EX-99.1 2 a05-19096_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

 

CONTACT INFORMATION:

 

Investors and Financial Media:

Jordan Goldstein, Financial Dynamics

415-439-4500

 

6:30 am Eastern Time

 

NARA BANCORP ANNOUNCES THIRD QUARTER EARNINGS

 

NET INCOME OF $7.9 MILLION FOR THE QUARTER,

EARNINGS PER DILUTED SHARE OF $0.32

 

LOS ANGELES – October 27, 2005 – Nara Bancorp, Inc. (the “Company”) (NASDAQ: NARA), the holding company of Nara Bank (the “Bank”) today announced preliminary unaudited results of operations for the quarter ended September 30, 2005.  The Company reported net income of $7.9 million or $0.32 per diluted share for third quarter of 2005, a 53% increase compared to net income of $5.2 million or $0.21 per diluted share for third quarter of 2004.  Sequentially, net income increased 41% compared to $5.6 million or $0.23 per diluted share for the second quarter of 2005.

 

Net income of $18.9 million, or $0.77 per diluted share, for the nine months ended September 30, 2005 increased 44% compared to $13.1 million, or $0.53 per diluted share, for the nine months ended September 30, 2004.  Earnings per share for 2004 reflect the two-for-one stock split declared on May 17, 2004 and paid on June 15, 2004.

 

Ho Yang, President and Chief Executive Officer, said, “We are extremely pleased with the continued strength in our business.  We enjoyed the best quarterly earnings in the history of our Company in the third quarter.  Our team is executing effectively, and we believe we are making good progress in meeting the requirements under the MOU.

 

Mr. Yang continued, “Our focus remains on continuous improvement in our business, profitability, disciplined growth and strong internal controls.  I believe our strong third quarter puts us on track for record earnings for the year.  We continue to expect our full year results will meet our previously stated outlook of earnings per diluted share of between $1.00 and $1.04.”

 

1



 

General Highlights:

 

                  The Bank opened two new branches in Bayside, New York, and Gardena, California

                  The Company raised additional capital through the sale of $20 million of its common stock at the market price to Dr. Chong Moon Lee, the Chairman of its Board of Directors.

                  The board of directors declared a cash dividend of $0.0275 per common share, to be paid to shareholders of record as of October 14, 2005.

                  Under the requirements of the MOU, the Company retained The Secura Group of Falls Church, Virginia, to conduct an organizational review.

                  The annual meeting of shareholders took place on September 30.  Shareholders approved all proposals before the meeting, including re-electing all six members of the board of directors, amending the Certificate of Incorporation to authorize 10 million shares of undesignated preferred stock, and ratifying the appointment of Crowe Chizek and Company LLP to serve as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2005.

 

Third Quarter Financial Highlights (2005 vs. 2004):

 

                  53% increase in net income to $7.9 million from $5.2 million

                  52% increase in diluted EPS to $0.32 from $0.21

                  39% increase in net interest income before provision for loan losses to $20.8 million from $14.9 million

                  Improved net interest margin of 4.95% compared to 4.50%

                  Improved efficiency ratio of 45.41% compared to 54.09%

                  Improved annualized return on equity (ROE) of 25.92% compared to 23.02%

                  Improved annualized return on average assets (ROA) of 1.79% compared to 1.47%

 

Nine Months Financial Highlights (2005 vs. 2004)

 

                  44% increase in net income to $18.9 million from $13.1 million

                  45% increase in diluted EPS to $0.77 from $0.53

                  35% increase in net interest income before provision for loan losses to $57.1 million from $42.3 million

                  Improved net interest margin of 4.89% compared to 4.50%

                  Improved efficiency ratio of 48.85% compared to 56.05%

                  Improved annualized ROE of 22.51% compared to 19.63%

                  Improved annualized ROA of 1.53% compared to 1.30%

 

2



 

Balance Sheet Highlights (September 30, 2005 vs. September 30, 2004)

                  26% increase in total assets to $1.79 billion

                  23% loan growth to $1.43 billion

                  23% increase in deposits to $1.54 billion

 

Net Interest Income

 

Third quarter net interest income before provision for loan losses increased 39% to $20.8 million from $14.9 million for third quarter 2004.  The increase was attributable to a $351 million increase in average interest-earning assets to $1.68 billion from $1.33 billion, as well as a 40 basis point increase in the net interest spread (yield on interest-earning assets minus the cost of funding liabilities) to 4.86% from 4.46%.  The net interest margin (net interest income divided by average interest-earning assets) also increased 45 basis points to 4.95% from 4.50%.  The net interest spread and the net interest margin for the third quarter of 2005 benefited from delinquent interest of $353 thousand received upon pay-off of a non-accrual loan.  Excluding the $353 thousand, the net interest spread was 4.77% and the net interest margin was 4.87% for the third quarter of 2005.

 

The weighted average yield on the loan portfolio increased 172 basis points to 8.11% from 6.39%, comparing third quarter 2005 to third quarter 2004, as the substantially prime rate-based loan portfolio repriced with each increase by the Federal Reserve.

 

The weighted average cost of deposits increased 111 basis points as market interest rates increased, moving to 2.48% from 1.37%, comparing third quarter 2005 to third quarter 2004.  CD costs, particularly accounts with balances of $100,000 or more, have risen by 190 basis points to 3.73% from 1.83%.  Average non-interest bearing deposits increased to $369 million from $338 million, helping to hold down the overall cost of deposits.

 

Sequentially, 2005 third quarter net interest income before provision for loan losses increased $1.8 million, or 9% over the second quarter.  Average interest-earning assets increased $140 million, while the net interest spread and the net interest margin, excluding the delinquent interest on the non-accrual loan mentioned above, decreased nine and seven basis points, respectively, for the third quarter of 2005 as compared to the second quarter of 2005.

 

Non-interest Income

 

Non-interest income decreased $143 thousand, or 2%, to $5.8 million from $5.9 million, comparing third quarter 2005 to third quarter 2004.  The decrease was due primarily to lower service charges on deposit accounts of $286 thousand.    Service charges on deposits were lower as the Bank discontinued banking services to check-cashing businesses which generated significant fee income, and the Bank’s promotion of no fee deposit accounts.  The gains on sale of SBA loans increased primarily due to an increase

 

3



 

in the volume of sales to $29.4 million from $26.1 million, offset by lower premiums received on sale.

 

Comparing third quarter 2005 to second quarter 2005, non-interest income increased $759 thousand, reflecting an increase in SBA loan sale gains of $753 thousand.  Following a change in the management of our SBA department in the first quarter of this year the volume of loans sold increased, although the premiums received on sales have declined.  SBA loans sales amounted to $14.3 million, $18.8 million and $29.4 million, sequentially, for the three quarters in 2005.

 

Non-interest Expense

 

Non-interest expense increased $785 thousand or 7% to $12.1 million from $11.3 million, comparing third quarter 2005 to third quarter 2004.  An increase in salaries and employee benefits of $575 thousand was offset by decrease in professional fees of $157 thousand.  Compensation costs were higher due to the additions to higher accrued bonuses.  During third quarter 2004, additional professional fees were incurred relating to compliance with the Sarbanes-Oxley Act.

 

Sequentially, third quarter 2005 non-interest expense decreased $392 thousand, or 3%, compared to the second quarter, reflecting a decrease in professional fees of $572 thousand offset by an increase in other operating costs.  Second quarter 2005 professional fees of $1.2 million included legal and accounting costs incurred due to the restatement of our prior period financial statements and related matters.

 

Income Taxes

 

The effective tax rate was 41.4% for third quarter 2005 compared to 40.1% for third quarter 2004 due primarily to lower non-taxable income in 2005.

 

Balance Sheet

 

At September 30, 2005 total assets were $1.79 billion compared to $1.51 billion at December 31, 2004, an increase of $281 million, or 19%.  The growth was primarily attributable to the growth in gross loans receivable to $1.43 billion from $1.22 billion, an increase of $205 million, or 17%.  Real estate loans increased to $877.8 million at September 30, 2005 from $717.7 million at December 31, 2004, a 22% increase.  Commercial loans, including SBA loans increased to $485.9 million at September 30, 2005 from $441.9 million at December 31, 2004, an increase of 10%.

 

Gross loans receivable increased $40 million from June 30, 2005.

 

Total deposits increased to $1.54 billion at September 30, 2005 from $1.26 billion at December 31, 2004, an increase of $288 million, or 23%.  The growth in deposits was primarily attributable to the growth in time deposits, which increased to $842.6 million at

 

4



 

September 30, 2005 from $485.3 million at December 31, 2004, offset by an $86.3 million decline in money market accounts.  The competition for deposits has focused on time deposits as customers have sought higher rates.

 

Sequentially, total deposits increased $48 million compared to second quarter 2005, as time deposits increased $80 million and money market accounts decreased $30 million.  Of this decrease in money market accounts, $20 million of the decrease in money market accounts was due to the withdrawal by the Company’s chairman to purchase additional common stock of the Company.  The transaction closed on September 12, 2005.

 

Asset Quality

 

Non-performing assets at September 30, 2005 were $4.7 million, or 0.26% of total assets, compared to $2.9 million, or 0.19% of total assets at December 31, 2004 and $3.9 million, or 0.23% of total assets at June 30, 2005.

 

Non-performing loans at September 30, 2005 were $3.8 million, or 0.27% of total loans, compared to $2.7 million or 0.22% of total loans at December 31, 2004 and $2.9 million or 0.21% of total loans at June 30, 2005. Restructured loans were $902 thousand at September 30,2005 compared to $229 thousand a year ago. During September 2005 a $1.25 million SBA loan on non-accrual status was paid off, resulting in the recognition of approximately $353 thousand in delinquent interest income, and $206 thousand of late charges and expense reimbursements.  Non-performing loans remain at low levels and has fluctuated from 0.19% to 0.32% of total loans during the year.

 

Net loan charge-offs were $671 thousand for third quarter 2005, or 0.19% of average loans on annualized basis, compared to $435 thousand, or 0.15% of average loans on an annualized basis for third quarter 2004, and $896 thousand or 0.26% of average loan on a annualized basis for second quarter 2005.  The annualized net charge-off rate on average loans based on data for the nine months ended September 30, 2005 was 0.21% compared to 0.17% based on data for the same period last year.

 

The allowance for loan losses at September 30, 2005 was $17.1 million, or 1.20% of gross loans receivable, compared to $14.6 million or 1.20% of gross loans receivable at December 31, 2004 and $14.8 million, or 1.27% of gross loans receivable at September 30, 2004.

 

Performance Ratios

 

The annualized return on average equity for third quarter 2005 was 25.92%, a 13% improvement over the 23.02% for third quarter 2004, and a 26% improvement over the 20.57% for second quarter 2005.

 

The annualized return on average assets for third quarter 2005 was 1.79%, a 22% improvement over the 1.47% for third quarter 2004, and a 30% improvement over the 1.38% for second quarter 2005.

 

5



 

The efficiency ratio for third quarter 2005 was 45.41%, a 16% improvement over the 54.09% for third quarter 2004, and a 12% improvement over the 51.84% for second quarter 2005.

 

At September 30, 2005, we continued to exceed the regulatory capital requirements to be classified as a “well-capitalized institution.”  The Leverage Ratio was 9.9% compared to 8.9% at December 31, 2004.  The Tier 1 Risk-based Ratio was 11.5% compared to 9.7% at December 31, 2004.  The Total Risk-based Ratio was 12.6% compared to 11.4% at December 31, 2004.  At September 30, 2005, the capital ratios were bolstered by the approximate $20 million of capital raised from the sale of common stock to the Company’s chairman of the board of directors which closed on September 12, 2005.

 

About Nara Bancorp, Inc.

 

Nara Bancorp, Inc. is the parent company of Nara Bank, which was founded in 1989.  Nara Bank is a full-service community bank headquartered in Los Angeles, with 18 branches and 8 loan production offices in the United States and one liaison office in Seoul, Korea.  Nara Bank operates full-service branches in California and New York, with loan production offices in California, Washington, Colorado, Texas, Georgia, Illinois, New Jersey, and Virginia.  Nara Bank was founded specifically to serve the needs of Korean-Americans, one of the fastest-growing Asian ethnic communities over the past decade.  Presently, Nara Bank serves a diverse group of customers mirroring its communities.  Nara Bank specializes in core business banking products for small and medium-sized companies, with emphasis in commercial real estate and business lending, SBA lending and international trade financing.  Nara Bank is a member of the FDIC and is an Equal Opportunity Lender.  For more information on Nara Bank, visit our website at www.narabank.com. Nara Bancorp, Inc. stock is listed on NASDAQ under the symbol “NARA.”

 

Forward-Looking Statements

 

This press release contains forward-looking statements including statements about future operations and projected full-year financial results that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward looking statements, including, but not limited to economic, competitive, governmental and technological factors affecting Nara Bancorp’s operations, markets, products, services, and pricing.  Readers should carefully review the risk factors and the information that could materially affect Nara Bancorp’s financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussion of business considerations and certain factors that may affect results of operations and stock price set forth therein.  Readers are cautioned not to place undue reliance on these forward-looking

 

6



 

statements, which speak only as of the date of this press release.  Nara Bancorp undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.

 

7



 

Nara Bancorp, Inc.

Consolidated Statement of Financial Condition

Unaudited (Dollars in Thousands)

 

 

 

9/30/2005

 

12/31/2004

 

% change

 

9/30/2004

 

% change

 

 

 

 

 

 

 

 

 

(Restated)

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

32,898

 

$

27,712

 

19

%

$

29,792

 

10

%

Federal funds sold

 

68,000

 

47,500

 

43

%

16,200

 

320

%

Term federal funds sold

 

12,000

 

12,000

 

0

%

12,000

 

0

%

Securities available for sale, at fair value

 

171,671

 

133,386

 

29

%

123,774

 

39

%

Securities held to maturity, at amortized cost (fair value: September 30, 2005 - $2,035; December 31, 2004 - $2,088)

 

2,001

 

2,001

 

0

%

2,001

 

0

%

Federal Home Loan Bank and Federal Reserve Bank stock

 

8,193

 

6,605

 

24

%

6,261

 

31

%

Loans held for sale, at the lower of cost or market

 

8,173

 

4,730

 

73

%

14,865

 

-45

%

Loans receivable

 

1,427,094

 

1,221,735

 

17

%

1,162,295

 

23

%

Allowance for loan losses

 

(17,068

)

(14,627

)

17

%

(14,761

)

16

%

Net loans

 

1,410,026

 

1,207,108

 

17

%

1,147,534

 

23

%

Accrued interest receivable

 

6,862

 

5,124

 

34

%

4,456

 

54

%

Premises and equipment, net

 

8,020

 

6,870

 

17

%

7,040

 

14

%

Cash surrender value of life insurance

 

14,536

 

14,226

 

2

%

12,869

 

13

%

Goodwill

 

2,347

 

2,347

 

0

%

2,347

 

0

%

Intangible assets, net

 

3,768

 

4,305

 

-12

%

4,480

 

-16

%

Other assets

 

40,606

 

34,398

 

18

%

35,319

 

15

%

Total assets

 

$

1,789,101

 

$

1,508,312

 

19

%

$

1,418,938

 

26

%

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,544,109

 

$

1,255,975

 

23

%

$

1,253,162

 

23

%

Borrowings from Federal Home Loan Bank

 

31,000

 

90,000

 

-66

%

10,000

 

210

%

Subordinated debentures

 

39,268

 

39,268

 

0

%

39,268

 

0

%

Accrued interest payable

 

7,227

 

3,412

 

112

%

3,543

 

104

%

Other liabilities

 

27,623

 

18,402

 

50

%

17,031

 

62

%

Total liabilities

 

1,649,227

 

1,407,057

 

17

%

1,323,004

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; authorized 40,000,000 shares at September 30, 2005 and December 31, 2004 issued and outstanding, 25,358,142 and 23,333,338 shares at September 30, 2005 and December 31, 2004, respectively

 

$

25

 

$

23

 

9

%

$

23

 

9

%

Capital surplus

 

68,633

 

44,903

 

53

%

44,782

 

53

%

Deferred compensation

 

 

(2

)

-100

%

(5

)

-100

%

Retained earnings

 

73,805

 

56,848

 

30

%

50,832

 

45

%

Accumulated other comprehensive income (loss), net

 

(2,589

)

(517

)

401

%

302

 

-959

%

Total stockholders’ equity

 

139,874

 

101,255

 

38

%

95,934

 

46

%

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,789,101

 

$

1,508,312

 

19

%

$

1,418,938

 

26

%

 

 

$

 

$

 

 

 

$

 

 

 

8



 

Nara Bancorp, Inc.

Consolidated Statements of Income

Unaudited (Dollars in Thousands, Except for Per Share Data)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

INCOME STATEMENT

 

2005

 

2004

 

% change

 

2005

 

2004

 

% change

 

 

 

 

 

(Restated)

 

 

 

 

 

(Restated)

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

29,087

 

$

17,663

 

65

%

$

76,684

 

$

48,473

 

58

%

Interest on securities

 

1,557

 

1,269

 

23

%

4,346

 

3,852

 

13

%

Interest on federal funds sold and other investments

 

857

 

247

 

247

%

1,441

 

516

 

180

%

Interest on interest rate swaps

 

3

 

724

 

-100

%

623

 

2,533

 

-75

%

Total interest income

 

31,504

 

19,903

 

58

%

83,094

 

55,374

 

50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

9,628

 

4,283

 

125

%

22,161

 

10,741

 

106

%

Interest on other borrowings

 

1,103

 

701

 

57

%

3,832

 

2,354

 

63

%

Total interest expense

 

10,731

 

4,984

 

115

%

25,993

 

13,095

 

98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income before provision for loan losses

 

20,773

 

14,919

 

39

%

57,101

 

42,279

 

35

%

Provision for loan losses

 

970

 

900

 

8

%

4,570

 

3,700

 

24

%

Net interest income after provision for loan losses

 

19,803

 

14,019

 

41

%

52,531

 

38,579

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service fees on deposit accounts

 

1,553

 

1,839

 

-16

%

4,712

 

5,902

 

-20

%

Net gains on sales of SBA loans

 

1,847

 

1,656

 

12

%

3,690

 

4,047

 

-9

%

Net gains on sales of securities available-for-sale

 

1

 

25

 

-97

%

143

 

434

 

-67

%

Loan referral fees

 

 

269

 

-100

%

 

747

 

-100

%

Net gains (losses) on interest rate swaps

 

(26

)

112

 

123

%

(78

)

(194

)

-60

%

Other than temporary impairment on securities

 

 

(442

)

100

%

 

(2,199

)

100

%

Other income and fees

 

2,413

 

2,472

 

-2

%

6,530

 

6,483

 

1

%

Total non-interest income

 

5,788

 

5,931

 

-2

%

14,997

 

15,220

 

-1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

6,149

 

5,574

 

10

%

17,564

 

17,061

 

3

%

Occupancy

 

1,767

 

1,716

 

3

%

5,056

 

4,687

 

8

%

Furniture and equipment

 

504

 

514

 

-2

%

1,511

 

1,417

 

7

%

Advertising and marketing

 

506

 

497

 

2

%

1,360

 

1,295

 

5

%

Data processing

 

652

 

604

 

8

%

1,940

 

1,807

 

7

%

Professional fees

 

613

 

770

 

-20

%

2,555

 

1,489

 

72

%

Other

 

1,871

 

1,603

 

17

%

5,230

 

4,474

 

17

%

Total non-interest expense

 

12,062

 

11,278

 

7

%

35,216

 

32,230

 

9

%

Income before income taxes

 

13,529

 

8,672

 

56

%

32,312

 

21,569

 

50

%

Income taxes

 

5,600

 

3,480

 

61

%

13,365

 

8,445

 

58

%

Net Income

 

$

7,929

 

$

5,192

 

53

%

$

18,947

 

$

13,124

 

44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

$

0.22

 

50

%

$

0.80

 

$

0.57

 

40

%

Diluted

 

$

0.32

 

$

0.21

 

52

%

$

0.77

 

$

0.53

 

45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

24,041,269

 

23,248,985

 

 

 

23,685,330

 

23,195,784

 

 

 

Diluted

 

24,780,612

 

24,656,954

 

 

 

24,684,505

 

24,532,076

 

 

 

 


(1)  As restated for 2004 two-for-one stock split

 

9



 

Nara Bancorp, Inc.

Supplemental Data

Unaudited (Dollars in Thousands, Except for Per Share Data)

 

 

 

(Annualized)
At or for the three months ended September 30

 

 

 

(Annualized)
At or for the nine months ended September 30

 

 

 

 

 

2005

 

2004

 

 

 

2005

 

2004

 

 

 

Profitability measures:

 

 

 

 

 

 

 

 

 

 

 

 

 

ROA

 

1.79

%

1.47

%

 

 

1.53

%

1.30

%

 

 

ROE

 

25.92

%

23.02

%

 

 

22.51

%

19.63

%

 

 

Net interest margin

 

4.95

%

4.50

%

 

 

4.89

%

4.50

%

 

 

Efficiency ratio

 

45.41

%

54.09

%

 

 

48.85

%

56.05

%

 

 

Yield on average interest-earning assets

 

7.51

%

6.00

%

 

 

7.12

%

5.90

%

 

 

Cost of interest-bearing liabilities

 

3.43

%

2.08

%

 

 

3.00

%

1.94

%

 

 

Cost of interest-bearing deposits

 

3.26

%

1.88

%

 

 

2.82

%

1.75

%

 

 

Cost of total deposits

 

2.48

%

1.37

%

 

 

2.11

%

1.24

%

 

 

 

 

 

For the three months ended

 

 

 

For the nine months ended

 

 

 

 

 

9/30/2005

 

9/30/2004

 

% change

 

9/30/2005

 

9/30/2004

 

% change

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross loans, includes loans held for sale

 

$

1,434,369

 

$

1,150,604

 

25

%

$

1,359,773

 

$

1,087,400

 

25

%

Other interest-earning assets

 

244,513

 

176,970

 

38

%

196,552

 

164,348

 

20

%

Interest-earning assets

 

1,678,882

 

1,327,574

 

26

%

1,556,325

 

1,251,748

 

24

%

Other assets

 

97,163

 

81,512

 

19

%

91,165

 

90,657

 

1

%

Total assets

 

$

1,776,045

 

$

1,409,086

 

26

%

$

1,647,490

 

$

1,342,405

 

23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings and interest-bearing demand deposits

 

$

365,978

 

$

470,792

 

-22

%

$

375,312

 

$

371,248

 

1

%

Time deposits

 

814,889

 

438,424

 

86

%

671,914

 

448,657

 

50

%

Total interest-bearing depostis

 

1,180,867

 

909,216

 

30

%

1,047,226

 

819,905

 

28

%

Borrowings

 

34,392

 

11,558

 

198

%

69,581

 

42,635

 

63

%

Junior subordinated debentures

 

37,160

 

37,128

 

0

%

37,152

 

37,122

 

0

%

Total Interest-bearing liabilities

 

1,252,419

 

957,902

 

31

%

1,153,959

 

899,662

 

28

%

Non-interest-bearing demand deposits

 

369,314

 

338,235

 

9

%

354,194

 

334,515

 

6

%

Other Liabilities

 

31,949

 

22,718

 

41

%

27,111

 

19,086

 

42

%

Total liabilities

 

1,653,682

 

1,318,855

 

25

%

1,535,264

 

1,253,263

 

23

%

Stockholders’ Equity

 

122,363

 

90,231

 

36

%

112,226

 

89,142

 

26

%

Total liabilities and stockholders’ equity

 

$

1,776,045

 

$

1,409,086

 

26

%

$

1,647,490

 

$

1,342,405

 

23

%

 

 

 

9/30/2005

 

12/31/2004

 

% change

 

9/30/2004

 

% change

 

 

 

LOAN PORTFOLIO ANALYSIS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans

 

$

485,924

 

$

441,940

 

10

%

$

426,694

 

14

%

 

 

Real estate loans

 

877,796

 

717,747

 

22

%

672,028

 

31

%

 

 

Consumer and Other Loans

 

66,524

 

64,846

 

3

%

66,210

 

0

%

 

 

Loans outstanding

 

1,430,244

 

1,224,533

 

17

%

1,164,932

 

23

%

 

 

Unamortized Deferred Loan Fees

 

(3,150

)

(2,798

)

13

%

(2,637

)

19

%

 

 

Loans, net of deferred loan fees

 

1,427,094

 

1,221,735

 

17

%

1,162,295

 

23

%

 

 

Allowance for loan losses

 

(17,068

)

(14,627

)

17

%

(14,761

)

16

%

 

 

Loan receivable, net

 

$

1,410,026

 

$

1,207,108

 

17

%

$

1,147,534

 

23

%

 

 

 

10



 

 

 

For the nine months ended

 

 

 

 

 

 

 

 

 

9/30/2005

 

9/30/2004

 

 

 

 

 

 

 

ALLOWANCE FOR LOAN LOSSES:

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

14,627

 

$

12,471

 

17

%

 

 

 

 

Provision for Loan Losses

 

4,570

 

3,700

 

24

%

 

 

 

 

Recoveries

 

470

 

550

 

-15

%

 

 

 

 

Charge Offs

 

(2,599

)

(1,960

)

33

%

 

 

 

 

Balance at End of Period

 

$

17,068

 

$

14,761

 

16

%

 

 

 

 

Net charge-off/Average gross loans (Annualized)

 

0.21

%

0.17

%

 

 

 

 

 

 

 

 

 

9/30/2005

 

12/31/2004

 

 

 

9/30/2004

 

 

 

NON-PERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

Delinquent Loans 90 days or more on Non-Accrual Status

 

$

3,262

 

$

2,679

 

 

 

$

2,562

 

 

 

Delinquent Loans 90 days or more on Accrual Status

 

574

 

 

 

 

352

 

 

 

Total Non-Performing Loans

 

3,836

 

2,679

 

 

 

2,914

 

 

 

Other real estate owned

 

 

 

 

 

 

 

 

Restructured Loans

 

902

 

229

 

 

 

318

 

 

 

Total Non-Performing Assets

 

$

4,738

 

$

2,908

 

 

 

$

3,232

 

 

 

Non-Performing Assets/ Total Assets

 

0.26

%

0.19

%

 

 

0.23

%

 

 

Non-Performing Loans/Gross Loans

 

0.27

%

0.22

%

 

 

0.25

%

 

 

Allowance for loan losses/ Gross Loans

 

1.20

%

1.20

%

 

 

1.27

%

 

 

Allowance for loan losses/ Non-Performing Loans

 

445

%

546

%

 

 

507

%

 

 

 

 

 

9/30/2005

 

12/31/2004

 

 

 

9/30/2004

 

 

 

SELECTED DEPOSIT DATA

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

364,471

 

$

328,326

 

11

%

$

333,850

 

9

%

Interest-bearing demand deposits

 

234,973

 

323,477

 

-27

%

381,563

 

-38

%

Savings deposits

 

102,096

 

118,857

 

-14

%

119,693

 

-15

%

Time deposits

 

842,569

 

485,315

 

74

%

418,056

 

102

%

Total deposit balances

 

$

1,544,109

 

$

1,255,975

 

23

%

$

1,253,162

 

23

%

 

 

 

9/30/2005

 

12/31/2004

 

 

 

9/30/2004

 

 

 

SELECTED EQUITY DATA

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

$

139,874

 

$

101,255

 

 

 

$

95,934

 

 

 

Tier 1 risk-based capital ratio

 

11.45

%

9.70

%

 

 

9.48

%

 

 

Total risk-based capital ratio

 

12.57

%

11.39

%

 

 

11.44

%

 

 

Tier 1 leverage ratio

 

9.92

%

8.91

%

 

 

8.42

%

 

 

Tangible equity to tangible assets

 

7.50

%

6.30

%

 

 

6.31

%

 

 

Book value per share

 

$

5.52

 

$

4.34

 

 

 

$

4.11

 

 

 

Tangible book value

 

$

5.27

 

$

4.05

 

 

 

$

3.82

 

 

 

 

11