|
California
|
000-23877
|
77-0469558
|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
150 Almaden Boulevard, San Jose, California
|
95113
|
||
|
(Address of principal executive offices)
|
(Zip Code)
|
||
|
Registrant’s telephone number, including area code: (408) 947-6900
|
|||
|
Not Applicable
|
|||
|
(Former name or former address, if changed since last report.)
|
|||
| 99.1 |
Press Release, dated July 28, 2011, entitled “Heritage Commerce Corp Earns $2.1 Million in Second Quarter 2011; Continued Credit Quality Improvement”
|
| 99.1 |
Press Release, dated July 28, 2011, entitled “Heritage Commerce Corp Earns $2.1
Million in Second Quarter 2011; Continued Credit Quality Improvement”
|
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|
u
|
The Company reported net income allocable to common shareholders of $1.5 million, or $0.05 per average diluted common share, for the second quarter of 2011.
|
|
u
|
Nonperforming assets declined 59% year-over-year to $24.5 million, or 1.94% of total assets at June 30, 2011, from $60.1 million, or 4.61% of total assets at June 30, 2010, and declined 11% from $27.5 million, or 2.19% of total assets at March 31, 2011.
|
|
u
|
Noninterest-bearing demand deposits rose by 34% to $333.2 million at June 30, 2011 from $249.0 million at June 30, 2010, and by 3% from $325.1 million at March 31, 2011.
|
|
u
|
The total cost of deposits decreased 39 basis points to 0.42% during the second quarter of 2011 from 0.81% during the second quarter of 2010, as a result of a reduction in higher-cost wholesale deposits and growth in noninterest-bearing demand deposits.
|
|
u
|
The net interest margin increased 11 basis points to 3.95% in the second quarter of 2011, from 3.84% in the second quarter of 2010, and remained flat compared to the first quarter of 2011.
|
|
u
|
Capital ratios substantially exceed regulatory requirements for a well-capitalized financial institution at both a holding company and bank level at June 30, 2011:
|
|
u
|
Capital ratios substantially exceed regulatory requirements for a well-capitalized financial institution, both at the holding company level and the bank level at June 30, 2011:
|
|
Capital Ratios
|
Well-Capitalized Regulatory Guidelines
|
Heritage Commerce Corp
|
Heritage Bank of Commerce
|
|
Total Risk-Based
|
10.0% | 22.0% | 19.5% |
|
Tier 1 Risk-Based
|
6.0% | 20.8% | 18.2% |
|
Leverage
|
5.0% | 15.5% | 13.6% |
|
u
|
The Company paid all the deferred interest payments on its outstanding trust preferred subordinated debt securities that it had previously accrued. The cash payment of the deferred interest did not impact the Company’s earnings for the three or six month periods ended June 30, 2011.
|
|
u
|
Heritage Commerce Corp was added to the Russell 3000 and Russell 2000 Indexes at the end of the second quarter, 2011.
|
|
u
|
Regulators issued a joint order in June 2011, terminating the regulatory Written Agreement as a result of the continued improvement of the Company’s and the Bank’s financial condition.
|
|
u
|
Net charge-offs declined 90% during the second quarter of 2011 to $1.8 million, compared to $18.4 million in the second quarter of 2010, and decreased 9% from $2.0 million in the first quarter of 2011.
|
|
u
|
The provision for loan losses was $955,000 in the second quarter of 2011, compared to $18.6 million in the second quarter of 2010, and $770,000 in the first quarter of 2011.
|
|
u
|
The allowance for loan losses at June 30, 2011 was $23.2 million, or 2.96% of total loans, compared to $26.8 million, or 2.85% of total loans at June 30, 2010, and $24.0 million, or 2.99% of total loans at March 31, 2011.
|
|
u
|
The allowance for loan losses to total nonperforming loans, or coverage ratio, improved to 95.51% at June 30, 2011, compared to 44.90% at June 30, 2010, and 90.41% at March 31, 2011.
|
|
u
|
Classified assets decreased to $76.1 million at June 30, 2011, from $151.1 million at June 30, 2010, and from $81.4 million at March 31, 2011.
|
|
u
|
Classified assets to Tier 1 capital plus the allowance for loan losses at the holding company and the bank level were 35% and 39% at June 30, 2011, respectively, compared to 108% and 84% at June 30, 2010, and 38% and 43%at March 31, 2011.
|
|
For the Three Months Ended:
|
Percent Change From:
|
For the Six Months Ended:
|
|||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
June 30,
|
March 31,
|
June 30,
|
March 31,
|
June 30,
|
June 30,
|
June 30,
|
Percent
|
|||||||||||||
|
(in $000's, unaudited)
|
2011
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
Change
|
|||||||||||||
|
Interest income
|
$ | 13,015 | $ | 12,986 | $ | 14,212 | 0% | -8% | $ | 26,001 | $ | 28,559 | -9% | ||||||||
|
Interest expense
|
1,543 | 1,790 | 2,784 | -14% | -45% | 3,333 | 5,762 | -42% | |||||||||||||
|
Net interest income before provision for loan losses
|
11,472 | 11,196 | 11,428 | 2% | 0% | 22,668 | 22,797 | -1% | |||||||||||||
|
Provision for loan losses
|
955 | 770 | 18,600 | 24% | -95% | 1,725 | 23,695 | -93% | |||||||||||||
|
Net interest income (loss) after provision for loan losses
|
10,517 | 10,426 | (7,172) | 1% | 247% | 20,943 | (898) | 2432% | |||||||||||||
|
Noninterest income:
|
|||||||||||||||||||||
|
Service charges and fees on deposit accounts
|
587 | 567 | 579 | 4% | 1% | 1,154 | 1,128 | 2% | |||||||||||||
|
Gain on sales of SBA loans
|
476 | 379 | 163 | 26% | 192% | 855 | 277 | 209% | |||||||||||||
|
Servicing income
|
435 | 411 | 425 | 6% | 2% | 846 | 846 | 0% | |||||||||||||
|
Increase in cash surrender value of life insurance
|
419 | 426 | 413 | -2% | 1% | 845 | 822 | 3% | |||||||||||||
|
Other
|
253 | 134 | 298 | 89% | -15% | 387 | 489 | -21% | |||||||||||||
|
Total noninterest income
|
2,170 | 1,917 | 1,878 | 13% | 16% | 4,087 | 3,562 | 15% | |||||||||||||
|
Noninterest expense:
|
|||||||||||||||||||||
|
Salaries and employee benefits
|
5,111 | 5,393 | 5,491 | -5% | -7% | 10,504 | 11,373 | -8% | |||||||||||||
|
Occupancy and equipment
|
1,031 | 1,038 | 983 | -1% | 5% | 2,069 | 1,942 | 7% | |||||||||||||
|
Professional fees
|
456 | 839 | 1,144 | -46% | -60% | 1,295 | 2,421 | -47% | |||||||||||||
|
FDIC deposit insurance premiums
|
383 | 524 | 1,019 | -27% | -62% | 907 | 2,210 | -59% | |||||||||||||
|
Impairment of goodwill
|
- | - | 43,181 | N/A | -100% | - | 43,181 | -100% | |||||||||||||
|
Other
|
2,491 | 2,637 | 2,734 | -6% | -9% | 5,128 | 5,624 | -9% | |||||||||||||
|
Total noninterest expense
|
9,472 | 10,431 | 54,552 | -9% | -83% | 19,903 | 66,751 | -70% | |||||||||||||
|
Income (loss) before income taxes
|
3,215 | 1,912 | (59,846) | 68% | 105% | 5,127 | (64,087) | 108% | |||||||||||||
|
Income tax expense (benefit)
|
1,129 | 331 | (5,753) | 241% | 120% | 1,460 | (5,874) | 125% | |||||||||||||
|
Net income (loss)
|
2,086 | 1,581 | (54,093) | 32% | 104% | 3,667 | (58,213) | 106% | |||||||||||||
|
Dividends and discount accretion on preferred stock
|
(604) | (596) | (1,009) | 1% | -40% | (1,200) | (1,600) | -25% | |||||||||||||
|
Net income (loss) allocable to common shareholders
|
$ | 1,482 | $ | 985 | $ | (55,102) | 50% | 103% | $ | 2,467 | $ | (59,813) | 104% | ||||||||
|
PER COMMON SHARE DATA
|
|||||||||||||||||||||
|
(unaudited)
|
|||||||||||||||||||||
|
Basic earnings (loss) per share
|
$ | 0.05 | $ | 0.03 | $ | (4.66) | 67% | 101% | $ | 0.08 | $ | (5.06) | 102% | ||||||||
|
Diluted earnings (loss) per share
|
$ | 0.05 | $ | 0.03 | $ | (4.66) | 67% | 101% | $ | 0.08 | $ | (5.06) | 102% | ||||||||
|
Common shares outstanding at period-end
|
26,295,001 | 26,233,001 | 11,820,509 | 0% | 122% | 26,295,001 | 11,820,509 | 122% | |||||||||||||
|
Pro forma common shares outstanding at period-end, assuming
|
|||||||||||||||||||||
|
Series C preferred stock was converted into common stock
|
31,896,001 | 31,834,001 | 11,820,509 | 0% | 170% | 31,896,001 | 11,820,509 | 170% | |||||||||||||
|
Book value per share
|
$ | 4.91 | $ | 4.76 | $ | 6.53 | 3% | -25% | $ | 4.91 | $ | 6.53 | -25% | ||||||||
|
Tangible book value per share
|
$ | 4.81 | $ | 4.65 | $ | 6.25 | 3% | -23% | $ | 4.81 | $ | 6.25 | -23% | ||||||||
|
Pro forma tangible book value per share, assuming Series C
|
|||||||||||||||||||||
|
preferred stock was converted into common stock
|
$ | 4.57 | $ | 4.45 | N/A | 3% | N/A | $ | 4.57 | N/A | N/A | ||||||||||
|
KEY FINANCIAL RATIOS
|
|||||||||||||||||||||
|
(unaudited)
|
|||||||||||||||||||||
|
Annualized return (loss) on average equity
|
4.50% | 3.51% | -121.78% | 28% | 104% | 4.01% | -66.70% | 106% | |||||||||||||
|
Annualized return (loss) on average tangible equity
|
4.57% | 3.57% | -164.27% | 28% | 103% | 4.08% | -90.59% | 105% | |||||||||||||
|
Annualized return (loss) on average assets
|
0.66% | 0.51% | -16.28% | 29% | 104% | 0.59% | -8.74% | 107% | |||||||||||||
|
Annualized return (loss) on average tangible assets
|
0.66% | 0.51% | -16.86% | 29% | 104% | 0.59% | -9.05% | 107% | |||||||||||||
|
Net interest margin
|
3.95% | 3.95% | 3.84% | 0% | 3% | 3.95% | 3.83% | 3% | |||||||||||||
|
Efficiency ratio, excluding impairment of goodwill
|
69.43% | 79.55% | 85.46% | -13% | -19% | 74.39% | 89.42% | -17% | |||||||||||||
|
AVERAGE BALANCES
|
|||||||||||||||||||||
|
(in $000's, unaudited)
|
|||||||||||||||||||||
|
Average assets
|
$ | 1,266,147 | $ | 1,248,333 | $ | 1,332,927 | 1% | -5% | $ | 1,257,290 | $ | 1,343,401 | -6% | ||||||||
|
Average tangible assets
|
$ | 1,263,318 | $ | 1,245,372 | $ | 1,286,839 | 1% | -2% | $ | 1,254,395 | $ | 1,297,001 | -3% | ||||||||
|
Average earning assets
|
$ | 1,163,684 | $ | 1,150,061 | $ | 1,193,365 | 1% | -2% | $ | 1,156,910 | $ | 1,200,912 | -4% | ||||||||
|
Average loans held-for-sale
|
$ | 7,611 | $ | 10,132 | $ | 11,407 | -25% | -33% | $ | 8,864 | $ | 12,090 | -27% | ||||||||
|
Average total loans
|
$ | 799,228 | $ | 833,645 | $ | 991,580 | -4% | -19% | $ | 816,342 | $ | 1,021,180 | -20% | ||||||||
|
Average deposits
|
$ | 1,012,992 | $ | 999,191 | $ | 1,070,704 | 1% | -5% | $ | 1,006,130 | $ | 1,072,410 | -6% | ||||||||
|
Average demand deposits - noninterest-bearing
|
$ | 332,535 | $ | 312,041 | $ | 258,902 | 7% | 28% | $ | 322,345 | $ | 256,671 | 26% | ||||||||
|
Average interest-bearing deposits
|
$ | 680,457 | $ | 687,150 | $ | 811,802 | -1% | -16% | $ | 683,785 | $ | 815,739 | -16% | ||||||||
|
Average interest-bearing liabilities
|
$ | 705,164 | $ | 716,475 | $ | 860,897 | -2% | -18% | $ | 710,788 | $ | 873,859 | -19% | ||||||||
|
Average equity
|
$ | 185,911 | $ | 182,451 | $ | 178,167 | 2% | 4% | $ | 184,191 | $ | 175,989 | 5% | ||||||||
|
Average tangible equity
|
$ | 183,082 | $ | 179,490 | $ | 132,079 | 2% | 39% | $ | 181,296 | $ | 129,589 | 40% | ||||||||
|
End of Period:
|
Percent Change From:
|
||||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
June 30,
|
March 31,
|
June 30,
|
March 31,
|
June 30,
|
||||||||
|
(in $000's, unaudited)
|
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||
|
ASSETS
|
|||||||||||||
|
Cash and due from banks
|
$ | 20,334 | $ | 18,928 | $ | 23,904 | 7% | -15% | |||||
|
Federal funds sold
|
- | - | 100 | N/A | -100% | ||||||||
|
Interest-bearing deposits in other financial institutions
|
67,928 | 88,540 | 84,496 | -23% | -20% | ||||||||
|
Securities available-for-sale, at fair value
|
302,968 | 250,132 | 142,212 | 21% | 113% | ||||||||
|
Loans held-for-sale - SBA, including deferred costs
|
3,657 | 7,141 | 12,291 | -49% | -70% | ||||||||
|
Loans held-for-sale - other, including deferred costs
|
435 | 2,223 | 17,079 | -80% | -97% | ||||||||
|
Loans:
|
|||||||||||||
|
Commercial
|
358,227 | 365,748 | 388,471 | -2% | -8% | ||||||||
|
Real estate:
|
|||||||||||||
|
Commercial and residential
|
315,426 | 320,950 | 373,000 | -2% | -15% | ||||||||
|
Land and construction
|
41,987 | 50,496 | 110,194 | -17% | -62% | ||||||||
|
Home equity
|
52,621 | 52,129 | 52,419 | 1% | 0% | ||||||||
|
Consumer
|
13,040 | 13,174 | 12,837 | -1% | 2% | ||||||||
|
Loans
|
781,301 | 802,497 | 936,921 | -3% | -17% | ||||||||
|
Deferred loan costs, net
|
779 | 853 | 852 | -9% | -9% | ||||||||
|
Total loans, including deferred costs
|
782,080 | 803,350 | 937,773 | -3% | -17% | ||||||||
|
Allowance for loan losses
|
(23,167) | (24,009) | (26,753) | -4% | -13% | ||||||||
|
Loans, net
|
758,913 | 779,341 | 911,020 | -3% | -17% | ||||||||
|
Company owned life insurance
|
44,776 | 44,107 | 42,827 | 2% | 5% | ||||||||
|
Premises and equipment, net
|
8,086 | 8,219 | 8,726 | -2% | -7% | ||||||||
|
Intangible assets
|
2,753 | 2,884 | 3,302 | -5% | -17% | ||||||||
|
Accrued interest receivable and other assets
|
52,219 | 53,895 | 57,803 | -3% | -10% | ||||||||
|
Total assets
|
$ | 1,262,069 | $ | 1,255,410 | $ | 1,303,760 | 1% | -3% | |||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||||||||
|
Liabilities:
|
|||||||||||||
|
Deposits:
|
|||||||||||||
|
Demand, noninterest-bearing
|
$ | 333,199 | $ | 325,058 | $ | 249,017 | 3% | 34% | |||||
|
Demand, interest-bearing
|
128,464 | 135,903 | 153,173 | -5% | -16% | ||||||||
|
Savings and money market
|
276,538 | 262,763 | 281,619 | 5% | -2% | ||||||||
|
Time deposits - under $100
|
30,676 | 32,592 | 38,201 | -6% | -20% | ||||||||
|
Time deposits - $100 and over
|
114,208 | 128,156 | 133,443 | -11% | -14% | ||||||||
|
Time deposits - CDARS
|
20,839 | 21,025 | 18,240 | -1% | 14% | ||||||||
|
Time deposits - brokered
|
94,631 | 97,826 | 163,732 | -3% | -42% | ||||||||
|
Total deposits
|
998,555 | 1,003,323 | 1,037,425 | 0% | -4% | ||||||||
|
Securities sold under agreement to repurchase
|
- | - | 20,000 | N/A | -100% | ||||||||
|
Subordinated debt
|
23,702 | 23,702 | 23,702 | 0% | 0% | ||||||||
|
Short-term borrowings
|
- | 2,174 | 3,992 | -100% | -100% | ||||||||
|
Accrued interest payable and other liabilities
|
52,333 | 42,979 | 32,997 | 22% | 59% | ||||||||
|
Total liabilities
|
1,074,590 | 1,072,178 | 1,118,116 | 0% | -4% | ||||||||
|
Shareholders' Equity:
|
|||||||||||||
|
Series A preferred stock, net
|
38,813 | 38,715 | 38,431 | 0% | 1% | ||||||||
|
Series B preferred stock, net
|
- | - | 50,385 | N/A | -100% | ||||||||
|
Series C preferred stock, net
|
19,519 | 19,519 | 19,599 | 0% | 0% | ||||||||
|
Common stock
|
130,836 | 130,682 | 80,810 | 0% | 62% | ||||||||
|
Retained earnings / (Accumulated deficit)
|
601 | (881) | (3,012) | 168% | 120% | ||||||||
|
Accumulated other comprehensive loss
|
(2,290) | (4,803) | (569) | 52% | -302% | ||||||||
|
Total shareholders' equity
|
187,479 | 183,232 | 185,644 | 2% | 1% | ||||||||
|
Total liabilities and shareholders' equity
|
$ | 1,262,069 | $ | 1,255,410 | $ | 1,303,760 | 1% | -3% | |||||
|
End of Period:
|
Percent Change From:
|
||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
March 31,
|
June 30,
|
|||||||||
|
2011
|
2011
|
2010
|
2011
|
2010
|
|||||||||
|
CREDIT QUALITY DATA
|
|||||||||||||
|
(in $000's, unaudited)
|
|||||||||||||
|
Nonaccrual loans - held-for-sale
|
$ | 202 | $ | 1,989 | $ | 9,806 | -90% | -98% | |||||
|
Nonaccrual loans - held-for-investment
|
21,607 | 22,896 | 47,263 | -6% | -54% | ||||||||
|
Restructured and loans over 90 days past due and still accruing
|
2,448 | 1,671 | 2,516 | 46% | -3% | ||||||||
|
Total nonperforming loans
|
24,257 | 26,556 | 59,585 | -9% | -59% | ||||||||
|
Other real estate owned
|
248 | 918 | 555 | -73% | -55% | ||||||||
|
Total nonperforming assets
|
$ | 24,505 | $ | 27,474 | $ | 60,140 | -11% | -59% | |||||
|
Net charge-offs during the quarter
|
$ | 1,797 | $ | 1,965 | $ | 18,374 | -9% | -90% | |||||
|
Provision for loan losses during the quarter
|
$ | 955 | $ | 770 | $ | 18,600 | 24% | -95% | |||||
|
Allowance for loan losses
|
$ | 23,167 | $ | 24,009 | $ | 26,753 | -4% | -13% | |||||
|
Classified assets
|
$ | 76,142 | $ | 81,422 | $ | 151,111 | -6% | -50% | |||||
|
Allowance for loan losses to total loans
|
2.96% | 2.99% | 2.85% | -1% | 4% | ||||||||
|
Allowance for loan losses to total nonperforming loans
|
95.51% | 90.41% | 44.90% | 6% | 113% | ||||||||
|
Allowance for loan losses to total nonperforming loans,
|
|||||||||||||
|
excluding nonaccrual loans - held-for-sale
|
96.31% | 97.73% | 53.74% | -1% | 79% | ||||||||
|
Nonperforming assets to total assets
|
1.94% | 2.19% | 4.61% | -11% | -58% | ||||||||
|
Nonperforming loans to total loans plus
|
|||||||||||||
|
nonaccrual loans - held-for-sale
|
3.10% | 3.30% | 6.29% | -6% | -51% | ||||||||
|
OTHER PERIOD-END STATISTICS
|
|||||||||||||
|
(in $000's, unaudited)
|
|||||||||||||
|
Heritage Commerce Corp:
|
|||||||||||||
|
Tangible equity
|
$ | 184,726 | $ | 180,348 | $ | 182,342 | 2% | 1% | |||||
|
Tangible common equity
|
$ | 126,394 | $ | 122,114 | $ | 73,927 | 4% | 71% | |||||
|
Shareholders' equity / total assets
|
14.85% | 14.60% | 14.24% | 2% | 4% | ||||||||
|
Tangible equity / tangible assets
|
14.67% | 14.40% | 14.02% | 2% | 5% | ||||||||
|
Tangible common equity / tangible assets
|
10.04% | 9.75% | 5.68% | 3% | 77% | ||||||||
|
Loan to deposit ratio
|
78.32% | 80.07% | 90.39% | -2% | -13% | ||||||||
|
Noninterest-bearing deposits / total deposits
|
33.37% | 32.40% | 24.00% | 3% | 39% | ||||||||
|
Total risk-based capital ratio
|
22.0% | 21.2% | 18.7% | 4% | 18% | ||||||||
|
Tier 1 risk-based capital ratio
|
20.8% | 19.9% | 10.7% | 5% | 94% | ||||||||
|
Leverage ratio
|
15.5% | 15.3% | 8.6% | 1% | 80% | ||||||||
|
Heritage Bank of Commerce:
|
|||||||||||||
|
Total risk-based capital ratio
|
19.5% | 18.5% | 15.8% | 5% | 23% | ||||||||
|
Tier 1 risk-based capital ratio
|
18.2% | 17.3% | 14.5% | 5% | 26% | ||||||||
|
Leverage ratio
|
13.6% | 13.3% | 11.7% | 2% | 16% | ||||||||
|
For the Three Months Ended
|
For the Three Months Ended
|
|||||||||||||||
|
June 30, 2011
|
June 30, 2010
|
|||||||||||||||
|
Interest
|
Average
|
Interest
|
Average
|
|||||||||||||
|
NET INTEREST INCOME AND NET INTEREST MARGIN
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
||||||||||
|
(in $000's, unaudited)
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
||||||||||
|
Assets:
|
||||||||||||||||
|
Loans, gross*
|
$ | 806,839 | $ | 10,685 | 5.31% | $ | 1,002,987 | $ | 12,737 | 5.09% | ||||||
|
Securities
|
278,908 | 2,278 | 3.28% | 149,254 | 1,458 | 3.92% | ||||||||||
|
Federal funds sold and interest-
|
||||||||||||||||
|
bearing deposits in other financial institutions
|
77,937 | 52 | 0.27% | 41,124 | 17 | 0.17% | ||||||||||
|
Total interest earning assets
|
1,163,684 | 13,015 | 4.49% | 1,193,365 | 14,212 | 4.78% | ||||||||||
|
Cash and due from banks
|
20,932 | 20,821 | ||||||||||||||
|
Premises and equipment, net
|
8,160 | 8,825 | ||||||||||||||
|
Goodwill and other intangible assets
|
2,829 | 46,088 | ||||||||||||||
|
Other assets
|
70,542 | 63,828 | ||||||||||||||
|
Total assets
|
$ | 1,266,147 | $ | 1,332,927 | ||||||||||||
|
Liabilities and shareholders' equity:
|
||||||||||||||||
|
Deposits:
|
||||||||||||||||
|
Demand, noninterest-bearing
|
$ | 332,535 | $ | 258,902 | ||||||||||||
|
Demand, interest-bearing
|
$ | 132,079 | 65 | 0.20% | $ | 150,565 | 83 | 0.22% | ||||||||
|
Savings and money market
|
280,870 | 259 | 0.37% | 294,628 | 363 | 0.49% | ||||||||||
|
Time deposits - under $100
|
32,194 | 61 | 0.76% | 38,514 | 133 | 1.39% | ||||||||||
|
Time deposits - $100 and over
|
121,929 | 342 | 1.13% | 132,062 | 470 | 1.43% | ||||||||||
|
Time deposits - CDARS
|
21,254 | 24 | 0.45% | 18,849 | 48 | 1.02% | ||||||||||
|
Time deposits - brokered
|
92,131 | 317 | 1.38% | 177,184 | 1,060 | 2.40% | ||||||||||
|
Total interest-bearing deposits
|
680,457 | 1,068 | 0.63% | 811,802 | 2,157 | 1.07% | ||||||||||
|
Total deposits
|
1,012,992 | 1,068 | 0.42% | 1,070,704 | 2,157 | 0.81% | ||||||||||
|
Subordinated debt
|
23,702 | 467 | 7.90% | 23,702 | 468 | 7.92% | ||||||||||
|
Securities sold under agreement to repurchase
|
- | - | N/A | 20,000 | 113 | 2.27% | ||||||||||
|
Short-term borrowings
|
1,005 | 8 | 3.19% | 5,393 | 46 | 3.42% | ||||||||||
|
Total interest-bearing liabilities
|
705,164 | 1,543 | 0.88% | 860,897 | 2,784 | 1.30% | ||||||||||
|
Total interest-bearing liabilities and demand,
|
||||||||||||||||
|
noninterest-bearing / cost of funds
|
1,037,699 | 1,543 | 0.60% | 1,119,799 | 2,784 | 1.00% | ||||||||||
|
Other liabilities
|
42,537 | 34,961 | ||||||||||||||
|
Total liabilities
|
1,080,236 | 1,154,760 | ||||||||||||||
|
Shareholders' equity
|
185,911 | 178,167 | ||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 1,266,147 | $ | 1,332,927 | ||||||||||||
|
|
||||||||||||||||
|
Net interest income / margin
|
$ | 11,472 | 3.95% | $ | 11,428 | 3.84% | ||||||||||
|
For the Six Months Ended
|
For the Six Months Ended
|
|||||||||||||||
|
June 30, 2011
|
June 30, 2010
|
|||||||||||||||
|
Interest
|
Average
|
Interest
|
Average
|
|||||||||||||
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||
|
Assets:
|
||||||||||||||||
|
Loans, gross*
|
$ | 825,206 | $ | 21,675 | 5.30% | $ | 1,033,270 | $ | 25,911 | 5.06% | ||||||
|
Securities
|
262,476 | 4,240 | 3.26% | 138,191 | 2,621 | 3.82% | ||||||||||
|
Federal funds sold and interest-
|
||||||||||||||||
|
bearing deposits in other financial institutions
|
69,228 | 86 | 0.25% | 29,451 | 27 | 0.18% | ||||||||||
|
Total interest earning assets
|
1,156,910 | 26,001 | 4.53% | 1,200,912 | 28,559 | 4.80% | ||||||||||
|
Cash and due from banks
|
20,743 | 21,002 | ||||||||||||||
|
Premises and equipment, net
|
8,244 | 8,891 | ||||||||||||||
|
Goodwill and other intangible assets
|
2,895 | 46,400 | ||||||||||||||
|
Other assets
|
68,498 | 66,196 | ||||||||||||||
|
Total assets
|
$ | 1,257,290 | $ | 1,343,401 | ||||||||||||
|
Liabilities and shareholders' equity:
|
||||||||||||||||
|
Deposits:
|
||||||||||||||||
|
Demand, noninterest-bearing
|
$ | 322,345 | $ | 256,671 | ||||||||||||
|
Demand, interest-bearing
|
133,907 | 132 | 0.20% | 149,966 | 169 | 0.23% | ||||||||||
|
Savings and money market
|
274,346 | 526 | 0.39% | 298,111 | 762 | 0.52% | ||||||||||
|
Time deposits - under $100
|
32,698 | 132 | 0.81% | 39,036 | 281 | 1.45% | ||||||||||
|
Time deposits - $100 and Over
|
127,856 | 761 | 1.20% | 132,215 | 968 | 1.48% | ||||||||||
|
Time deposits - CDARS
|
21,389 | 49 | 0.46% | 19,110 | 101 | 1.07% | ||||||||||
|
Time deposits - brokered
|
93,589 | 739 | 1.59% | 177,301 | 2,240 | 2.55% | ||||||||||
|
Total interest-bearing deposits
|
683,785 | 2,339 | 0.69% | 815,739 | 4,521 | 1.12% | ||||||||||
|
Total deposits
|
1,006,130 | 2,339 | 0.47% | 1,072,410 | 4,521 | 0.85% | ||||||||||
|
Subordinated debt
|
23,702 | 932 | 7.93% | 23,702 | 934 | 7.95% | ||||||||||
|
Securities sold under agreement to repurchase
|
1,436 | 24 | 3.37% | 21,354 | 244 | 2.30% | ||||||||||
|
Short-term borrowings
|
1,865 | 38 | 4.11% | 13,064 | 63 | 0.97% | ||||||||||
|
Total interest-bearing liabilities
|
710,788 | 3,333 | 0.95% | 873,859 | 5,762 | 1.33% | ||||||||||
|
Total interest-bearing liabilities and demand,
|
||||||||||||||||
|
noninterest-bearing / cost of funds
|
1,033,133 | 3,333 | 0.65% | 1,130,530 | 5,762 | 1.03% | ||||||||||
|
Other liabilities
|
39,966 | 36,882 | ||||||||||||||
|
Total liabilities
|
1,073,099 | 1,167,412 | ||||||||||||||
|
Shareholders' equity
|
184,191 | 175,989 | ||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 1,257,290 | $ | 1,343,401 | ||||||||||||
|
|
||||||||||||||||
|
Net interest income / margin
|
$ | 22,668 | 3.95% | $ | 22,797 | 3.83% | ||||||||||
|
*Includes loans held-for-sale. Yield amounts earned on loans include loan fees and costs. Nonaccrual loans are included in average balance.
|
||||||||||||||||
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