(Source: Business Wire)
Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the
parent company of Provident Bank, today announced fourth-quarter results
for the fiscal year ending Sept. 30, 2009. Net income for the
quarter was $5.1 million, or $0.13 per diluted share, compared to net
income of $6.5 million, or $0.17 per diluted share for the fourth
quarter of fiscal 2008. Net income for the twelve months ended September
30, 2009 was $25.9 million, or $0.67 per diluted share, compared to
$23.8 million, or $0.61 per diluted share for the same period in 2008.
President's Comments
"While fiscal 2009 proved to be a challenging year for the banking
industry as a whole, we continued to perform well under the difficult
economic and real estate market conditions," said George Strayton,
President and CEO. "Although, earnings increased by 9% to $25.9 million
over last year, loan charge offs for the year amounted to $10.7 million
or 0.62 percent of average loans and were centered on our small business
loan area which we identify as 'community business portfolio.' We
continued to control expenses exclusive of an FDIC special assessment
and were able to reduce the impact of faster prepayments by monetizing
gains on mortgage backed securities, totaling $10.7 million after tax.
These actions resulted in a gain in EPS year over year which fortified
an already strong capital position. New business opportunities arose as
non-bank loan originators exited the market and bank consolidations in
our market led consumers to seek new banking relationships with strong
stable banks. As a result, our average level of transaction and savings
accounts grew $81 million and our loan portfolio excluding residential
mortgages grew by $24 million. As we move forward, we are focused on
reducing the amount of classified and criticized loans resulting from
the business downturn and taking advantage of new business opportunities
presented in the market place."
Overview of Fiscal 2009
The past two years have been a period of contraction for the economy on
a global as well as a local level. This economic slowdown has impacted
our banking operations and many of our borrowers. While most of our
portfolios have held their credit quality, our community business
borrowers were the first to reflect the impact of this slowdown. In
fiscal 2008 net charge offs in the community business sector were $3.5
million and increased to $6.9 million in fiscal 2009, primarily in the
first half of the year. In fiscal 2009, our ADC portfolio began to show
deterioration from the continuing contraction in the residential real
estate markets. We therefore have increased the allowance for loan
losses to reflect the increase in criticized and classified loans. The
result is that provisions for loan losses increased from $7.2 million in
fiscal 2008 to $17.6 million in fiscal 2009.
The economic decline has caused the Federal Reserve to engage in
quantitative easing, as well as decreasing short term interest rates by
450 basis points in the past two fiscal years ending at an unprecedented
federal funds target rate of zero to 0.25 percent. This resulted in
increases in the fair values in our investment portfolio, but also
increased the likelihood of significant prepayments. Management decided
to monetize a portion of the appreciation and recorded $18.1 million in
gains on sales of securities. The reinvestment of proceeds in shorter
term securities, coupled with the impact of the general reduction in
short term interest rates, resulted in a decrease in net interest margin
from 3.96 percent in fiscal 2008 to 3.81 percent in fiscal 2009 and net
interest income therefore declined by $1.5 million from fiscal 2008.
Additionally, conforming fixed rate residential mortgages were sold into
the secondary market in 2009 netting $1.0 million in gains on sales of
loans and the bank recorded $736,000 in nontaxable proceeds for a BOLI
death benefit. Non-interest expense increased $4.7 million over fiscal
2008 levels due to increased levels of FDIC assessments of $3.4 million
and increases in pension and medical benefit costs of $1.5 million. This
resulted in net income of $25.9 million in fiscal 2009 compared to $23.8
million in fiscal 2008.
Credit Quality key items for the quarter
Non-accrual loans increased a $1.3 million over June 30, 2009 levels
to $21.9 million, but were essentially unchanged from March 31, 2009,
while non-performing loans increased from $23.8 million at June 30,
2009 to $26.5 million at September 30, 2009.
Classified loans (i.e. substandard and doubtful) increased from $44.2
million to $89.4 million during the quarter, primarily due to
downgrades in the Acquisition, Development and Construction ("ADC")
portfolio. A loan that is not performing as originally planned
requires a credit downgrade despite the fact that payments are still
being made and interest is accruing.
The loan-loss provision for the fourth quarter was $4.5 million, an
increase of $1.0 million from the linked quarter and an increase of
$2.4 million over the same quarter in fiscal 2008. The provision for
the quarter was $2.0 million in excess of net charge-offs.
Allowance for loan losses totaled $30.1 million, or 1.76 percent of
loans outstanding and 114 percent of non-performing loans as of
September 30, 2009.
Other Key items for the quarter include:
Realized gains on sales of securities were $1.6 million for the three
months ended September 30, 2009 compared to $10.0 million for the
linked quarter ended June 30, 2009.
Net interest margin on a fully tax-equivalent basis was 3.71 percent
for the fourth quarter of fiscal 2009, compared to 3.74 percent for
the linked quarter and 4.16 percent for the fourth quarter of fiscal
2008.
Commercial transaction accounts grew $16.3 million or 7.4 percent over
the linked quarter. Total transaction accounts were $844.9 million at
September 30, 2009, compared to $614.3 million at June 30, 2009.
Municipal tax deposits, which are included in transaction account
balances, were $201 million at September 30, 2009.
The Bank remained well capitalized at September 30, 2009, with total
risk-based capital ratio of 13.83 percent and a Tier 1 leverage ratio
of 8.64 percent. The Company's tangible capital ratio as a percent of
tangible assets was 9.14 percent compared to 9.55 percent at June 30,
2009.
Credit Quality:
The performance of certain sectors of our loan portfolio, specifically
the credit scored Community Business and ADC portfolio, continue to
reflect weak real estate conditions. However, we have seen improvement
in our community business portfolio as charge offs have abated in recent
quarters. There has been no appreciable deterioration in loan quality in
our residential mortgage, Commercial and Industrial ("C&I") and
commercial mortgage portfolios. Non performing residential mortgages and
commercial mortgages are approximately 1.0 percent of their respective
total portfolios. C&I and consumer non- performing loans are both less
than 0.5 percent of respective outstandings.
Net charge-offs for the year and for the quarter have been concentrated
in the community business portfolio, while credit downgrades are
concentrated in the ADC portfolio. Net charge-offs in the community
business portfolio were $879,000 on average outstandings of $100.6
million for the fourth quarter and $6.8 million on average outstandings
of $104.0 million for the year ended September 30, 2009.
We continue to experience credit downgrades in the ADC portfolio as the
extended period of reduced activity has stressed the liquidity resources
of many borrowers, even though many continue to make current interest
payments. Largely driven by downgrades in this portfolio, substandard
loans, which include all non-performing loans, grew to $89.4 million
($46.1 million is related to ADC loans) at September 30, 2009 from $44.2
million as of June 30, 2009. The greater growth in the substandard
category as compared to the more modest growth in nonperforming loans is
primarily caused by our downgrades in the ADC portfolio although many
borrowers continue to pay interest on a current basis.
All significant loans classified substandard or special mention are
reviewed for impairment, under applicable accounting and regulatory
standards. Specific reserves for impairment were $3.0 million at
September 30, 2008, $5.9 million at June 30, 2009 and $6.4 million at
September 30, 2009. These reserves are included in the balance of the
allowance for loan losses of $30.1 million at September 30, 2009.
Provident has $674,000 in addition to non accrual loans classified as
Troubled Debt Restructures ("TDRs") as of September 30, 2009.
The table below outlines non-performing loans at September 30, 2009, by
category with the related weighted loan to value ratios and specific
reserves against such loans:
WLTV after
Book Specific Specific
Loans with Specific Reserves Value WLTV* Reserve Reserve
ADC $ 7,124,121 83 % $ 1,353,209 65 %
Commercial mortgage 1,872,690 69 373,820 56
Residential mortgage 2,856,538 88 741,246 75
Loans with out Specific Reserves
ADC 4,207,255 86 - 86
Commercial mortgage 4,227,333 70 - 70
Residential Mortgage 5,016,366 72 - 72
Total Mortgage secured 25,304,303 79 2,468,275 71
Loans not Mortgage Secured
Loans with specific reserves 230,645 51,721
Loans without specific reserves 934,152 -
Total non-performing loans 26,469,100 2,519,996
General reserves 27,530,004
Troubled Debt Restructures 673,731
Total allowance for loan losses $ 30,050,000
ORE balance 1,712,237
Total non-performing assets $ 28,855,068
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*Weighted average LTV is the gross loan value plus negative escrows
(before specific reserves) divided by current appraised value of the
collateral securing the loan.
The following table reflects activity in millions on our ADC portfolio
for fiscal 2009:
ADC Loan Portfolio as of October 1, 2008 $ 171
New Loans Advanced 37
Seasoned Loans Advanced 30
Total Advanced 67
Charge-offs 2
New Loan Payments 1
Seasoned Loan Payments 41
ADC Loan Portfolio as of September 30, 2009 $ 194
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Net Interest Income and Margin
Fourth quarter fiscal 2009 compared with fourth quarter fiscal 2008
Net interest income was $22.5 million for the fourth quarter of fiscal
2009, a $3.1 million decrease from the same quarter of fiscal 2008. The
net interest margin on a tax-equivalent basis was 3.71 percent for the
fourth quarter of fiscal 2009, compared to 4.16 percent for same period
a year ago. The year-over-year comparison reflects the impact of the
cuts in the federal funds target rate totaling 175 basis points. The
Company executed on its planned sale program, starting in February 2009,
of approximately $350 million in mortgage backed securities with a book
yield of 5.15 percent and an average life of 4.1 years, which were
reinvested in securities having a yield of 3.34 percent and an average
life of 3.2 years. The tax-equivalent yield on investments decreased 132
basis points compared to the same quarter in 2008. As a result, the
yield on interest-earning assets declined 94 basis points. For the same
period, the cost of interest-bearing deposits decreased 70 basis points
to 0.84 percent, and the cost of borrowings increased 45 basis points to
3.92 percent, reflecting the carry cost of term borrowings outstanding
and repayment of short-term borrowings.
Fourth quarter fiscal 2009 compared with linked quarter ended June
30, 2009
Net interest income for the quarter ended September 30, 2009, decreased
$263,000 from the quarter ended June 30, 2009. The tax-equivalent net
interest margin decreased 3 basis points from 3.74 percent for the same
period. During the quarter the Bank sold $83.3 million in securities and
purchased $250.4 million. The overall yield of the investment portfolio
declined 83 basis points during the fourth quarter. Further, proceeds
from normal principal payments have been kept liquid at the Federal
Reserve, earning 25 basis points on an average balance of $42.0 million.
While this decision significantly enhanced the liquidity position of the
Bank, the low yield received had an 8 basis point negative impact on the
net interest margin.
Noninterest Income
Fourth quarter fiscal 2009 compared with fourth quarter fiscal 2008
Noninterest income totaled $7.8 million for the fiscal fourth quarter,
an increase of $2.5 million from $5.3 million in the fourth quarter of
fiscal 2008. The increase was due to gains of $1.6 million resulting
from the Company's decision to realize a portion of the recent
appreciation in its securities portfolio, monetizing other comprehensive
income and reducing prepayment risk. Other factors contributing to the
increase were gains on the sale of $9.2 million of loans of $215,000,
and $736,000 received on the payment of a death claim from Bank Owned
Life Insurance during the fourth quarter. The Bank has been selling
current conforming fixed rate residential mortgage loan originations in
the secondary market to control interest rate risk. Fee income was
relatively unchanged in the fourth quarter.
Fourth quarter fiscal 2009 compared with linked quarter ended June
30, 2009
Noninterest income decreased on a linked-quarter basis, due to high
levels of securities gains realized, partially offset by a death payment
received from Bank Owned Life Insurance and gains on the sales of loans.
Noninterest Expense
Fourth quarter fiscal 2009 compared with fourth quarter fiscal 2008
The Company remained focused on controlling operating expenses, and as a
result, non interest expense remained relatively unchanged decreasing
$140,000 when compared to the fourth quarter fiscal 2008.
Fourth quarter fiscal 2009 compared with linked quarter ended June
30, 2009
On a quarter-to-quarter basis, non-interest expense decreased due to the
expenses related to FDIC special assessments recognized in the third
quarter.
Income Taxes
The Company's effective tax rate was 28.2 percent for fiscal 2009 and
29.4 percent for fiscal 2008. For the linked quarter ended June 30,
2009, the Company's effective tax rate was 31.0 percent.
Key Balance Sheet Changes at September 30, 2009 compared to September
30, 2008
Net loan balances decreased year over year by $35.2 million. While
loan demand is softer than a year ago due to the economic slowdown,
commercial loan originations during the year were $342 million.
Residential originations were $76.8 million, essentially flat over
2008 levels. Fixed rate conforming residential loan sales into the
secondary market totaled $44.1 million during 2009, as the Company
mitigated interest rate exposure. Gross loans totaled $1.70 billion,
compared to $1.73 billion compared to September 30, 2008.
Securities increased $42.5 million to $877.2 million, as the Company
repositioned its investment portfolio during 2009.
Borrowings decreased $83.9 million to $482.1 million as the increase
in deposits, at lower rates, made it beneficial to reduce borrowings.
Commercial transaction accounts continued to grow, up $32.8 million
over the prior year. Period-end total deposits increased $93.1 million
from September 30, 2008. Municipal transaction account balances due to
seasonal tax collections were $242 million and $201 million at
September 30, 2008 and 2009 respectively. Money market accounts
increased $78.1 million to $384.6 million as municipalities left
additional funds on deposit that historically would have been
competitively bid on a term basis as certificates of deposits.
Capital and Liquidity
Provident Bank remained well-capitalized with excellent liquidity in the
fourth quarter, as it continued to build capital during fiscal 2009,
with the Bank's Tier 1 leverage ratio at 8.64 percent. The Company's
tangible capital as a percent of tangible assets increased to 9.14
percent as of September 30, 2009, while its tangible book value improved
to $6.60 from $5.78 at September 30, 2008. Total capital increased $28.3
million from September 30, 2008, to $427.5 million at September 30,
2009, due to a $14.5 million increase in the Company's retained earnings
and a $12.1 million improvement in accumulated other comprehensive
income, after realizing securities gains in the fiscal year of $18.1
million. The Company repurchased 86,860 common shares, at a cost of
$804,000 during the quarter.
The Bank continued to focus on increasing its liquidity, and
strengthening its balance sheet, which resulted in a compression in net
interest margin in the quarter. As of September 30, 2009, the Bank
maintained $41.3 million in cash at the Federal Reserve Bank compared to
$6.7 million at September 30, 2008 for enhanced liquidity purposes.
Further, the Bank has no outstanding overnight borrowings under its $200
million line of credit facility with the Federal Home Loan Bank. The
Company's high-quality available for sale investment portfolio consists
primarily of securities issued by U.S. Government Sponsored Agencies and
general obligations of municipalities and provides an additional source
of liquidity.
Additional Information
The sharp rise in FDIC insurance premiums during the year has added
$3.4 million to the Company's noninterest expense during fiscal 2009.
The FDIC approved a new plan on May 22, 2009, which imposed a special
assessment on insured banks of 5 basis points of total assets, in
addition to regular insurance premiums. This special assessment is
reflected fully upon the books of the Company as of September 30, 2009.
The Company holds $364.6 million in mortgage backed securities issued
by FHLMC and FNMA. It also holds private label CMO pass through
securities having a fair value of $10.4 million and an amortized cost
basis of $11.2 million all of which were performing at September 30,
2009.
About Provident New York Bancorp
Headquartered in Montebello, New York, Provident New York Bancorp is the
parent company of Provident Bank, an independent full-service community
bank. Provident Bank operates 33 branches that serve the Hudson Valley
region and Bergen County, New Jersey. The Bank offers a complete line of
commercial, retail and investment management services. For more
information, visit the Company's web site at www.providentbanking.com.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS
In addition to historical information, this earnings release may
contain forward-looking statements for purposes of applicable securities
laws. Any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward-looking statements are subject to numerous assumptions, risks
and uncertainties. There are a number of important factors described in
documents previously filed by the Company with the Securities and
Exchange Commission, and other factors that could cause the Company's
actual results to differ materially from those contemplated by such
forward-looking statements. The Company undertakes no obligation to
publicly release the results of any revisions to those forward-looking
statements which may be made to reflect events or circumstances after
the date of this release or to reflect the occurrence of unanticipated
events.
Financial information contained in this release should be considered
to be an estimate pending completion of the annual audit of the
Company's financial statements and the filing of its fiscal 2009 Annual
Report on Form 10-K with the Securities and Exchange Commission. While
the Company is not aware of any need to revise the results disclosed in
this release, the Company's auditors currently are reviewing the
Company's testing of the carrying amount of goodwill on its financial
statements in view of the relationship between the Company's book value
per share and the market price of its common stock at the end of the
fiscal year. Moreover, accounting literature may require adverse
information received by management between the date of this release and
the filing of the 10-K to be reflected in the results of fiscal 2009,
even though the new information was received by management in fiscal
2010 subsequent to the date of this release.
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
September 30, September 30,
2009 2008
Assets:
Cash and due from banks $ 160,408 $ 125,810
Total securities 877,197 834,701
Loans held for sale 1,213 189
Loans:
One- to four-family residential mortgage loans 460,728 513,381
Commercial real estate, commercial business 797,179 798,453
Acquisition, development and construction loans 193,828 170,979
Consumer loans 251,522 248,740
Total loans, gross 1,703,257 1,731,553
Allowance for loan losses (30,050 ) (23,101 )
Total loans, net 1,673,207 1,708,452
Federal Home Loan Bank stock, at cost 23,177 28,675
Premises and equipment, net 40,692 36,716
Goodwill 160,861 160,861
Other amortizable intangibles 5,489 7,674
Bank owned life insurance 49,611 47,650
Other assets 30,038 33,643
Total assets $ 3,021,893 $ 2,984,371
Liabilities:
Deposits
Retail $ 169,122 $ 162,161
Commercial 236,516 203,682
Municipal 86,596 122,047
Personal NOW deposits 127,595 115,442
Business NOW deposits 36,972 20,881
Municipal NOW deposits 188,074 196,581
Total transaction accounts 844,875 820,794
Savings 357,814 335,986
Money market deposits 384,632 306,504
Certificates of deposit 494,961 525,913
Total deposits 2,082,282 1,989,197
Borrowings 430,628 566,008
Borrowings Senior Note 51,494 -
Mortgage escrow funds and other 30,033 30,008
Total liabilities 2,594,437 2,585,213
Stockholders' equity 427,456 399,158
Total liabilities and stockholders' equity $ 3,021,893 $ 2,984,371
Shares of common stock outstanding at period end 39,547,207 39,815,213
Book value per share $ 10.81 $ 10.03
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Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
Quarter
Quarter Ended Ended Twelve Months Ended
September 30, June 30, September 30,
2009 2008 2009 2009 2008
Interest and dividend income:
Loans and loan fees $ 23,615 $ 26,532 $ 23,848 $ 97,149 $ 107,633
Securities taxable 4,666 7,889 5,460 25,552 31,947
Securities non-taxable 1,841 1,767 1,915 7,520 6,832
Other earning assets 360 518 428 1,369 2,570
30,482 36,706 31,651 131,590 148,982
Interest expense:
Deposits 3,190 5,449 4,104 18,375 28,344
Borrowings 4,829 5,720 4,821 19,345 25,298
Total interest expense 8,019 11,169 8,925 37,720 53,642
Net interest income 22,463 25,537 22,726 93,870 95,340
Provision for loan losses 4,500 2,100 3,500 17,600 7,200
Net interest income after provision for loan losses 17,963 23,437 19,226 76,270 88,140
Non-interest income:
Deposit fees and service charges 3,137 3,246 3,083 12,393 12,429
Net gain on sales of securities 1,630 - 10,023 18,076 983
Title insurance fees 337 300 254 1,005 919
Bank owned life insurance 1,248 515 502 2,755 1,832
Gain on sale of premises and equipment - - - 517 -
Gain on sale of loans 215 - 450 961 -
Investment management fees 747 770 622 2,576 3,012
Other 490 475 321 1,670 1,867
Total non-interest income 7,804 5,306 15,255 39,953 21,042
Non-interest expense:
Compensation and benefits 9,894 10,109 10,058 39,520 37,045
Stock-based compensation plans 621 916 639 2,942 3,809
Occupancy and office operations 3,195 3,125 3,310 12,802 12,434
Advertising and promotion 629 710 614 3,093 3,338
Professional fees 720 751 788 3,090 3,339
Data and check processing 563 638 558 2,284 2,551
Amortization of intangible assets 513 611 531 2,185 2,599
FDIC insurance and regulatory assessments 752 234 2,305 4,257 875
ATM/debit card expense 563 524 564 2,115 1,936
Other 1,909 1,881 2,150 7,899 7,574
Total non-interest expense 19,359 19,499 21,517 80,187 75,500
Income before income tax expense 6,408 9,244 12,964 36,036 33,682
Income tax expense 1,332 2,749 4,014 10,175 9,904
Net income $ 5,076 $ 6,495 $ 8,950 $ 25,861 $ 23,778
Per common share:
Basic earnings $ 0.13 $ 0.17 $ 0.23 $ 0.67 $ 0.61
Diluted earnings 0.13 0.17 0.23 0.67 0.61
Dividends declared 0.06 0.06 0.06 0.24 0.24
Weighted average common shares:
Basic 38,405,947 38,589,361 38,536,716 38,537,881 38,907,372
Diluted 38,532,411 38,893,860 38,683,135 38,705,837 39,226,641
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Selected Financial Condition Data: Three Months Ended
(in thousands except share and per share data) 09/30/09 06/30/09 03/31/09 12/31/08 09/30/08
End of Period
Total assets $ 3,021,893 $ 2,824,356 $ 2,954,701 $ 2,921,551 $ 2,984,371
Loans, gross (1) 1,703,257 1,714,429 1,735,507 1,746,605 1,731,553
Securities available for sale 832,583 689,286 739,595 795,017 791,688
Securities held to maturity 44,614 42,790 50,630 50,561 43,013
Bank owned life insurance 49,611 49,106 48,654 48,163 47,650
Goodwill 160,861 160,861 160,861 160,861 160,861
Other amortizable intangibles 5,489 6,002 6,533 7,090 8,329
Other non-earning assets 70,730 68,735 72,843 66,072 67,318
Deposits 2,082,282 1,872,983 2,008,766 1,898,142 1,989,197
Borrowings 482,122 488,228 490,139 566,519 566,008
Equity 427,456 420,775 421,406 416,998 399,158
Other comprehensive income / (loss) (SFAS 115),
reflected in stockholders' equity 9,502 1,531 6,977 6,597 (5,892 )
Average Balances
Total assets $ 2,837,511 $ 2,875,999 $ 2,961,719 $ 2,907,948 $ 2,867,613
Loans, gross:
Real estate- residential mortgage 465,472 484,276 504,406 510,386 513,016
Real estate- commercial mortgage 548,195 547,846 551,011 553,483 552,930
Real estate- Acquisition, Development & Construction 191,826 190,875 185,911 176,135 159,698
Commercial and industrial 246,590 245,375 248,047 246,913 244,537
Consumer loans 252,667 254,475 254,216 249,738 241,776
Loans total (1) 1,704,750 1,722,847 1,743,591 1,736,655 1,711,957
Securities (taxable) 576,363 520,948 623,470 647,414 629,322
Securities (non-taxable) 192,733 196,385 197,786 189,316 183,115
Total earning assets 2,511,431 2,549,237 2,632,350 2,582,405 2,535,187
Non earning assets 326,080 326,762 329,369 325,543 332,426
Non-interest bearing checking 402,643 373,252 365,971 380,021 379,679
Interest bearing NOW accounts 228,761 227,039 241,190 231,807 198,621
Total transaction accounts 631,404 600,291 607,161 611,828 578,300
Savings (including mortgage escrow funds) 386,943 378,263 352,199 347,826 371,499
Money market deposits 394,718 394,628 405,221 304,346 302,205
Certificates of deposit 494,530 575,713 646,527 595,595 539,269
Total deposits and mortgage escrow 1,907,595 1,948,895 2,011,108 1,859,595 1,791,273
Total interest bearing deposits 1,504,952 1,575,643 1,645,137 1,479,574 1,411,594
Borrowings 488,443 488,846 511,340 628,988 655,281
Equity 423,361 421,529 417,652 401,104 402,314
Selected Operating Data:
Condensed Tax Equivalent Income Statement
Interest and dividend income $ 30,482 $ 31,651 $ 33,586 $ 35,871 $ 36,706
Tax equivalent adjustment* 991 1,031 1,029 998 951
Interest expense 8,019 8,925 9,951 10,825 11,169
Net interest income (tax equivalent) 23,454 23,757 24,664 26,044 26,488
Provision for loan losses 4,500 3,500 7,100 2,500 2,100
Net interest income after provision for loan
losses 18,954 20,257 17,564 23,544 24,388
Non-interest income 7,804 15,255 11,123 5,771 5,306
Non-interest expense 19,359 21,517 20,076 19,235 19,499
Income before income tax expense 7,399 13,995 8,611 10,080 10,195
Income tax expense (tax equivalent)* 2,323 5,045 3,067 3,789 3,700
Net income $ 5,076 $ 8,950 $ 5,544 $ 6,291 $ 6,495
(1) Does not reflect allowance for loan losses of $30,050, $28,027, $26,437, $23,645 and $23,101
* Tax exempt income assumed at a 35% federal rate
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Three Months Ended
09/30/09 06/30/09 03/31/09 12/31/08 09/30/08
Performance Ratios (annualized)
Return on Average Assets 0.71 % 1.25 % 0.76 % 0.86 % 0.90 %
Return on Average Equity 4.76 % 8.52 % 5.38 % 6.22 % 6.42 %
Non-Interest Income to Average Assets 1.09 % 2.13 % 1.52 % 0.79 % 0.74 %
Non-Interest Expense to Average Assets 2.71 % 3.00 % 2.75 % 2.62 % 2.71 %
Operating Efficiency Adjusted (2) 63.59 % 71.73 % 65.7 % 60.2 % 59.4 %
Analysis of Net Interest Income
Yield on:
Loans 5.59 % 5.64 % 5.63 % 5.98 % 6.25 %
Investment Securities- Tax Equivalent 3.87 % 4.70 % 5.17 % 5.09 % 5.19 %
Earning Assets- Tax Equivalent 4.97 % 5.14 % 5.33 % 5.66 % 5.91 %
Cost of:
Interest Bearing Deposits 0.84 % 1.04 % 1.30 % 1.56 % 1.54 %
Borrowings 3.92 % 3.96 % 3.71 % 3.17 % 3.47 %
Interest Bearing Liabilities 1.60 % 1.73 % 1.87 % 2.04 % 2.15 %
Net Interest Tax Equivalent:
Net Interest Rate Spread- Tax Equivalent Basis 3.38 % 3.41 % 3.46 % 3.63 % 3.76 %
Net Interest Margin- Tax Equivalent Basis 3.71 % 3.74 % 3.80 % 4.00 % 4.16 %
Capital Information Data
Tier 1 Leverage Ratio- Bank Only 8.64 % 9.04 % 8.49 % 8.32 % 8.01 %
Tier 1 Risk-Based Capital- Bank Only 246,339 240,392 235,902 229,395 226,053
Total Risk-Based Capital- Bank Only 270,807 264,076 259,686 253,040 249,154
Tangible Capital Consolidated 261,106 253,912 254,012 249,047 229,968
Tangible Capital as a % of Tangible A service of YellowBrix, Inc.
