-----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, CvaHKGWeSdsGt4v9z+pueDhEcvPANtc9DtmNUe0hm5GhAkr73HT2m3hc+c/zmlb1 dgghjA0J2YmbmYMFi/YLeg== 0000943374-08-000529.txt : 20080423 0000943374-08-000529.hdr.sgml : 20080423 20080423090806 ACCESSION NUMBER: 0000943374-08-000529 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080422 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080423 DATE AS OF CHANGE: 20080423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROVIDENT FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0001178970 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 421547151 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31566 FILM NUMBER: 08770653 BUSINESS ADDRESS: STREET 1: 830 BERGEN AVENUE CITY: JERSEY CITY STATE: NJ ZIP: 07306 BUSINESS PHONE: 2013331000 8-K 1 form8k_042308.txt FORM 8-K FINANCIAL RESULTS UNITED STATES 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 23, 2008 -------------- PROVIDENT FINANCIAL SERVICES, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 001-31566 42-1547151 - --------------------------- -------------------------- ---------- (State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer of Incorporation) Identification No.) 830 Bergen Avenue, Jersey City, New Jersey 07306-4599 - ------------------------------------------ ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (201) 333-1000 -------------- 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 Operation and Financial Condition. --------------------------------------------- On April 23, 2008, Provident Financial Services, Inc. (the "Company") issued a press release reporting its financial results for the three months ended March 31, 2008. A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed "filed" for any purpose. Item 7.01 Regulation FD Disclosure. ------------------------- On April 23, 2008, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.11 per common share, payable on May 30, 2008 to stockholders of record on May 15, 2008. This announcement was included as part of the press release announcing financial results for the quarter ended March 31, 2008 issued by the Company on April 23, 2008 and attached as Exhibit 99.1 to this report. A copy of the press release is being furnished to the SEC and shall not be deemed "filed" for any purpose. Item 9.01. Financial Statements and Exhibits --------------------------------- (a) Financial Statements of Businesses Acquired. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Shell Company Transactions. Not applicable. (d) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press release issued by the Company on April 23, 2008 announcing its financial results for the three months ended March 31, 2008 and the declaration of a quarterly cash dividend. 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 FINANCIAL SERVICES, INC. Date: April 23, 2008 By: /s/ Paul M. Pantozzi ------------------------ Paul M. Pantozzi Chairman and Chief Executive Officer EXHIBIT INDEX Exhibit Description - ------- ----------- 99.1 Press release issued by the Company on April 23, 2008 announcing its financial results for the three months ended March 31, 2008 and the declaration of a quarterly cash dividend. EX-99.1 2 form8k_042308exh.txt PRESS RELEASE - QUARTERLY DIVIDEND NEWS RELEASE CONTACT: Kenneth J. Wagner, SVP Investor Relations Provident Financial Services, Inc. (201) 915-5344 FOR RELEASE: 7:43 A.M. Eastern Time: April 23, 2008 Provident Financial Services, Inc. Announces Quarterly Earnings and Declares Quarterly Cash Dividend JERSEY CITY, NJ, April 23, 2008 ---/ PRNewswire-First Call/- Provident Financial Services, Inc. (NYSE:PFS) (the "Company") reported basic and diluted earnings per share of $0.19 and net income of $10.7 million for the quarter ended March 31, 2008. This compares with basic and diluted earnings per share of $0.18 and net income of $10.8 million for the same period in 2007. Compared with the first quarter of 2007, results for the quarter ended March 31, 2008 benefited from the April 1, 2007 acquisition of First Morris Bank & Trust ("First Morris"), which added nine branch locations and assets with a fair value of $554.2 million as of the acquisition date. First quarter 2008 results were also favorably impacted by a $180,000 net after-tax gain recorded in connection with the ownership and mandatory redemption of a portion of the Company's Class B Visa, Inc. shares as part of Visa's recent initial public offering, and a $175,000 net after-tax gain resulting from the sale of a branch office. Results for the quarter ended March 31, 2007 were favorably impacted by interest of $531,000, net of tax, earned on Federal income taxes refunded in connection with a previous acquisition. Paul M. Pantozzi, Chairman and Chief Executive Officer, commented, "In the past quarter our net interest margin expanded as reductions in short-term interest rates began to favorably impact our funding costs. We also experienced deposit growth, particularly in our core deposit categories, and we continued to manage our balance sheet and cost structure in a tough economic environment. This quarter's operating results reflect the positive contribution of the First Morris acquisition and our on-going focus on achieving operating efficiencies." Pantozzi added, "An integral part of our response to an unsettled economy has been to maintain a solid capital position, and our stock repurchase activity for the quarter was curtailed accordingly. We will continue to monitor and manage our capital in order to preserve and enhance long-term stockholder value." Declaration of Quarterly Dividend The Company's Board of Directors declared a quarterly cash dividend of $0.11 per common share payable on May 30, 2008, to stockholders of record as of the close of business on May 15, 2008. Balance Sheet Summary Total assets were $6.40 billion at March 31, 2008, compared to $6.36 billion at December 31, 2007, primarily as a result of increases in securities available for sale and securities purchases pending settlement that were included in other assets at March 31, 2008, partially offset by a decrease in loans. Total investments increased $91.0 million, or 7.8%, during the three months ended March 31, 2008. The increase included $55.2 million of residential mortgage loan pools that were securitized by the Company and are now held as securities available for sale. The Company's net loans decreased $40.7 million, or 1.0%, to $4.21 billion at March 31, 2008, from $4.26 billion at December 31, 2007, largely as a result of the securitization of $55.2 million of conforming one- to four-family 30-year fixed-rate residential mortgage loans. Loan originations totaled $335.5 million and loan purchases totaled $23.2 million for the three months ended March 31, 2008. Net increases of $53.9 million in commercial and multi-family mortgage loans and $2.3 million in commercial loans were more than offset by decreases of $64.1 million in residential mortgage loans, $22.4 million in construction loans and $9.6 million in consumer loans. Commercial real estate, construction and commercial loans represented 46.4% of the loan portfolio at March 31, 2008, compared to 45.2% at December 31, 2007. At March 31, 2008, the Company's unfunded loan pipeline totaled $671.9 million, including $173.3 million in construction loan commitments, $154.5 million in commercial loan commitments and $68.2 million in commercial mortgage commitments. The unfunded loan pipeline at December 31, 2007 was $767.5 million. 1 Other assets increased $25.1 million and other liabilities increased $24.8 million during the three months ended March 31, 2008, primarily as a result of securities trades which were pending settlement at March 31, 2008. Total deposits increased $10.1 million, or 0.2%, during the three months ended March 31, 2008. Total deposits were $4.23 billion at March 31, 2008, with core deposits, consisting of savings and demand deposit accounts, representing 62.2% of total deposits. Common stock repurchases for the three months ended March 31, 2008, totaled 35,000 shares at an average cost of $13.81 per share. At March 31, 2008, 2.2 million shares remained eligible for repurchase under the current authorization. At March 31, 2008, book value per share and tangible book value per share were $16.94 and $8.25, respectively, compared with $16.78 and $8.05, respectively, at December 31, 2007. Results of Operations Net Interest Margin The net interest margin increased 3 basis points to 2.87% for the quarter ended March 31, 2008, from 2.84% for the quarter ended December 31, 2007. The net interest margin for the quarter ended March 31, 2008 decreased 15 basis points compared with the net interest margin of 3.02% for the quarter ended March 31, 2007. The weighted average rate for interest-earning assets was 5.63% for the three months ended March 31, 2008, compared with 5.76% for the trailing quarter and 5.72% for the three months ended March 31, 2007. The weighted average rate for interest-bearing liabilities was 3.14% for the quarter ended March 31, 2008, compared with 3.33% for the trailing quarter and 3.18% for the first quarter of 2007. The average cost of deposits for the three months ended March 31, 2008 was 2.87%, compared with 3.11% for the trailing quarter and 2.92% for the same period last year. The average cost of borrowed funds for the three months ended March 31, 2008 was 4.06%, compared with 4.19% for the trailing quarter and 4.26% for the same period last year. Non-Interest Income Non-interest income totaled $8.8 million for the quarter ended March 31, 2008, an increase of $1.1 million, or 13.7%, compared to the same period in 2007. The increase was primarily attributable to a $688,000 increase in fee income and a $299,000 increase in other income for the quarter ended March 31, 2008, compared with the same period in 2007. The increase in fee income was primarily attributable to increases in deposit fees and trust income, largely due to the First Morris acquisition. Significant components of other income for the first quarter of 2008 included $660,000 in pre-tax gains associated with the ownership and mandatory redemption of a portion of the Company's Class B Visa, Inc. shares as part of Visa's recent initial public offering and $400,000 in pre-tax gains on the sale of deposits associated with the sale of an under-performing branch. In the first quarter of 2007, other income included $897,000 of pre-tax interest earned on Federal income taxes refunded in connection with a previous acquisition. Non-Interest Expense For the three months ended March 31, 2008, non-interest expense increased $2.6 million, or 8.9%, to $32.0 million, compared to $29.3 million for the three months ended March 31, 2007. Increases of $714,000 in net occupancy expense, $407,000 in the amortization of intangibles, and $309,000 in data processing expense for the quarter ended March 31, 2008, compared with the same period in 2007, were all primarily attributable to the April 1, 2007 acquisition of First Morris. The increase in the amortization of intangibles for the quarter ended March 31, 2008, compared with the same period in 2007, was also partially attributable to the $104,000 pre-tax accelerated amortization of a core deposit intangible recognized upon the sale of an under-performing branch. A $543,000 increase in compensation and benefits expense for the quarter ended March 31, 2008, compared with the same period last year, reflected normal annual merit increases, the addition of branch and lending staff from First Morris and the addition of small business and middle market relationship managers to support the Company's business lending and deposit gathering initiatives. A $917,000 increase in other operating expenses for the quarter ended March 31, 2008, compared with the same period last year, included $356,000 in expense associated with Company's proportionate share of a litigation reserve established by Visa. The Company's annualized non-interest expense as a percentage of average assets was 2.03% for the quarter ended March 31, 2008, compared with 2.09% for the same period in 2007. The efficiency ratio (non-interest expense divided by the sum of net interest income and non-interest income) was 66.60% for the quarter ended March 31, 2008, compared with 65.18% for the same period in 2007. 2 Asset Quality Total non-performing loans at March 31, 2008 were $27.4 million, or 0.64% of total loans, compared with $34.6 million, or 0.81% of total loans at December 31, 2007, and $7.6 million, or 0.20% of total loans at March 31, 2007. At March 31, 2008, the Company's allowance for loan losses was 0.96% of total loans, compared with 0.95% of total loans at December 31, 2007, and 0.87% of total loans at March 31, 2007. The Company recorded a provision for loan losses of $1.3 million for the quarter ended March 31, 2008, compared with a provision of $300,000 for the quarter ended March 31, 2007. For the three months ended March 31, 2008, the Company had net charge-offs of $1.2 million, compared with net charge-offs of $56,000 for the same period in 2007. The increase in the loan loss provision for the three months ended March 31, 2008, compared with the same period in 2007, was attributable to an increase in non-performing loans, downgrades in risk ratings, growth in the loan portfolio and an increase in commercial loans as a percentage of the loan portfolio to 46.4% at March 31, 2008, from 41.5% at March 31, 2007. At March 31, 2008, the Company held $3.2 million of foreclosed assets, compared with $1.0 million at December 31, 2007. Income Tax Expense For the three months ended March 31, 2008, the Company's income tax expense was $4.0 million. This compares with $4.6 million for the same period in 2007. For the three months ended March 31, 2008, the Company's effective tax rate was 27.4%, compared with 29.7% for the three months ended March 31, 2007. The reduction in the Company's effective tax rate was a result of a larger proportion of the Company's income being derived from tax-exempt sources. About the Company Provident Financial Services, Inc. is the holding company for The Provident Bank, a community-oriented bank offering a full range of retail and commercial loan and deposit products. At March 31, 2008, the Bank operated 84 full service branches throughout northern and central New Jersey. Post Earnings Conference Call Representatives of the Company will hold a conference call for investors at 10:00 a.m. Eastern Time on April 24, 2008 regarding highlights of the Company's first quarter 2008 financial results. The call may be accessed by dialing 1-800-860-2442 (Domestic) or 1-412-858-4600 (International). Internet access to the call is also available (listen only) at www.providentnj.com by going to Investor Relations and clicking on Webcast. Forward Looking Statements Certain statements contained herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. 3 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Condition March 31, 2008 (Unaudited) and December 31, 2007 (Dollars in Thousands)
Assets March 31, 2008 December 31, 2007 --------------------------------- ---------------------------- Cash and due from banks $ 93,323 $ 83,737 Federal funds sold -- 18,000 Short-term investments 10,334 38,892 --------------------------------- ---------------------------- Total cash and cash equivalents 103,657 140,629 --------------------------------- ---------------------------- Investment securities held to maturity (market value of $359,508 at March 31, 2008 (unaudited) and $359,699 at December 31, 2007) 353,941 358,491 Securities available for sale, at fair value 867,592 769,615 Federal Home Loan Bank stock 37,359 39,764 Loans 4,255,667 4,296,291 Less allowance for loan losses 40,857 40,782 --------------------------------- ---------------------------- Net loans 4,214,810 4,255,509 --------------------------------- ---------------------------- Foreclosed assets, net 3,160 1,041 Banking premises and equipment, net 78,082 79,138 Accrued interest receivable 23,188 24,665 Intangible assets 518,865 520,722 Bank-owned life insurance 122,981 121,674 Other assets 73,209 48,143 --------------------------------- ---------------------------- Total assets $ 6,396,844 $ 6,359,391 ================================= ============================ Liabilities and Stockholders' Equity Deposits: Demand deposits $ 1,642,005 $ 1,553,625 Savings deposits 991,472 1,031,725 Certificates of deposit of $100,000 or more 471,418 480,362 Other time deposits 1,130,033 1,159,108 --------------------------------- ---------------------------- Total deposits 4,234,928 4,224,820 Mortgage escrow deposits 18,896 18,075 Borrowed funds 1,066,707 1,075,104 Other liabilities 65,433 40,598 --------------------------------- ---------------------------- Total liabilities 5,385,964 5,358,597 --------------------------------- ---------------------------- Stockholders' Equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued -- -- Common stock, $0.01 par value, 200,000,000 shares authorized, 83,209,293 shares issued and 59,673,683 shares outstanding at March 31, 2008, and 59,646,936 shares outstanding at December 31, 2007 832 832 Additional paid-in capital 1,010,653 1,009,120 Retained earnings 441,583 437,503 Accumulated other comprehensive income 8,586 4,335 Treasury stock at cost (383,870) (383,407) Unallocated common stock held by Employee Stock Ownership Plan (66,904) (67,589) Common Stock acquired by the Directors' Deferred Fee Plan (7,736) (7,759) Deferred compensation - Directors' Deferred Fee Plan 7,736 7,759 -------------------------------- ---------------------------- 4 Total stockholders' equity 1,010,880 1,000,794 -------------------------------- ---------------------------- Total liabilities and stockholders' equity $ 6,396,844 $ 6,359,391 ================================ ============================
5 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Income Three Months Ended March 31, 2008 and 2007 (Dollars in thousands, except per share data)
Three Months Ended March 31 ------------------------------ 2008 2007 ------------- ---------------- (Unaudited) Interest income: Real estate secured loans $ 41,387 40,202 Commercial loans 11,282 7,673 Consumer loans 9,679 8,912 Investment securities 3,653 3,985 Securities available for sale 10,287 9,208 Other short-term investments 226 43 Federal funds 148 4 ------------- ---------------- Total interest income 76,662 70,027 ------------- ---------------- Interest expense: Deposits 26,590 24,127 Borrowed funds 10,883 8,626 ------------- ---------------- Total interest expense 37,473 32,753 ------------- ---------------- Net interest income 39,189 37,274 Provision for loan losses 1,300 300 ------------- ---------------- Net interest income after provision for loan losses 37,889 36,974 ------------- ---------------- Non-interest income: Fees 6,114 5,426 Bank-owned life insurance 1,308 1,332 Net gain on securities transactions 96 -- Other income 1,267 968 ------------- ---------------- Total non-interest income 8,785 7,726 ------------- ---------------- Non-interest expense: Compensation and employee benefits 16,713 16,170 Net occupancy expense 5,257 4,543 Data processing expense 2,363 2,054 Amortization of intangibles 1,776 1,369 Advertising and promotion expense 517 787 Other operating expenses 5,326 4,409 ------------- ---------------- Total non-interest expense 31,952 29,332 ------------- ---------------- Income before income tax 14,722 15,368 expense Income tax expense 4,029 4,560 ------------- ---------------- Net income $ 10,693 10,808 ============= ================ Basic earnings per share $0.19 $0.18 Average basic shares outstanding 55,924,581 59,052,312 Diluted earnings per share $0.19 $0.18 Average diluted shares outstanding 55,924,581 59,052,312
6 PROVIDENT FINANCIAL SERVICES, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except share data) (Unaudited)
At or for the Three Months Ended March 31, -------------------------------- 2008 2007 ---- ---- INCOME STATEMENT: Net interest income $39,189 $37,274 Provision for loan losses 1,300 300 Non-interest income 8,785 7,726 Non-interest expense 31,952 29,332 Income before income tax expense 14,722 15,368 Net income 10,693 10,808 Basic earnings per share $0.19 $0.18 Diluted earnings per share $0.19 $0.18 Interest rate spread 2.49% 2.54% Net interest margin 2.87% 3.02% PROFITABILITY: Annualized return on average assets 0.68% 0.77% Annualized return on average equity 4.28% 4.32% Annualized non-interest expense to average assets 2.03% 2.09% Efficiency ratio (1) 66.60% 65.18% ASSET QUALITY: Non-accrual loans 27,401 7,321 90+ and still accruing loans -- 274 Non-performing loans 27,401 7,595 Foreclosed assets 3,160 757 Non-performing loans to total loans 0.64% 0.20% Non-performing assets to total assets 0.48% 0.15% Allowance for loan losses $40,857 $32,678 Allowance for loan losses to non-performing loans 149.11% 430.26% Allowance for loan losses to total loans 0.96% 0.87% AVERAGE BALANCE SHEET DATA: Assets $6,324,774 $5,678,517 Loans, net 4,237,200 3,739,707 Interest-Earning assets 5,463,739 4,930,771 Core deposits 2,578,987 2,228,580 Borrowed funds 1,078,838 822,127 Interest-bearing liabilities 4,805,002 4,175,573 Stockholders' equity 1,005,833 1,015,177 Average yield on interest- earning assets 5.63% 5.72% Average cost of interest- bearing liabilities 3.14% 3.18% 7 Notes (1) Efficiency Ratio Calculation Three Months Ended March 31, --------- 2008 2007 ---- ---- Net interest income $39,189 $37,274 Non-interest income 8,785 7,726 ----- ----- Total income $47,974 $45,000 ======= ======= Non-interest expense $31,952 $29,332 ======= ======= Expense/Income: 66.60% 65.18% ====== ======
8
Average Quarterly Balance NET INTEREST MARGIN ANALYSIS (Unaudited) (Dollars in thousands) March 31, 2008 December 31, 2007 Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost ------------------------------------------ --------------------------------------- Interest-Earning Assets: Federal Funds Sold and Other Short-Term Investments $ 43,839 $ 374 3.44 % $ 4,129 $ 50 4.80 % Investment Securities (1) 355,354 3,653 4.11 362,549 3,742 4.13 Securities Available for Sale 788,221 9,531 4.84 765,551 8,918 4.66 Federal Home Loan Bank Stock 39,125 756 7.78 35,746 575 6.38 Net Loans (2) Total Mortgage Loans 2,897,029 41,387 5.73 2,894,182 42,191 5.81 Total Commercial Loans 701,802 11,282 6.47 677,108 12,271 7.19 Total Consumer Loans 638,369 9,679 6.08 645,045 10,071 6.20 ------------- ----------- ----------- --------- Total Interest-Earning Assets 5,463,739 76,662 5.63 5,384,310 77,818 5.76 ----------- -------------- ---------- ------------- Non-Interest Earning Assets: Cash and Due from Banks 81,323 85,076 Other Assets 779,712 786,302 ------------- -------------- Total Assets $ 6,324,774 $ 6,255,688 ============= ============== Interest-Bearing Liabilities: Demand Deposits $ 1,115,920 6,480 2.34 % $ 1,032,160 7,117 2.74 % Savings Deposits 997,689 3,111 1.25 1,054,116 3,918 1.47 Time Deposits 1,612,555 16,999 4.24 1,645,956 18,225 4.39 ------------- ----------- -------------- ---------- Total Deposits 3,726,164 26,590 2.87 3,732,232 29,260 3.11 ----------- ---------- Borrowed Funds 1,078,838 10,883 4.06 973,393 10,275 4.19 ------------- ----------- -------------- ---------- Total Interest-Bearing Liabilities 4,805,002 37,473 3.14 4,705,625 39,535 3.33 ----------- -------------- ---------- ------------- Non-Interest Bearing Liabilities 513,939 543,273 ------------- -------------- Total Liabilities 5,318,941 5,248,898 Stockholders' Equity 1,005,833 1,006,790 ------------- -------------- Total Liabilities & Stockholders' Equity $ 6,324,774 $ 6,255,688 ============= ============== Net interest income $ 39,189 $ 38,283 =========== ========== Net interest rate spread 2.49 % 2.43 % ==== ==== Net interest-earning assets $ 658,737 $ 678,685 ============= ============== Net interest margin (3) 2.87 % 2.84 % ==== ==== Ratio of interest-earning assets to interest-bearing liabilities 1.14 x 1.14 x - ----------------------------------------------------------------------------------------------------------------------------------
(1) Average outstanding balance amounts shown are amortized cost. (2) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. (3) Annualized net interest income divided by average interest-earning assets. 9 The following table summarizes the net interest margin for the previous year, inclusive.
3/31/08 12/31/07 9/30/07 6/30/07 3/31/07 1stQtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. ------- -------- ------- -------- ------- Interest-Earning Assets: Securities 4.67% 4.55% 4.55% 4.52% 4.45% Net Loans 5.90% 6.09% 6.24% 6.20% 6.12% Total Interest-Earning Assets 5.63% 5.76% 5.87% 5.81% 5.72% Interest-Bearing Liabilities Total Deposits 2.87% 3.11% 3.17% 3.07% 2.92% Borrowed Funds 4.06% 4.19% 4.16% 4.09% 4.26% Total Interest-Bearing Liabilities 3.14% 3.33% 3.34% 3.23% 3.18% Interest Rate Spread 2.49% 2.43% 2.53% 2.58% 2.54% Net Interest Margin 2.87% 2.84% 2.97% 3.02% 3.02% Ratio of Interest-Earning Assets to Interest-Bearing Liabilities 1.14x 1.14x 1.15x 1.16x 1.18x
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