Premises and
Equipment 38,454 13,105 34.08%
Goodwill and Core
Deposit Intangible 58,533 68,858 117.64%
Other Assets 82,431 10,185 12.36%
----------- -----------------------
Total Assets $ 2,739,946 $ 590,285 21.54%
=========== =======================
Liabilities and
Stockholders' Equity
Deposits
Demand Deposits $ 478,330 $ 71,251 14.90%
Savings and Interest
Checking Accounts 590,920 95,888 16.23%
Money Market 474,386 10,248 2.16%
Time Certificates of
Deposit 539,318 196,604 36.45%
----------- -----------------------
Total Deposits 2,082,954 373,991 17.95%
----------- -----------------------
Borrowings
Federal Home Loan Bank
Borrowings 231,215 100,890 43.63%
Fed Funds Purchased and
Assets Sold Under
Repurchase Agreements 108,737 29,896 27.49%
Junior Subordinated
Debentures 77,320 (15,463) -20.00%
Other Borrowings 67 10,449 15595.52%
----------- -----------------------
Total Borrowings 417,339 125,772 30.14%
----------- -----------------------
Total Deposits and
Borrowings 2,500,293 499,763 19.99%
Other Liabilities 18,157 11,361 62.57%
Stockholders' Equity 221,496 79,161 35.74%
----------- -----------------------
Total Liabilities
and Stockholders'
Equity $ 2,739,946 $ 590,285 21.54%
=========== ========================
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------
(Unaudited - Dollars in Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
--------------------------------
March 31, $ %
2008 2007 Variance Change
---------------------------------------------------------------------
INTEREST INCOME
Interest on Fed Funds
Sold and Short Term
Investments $ 19 $ 444 $ (425) -95.72%
Interest and Dividends
on Securities 5,892 5,980 (88) -1.47%
Interest on Loans 35,168 33,700 1,468 4.36%
------------------------------------------
Total Interest
Income 41,079 40,124 955 2.38%
------------------------------------------
INTEREST EXPENSE
Interest on Deposits 10,315 11,094 (779) -7.02%
Interest on Borrowed
Funds 4,999 5,041 (42) -0.83%
------------------------------------------
Total Interest
Expense 15,314 16,135 (821) -5.09%
------------------------------------------
Net Interest Income 25,765 23,989 1,776 7.40%
Less - Provision for
Loan Losses 1,342 891 451 50.62%
------------------------------------------
Net Interest Income
after Provision for
Loan Losses 24,423 23,098 1,325 5.74%
------------------------------------------
NON-INTEREST INCOME
Service Charges on
Deposit Accounts 3,635 3,409 226 6.63%
Wealth Management 2,676 1,814 862 47.52%
Mortgage Banking Income 1,114 774 340 43.93%
BOLI Income 520 488 32 6.56%
Net Loss on Sale of
Securities (609) -- (609) -100.00%
Other Non-Interest
Income 902 1,307 (405) -30.99%
------------------------------------------
Total
Non-Interest
Income 8,238 7,792 446 5.72%
------------------------------------------
NON-INTEREST EXPENSE
Salaries and Employee
Benefits 14,143 13,152 991 7.53%
Occupancy and Equipment
Expenses 2,903 2,554 349 13.66%
Data Processing and
Facilities Management 1,284 1,088 196 18.01%
Merger & Acquisition
Expense 744 -- 744 100.00%
WorldCom Bond Loss
Recovery (418) -- (418) -100.00%
Other Non-Interest
Expense 5,376 4,658 718 15.41%
------------------------------------------
Total
Non-Interest
Expense 24,032 21,452 2,580 12.03%
------------------------------------------
INCOME BEFORE INCOME
TAXES 8,629 9,438 (809) -8.57%
------------------------------------------
PROVISION FOR INCOME
TAXES 2,321 2,812 (491) -17.46%
------------------------------------------
NET INCOME $ 6,308 $ 6,626 $ (318) -4.80%
==========================================
BASIC EARNINGS PER SHARE $ 0.44 $ 0.46 -4.35%
DILUTED EARNINGS PER
SHARE $ 0.44 $ 0.45 -2.22%
BASIC AVERAGE SHARES 14,386,845 14,466,489 -0.55%
DILUTED AVERAGE SHARES 14,459,978 14,630,473 -1.17%
PERFORMANCE RATIOS:
Net Interest Margin (FTE) 3.90% 3.84% 1.56%
Return on Average Assets 0.87% 0.96% -9.38%
Return on Average Equity 10.01% 11.73% -14.66%
RECONCILIATION TABLE -
NON-GAAP FINANCIAL
INFORMATION
NET INCOME (GAAP) $ 6,308 $ 6,626 $ (318) -4.80%
Non-Interest Income
Components
Add - Net Loss on
Sale of Securities,
net of tax 396 -- 396
Non-Interest Expense
Components
Add - Executive
Early Retirement
Costs, net of tax -- 264 (264)
Add - Merger and
Acquisition
Expenses, net of
tax 484 -- 484
Less - WorldCom Bond
Loss Recovery, net
of tax (272) (272)
----------- ----------- ------
NET OPERATING EARNINGS $ 6,916 $ 6,890 $ 26 0.38%
=========== =========== ======
Diluted Earnings Per
Share, on an
Operating Basis $ 0.48 $ 0.47 $ 0.01 2.13%
=========== =========== ======
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited - Dollars in Thousands)
Three Months Ended March 31,
-----------------------------------------------
2008
-----------------------------------------------
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
---------------------------------------------------------------------
Interest-Earning
Assets:
Federal Funds Sold
and Short Term
Investments $ -- $ 624 $ 19 12.18%
Securities:
Trading Assets 3,305 2,579 28 4.34%
Taxable Investment
Securities 439,724 423,783 5,386 5.08%
Non-taxable
Investment
Securities (1) 43,705 45,833 735 6.41%
---------- ---------- ----------------------
Total Securities: 486,734 472,195 6,149 5.21%
---------- ---------- ----------------------
Loans (1) 2,523,942 2,207,337 35,285 6.39%
Total
Interest-Earning
Assets $3,010,676 $2,680,156 $ 41,453 6.19%
---------- ----------------------------------
Cash and Due from
Banks 80,598 60,598
Other Assets 238,957 170,328
---------- ----------
Total Assets $3,330,231 $2,911,082
========== ==========
Interest-bearing
Liabilities:
Deposits:
Savings and
Interest Checking
Accounts $ 686,808 $ 607,387 $ 1,591 1.05%
Money Market 484,634 454,460 2,578 2.27%
Time Deposits 735,922 607,399 6,146 4.05%
---------- ----------------------------------
Total
interest-bearing
deposits: 1,907,364 1,669,246 10,315 2.47%
Borrowings:
Federal Home Loan
Bank Borrowings $ 332,105 $ 300,577 $ 2,942 3.92%
Federal
Funds Purchased
and Assets Sold
Under Repurchase
Agreement 138,633 139,276 1,153 3.31%
Junior
Subordinated
Debentures 61,857 55,059 860 6.25%
Other Borrowings 10,516 4,439 44 3.96%
---------- ----------------------------------
Total Borrowings: 543,111 499,351 4,999 4.00%
---------- ----------------------------------
Total
Interest-Bearing
Liabilities $2,450,475 $2,168,597 $ 15,314 2.82%
---------- ----------------------------------
Demand Deposits 549,581 475,020
Other Liabilities 29,518 15,471
---------- ----------
Total Liabilities $3,029,574 $2,659,088
Stockholders'
Equity 300,657 251,994
---------- ----------
Total Liabilities
and Stockholders'
Equity $3,330,231 $2,911,082
========== ==========
Net Interest
Income $ 26,139
==========
Interest Rate
Spread (2) 3.37%
======
Net Interest
Margin (3) 3.90%
======
Supplemental
Information:
Total Deposits,
including Demand
Deposits $2,456,945 $2,144,266 $ 10,315 $2,072,184
Cost of Total
Deposits 1.92%
Total Funding
Liabilities,
including Demand
Deposits $3,000,056 $2,643,617 $ 15,314 $2,508,567
Cost of Total
Funding Liabilities 2.32%
Three Months Ended March 31,
-----------------------------------------------
2007
-----------------------------------------------
Interest
Average Earned/ Yield/
Balance Paid Rate
---------------------------------------------------------------------
Interest-Earning
Assets:
Federal Funds Sold
and Short Term
Investments $ 33,638 $ 444 5.28%
Securities:
Trading Assets 1,691 14 3.31%
Taxable Investment
Securities 448,521 5,402 4.82%
Non-taxable
Investment
Securities (1) 53,560 868 6.48%
---------- ----------------------
Total Securities: 503,772 6,284 4.99%
---------- ----------------------
Loans (1) 2,003,218 33,816 6.75%
Total
Interest-Earning
Assets $2,540,628 $ 40,544 6.38%
---------- ----------------------
Cash and Due from
Banks 59,326
Other Assets 148,243
----------
Total Assets $2,748,197
==========
Interest-bearing
Liabilities:
Deposits:
Savings and
Interest Checking
Accounts $ 571,638 $ 1,800 1.26%
Money Market 469,367 3,541 3.02%
Time Deposits 558,497 5,753 4.12%
---------- ----------------------
Total
interest-bearing
deposits: 1,599,502 11,094 2.77%
Borrowings:
Federal Home Loan
Bank Borrowings $ 252,777 $ 2,791 4.42%
Federal
Funds Purchased
and Assets Sold
Under Repurchase
Agreement 105,701 852 3.22%
Junior
Subordinated
Debentures 77,320 1,390 7.19%
Other Borrowings 585 8 5.47%
---------- ----------------------
Total Borrowings: 436,383 5,041 4.62%
---------- ----------------------
Total
Interest-Bearing
Liabilities $2,035,885 $ 16,135 3.17%
---------- ----------------------
Demand Deposits 472,682
Other Liabilities 13,754
----------
Total Liabilities $2,522,321
Stockholders'
Equity 225,876
----------
Total Liabilities
and Stockholders'
Equity $2,748,197
==========
Net Interest
Income $ 24,409
==========
Interest Rate
Spread (2) 3.21%
======
Net Interest
Margin (3) 3.84%
======
Supplemental
Information:
Total Deposits,
including Demand
Deposits $2,072,184 $ 11,094
Cost of Total
Deposits 2.14%
Total Funding
Liabilities,
including Demand
Deposits $2,508,567 $ 16,135
Cost of Total
Funding Liabilities 2.57%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $374 and $420 for the
three months ended March 31, 2008 and 2007, respectively.
(2) Interest rate spread represents the difference between the
weighted average yield on interest-earning assets and the
weighted average cost of interest-bearing liabilities.
(3) Net interest margin represents annualized net interest income as
a percentage of 10 average interest-earning assets.
As Of
March 31, Dec. 31, March 31,
2008 2007 2007
----------------- ----------
Asset Quality (Dollars in Thousands,
------------- Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans $ 516 $ 306 $ 685
Business Banking Loans 584 439 328
Commercial Real Estate Loans 3,578 2,568 3,261
Residential Real Estate Loans 3,733 2,380 2,055
Installment Loans - Home Equity 1,208 872 343
Installment Loans - Auto 933 833 552
Installment Loans - Other 346 246 130
------- ------- -------
Total Nonperforming Loans 10,898 7,644 7,354
------- ------- -------
Other Real Estate Owned 1,019 681 --
Nonperforming Assets $11,917 $ 8,325 $ 7,354
======= ======= =======
Net charge-offs (year to date) $ 1,089 $ 3,114 $ 891
Net charge-offs to average loans
(annualized) 0.20% 0.16% 0.18%
Nonperforming Loans/Gross Loans 0.43% 0.37% 0.37%
Allowance for Loan
Losses/Nonperforming Loans 299.22% 351.01% 364.63%
Loans/Total Deposits 102.73% 100.81% 95.88%
Allowance for Loan Losses/Total
Loans 1.29% 1.31% 1.34%
Financial Ratios
Book Value per Share $18.48 $16.04 $15.49
Tangible Capital/Tangible Asset 5.41% 5.91% 6.08%
Tangible Capital/Tangible Asset
(proforma to include the
deductibility of goodwill) 5.86% 6.59% 6.62%
Tangible Book Value per Share $10.65 $11.64 $11.40
Tangible Book Value per Share
(proforma to include the
deductibility of goodwill) $11.54 $12.70 $12.41
Capital Adequacy
Tier one leverage capital
ratio (1) 8.55% 8.02% 8.08%
(1) Estimated number for March 31, 2008
Certain amounts in prior year financial statement have been
reclassified to conform to the current year's presentation.