-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ir5Y5YVO36rVURb6Hl50zPT3oL9Lq5i3l11650ZDY+VNpGRjPkVo2DHDtTvmHgaD vN1bbatQjXs3nIU1nh1INQ== 0000943374-07-000657.txt : 20070430 0000943374-07-000657.hdr.sgml : 20070430 20070430091433 ACCESSION NUMBER: 0000943374-07-000657 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070430 DATE AS OF CHANGE: 20070430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROVIDENT NEW YORK BANCORP CENTRAL INDEX KEY: 0001070154 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 800091851 STATE OF INCORPORATION: DE FISCAL YEAR END: 0906 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25233 FILM NUMBER: 07797971 BUSINESS ADDRESS: STREET 1: 400 RELLA BLVD CITY: MONTEBELLO STATE: NY ZIP: 10901 BUSINESS PHONE: 8453698040 MAIL ADDRESS: STREET 1: 400 RELLA BLVD CITY: MONTEBELLO STATE: NY ZIP: 10901 FORMER COMPANY: FORMER CONFORMED NAME: PROVIDENT BANCORP INC/NY/ DATE OF NAME CHANGE: 19980910 8-K 1 form8k_042507.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 25, 2007 PROVIDENT NEW YORK BANCORP -------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 0-25233 80-0091851 - ----------------------------- --------------------- ------------------- (State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer of Incorporation) Identification No.) 400 Rella Boulevard, Montebello, New York 10901 - ----------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (845) 369-8040 Not Applicable -------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition --------------------------------------------- On April 25, 2007, the Company issued a press release regarding its earnings for the fiscal quarter ended March 31, 2007. The press release is included as Exhibit 99 to this report. The information included in Exhibit 99 is considered to be "furnished" under the Securities Exchange Act of 1934. Item 9.01. Financial Statements and Exhibits --------------------------------- The Index of Exhibits immediately precedes the attached exhibits. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. PROVIDENT NEW YORK BANCORP DATE: April 25, 2007 By: /s/ Paul A. Maisch ---------------------------------- Paul A. Maisch Executive Vice President and Chief Financial Officer EXHIBIT INDEX The following exhibits are furnished as part of this report: Exhibit No. Description ---------- ----------- 99 Press Release of Provident New York Bancorp Dated April 25, 2007 EXHIBIT 99 PRESS RELEASE OF PROVIDENT NEW YORK BANCORP EX-99 2 form8k_press-042507.txt PRESS RELEASE Provident New York Bancorp Provident New York Bancorp News Release 400 Rella Boulevard Montebello, NY 10901-4243 T 845.369.8040 F 845.369.8255 www.providentbanking.com FOR IMMEDIATE RELEASE Stock Symbol: PBNY April 25, 2007 Traded on NASDAQ Global Select Market PROVIDENT BANK CONTACT: Paul A. Maisch, EVP & Chief Financial Officer Miranda Grimm, VP & Controller 845.369.8040 PROVIDENT NEW YORK BANCORP ANNOUNCES QUARTERLY EARNINGS OF $4.4 MILLION, OR $0.11 PER DILUTED SHARE MONTEBELLO, NY - April 25, 2007 - Provident New York Bancorp (Nasdaq-Global Select Market: PBNY), the parent company of Provident Bank, today announced that for three months ended March 31, 2007, net income was $4.4 million, or $0.11 per diluted share, the same as the three months ended March 31, 2006. For the six months ended March 31, 2007, net income was $9.0 million, or $0.22 per diluted share, compared to net income of $9.6 million, or $0.23 per diluted share, for the six months ended March 31, 2006. George Strayton, President and CEO commented: "With the stabilizing rate environment and the strength of our loyal customer base, we have been able to significantly reduce deposit migration as we had anticipated. We are pleased that our interest income growth is now outpacing interest expense growth. Our net interest margin of 3.50% for the second quarter of 2007 has shown growth over both the previous quarter (3.28%) and the fourth quarter of 2006 (3.46%). This improvement was fueled by our continued strong commercial loan growth, up by $63 million, or 16% on an annualized basis over year end 2006. Our ability to control interest expense was aided by our ongoing disciplined deposit pricing applied across our customer base. The net income results were achieved despite marketing-related costs required to implement our strategy for long-term growth. As we seek to enhance revenues, we have strengthened our opportunities through new revenue streams including our recently acquired investment management firm, Hudson Valley Investment Advisors LLC, and through new products launched during the quarter such as Remote Deposit capabilities to broaden our customer base. In addition, we expect to see results from our Service Excellence Program, enabling us to serve our customers more effectively and efficiently - just a few of the programs and products that I believe position us well for continued growth." Second quarter operating summary: - --------------------------------- o Net interest margin increased 22 basis points compared to the linked quarter ended December 31, 2006. This was mainly the result of increases in yields on loans and investment securities outpacing the costs of deposits and borrowings. Provident New York Bancorp Press Release cont. 2 o Net interest income declined by $537,000, or 2.6% from the previous year's quarter, and tax equivalent net interest margin declined by 24 basis points. o Non-interest income increased $942,000, or 23.8%, compared to the quarter ended March 31, 2006, as a result of investment management fee growth, increases in deposit services fees and gains associated with the Company's student loan portfolio. o Non-interest expense increased $426,000, or 2.4%, compared to the previous year's quarter, mainly due to increased expenses associated with marketing the Company's loan and deposit products and professional fees related to our investment management subsidiary, Hudson Valley Investment Advisors ("HVIA"). Key Balance Sheet Changes at March 31, 2007 vs. September 30, 2006 - ------------------------------------------------------------------ o Total assets at March 31, 2007 decreased slightly to $2.8 billion, down $40.0 million, or 1.4%, from September 30, 2006. o Gross loans, excluding loans held for sale, grew $86.8 million to $1.6 billion, largely due to a $63.0 million, or 8.0%, increase in commercial loans. o Securities decreased $116.4 million to $896.4 million, as the Company paid down high-cost borrowings with maturing securities. o Money market accounts and certificates of deposit increased by $25.4 million and $13.1 million, respectively, offsetting a decline in savings accounts of $13.5 million. Transaction deposits decreased $14.4 million to $506.2 million. o The Company currently does not hold any subprime loans. Non-performing assets increased $3.3 million from September 30, 2006 as payment on certain previously criticized loans ceased or slowed further, resulting in their categorization as nonperforming. No significant increase in loan loss reserves was required by this classification. o Stockholders' equity increased $7.4 million to $412.6 million primarily due to net retentions of earnings of $5.2 million, $3.4 million in stock-based compensation and a decrease in other comprehensive loss on available-for-sale securities (SFAS No.115) of $3.5 million to $4.1 million. Offsetting these increases were repurchases of 354,000 shares of stock at a cost of $4.8 million under the Company's stock repurchase program, all of which occurred during the quarter ended March 31, 2007. Key Operating Results - Quarter Ended March 31, 2007 vs. March 31, 2006 - ----------------------------------------------------------------------- Net interest income decreased $537,000, or 2.6%, to $20.5 million primarily as a result of an increase in interest expense of $2.7 million for deposits and $2.3 million for borrowings. This was offset in part by an increase in interest income of $4.5 million over last year's quarter. Tax equivalent net interest margin decreased from 3.74% for the three months ended March 31, 2006 to 3.50% for the same period in 2007. In the quarter ended March 31, 2006 interest expense was reduced by $225,000 due to accretion recorded on a called borrowing. Average interest-earning assets increased by $130.5 million compared to the prior year's quarter, including an increase of $145.2 million in loans, partially offset by a decrease of $19.7 million in securities. The overall tax equivalent yield on earning assets increased 47 basis points to 6.26%. These factors led an increase of $4.5 million in gross interest income. The cost of interest-bearing liabilities increased by 87 basis points to 3.39%. Increases of $81.3 million in average borrowings and $39.9 million in average interest-bearing deposits resulted in increased interest expense of $5.1 million, to $16.8 million. The difference in the mix of deposits also contributed to higher interest expense. Higher cost certificates of deposit grew, on average, by $79.6 million, while the average balance of lower cost savings accounts declined by $79.9 million. Provident New York Bancorp Press Release cont. 3 Non-interest income increased by $942,000, or 23.8% for the three months ended March 31, 2007 compared to the same period the prior year. Investment management fees increased by $514,000 primarily due to fees earned by our investment management subsidiary, HVIA acquired in June of 2006. An increase in deposit services charges and fees of $253,000, or 10.0%, offset a decline in title insurance fees of $109,000 due to a slowdown in the real estate markets. Other non-interest income increased $271,000 due to gains associated with the Company's student loan portfolio. The Company expects to cease student loan originations by the end of 2007. Total non-interest expense increased by $426,000, or 2.4%, to $18.6 million primarily due to increased marketing expenses of $472,000 and professional fees of $284,000 (HVIA management fees). Compensation and benefits expense declined $209,000 for the quarter due to savings from retirement plan changes implemented in the prior year. Stock-based compensation declined by $193,000 mainly due to an ESOP expenses adjustment in the prior year resulting from changes in vesting assumptions. ATM/debit card expense increased $113,000 due to volume increases, which was more than offset by lower data and check processing expenses of $150,000 (in telecommunication costs) and proof of delivery costs. Other expenses increased by $150,000 primarily due to business development and training expense increases. The Company's effective tax rate for the quarter ended March 31, 2007 was 30.8%, compared to 32.5% for the quarter ended March 31, 2006. The lower rate reflects the higher utilization of tax-exempt securities. Key Operating Results - Six Months Ended March 31, 2007 vs. March 31, 2006 - -------------------------------------------------------------------------- Net interest income decreased $2.2 million or 5.2%, to $40.2 million primarily as a result of an increase in interest expense of $6.6 million for deposits and $6.0 million for borrowings. This was offset in part by an increase in interest income of $10.5 million over last year's period. Tax equivalent net interest margin decreased from 3.79% for the six months ended March 31, 2006 to 3.39% for the same period in 2007. Average interest-earning assets increased by $170.7 million compared to the prior year, including an increase of $137.2 million in loans and $33.5 million in securities and other earning assets. This resulted in an increase in yield on earning assets of 49 basis points to 6.18%. The cost of interest-bearing liabilities increased by 104 basis points to 3.41%. Short-term borrowing rates increased 108 basis points, compounded by the increase of $108.7 million in the average balance of higher-cost certificates of deposit, offsetting a decline of $91.4 million in average savings account balances from the previous year. When combined with increases of $126.9 million in average borrowings and $54.5 million in average interest-bearing deposits, the result was increased interest expense of $12.6 million, to $34.4 million. The difference in the mix of deposits also contributed to higher interest expense. Non-interest income increased by $1.9 million, or 23.7% for the six months ended March 31, 2007 compared to the same period the prior year. Investment management fees increased by $879,000 primarily due to fees earned by our investment management subsidiary, HVIA. Increases in deposit services fees of $431,000 offset a decline in title insurance fees of $260,000 due to a slowdown in the real estate markets. Income from Bank-owned Life Insurance increased by $374,000 due to death benefit proceeds received in the first fiscal quarter of 2007. Other non-interest income increased $482,000 due to gains on the disposition of real estate of $212,000 in the first quarter of 2007 and gains associated with the Company's student loan portfolio of $326,000. Provident New York Bancorp Press Release cont. 4 Total non-interest expense increased by $933,000, or 2.6%, to $36.5 million primarily due to increased marketing expenses of $763,000 and professional fees of $419,000 (HVIA management fees). Compensation and benefits expense declined $240,000 from the prior year due to savings from retirement plan changes implemented in the prior year. Stock-based compensation declined by $329,000 due to lower acceleration of vesting of restricted stock awards and prior year ESOP adjustments. The ATM/debit card expense increase of $211,000 was offset by lower data and check processing expenses of $375,000 as we took our data processing operations in-house in November of 2005. Other non-interest expenses increased by $363,000 mainly due to increases in business development and training expenses, courier and correspondent expenses, and regulatory assessments. The Company's effective tax rate for the six months ended March 31, 2007 was 29.4%, compared to 32.8% for the six months ended March 31, 2006. The lower rate reflects the higher utilization of tax-exempt securities and receipt of the non-taxable BOLI death benefit proceeds. Additional information - ---------------------- At March 31, 2007, the Company had $237.4 million in investment securities that will mature or reprice within the next 12 months. The average tax equivalent yield of these investments is 3.96%. Depending on the market conditions at the point of reinvestment, proceeds from the maturities will be either reinvested at the current market rates or borrowings will be reduced. The Company maintains two ESOP loans, which release a total of 188,000 shares per year. The Company's first ESOP loan will be paid off as of December 31, 2007. As a result, after December 31, 2007, expense will be recorded on the annual release of only 50,000 shares. On March 30, 2007, the Company received notice of the disallowance of certain expenses related to Warwick Community Bancorp, Inc.'s disposition of assets prior to its acquisition by the Company. This disallowance of $2.3 million in federal income taxes, if realized, would result in a reduction of a refund receivable. The Company intends to vigorously contest the disallowance. After further research, since filing Form 8-K (April 5, 2007) on this matter, the Company believes that any disallowance realized would adjust goodwill recorded in connection with the acquisition. Consistent with its long-standing credit policies, Provident Bank does not originate or hold any subprime mortgage loans, which we consider to be loans to borrowers with subprime credit scores combined with either high loan-to-value or high debt-to-income ratios. We also hold no subprime loans in our investment portfolio. Note: In addition to historical information, this earnings release may contain forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. There are a number of important factors that have been outlined in previously filed documents 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. Provident New York Bancorp Press Release cont. 5 Provident New York Bancorp and Subsidiaries CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (unaudited, in thousands, except share and per share data)
March 31, September 30, March 31, --------- ------------ --------- 2007 2006 2006 ---- ---- ---- Assets: Cash and due from banks $ 48,397 $ 57,293 $ 55,110 Total securities 896,351 1,012,716 993,401 Loans held for sale 689 7,473 460 Loans: One- to four-family residential mortgage loans 479,022 462,996 463,003 Commercial real estate, commercial business and construction loans 850,039 787,086 738,276 Consumer loans 231,332 223,476 204,317 ---------- ---------- ------- Total loans, gross 1,560,393 1,473,558 1,405,596 Allowance for loan losses (20,435) (20,373) (20,093) ---------- ---------- -------- Total loans, net 1,539,958 1,453,185 1,385,503 ---------- ---------- --------- Federal Home Loan Bank stock, at cost 30,660 33,518 27,260 Premises and equipment, net 29,718 31,739 32,461 Goodwill 159,813 159,817 157,526 Other amortizable intangibles 12,556 14,189 12,122 Bank owned life insurance 39,954 39,308 38,475 Other assets 43,269 32,099 43,310 ---------- ---------- ------ Total assets $2,801,365 $2,841,337 $2,745,628 ========== ========== ========== Liabilities: Deposits: Demand deposits $ 349,352 $ 366,847 378,182 NOW deposits 156,875 153,732 143,381 ---------- ---------- ------- Total transaction accounts 506,227 520,579 521,563 Savings 364,808 378,337 433,306 Money market deposits 264,417 238,977 235,652 Certificates of deposit 604,853 591,766 588,768 ---------- ---------- ------- Total deposits 1,740,305 1,729,659 1,779,289 Borrowings 618,643 682,739 546,210 Mortgage escrow funds and other 29,779 23,653 32,836 ---------- ---------- ------ Total liabilities 2,388,727 2,436,051 2,358,335 Stockholders' equity 412,638 405,286 387,293 ---------- ---------- ------- Total liabilities and stockholders' equity $2,801,365 $2,841,337 $2,745,628 ========== ========== ========== Shares of common stock outstanding at period end 42,376,905 42,699,046 42,424,255 Book value per share $9.74 $9.49 $9.13
Provident New York Bancorp Press Release cont. 6 Provident New York Bancorp and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except share and per share data)
Three Months Ended Six Months Ended March 31, March 31, 2007 2006 2007 2006 ---- ---- ---- ---- Interest and dividend income: Loans and loan fees $26,663 $23,119 $52,951 45,596 Securities 9,974 9,267 20,474 17,896 Other earning assets 628 358 1,179 656 ------- ------ ------ ------ Total interest and dividend income 37,265 32,744 74,604 64,148 ------- ------- ------- ------ Interest expense: Deposits 8,829 6,096 17,963 11,354 Borrowings 7,968 5,643 16,478 10,439 ------- ------ ------ ------ Total interest expense 16,797 11,739 34,441 21,793 ------- ------ ------ ------ Net interest income 20,468 21,005 40,163 42,355 Provision for loan losses 400 300 800 600 ------- ------ ------ ------ Net interest income after provision for loan losses 20,068 20,705 39,363 41,755 ------- ------ ------ ------ Non-interest income: Deposit fees and service charges 2,784 2,531 5,630 5,199 Title insurance fees 281 390 547 807 Bank owned life insurance 407 394 1,181 807 Investment management fees 726 212 1,348 469 Other 707 436 1,234 752 ------- ------ ------ ------ Total non-interest income 4,905 3,963 9,940 8,034 ------- ------ ------ ------ Non-interest expense: Compensation and employee benefits 8,142 8,351 15,951 16,191 Stock-based compensation plans 1,477 1,670 2,853 3,182 Occupancy and office operations 3,011 3,015 5,844 5,652 Advertising and promotion 874 402 1,757 994 Professional fees 1,079 795 2,068 1,649 Data and check processing 639 789 1,291 1,666 Amortization of intangible assets 774 811 1,577 1,648 ATM/debit card expense 451 338 894 683 Other 2,124 1,974 4,260 3,897 ------- ------ ------ ------ Total non-interest expense 18,571 18,145 36,495 35,562 ------- ------ ------ ------ Income before income tax expense 6,402 6,523 12,808 14,227 Income tax expense 1,970 2,118 3,765 4,663 ------- ------ ------ ------ Net income $ 4,432 $4,405 $9,043 9,564 ======== ====== ====== ====== Per common share: Basic earnings $0.11 $0.11 $0.22 $0.23 Diluted earnings 0.11 0.11 0.22 0.23 Dividends declared 0.05 0.05 0.10 0.10 Weighted average common shares: Basic 41,144,852 40,939,326 41,156,998 41,069,557 Diluted 41,672,245 41,406,485 41,717,290 41,541,154
Selected Financial Condition Data: Three Months Ended ---------------------------------------------------------------------------------- (in thousands except share and per share data) 03/31/07 12/31/06 09/30/06 06/30/06 03/31/06 --------------- --------------- --------------- --------------- -------------- (In thousands) End of Period - ------------- Total assets $ 2,801,365 $ 2,796,454 $ 2,841,337 $ 2,780,419 $ 2,745,628 Loans, gross (1) 1,560,393 1,506,380 1,473,558 1,450,348 1,405,596 Securities available for sale 844,271 881,106 951,729 916,752 926,037 Securities held to maturity 52,080 56,740 60,987 64,631 67,364 Bank owned life insurance 39,954 39,548 39,308 38,892 38,475 Goodwill 159,813 159,828 159,817 159,093 157,526 Other amortizable intangibles 12,556 13,358 14,189 15,030 12,983 Deposits 1,740,305 1,726,186 1,729,659 1,750,780 1,779,289 Borrowings 618,643 623,250 682,739 605,523 546,210 Equity 412,638 411,280 405,286 391,492 387,293 Average Balances - ---------------- Total assets $ 2,786,727 $ 2,813,257 $ 2,795,917 $ 2,756,664 $ 2,664,774 Loans, gross: Real estate- residential mortgage 470,741 463,285 465,231 465,703 457,030 Real estate- commercial mortgage 535,178 529,781 528,225 518,538 514,089 Real estate- construction & land development 111,671 101,769 91,280 80,894 78,176 Commercial and industrial 181,204 165,120 156,737 150,605 147,775 Consumer loans 242,464 233,155 221,880 209,970 199,014 Loans total 1,541,258 1,493,110 1,463,353 1,425,710 1,396,084 Securities (taxable) 765,255 824,657 850,929 871,878 825,284 Securities (non-taxable) 140,987 139,876 128,257 112,282 100,693 Total earning assets 2,461,371 2,472,425 2,456,228 2,421,497 2,330,822 Non earning assets 325,356 340,832 339,689 335,167 333,952 Non-interest bearing checking 341,016 341,259 356,651 357,992 362,955 Interest bearing NOW accounts 153,105 149,311 153,653 153,848 141,064 Total transaction accounts 494,121 490,570 510,304 511,840 504,019 Savings (including mortgage escrow funds) 368,171 375,325 418,942 436,611 448,084 Money market deposits 250,347 238,079 246,471 240,071 222,169 Certificates of deposit 600,956 625,781 565,111 577,219 521,399 Total deposits 1,713,595 1,729,755 1,740,828 1,765,741 1,695,671 Total interest bearing deposits 1,372,579 1,388,496 1,384,177 1,407,749 1,332,716 Borrowings 637,472 657,269 631,760 582,294 556,201 Equity 411,611 406,927 396,263 388,398 390,958 Other comprehensive loss (SFAS 115), reflected in equity (5,583) (6,013) (13,203) (14,280) (9,992) Selected Operating Data: Condensed Tax Equivalent Income Statement - ----------------------------------------- Interest and dividend income $ 37,265 $ 37,340 $ 36,524 $ 34,946 $ 32,744 Tax equivalent adjustment* 756 720 677 592 509 Interest expense 16,797 17,644 15,804 13,262 11,739 -------------- -------------- -------------- -------------- ------------- Net interest income (tax equivalent) 21,224 20,416 21,397 22,276 21,514 Provision for loan losses 400 400 300 300 300 -------------- -------------- -------------- -------------- ------------- Net interest income after provision for loan losses 20,824 20,016 21,097 21,976 21,214 Non-interest income 4,905 5,034 4,756 4,361 3,963 Non-interest expense 18,571 17,924 17,654 18,041 18,145 -------------- -------------- -------------- -------------- ------------- Income before income tax expense 7,158 7,126 8,199 8,296 7,031 Income tax expense (tax equivalent) 2,726 2,515 3,129 2,735 2,627 -------------- -------------- -------------- -------------- ------------- Net income $ 4,432 $ 4,611 $ 5,070 $ 5,561 $ 4,405 ============== ============== ============== ============== =============
(1) Does not reflect allowance for loan losses of $20,435, $20,436, $20,373, $20,360 and $20,093. * Tax exempt income assumed at a 35% federal rate.
Three Months Ended ------------------------------------------------------------------------------------- 03/31/07 12/31/06 09/30/06 06/30/06 03/31/06 --------------- ---------------- --------------- ---------------- -------------- Performance Ratios (annualized) - ------------------------------- Return on Average Assets 0.64% 0.65% 0.72% 0.81% 0.67% Return on Average Equity 4.37% 4.50% 5.08% 5.72% 4.57% Non-Interest Income to Average Assets 0.71% 0.71% 0.67% 0.63% 0.60% Non-Interest Expense to Average Assets 2.70% 2.53% 2.51% 2.62% 2.76% Operating efficiency 73.2% 72.5% 69.3% 69.3% 72.7% Analysis of Net Interest Income - ------------------------------- Yield on: Loans 7.11% 7.08% 7.06% 6.92% 6.82% Investment Securities- Tax Equivalent 4.80% 4.62% 4.48% 4.44% 4.28% Earning Assets- Tax Equivalent 6.26% 6.11% 6.01% 5.89% 5.79% Cost of: Interest Bearing Deposits 2.61% 2.61% 2.28% 2.13% 1.86% Borrowings 5.07% 5.14% 4.93% 3.97% 4.11% Interest Bearing Liabilities 3.39% 3.42% 3.11% 2.67% 2.52% Net Interest Tax Equivalent: Net Interest Rate Spread- Tax Equivalent Basis 2.88% 2.69% 2.90% 3.21% 3.27% Net Interest Margin- tax Equivalent Basis 3.50% 3.28% 3.46% 3.69% 3.74% Capital Information Data - ------------------------ Tier 1 Leverage Ratio- Bank Only 8.55% 8.27% 7.82% 7.54% 7.43% Tier 1 Risk-Based Capital- Bank Only $ 224,694 $ 216,820 $ 208,820 $ 196,957 $ 191,775 Total Risk-Based Capital- Bank Only 245,129 237,256 229,193 217,317 211,868 Tangible Capital Consolidated $ 240,269 $ 238,943 $ 233,121 $ 218,255 $ 217,645 Tangible Capital as a % of Tangible Assets Consolidated 9.14% 9.11 8.74% 8.37% 8.45% Shares Outstanding 42,376,905 42,716,253 42,699,046 42,623,299 42,424,255 Shares Repurchased Per Stock Repurchase Program 354,400 - 35,623 11,700 641,400 Basic weighted common shares outstanding 41,144,852 41,168,880 40,945,185 40,730,064 40,939,326 Diluted common shares oustanding 41,672,245 41,861,358 41,407,390 41,276,806 41,406,485 Per Common Share: Basic Earnings $ 0.11 $ 0.11 $ 0.12 $ 0.14 $ 0.11 Diluted Earnings 0.11 0.11 0.12 0.13 0.11 Dividends Paid 0.05 0.05 0.05 0.05 0.05 Book Value 9.74 9.63 9.49 9.18 9.13 Tangible Book Value 5.67 5.59 5.46 5.12 5.13 Asset Quality Measurements - -------------------------- Non-performing loans (NPLs): non-accrual $ 4,840 4,278 3,442 1,887 1,746 Non-performing loans (NPLs): still accruing 3,484 2,171 1,582 2,787 2,398 Non-performing assets (NPAs) 8,411 6,536 5,111 4,762 4,234 Net Charge-offs (recoveries) 401 337 (35) 33 992 Net Charge-offs (recoveries) as % of average loans (annualized) 0.10% 0.09% (0.01%) 0.05% 0.28% NPLs as % of total loans 0.53% 0.43% 0.34% 0.32% 0.29% NPAs as % of total assets 0.30% 0.23% 0.18% 0.17% 0.15% Allowance for loan losses as % of NPLs 245% 317% 406% 436% 485% Allowance for loan losses as % of total loans 1.33% 1.38% 1.40% 1.43% 1.43%
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