TOMS RIVER, N.J., Jan. 20, 2011 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (Nasdaq:OCFC), the holding company for OceanFirst Bank (the "Bank"), today announced a record $20.4 million of net income for the year 2010. Income available to common stockholders increased to $5.8 million for the quarter ended December 31, 2010, as compared to $5.2 million for the prior linked quarter, and $1.9 million for the corresponding prior year period. Diluted earnings per share for the quarter ended December 31, 2010 was $0.32, an increase of $0.03 from the prior linked quarter. For the year, diluted earnings per share increased 14.3%, to $1.12, from $0.98 in 2009. Additional highlights for the quarter and year just concluded:
- Earnings per share has grown in each of the last four quarters. Return on average stockholders' equity was 11.54% for the quarter ended December 31, 2010.
- Driven by 10.9% year over year balance sheet growth, total revenue for 2010 (i.e., net interest income and total other income) also was a record $92.4 million.
- Year-end deposits grew 22.0% to $1,664.0 million with core deposits (i.e., all deposits except time deposits) comprising yet another record 82.9% of total deposits.
The Company also announced that the Board of Directors declared its fifty-sixth consecutive quarterly cash dividend on common stock. The dividend for the quarter ended December 31, 2010 was declared in the amount of $0.12 per share to be paid on February 11, 2011 to shareholders of record on January 31, 2011.
Chairman and CEO John R. Garbarino observed, "Our record setting bottom line was driven by strong core deposit growth and healthy margins throughout the year. Diligently managing our capital in recent periods with these record earnings, prudent dividend payouts and strong, double digit returns on equity has significantly enhanced the value proposition for our shareholders."
Results of Operations
Net income available to common stockholders for the three months ended December 31, 2010 was $5.8 million or $0.32 per diluted share, as compared to net income available to common stockholders of $1.9 million, or $0.12 per diluted share, for the corresponding prior year period. For the year ended December 31, 2010, net income available to common stockholders was $20.4 million, or $1.12 per diluted share, as compared to net income available to common stockholders of $12.5 million, or $0.98 per diluted share, for the corresponding prior year period. For both the quarter and year ended December 31, 2010, diluted earnings per share reflects the higher number of average diluted shares outstanding from the issuance of additional common shares in November 2009. For the quarter and year ended December 31, 2010 diluted earnings per share includes $922,000, or $0.05 per share, relating to a reduction in the state tax valuation allowance.
Net interest income for the quarter and year ended December 31, 2010 increased to $18.9 million and $77.1 million, respectively, as compared to $16.9 million and $65.5 million, respectively, in the same prior year periods, reflecting greater interest-earning assets and, for the year ended December 31, 2010, a higher net interest margin. The net interest margin increased to 3.69% for the year ended December 31, 2010 from 3.63% in the same prior year period partly due to the low interest rate environment. For the quarter ended December 31, 2010 the net interest margin decreased to 3.52% as compared to 3.73% in the prior linked quarter and 3.76% in the same prior year period. The decrease in net interest margin from the prior linked quarter and prior year was due to the investment of strong deposit flows into interest-earning deposits and investment securities at a modest net interest spread. Additionally, high loan refinance volume caused yields on loans and mortgage-backed securities to reset downward. The yield on interest-earning assets decreased to 4.62% and 4.86%, respectively, for the quarter and year ended December 31, 2010, as compared to 5.19% and 5.31%, respectively, in the same prior year periods. The cost of interest-bearing liabilities decreased to 1.23% and 1.30%, respectively, for the quarter and year ended December 31, 2010, as compared to 1.63% and 1.89%, respectively, in the same prior year periods. Average interest-earning assets increased by $341.1 million and $283.4 million, respectively, for the quarter and year ended December 31, 2010, as compared to the same prior year periods. The increase in average interest-earning assets was primarily due to the increase in average mortgage-backed securities, which increased $221.3 million, or 198.8%, and $244.6 million, or 266.9%, respectively, for the quarter and year ended December 31, 2010, as compared to the same prior year periods. The increase was also due, to a lesser extent, to an increase in average investment securities, which increased $34.7 million and $9.7 million, respectively, for the quarter and year ended December 31, 2010, as compared to the same prior year periods.
For the quarter ended December 31, 2010, the provision for loan losses decreased to $2.0 million as compared to $2.2 million for the corresponding prior year period. For the year ended December 31, 2010, the provision for loan losses increased to $8.0 million, as compared to $5.7 million for the corresponding prior year period. The increased provision for the year ended December 31, 2010 is primarily due to higher levels of non-performing loans and partially due to higher loan balances.
Other income increased to $4.5 million for the quarter ended December 31, 2010, as compared to $3.7 million in the same prior year period. For the year ended December 31, 2010, other income decreased to $15.3 million as compared to $15.6 million in the same prior year period. Loan servicing income (loss) increased to income of $292,000 for the year ended December 31, 2010 from a loss of $18,000 in the same prior year period due to an impairment to the loan servicing asset of $263,000 recognized in the first quarter of 2009. Fees and service charges increased to $3.1 million and $11.2 million, respectively, for the quarter and year ended December 31, 2010, as compared to $2.7 million and $10.5 million for the corresponding prior year periods. The increase was due to higher fees from merchant services, commercial checking accounts and trust services. Additionally, loan prepayment income increased by $209,000 and $104,000 for the quarter and year ended December 31, 2010 as compared to the same prior year periods. For the year ended December 31, 2010, the increase in fees and service charges was partly offset by a reduction in private mortgage insurance fee income of $146,000 related to several rescission claims. The net gain on sales of loans increased to $1.4 million for the quarter ended December 31, 2010, as compared to $772,000 for the corresponding prior year period due to an increase in the volume of loans sold and a strong gain on sale margin. For the year ended December 31, 2010, the net gain on the sale of loans sold decreased to $3.7 million, as compared to $3.9 million for the corresponding prior year period due to a decline in the volume of loans sold. The net loss from other real estate operations was $292,000 and $701,000, respectively, for the quarter and year ended December 31, 2010, as compared to losses of $74,000 and $2,000, respectively, in the same prior year periods due to current period write-downs in the value of properties previously acquired. Other income decreased $371,000 for the year ended December 31, 2010, as compared to the same prior year period due to the prior year recovery of $367,000 on borrower escrow funds at Columbia Home Loans, LLC ("Columbia"), the Company's mortgage banking subsidiary, which was shuttered in the fourth quarter of 2007.
Operating expenses increased to $13.9 million, or 5.8%, and $53.6 million, or 6.1%, respectively, for the quarter and year ended December 31, 2010, as compared to $13.2 million and $50.5 million, respectively, for the corresponding prior year periods. These increases were primarily due to compensation and employee benefits costs, which increased due to higher incentive compensation, salary and stock plan expense. For the year ended December 31, 2010, the increase was also due to the reduction in mortgage loan closings from prior year levels. Fewer loan closings in the current year decreased deferred loan expense which is reflected as an increase to compensation expense. Occupancy expense decreased by $490,000 for the year ended December 31, 2010, as compared to the corresponding prior year period due to a $556,000 charge in the second quarter of 2009 relating to the termination of all remaining lease obligations of Columbia. Federal deposit insurance expense for the year ended December 31, 2010 decreased by $394,000 from the corresponding prior year period primarily due to a special assessment of $869,000 in the second quarter of 2009, partly offset by additional insurance on higher deposit balances. Federal deposit insurance increased by $136,000 for the quarter ended December 31, 2010, as compared to the same prior year quarter due to higher deposit balances. Merger related expenses for the quarter and year ended December 31, 2009 totaled $703,000 and $1.3 million, respectively, which related to the Company's announced, but subsequently terminated, merger with Central Jersey Bancorp. General and administrative expense increased for the year ended December 31, 2010, over the corresponding prior year period partly due to higher loan related expenses.
The provision for income taxes was $1.7 million and $10.4 million, respectively, for the quarter and year ended December 31, 2010, as compared to $1.7 million and $9.2 million, respectively, for the same prior year periods. The effective tax rate decreased to 22.7% and 33.8%, respectively, for the quarter and year ended December 31, 2010, as compared to 32.4% and 36.9%, respectively, in the same prior year periods. The decrease in the effective tax rate was due to the fourth quarter 2010 reduction in the state tax valuation allowance of $922,000.
Dividends on preferred stock and warrant accretion totaled $1.6 million and $3.2 million, respectively, for the quarter and year ended December 31, 2009, as compared to no amounts in the current year periods. The preferred stock was redeemed on December 30, 2009.
Financial Condition
Total assets increased by $221.3 million, or 10.9%, to $2,251.3 million at December 31, 2010, from $2,030.0 million at December 31, 2009. Loans receivable, net increased by $31.5 million, or 1.9%, to $1,660.8 million at December 31, 2010, from $1,629.3 million at December 31, 2009, primarily due to increased commercial and commercial real estate lending. Investment securities available for sale increased by 146.6%, to $91.9 million at December 31, 2010, as compared to $37.3 million at December 31, 2009, due to purchases of government agency and municipal securities as the Company invested the funds received from strong deposit flows. Mortgage-backed securities available for sale increased by 59.7%, to $341.2 million at December 31, 2010 as compared to $213.6 million at December 31, 2009, due to purchases of $193.0 million in mortgage-backed securities and collateralized mortgage obligations issued by U.S. government sponsored enterprises.
The increase in assets was funded by increased deposits, which grew by 22.0% to $1,664.0 million at December 31, 2010 from $1,364.2 million at December 31, 2009. The growth was concentrated in core deposits, which increased $326.8 million. Time deposits decreased $27.0 million as the Bank continued to moderate its pricing for this product. Also, as a result of the increase in deposits, Federal Home Loan Bank advances decreased to $265.0 million at December 31, 2010 from $333.0 million at December 31, 2009. Stockholders' equity increased 9.7%, to $201.3 million at December 31, 2010, as compared to $183.5 million at December 31, 2009 due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock.
Asset Quality
The Company's non-performing loans totaled $37.5 million at December 31, 2010, an increase from $28.3 million at December 31, 2009, with the largest increase of $7.4 million attributable to one-to-four family mortgage loans. The overall increase is reflective of the weak economic environment. Non-performing loans at December 31, 2010 include $664,000 of loans repurchased due to early payment default that were written down to market value on the date of repurchase and $2.2 million of loans previously held for sale that were also written down to market value. Net loan charge-offs decreased to $893,000 for the three months ended December 31, 2010, as compared to $1.2 million for the corresponding prior year period. For the year ended December 31, 2010, net loan charge-offs increased to $3.0 million, as compared to $2.6 million for the corresponding prior year period. For the quarter and year ended December 31, 2010 net charge-offs included $11,000 and $1.2 million, respectively, of loans originated by Columbia.
The reserve for repurchased loans, which is included in other liabilities in the Company's consolidated statements of financial condition, was $809,000 at December 31, 2010, as compared to $819,000 at December 31, 2009. There was no provision for repurchased loans and one charge-off of $10,000 during the year ended December 31, 2010. At December 31, 2010, there was one outstanding loan repurchase request on a loan with a total principal balance of $122,000 which the Company is contesting.
Conference Call
As previously announced, the Company will host an earnings conference call on Friday, January 21, 2011 at 11:00 a.m. Eastern time. The direct dial number for the call is (877) 317-6789. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (877) 344-7529, Replay Conference Number 447081, from one hour after the end of the call until February 7, 2011. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
Annual Meeting
The Company also announced today that its Annual Meeting of Stockholders will be held on Thursday, May 5, 2011 at 10:00 a.m. Eastern time, at the Crystal Point Yacht Club located at 3900 River Road at the intersection of State Highway 70, Point Pleasant, New Jersey. The record date for shareholders entitled to vote at the Annual Meeting is March 9, 2011.
OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered savings bank with $2.3 billion in assets and twenty-three branches located in Ocean, Monmouth and Middlesex Counties, New Jersey. The Bank is the largest and oldest community-based financial institution headquartered in Ocean County, New Jersey.
OceanFirst Financial Corp.'s press releases are available by visiting us at www.oceanfirst.com.
Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "will," "should," "may," "view," "opportunity," "potential," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area and accounting principles and guidelines. These risks and uncertainties are further discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake – and specifically disclaims any obligation – to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
| OceanFirst Financial Corp. | ||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
| (dollars in thousands, except per share amounts) | ||
| December 31, | December 31, | |
| 2010 | 2009 | |
| ASSETS | ||
| Cash and due from banks | $31,455 | $23,016 |
| Investment securities available for sale | 91,918 | 37,267 |
| Federal Home Loan Bank of New York stock, at cost | 16,928 | 19,434 |
| Mortgage-backed securities available for sale | 341,175 | 213,622 |
| Loans receivable, net | 1,660,788 | 1,629,284 |
| Mortgage loans held for sale | 6,674 | 5,658 |
| Interest and dividends receivable | 6,446 | 6,059 |
| Real estate owned, net | 2,295 | 2,613 |
| Premises and equipment, net | 22,488 | 22,088 |
| Servicing asset | 5,653 | 6,515 |
| Bank Owned Life Insurance | 40,815 | 39,970 |
| Other assets | 24,695 | 24,502 |
| Total assets | $2,251,330 | $2,030,028 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Deposits | $1,663,968 | $1,364,199 |
| Securities sold under agreements to repurchase with retail customers | 67,864 | 64,573 |
| Federal Home Loan Bank advances | 265,000 | 333,000 |
| Other borrowings | 27,500 | 27,500 |
| Due to brokers | -- | 40,684 |
| Advances by borrowers for taxes and insurance | 6,947 | 7,453 |
| Other liabilities | 18,800 | 9,083 |
| Total liabilities | 2,050,079 | 1,846,492 |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued at December 31, 2010 | -- | -- |
|
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772 shares issued and 18,822,556 and 18,821,956 shares outstanding at December 31, 2010 and December 31, 2009, respectively |
336 | 336 |
| Additional paid-in capital | 260,739 | 260,130 |
| Retained earnings | 174,677 | 163,063 |
| Accumulated other comprehensive loss | (5,560) | (10,753) |
| Less: Unallocated common stock held by Employee Stock Ownership Plan | (4,484) | (4,776) |
| Treasury stock, 14,744,216 and 14,744,816 shares at December 31, 2010 and December 31, 2009, respectively | (224,457) | (224,464) |
| Common stock acquired by Deferred Compensation Plan | 946 | 986 |
| Deferred Compensation Plan Liability | (946) | (986) |
| Total stockholders' equity | 201,251 | 183,536 |
| Total liabilities and stockholders' equity | $2,251,330 | $2,030,028 |
| OceanFirst Financial Corp. | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| (in thousands, except per share amounts) | ||||
| For the three months | For the years | |||
| ended December 31, | ended December 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| (Unaudited) | ||||
| Interest income: | ||||
| Loans | $21,656 | $22,015 | $88,180 | $90,595 |
| Mortgage-backed securities | 2,581 | 1,054 | 11,503 | 3,512 |
| Investment securities and other | 520 | 345 | 1,684 | 1,754 |
| Total interest income | 24,757 | 23,414 | 101,367 | 95,861 |
| Interest expense: | ||||
| Deposits | 3,648 | 3,896 | 14,340 | 18,032 |
| Borrowed funds | 2,229 | 2,572 | 9,913 | 12,366 |
| Total interest expense | 5,877 | 6,468 | 24,253 | 30,398 |
| Net interest income | ||||
| 18,880 | 16,946 | 77,114 | 65,463 | |
| Provision for loan losses | 2,000 | 2,200 | 8,000 | 5,700 |
| Net interest income after provision for loan losses | 16,880 | 14,746 | 69,114 | 59,763 |
| Other income: | ||||
| Loan servicing income (loss) | 61 | 84 | 292 | (18) |
| Fees and service charges | 3,096 | 2,702 | 11,214 | 10,506 |
| Net gain on sales of loans and securities available for sale | 1,442 | 772 | 3,657 | 3,891 |
| Net loss from other real estate operations | (292) | (74) | (701) | (2) |
| Income from Bank Owned Life Insurance | 220 | 202 | 845 | 836 |
| Other | -- | 8 | 5 | 376 |
| Total other income | 4,527 | 3,694 | 15,312 | 15,589 |
| Operating expenses: | ||||
| Compensation | 7,241 | 6,233 | 28,148 | 24,014 |
| Occupancy | 1,384 | 1,304 | 5,501 | 5,991 |
| Equipment | 615 | 713 | 2,196 | 2,141 |
| Marketing | 404 | 596 | 1,745 | 1,767 |
| Federal deposit insurance | 723 | 587 | 2,705 | 3,099 |
| Data processing | 905 | 883 | 3,426 | 3,388 |
| Legal | 223 | 131 | 1,066 | 1,464 |
| Check card processing | 313 | 288 | 1,250 | 1,079 |
| Accounting and audit | 159 | 223 | 624 | 689 |
| Merger related expenses | -- | 703 | -- | 1,285 |
| General and administrative | 1,959 | 1,506 | 6,986 | 5,627 |
| Total operating expenses | 13,926 | 13,167 | 53,647 | 50,544 |
| Income before provision for income taxes | 7,481 | 5,273 | 30,779 | 24,808 |
| Provision for income taxes | 1,697 | 1,706 | 10,401 | 9,155 |
| Net income | 5,784 | 3,567 | 20,378 | 15,653 |
| Dividends on preferred stock and warrant accretion | -- | 1,637 | -- | 3,170 |
| Net income available to common stockholders | $5,784 | $1,930 | $20,378 | $12,483 |
| Basic earnings per share | $0.32 | $0.12 | $1.12 | $0.98 |
| Diluted earnings per share | $0.32 | $0.12 | $1.12 | $0.98 |
| Average basic shares outstanding | 18,156 | 15,769 | 18,142 | 12,737 |
| Average diluted shares outstanding | 18,205 | 15,817 | 18,191 | 12,784 |
| OceanFirst Financial Corp. | ||
| SELECTED CONSOLIDATED FINANCIAL DATA | ||
| (in thousands, except per share amounts) | ||
| At December 31, | At December 31, | |
| 2010 | 2009 | |
| STOCKHOLDERS' EQUITY | ||
| Stockholders' equity to total assets | 8.94% | 9.04% |
| Common shares outstanding (in thousands) | 18,823 | 18,822 |
| Stockholders' equity per common share | $10.69 | $9.75 |
| Tangible stockholders' equity per common share | 10.69 | 9.75 |
| ASSET QUALITY | ||
| Non-performing loans: | ||
| Real estate – one-to-four family | $26,577 | $19,142 |
| Commercial real estate | 5,849 | 5,152 |
| Construction | 368 | 368 |
| Consumer | 4,626 | 3,031 |
| Commercial | 117 | 627 |
| Total non-performing loans | 37,537 | 28,320 |
| REO, net | 2,295 | 2,613 |
| Total non-performing assets | $39,832 | $30,933 |
| Delinquent loans 30 to 89 days | $14,421 | $15,528 |
| Allowance for loan losses | $19,700 | $14,723 |
| Allowance for loan losses as a percent of total loans receivable | 1.17% | 0.89% |
| Allowance for loan losses as a percent of non-performing loans | 52.48 | 51.99 |
| Non-performing loans as a percent of total loans receivable | 2.23 | 1.72 |
| Non-performing assets as a percent of total assets | 1.77 | 1.52 |
| For the three months ended | For the years ended | |||
| December 31, | December 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| PERFORMANCE RATIOS (ANNUALIZED) | ||||
| Return on average assets | 1.02% | 0.75% | 0.93% | 0.82% |
| Return on average stockholders' equity | 11.54 | 7.17 | 10.62 | 9.35 |
| Interest rate spread | 3.39 | 3.56 | 3.56 | 3.42 |
| Interest rate margin | 3.52 | 3.76 | 3.69 | 3.63 |
| Operating expenses to average assets | 2.46 | 2.75 | 2.44 | 2.66 |
| Efficiency ratio | 59.50 | 63.79 | 58.04 | 62.36 |
| OceanFirst Financial Corp. | ||
| SELECTED LOAN AND DEPOSIT DATA | ||
| (in thousands) | ||
| LOANS RECEIVABLE | ||
| At December 31, 2010 | At December 31, 2009 | |
| Real estate: | ||
| One-to-four family | $955,063 | $954,736 |
| Commercial real estate, multi-family and land | 435,127 | 396,883 |
| Construction | 13,748 | 9,241 |
| Consumer | 205,725 | 217,290 |
| Commercial | 76,692 | 70,214 |
| Total loans | 1,686,355 | 1,648,364 |
| Loans in process | (4,055) | (3,466) |
| Deferred origination costs, net | 4,862 | 4,767 |
| Allowance for loan losses | (19,700) | (14,723) |
| Total loans, net | 1,667,462 | 1,634,942 |
| Less: mortgage loans held for sale | 6,674 | 5,658 |
| Loans receivable, net | $1,660,788 | $1,629,284 |
| Mortgage loans serviced for others | $913,778 | $952,871 |
| Loan pipeline | 84,113 | 90,320 |
| For the three months ended | For the years ended | |||
| December 31, | December 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Loan originations | $156,637 | $126,438 | $504,359 | $574,529 |
| Loans sold | 63,978 | 40,209 | 164,319 | 232,765 |
| Net charge-offs | 893 | 1,157 | 3,023 | 2,642 |
| DEPOSITS | ||
| At December 31, 2010 | At December 31, 2009 | |
| Type of Account | ||
| Non-interest-bearing | $126,429 | $107,721 |
| Interest-bearing-checking | 920,324 | 615,347 |
| Money market deposit | 108,421 | 96,886 |
| Savings | 223,650 | 232,081 |
| Time deposits | 285,144 | 312,164 |
| $1,663,968 | $1,364,199 |
| OceanFirst Financial Corp. | ||||||
| ANALYSIS OF NET INTEREST INCOME | ||||||
| FOR THE THREE MONTHS ENDED DECEMBER 31, | ||||||
| 2010 | 2009 | |||||
| AVERAGE | AVERAGE | |||||
| AVERAGE | YIELD/ | AVERAGE | YIELD/ | |||
| BALANCE | INTEREST | COST | BALANCE | INTEREST | COST | |
| (Dollars in thousands) | ||||||
| Assets | ||||||
| Interest-earning assets: | ||||||
| Interest-earning deposits and short-term investments | $37,500 | $23 | .25% | $ -- | $ -- | --% |
| Investment securities (1) | 90,430 | 204 | .90 | 55,720 | 131 | .94 |
| FHLB stock | 17,121 | 293 | 6.85 | 14,419 | 214 | 5.94 |
| Mortgage-backed securities (1) | 332,642 | 2,581 | 3.10 | 111,340 | 1,054 | 3.79 |
| Loans receivable, net (2) | 1,666,352 | 21,656 | 5.20 | 1,621,475 | 22,015 | 5.43 |
| Total interest-earning assets | 2,144,045 | 24,757 | 4.62 | 1,802,954 | 23,414 | 5.19 |
| Non-interest-earning assets | 118,481 | 111,963 | ||||
| Total assets | $2,262,526 | $1,914,917 | ||||
| Liabilities and Stockholders' Equity | ||||||
| Interest-bearing liabilities: | ||||||
| Transaction deposits | $1,252,819 | 2,336 | .75 | $951,843 | 2,196 | .92 |
| Time deposits | 286,386 | 1,312 | 1.83 | 319,700 | 1,700 | 2.13 |
| Total | 1,539,205 | 3,648 | .95 | 1,271,543 | 3,896 | 1.23 |
| Borrowed funds | 371,088 | 2,229 | 2.40 | 317,636 | 2,572 | 3.24 |
| Total interest-bearing liabilities | 1,910,293 | 5,877 | 1.23 | 1,589,179 | 6,468 | 1.63 |
| Non-interest-bearing deposits | 132,282 | 111,825 | ||||
| Non-interest-bearing liabilities | 19,415 | 14,791 | ||||
| Total liabilities | 2,061,990 | 1,715,795 | ||||
| Stockholders' equity | 200,536 | 199,122 | ||||
| Total liabilities and stockholders' equity | $2,262,526 | $1,914,917 | ||||
| Net interest income | $18,880 | $16,946 | ||||
| Net interest rate spread (3) | 3.39% | 3.56% | ||||
| Net interest margin (4) | 3.52% | 3.76% | ||||
| FOR THE YEARS ENDED DECEMBER 31, | ||||||
| 2010 | 2009 | |||||
| AVERAGE | AVERAGE | |||||
| AVERAGE | YIELD/ | AVERAGE | YIELD/ | |||
| BALANCE | INTEREST | COST | BALANCE | INTEREST | COST | |
| (Dollars in thousands) | ||||||
| Assets | ||||||
| Interest-earning assets: | ||||||
| Interest-earning deposits and short-term investments | $11,252 | $28 | .25% | $ -- | $ -- | --% |
| Investment securities (1) | 65,595 | 628 | .96 | 55,859 | 888 | 1.59 |
| FHLB stock | 20,838 | 1,028 | 4.93 | 16,435 | 866 | 5.27 |
| Mortgage-backed securities (1) | 336,286 | 11,503 | 3.42 | 91,660 | 3,512 | 3.83 |
| Loans receivable, net (2) | 1,653,367 | 88,180 | 5.33 | 1,639,992 | 90,595 | 5.52 |
| Total interest-earning assets | 2,087,338 | 101,367 | 4.86 | 1,803,946 | 95,861 | 5.31 |
| Non-interest-earning assets | 113,689 | 94,397 | ||||
| Total assets | $2,201,027 | $1,898,343 | ||||
| Liabilities and Stockholders' Equity | ||||||
| Interest-bearing liabilities: | ||||||
| Transaction deposits | $1,108,449 | 8,747 | .79 | $903,848 | 9,709 | 1.07 |
| Time deposits | 298,534 | 5,593 | 1.87 | 341,999 | 8,323 | 2.43 |
| Total | 1,406,983 | 14,340 | 1.02 | 1,245,847 | 18,032 | 1.45 |
| Borrowed funds | 456,835 | 9,913 | 2.17 | 359,668 | 12,366 | 3.44 |
| Total interest-bearing liabilities | 1,863,818 | 24,253 | 1.30 | 1,605,515 | 30,398 | 1.89 |
| Non-interest-bearing deposits | 127,535 | 110,740 | ||||
| Non-interest-bearing liabilities | 17,764 | 14,691 | ||||
| Total liabilities | 2,009,117 | 1,730,946 | ||||
| Stockholders' equity | 191,910 | 167,397 | ||||
| Total liabilities and stockholders' equity | $2,201,027 | $1,898,343 | ||||
| Net interest income | $77,114 | $65,463 | ||||
| Net interest rate spread (3) | 3.56% | 3.42% | ||||
| Net interest margin (4) | 3.69% | 3.63% | ||||
| (1) Amounts are recorded at average amortized cost. | ||||||
| (2) Amount is net of deferred loan fees, undisbursed loan funds, discounts and premiums and estimated loss allowances and includes loans held for sale and non-performing loans. | ||||||
| (3) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | ||||||
| (4) Net interest margin represents net interest income divided by average interest-earning assets. | ||||||