SAVANNAH, Ga., April 22, 2008 (PRIME NEWSWIRE) -- The Savannah Bancorp, Inc. (Nasdaq:SAVB) reported net income for the first quarter 2008 of $1,704,000 compared to $2,311,000 in the first quarter 2007. Net income per diluted share was 29 cents compared to 39 cents per diluted share in the first quarter of 2007, a decrease of 26 percent. The decline in first quarter earnings results primarily from a higher provision for loan losses and a lower net interest margin in 2008 as compared to 2007.
First quarter 2008 earnings include revenues and expenses of the previously announced acquisition of Minis & Co., Inc. ("Minis") on August 31, 2007. Minis is a registered investment advisory firm based in Savannah, Georgia with approximately $500 million in assets under management. Minis provides fee-only investment services and operates as a separate subsidiary of the Company.
Total assets increased 11 percent to $946 million at March 31, 2008, up $98 million from $848 million a year earlier. Loans, excluding loans held for sale, were $835 million compared to $730 million one year earlier, an increase of 14 percent. Deposits totaled $771 million and $712 million at March 31, 2008 and 2007, respectively, an increase of 8 percent.
The allowance for loan losses was $12,128,000, or 1.45 percent of loans at March 31, 2008 compared to $9,220,000 or 1.26 percent of total loans a year earlier. Nonperforming assets were $19,536,000 or 2.33 percent of total loans and other real estate at March 31, 2008 compared to $2,012,000 or 0.28 percent at March 31, 2007. First quarter net charge-offs were $1,806,000 compared to net charge-offs of $234,000 in the same period in 2007. The provision for loan losses for the first quarter of 2008 was $1,070,000 compared to $500,000 for the first quarter of 2007.
John Helmken, President and CEO, said, "Our earnings, capital and loan loss reserves remain strong. During the first quarter, we completed some loan workout situations without significant losses, however, we also booked a loan loss provision of $1.1 million and charged-off $1.8 million based on our current period analysis of the nonperforming and impaired loans. The loss provisions for the charged-off loans were recorded in the fourth quarter 2007. Nonperforming loans were approximately level for the first quarter 2008 versus the fourth quarter 2007, but were substantially higher than the first quarter 2007. While we continue to commit the resources and senior management oversight to our loan portfolio, the level of future charge-offs and loan loss provisions will be determined, to some degree, by the timing and extent of the recovery in our local real estate markets, especially the Hilton Head and Bluffton areas."
Helmken added, "The vast majority of our resources are focused on attracting prospects and retaining customers who are not impacted significantly by the slow real estate market. Many businesses and professionals -- our primary customer and prospect base -- are doing very well. We are and want to continue to be their bank. We continue to be pleased to be located on the southeast Atlantic coast with a major port and transportation hub as well as outstanding health care, military and education professionals and institutions."
Net interest income decreased 1.3 percent in the first quarter 2008 over the first quarter 2007. First quarter net interest margin declined to 3.70 percent in 2008 from 4.17 percent in 2007 primarily due to lower loan market rates, competitive deposit pricing and growth in higher cost deposits. The first quarter 2008 net interest margin was consistent with the 3.72 percent margin for the fourth quarter 2007, despite a 200 basis point decline in the federal funds target rate.
Noninterest income increased $711,000, or 68 percent in the first quarter of 2008 versus the same period in 2007 due to higher trust and investment management fees of $548,000 and a non-operating hedging related gain of $284,000 partially offset by $147,000 in lower mortgage related income.
Noninterest expense increased to $6,150,000, up $1,003,000 or 19 percent in the first quarter 2008 compared to the first quarter 2007. First quarter 2008 noninterest expense included $344,000 of expenses related to Minis. Noninterest expense also included $140,000 of higher FDIC insurance premiums and approximately $180,000 of costs related to other real estate and loan costs. The remainder of the increase was due to higher personnel, occupancy and equipment, and other expense.
Today, the Board of Directors approved a regular quarterly cash dividend of 12.5 cents per share payable on May 19, 2008 to shareholders of record on May 2, 2008.
The Savannah Bancorp, Inc. ("SAVB"), a bank holding company for The Savannah Bank, N.A. ("Savannah"), Bryan Bank & Trust (Richmond Hill, Georgia) ("Bryan"), Harbourside Community Bank (Hilton Head Island, SC) ("Harbourside") and Minis & Co., Inc., is headquartered in Savannah, Georgia and began operations in 1990. Its primary businesses include loan, deposit, trust, asset management, and mortgage origination services provided to customers.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements identified by words or phrases such as "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "assume," "outlook," "continue," "seek," "plans," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. These statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties. There can be no assurance that these transactions will occur or that the expected benefits associated therewith will be achieved. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond our ability to control or predict. These factors include, but are not limited to, those found in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.
The Savannah Bancorp, Inc. and Subsidiaries
First Quarter Financial Highlights
March 31, 2008 and 2007
($ in thousands, except share data)
(Unaudited)
Balance Sheet Data at %
March 31 2008 2007 Change
---------------------------------------------------------------------
Total assets $ 945,637 $ 848,292 11
Interest-earning assets 886,485 812,702 9.1
Loans 834,734 730,387 14
Allowance for loan losses 12,128 9,220 32
Non-accruing loans 16,915 400 NM
Loans past due 90 days -
accruing 596 990 (40)
Other real estate owned 2,025 622 226
Net charge-offs 1,806 234 NM
Deposits 771,263 712,170 8.3
Interest-bearing liabilities 771,824 674,522 14
Shareholders' equity 78,885 68,501 15
Allowance for loan losses to
total loans 1.45% 1.26% 15
Nonperforming assets to total
loans and other real estate
owned 2.33% 0.28% 732
Loan to deposit ratio 108.23% 102.56% 5.5
Equity to assets 8.34% 8.08% 3.2
Tier 1 capital to
risk-weighted assets 10.29% 11.24% (8.5)
Total capital to risk-weighted
assets 11.54% 12.49% (7.6)
Outstanding shares 5,931 5,790 2.4
Book value per share $ 13.30 $ 11.83 12
Tangible book value per share $ 12.93 $ 11.83 9.3
Market value per share $ 17.50 $ 27.00 (35)
Performance Data for the First
Quarter
---------------------------------------------------------------------
Net income $ 1,704 $ 2,311 (26)
Return on average assets 0.73% 1.12% (35)
Return on average equity 8.76% 13.90% (37)
Net interest margin 3.70% 4.17% (11)
Efficiency ratio 62.54% 55.78% 12
Per share data:
Net income - basic $ 0.29 $ 0.40 (28)
Net income - diluted $ 0.29 $ 0.39 (26)
Dividends $ 0.125 $ 0.120 4.2
Average shares (000s):
Basic 5,928 5,782 2.5
Diluted 5,951 5,890 1.0
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, 2008 and 2007
($ in thousands, except share data)
(Unaudited)
March 31,
--------------------------------------------------------------------
2008 2007
--------------------------------------------------------------------
Assets
Cash and due from banks $ 14,816 $ 16,890
Federal funds sold 4,998 20,176
Interest-bearing deposits 2,344 2,786
--------------------------------------------------------------------
Cash and cash equivalents 22,158 39,852
Securities available for sale,
at fair value (amortized
cost of $60,529 in 2008 and
$57,918 in 2007) 62,367 57,785
Loans held for sale 793 1,835
Loans, net of allowance for loan
losses of $12,128 in 2008 and
$9,220 in 2007 822,606 721,167
Premises and equipment, net 8,237 6,274
Other real estate owned 2,025 622
Bank-owned life insurance 6,044 5,813
Goodwill and other intangible
assets, net 3,626 --
Other assets 17,781 14,944
--------------------------------------------------------------------
Total assets $ 945,637 $ 848,292
====================================================================
Liabilities
Deposits:
Noninterest-bearing $ 86,329 $ 98,663
Interest-bearing demand 117,854 112,490
Savings 16,060 18,917
Money market 208,531 170,039
Time deposits 342,489 312,061
--------------------------------------------------------------------
Total deposits 771,263 712,170
Short-term borrowings 64,685 37,480
FHLB advances - long-term 11,895 13,225
Subordinated debt 10,310 10,310
Other liabilities 8,599 6,606
--------------------------------------------------------------------
Total liabilities 866,752 779,791
--------------------------------------------------------------------
Shareholders' equity
Common stock, par value $1 per
share: authorized 20,000,000
shares; issued 5,931,008 and
5,790,376 shares in 2008 and
2007, respectively 5,931 5,790
Preferred stock, par value $1 per
share: authorized 10,000,000
shares, none issued -- --
Additional paid-in capital 38,327 35,801
Retained earnings 31,474 27,299
Treasury stock, 318 in 2008 and
2007 (4) (4)
Accumulated other comprehensive
income (loss), net 3,157 (385)
--------------------------------------------------------------------
Total shareholders' equity 78,885 68,501
--------------------------------------------------------------------
Total liabilities and
shareholders' equity $ 945,637 $ 848,292
====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
For the Three Months and Five Quarters
Ending March 31, 2008 and 2007
($ in thousands, except per share data)
---------------------------------------------------------------------
(Unaudited)
---------------------------------------------------------------------
For the Three Months Ended
---------------------------------------------------------------------
March 31, 2008
----------------------- % First
2008 2007 Chg Quarter
---------------------------------------------------------------------
Interest and dividend
income
Loans, including
fees $ 14,211 $ 14,351 (1.0) $ 14,211
Loans held for
sale 12 34 (65) 12
Investment
securities 782 620 26 782
Deposits with
banks 67 83 (19) 67
Federal funds
sold 53 172 (69) 53
-------------------------------------------- --------
Total interest
and dividend
income 15,125 15,260 (0.9) 15,125
-------------------------------------------- --------
Interest expense
Deposits 6,124 6,092 0.5 6,124
Short-term
borrowings 881 828 6.4 881
FHLB advances 49 164 (70) 49
-------------------------------------------- --------
Total interest
expense 7,054 7,084 (0.4) 7,054
-------------------------------------------- --------
Net interest
income 8,071 8,176 (1.3) 8,071
Provision for
loan losses 1,070 500 114 1,070
-------------------------------------------- --------
Net interest
income after
the provision
for loan losses 7,001 7,676 (8.8) 7,001
-------------------------------------------- --------
Noninterest
income
Service charges
on deposits 387 347 12 387
Mortgage related
income, net 63 210 (70) 63
Trust and asset
management fees 724 176 311 724
Other operating
income 588 325 85 588
Gain (loss) on
sale of OREO 1 (6) NM 1
-------------------------------------------- --------
Total
noninterest
income 1,763 1,052 68 1,763
-------------------------------------------- --------
Noninterest
expense
Salaries and
employee
benefits 3,473 2,964 17 3,473
Occupancy and
equipment 889 758 17 889
Information
technology 393 425 (7.5) 393
Other operating
expense 1,395 1,000 40 1,395
-------------------------------------------- --------
Total
noninterest
expense 6,150 5,147 19 6,150
-------------------------------------------- --------
Income before
income taxes 2,614 3,581 (27) 2,614
Income tax
expense 910 1,270 (28) 910
-------------------------------------------- --------
Net income $ 1,704 $ 2,311 (26) $ 1,704
============================================ ========
Net income per
share:
Basic $ 0.29 $ 0.40 (28) $ 0.29
============================================ ========
Diluted $ 0.29 $ 0.39 (26) $ 0.29
============================================ ========
Average basic
shares (000s) 5,928 5,783 2.5 5,928
Average diluted
shares (000s) 5,951 5,890 1.0 5,951
Performance
Ratios
Return on
average equity 8.76% 13.90% (37) 8.76%
Return on
average assets 0.73% 1.12% (35) 0.73%
Net interest
margin 3.70% 4.17% (11) 3.70%
Efficiency ratio 62.54% 55.78% 12 62.54%
Average equity 78,210 67,434 16 78,210
Average assets 934,756 834,033 12 934,756
Average
interest-
earning assets 876,022 799,678 9.5 876,022
---------------------------------------------------------------------
(Unaudited)
---------------------------------------------------------------------
2007 Q1-08/
Fourth Third Second First Q1-07
Quarter Quarter Quarter Quarter %
---------------------------------------------------------------------
Interest and
dividend income
Loans, including
fees $ 15,016 $ 15,196 $ 14,872 $ 14,351 (1.0)
Loans held for
sale 14 15 35 34 (65)
Investment
securities 767 794 726 620 26
Deposits with
banks 100 44 119 83 (19)
Federal funds
sold 45 130 125 172 (69)
------------------------------------------------------------
Total interest
and dividend
income 15,942 16,179 15,877 15,260 (0.9)
------------------------------------------------------------
Interest expense
Deposits 6,881 6,963 6,479 6,092 0.5
Short-term
borrowings 935 860 831 828 6.4
FHLB advances 46 48 155 164 (70)
------------------------------------------------------------
Total interest
expense 7,862 7,871 7,465 7,084 (0.4)
------------------------------------------------------------
Net interest
income 8,080 8,308 8,412 8,176 (1.3)
Provision for
loan losses 3,145 635 395 500 114
------------------------------------------------------------
Net interest
income after
the provision
for loan losses 4,935 7,673 8,017 7,676 (8.8)
------------------------------------------------------------
Noninterest
income
Service charges
on deposits 349 339 348 347 12
Mortgage related
income, net 98 141 166 210 (70)
Trust and asset
management fees 769 379 189 176 311
Other operating
income 315 305 297 325 85
Gain (loss) on
sale of OREO (38) -- -- (6) NM
------------------------------------------------------------
Total
noninterest
income 1,493 1,164 1,000 1,052 68
------------------------------------------------------------
Noninterest
expense
Salaries and
employee
benefits 3,125 2,919 2,838 2,964 17
Occupancy and
equipment 958 796 782 758 17
Information
technology 422 388 381 425 (7.5)
Other operating
expense 1,285 1,073 1,025 1,000 40
------------------------------------------------------------
Total
noninterest
expense 5,790 5,176 5,026 5,147 19
------------------------------------------------------------
Income before
income taxes 638 3,661 3,991 3,581 (27)
Income tax
expense 285 1,280 1,400 1,270 (28)
------------------------------------------------------------
Net income $ 353 $ 2,381 $ 2,591 $ 2,311 (26)
============================================================
Net income per
share:
Basic $ 0.06 $ 0.41 $ 0.44 $ 0.40 (28)
============================================================
Diluted $ 0.06 $ 0.40 $ 0.44 $ 0.39 (26)
============================================================
Average basic
shares (000s) 5,923 5,862 5,824 5,782 2.5
Average diluted
shares (000s) 5,968 5,928 5,899 5,890 1.0
Performance
Ratios
Return on
average equity 1.83% 13.04% 14.94% 13.90% (37)
Return on
average assets 0.15% 1.08% 1.23% 1.12% (35)
Net interest
margin 3.72% 3.95% 4.13% 4.17% (11)
Efficiency ratio 60.48% 54.65% 53.40% 55.78% 12
Average equity 74,447 72,436 69,583 67,434 16
Average assets 910,785 875,532 855,989 834,033 12
Average
interest-
earning assets 865,430 837,586 821,253 799,678 9.5
Capital Resources
The banking regulatory agencies have adopted capital requirements
that specify the minimum level for which no prompt corrective action
is required. In addition, the FDIC assesses FDIC insurance premiums
based on certain "well-capitalized" risk-based and equity capital
ratios. As of March 31, 2008, the Company and the Subsidiary Banks
exceeded the minimum requirements necessary to be classified as
"well-capitalized."
Total tangible equity capital for the Company was $76.7 million, or
8.11 percent of total assets at March 31, 2008. The table below
includes the regulatory capital ratios for the Company and each
Subsidiary Bank along with the minimum capital ratio and the ratio
required to maintain a well-capitalized regulatory status.
($ in thousands)
Well-
Harbour- Capital-
Company Savannah Bryan side Minimum ized
---------------------------------------------------------------------
Qualifying
Capital
Tier 1
capital $82,102 $51,499 $18,811 $8,123 -- --
Total
capital 92,106 58,096 21,181 9,104 -- --
Leverage
Ratios
Tier 1
capital
to
average
assets 8.78% 8.29% 8.83% 8.77% 4.00% 5.00%
Risk-based
Ratios
Tier 1
capital
to
risk-
weighted
assets 10.29% 9.78% 9.93% 10.45% 4.00% 6.00%
Total
capital
to risk-
weighted
assets 11.54% 11.04% 11.18% 11.71% 8.00% 10.00%
Tier 1 and total capital at the Company level includes $10 million of
subordinated debt issued to the Company's nonconsolidated
subsidiaries. Total capital also includes the allowance for loan
losses up to 1.25 percent of risk-weighted assets.
The capital ratios are significantly above the well-capitalized
threshold. The Company currently has access to approximately $13
million of trust preferred borrowings and to the capital markets, if
needed, to maintain the well-capitalized status of the Subsidiary
Banks. However, due to the recent events in the capital markets, the
cost of trust preferred borrowings has increased from three-month
LIBOR plus 150 basis points to the same index plus 300 to 350 basis
points.
The Savannah Bancorp, Inc. and Subsidiaries
Allowance for Loan Losses and Nonperforming Loans
(Unaudited)
2008 2007
-------------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
-------------------------------------------------------
($ in
thousands)
Allowance
for loan
losses
Balance at
beginning
of period $12,864 $ 9,842 $ 9,517 $ 9,220 $ 8,954
Provision
for loan
losses 1,070 3,145 635 395 500
Net charge
-offs (1,806) (123) (310) (98) (234)
-------------------------------------------------------
Balance at
end of
period $12,128 $12,864 $ 9,842 $ 9,517 $ 9,220
=======================================================
As a % of
loans 1.45% 1.59% 1.26% 1.27% 1.26%
As a % of
nonper-
forming
loans 69.26% 73.83% 145.68% 490.82% 663.31%
As a % of
nonper-
forming
assets 62.08% 65.85% 124.46% 366.74% 458.25%
Net
charge-
offs as a
% of
average
loans(a) 0.90% 0.07% 0.17% 0.05% 0.13%
Risk
element
assets
Nonaccruing
loans $16,915 $14,663 $ 5,028 $ 1,895 $ 400
Loans past
due 90
days -
accruing 596 2,761 1,728 44 990
Restruc-
tured
loans -- -- -- -- --
-------------------------------------------------------
Total non-
performing
loans 17,511 17,424 6,756 1,939 1,390
Other real
estate
owned 2,025 2,112 1,152 656 622
-------------------------------------------------------
Total
nonper-
forming
assets $19,536 $19,536 $ 7,908 $ 2,595 $ 2,012
=======================================================
Nonper-
forming
loans as a
% of loans 2.10% 2.24% 0.87% 0.26% 0.19%
Nonper-
forming
assets as
a % of
loans and
other real
estate
owned 2.33% 2.51% 1.01% 0.34% 0.28%
Nonper-
forming
assets as
a % of
capital(b) 21.47% 21.92% 9.30% 3.26% 2.59%
(a) Annualized
(b) Capital includes the allowance for loan losses
The Savannah Bancorp, Inc. & Subsidiaries
Loan Concentration Schedule
March 31, 2008 and December 31, 2007
%
% of % of Dollar
($ in thousands) 3/31/08 Total 12/31/07 Total Change
---------------------------------------------------------------------
Non-residential real
estate
Owner-occupied $ 132,397 16 $ 118,714 15 12
Non owner-occupied 131,164 16 118,904 15 10
Construction 28,087 3 33,923 4 (17)
Commercial land
and lot development 41,767 5 38,127 5 9.5
------------------------------------------------------------
Total non-residential
real estate 333,415 40 309,668 39 7.7
------------------------------------------------------------
Residential real estate
Owner-occupied
- 1-4 family 81,878 10 83,828 10 (2.3)
Non owner-
occupied -1-4
family 116,979 14 114,992 14 1.7
Construction 59,517 7 57,541 7 3.4
Residential
land and lot
development 108,163 13 109,718 14 (1.4)
Home equity lines 43,620 5 43,322 5 0.7
------------------------------------------------------------
Total residential
real estate 410,157 49 409,401 50 0.2
------------------------------------------------------------
Total real
estate loans 743,572 89 719,069 89 3.4
Commercial 73,487 9 71,370 9 3.0
Consumer 17,982 2 18,692 2 (3.8)
Unearned fees, net (307) -- (480) -- (36)
------------------------------------------------------------
Total loans, net
of unearned fees $ 834,734 100 $ 808,651 100 3.2
=====================================================================
The Savannah Bancorp, Inc. and Subsidiaries
Average Balance Sheet and Rate/Volume Analysis -
First Quarter, 2008 and 2007
Average Balance Average Rate
------------------------------------
QTD QTD QTD QTD
3/31/08 3/31/07 3/31/08 3/31/07
--------------------------------------------------------------------
($ in thousands) (%)
Assets
$ 6,910 $ 6,195 3.89 5.43 Interest-bearing deposits
58,423 51,186 5.23 4.79 Investments - taxable
1,916 1,940 5.44 7.94 Investments - non-taxable
6,598 13,230 3.22 5.27 Federal funds sold
734 1,652 6.56 8.35 Loans held for sale
801,441 725,475 7.11 8.03 Loans (c)
-------------------
876,022 799,678 6.93 7.76 Total interest-earning assets
-------------
58,734 34,355 Noninterest-earning assets
-------------------
$934,756 $834,033 Total assets
===================
Liabilities and equity
Deposits
$115,485 $109,131 1.56 2.01 NOW accounts
15,990 18,391 0.88 0.99 Savings accounts
135,539 132,016 2.75 4.09 Money market accounts
Money market accounts-
51,667 17,882 3.89 5.56 institutional
146,914 117,174 5.10 5.29 CDs, $100M or more
69,871 80,100 4.41 4.76 CDs, broker
129,993 119,332 4.85 4.97 Other time deposits
-------------------
665,459 594,026 3.69 4.16 Total interest-bearing deposits
5,733 13,272 3.43 5.01 FHLB advances - long-term
83,349 49,352 3.33 5.14 Short-term borrowings
10,310 10,310 7.39 7.99 Subordinated debt
-------------------
Total interest-bearing
764,851 666,960 3.70 4.31 Liabilities
-------------
83,522 93,132 Noninterest-bearing deposits
8,173 6,507 Other liabilities
78,210 67,434 Shareholders' equity
-------------------
$934,756 $834,033 Liabilities and equity
===================
3.23 3.45 Interest rate spread
=============
3.70 4.17 Net interest margin
=============
Net interest income
$111,171 $132,718 Net earning assets
===================
$748,981 $687,158 Average deposits
===================
3.28 3.60 Average cost of deposits
=============
107% 106% Average loan to deposit ratio
===================
Taxable-Equivalent (a) Variance
Interest (b) Attributable to
------------------ ---------------
QTD QTD Vari-
3/31/08 3/31/07 ance Rate Volume
---------------------------------------------------------------------
($ in thousands) ($ in thousands)
Assets
Interest-bearing
deposits $ 67 $ 83 $ (16) $ (24) $ 8
Investments -
taxable 762 605 157 56 101
Investments -
non-taxable 26 38 (12) (12) --
Federal funds sold 53 172 (119) (68) (51)
Loans held for sale 12 34 (22) (7) (15)
Loans (c) 14,213 14,367 (154) (1,664) 1,510
--------------------------
Total interest-
earning assets 15,133 15,299 (166) (1,655) 1,489
-----------------------------------------------
Noninterest-earning
assets
Total assets
Liabilities and
equity
Deposits
NOW accounts 449 542 (93) (122) 29
Savings accounts 35 45 (10) (5) (5)
Money market
accounts 930 1,331 (401) (441) 40
Money market
accounts
institutional 501 245 256 (74) 330
CDs, $100M or more 1,867 1,527 340 (56) 396
CDs, broker 769 940 (171) (70) (101)
Other time
deposits 1,573 1,462 111 (36) 147
--------------------------
Total interest-
bearing
deposits 6,124 6,092 32 (696) 728
FHLB advances -
long-term 49 164 (115) (52) (63)
Short-term
borrowings 691 625 66 (223) 289
Subordinated
debt 190 203 (13) (15) 2
--------------------------
Total interest-
bearing
Liabilities 7,054 7,084 (30) (1,014) 984
-----------------------------------------------
Noninterest-bearing
deposits
Other liabilities
Shareholders'
equity
Liabilities and
equity
Interest rate
spread
Net interest
margin
Net interest income $ 8,079 $ 8,215 $ (136) $ (641) $ 505
===============================================
(a) This table shows the changes in interest income and interest
expense for the comparative periods based on either changes in
average volume or changes in average rates for interest-earning
assets and interest-bearing liabilities. Changes which are not
solely due to rate changes or solely due to volume changes are
attributed to volume.
(b) The taxable equivalent adjustment results from tax exempt income
less non-deductible TEFRA interest expense and was $8 and $39 in
the first quarter 2008 and 2007.
(c) Average nonaccruing loans have been excluded from total average
loans and categorized in noninterest-earning assets.