Michigan
|
0-7818
|
38-2032782
|
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
230 West Main Street Ionia, Michigan
|
48846
|
|
(Address of principal executive office) | (Zip Code) |
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o |
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
|
Item 9.01. | Financial Statements and Exhibits |
99.1 | Press release dated April 23, 2012. |
Supplemental data to the Registrant's press release dated April 23, 2012.
|
INDEPENDENT BANK CORPORATION
|
|||||
(Registrant)
|
|||||
Date
|
April 23, 2012
|
By
|
s/Robert N. Shuster
|
||
Robert N. Shuster, Principal Financial
|
|||||
Officer
|
Independent Bank Corporation | |
230 West Main Street | |
Ionia, MI 48846 | |
616.527.5820 |
For Release: | Immediately |
Contact: | Robert Shuster, Chief Financial Officer, 616.522.1765 |
|
·
|
A return to profitability and significant improvement in operating results due primarily to declines in the provision for loan losses and in non-interest expenses and an increase in non-interest income that were partially offset by a decline in net interest income.
|
|
·
|
Additional improvement in asset quality with non-performing assets down 12% since the end of 2011.
|
|
·
|
A 52% decline in the provision for loan losses.
|
|
·
|
Strong mortgage-banking results with a 99% increase in net gains on mortgage loans.
|
|
·
|
Additional growth in core deposits which increased 5% since the end of 2011.
|
|
·
|
Regulatory capital ratios that increased and remain above minimum requirements for “well-capitalized” institutions.
|
Loan Type
|
3/31/2012
|
12/31/2011
|
3/31/2011
|
|||||||||
(Dollars in Millions)
|
||||||||||||
Commercial
|
$ | 24.6 | $ | 29.3 | $ | 26.5 | ||||||
Consumer/installment
|
3.1 | 3.5 | 3.7 | |||||||||
Mortgage
|
23.5 | 26.2 | 27.7 | |||||||||
Payment plan receivables(2)
|
0.5 | 0.9 | 2.0 | |||||||||
Total
|
$ | 51.7 | $ | 59.9 | $ | 59.9 | ||||||
Ratio of non-performing loans to total portfolio loans
|
3.37 | % | 3.80 | % | 3.45 | % | ||||||
Ratio of non-performing assets to total assets
|
3.42 | % | 4.07 | % | 3.93 | % | ||||||
Ratio of the allowance for loan losses to non-performing loans
|
108.26 | % | 98.33 | % | 110.50 | % |
|
(1)
|
Excludes loans that are classified as “troubled debt restructured” that are still performing.
|
|
(2)
|
Represents payment plans for which no payments have been received for 90 days or more and for which Mepco has not yet completed the process to charge the applicable counterparty for the balance due. These balances exclude receivables due from Mepco counterparties related to the cancellation of payment plan receivables.
|
Regulatory Capital Ratios
|
3/31/2012
|
12/31/2011
|
Well
Capitalized
Minimum
|
|||||||||
Tier 1 capital to average total assets
|
6.84 | % | 6.77 | % | 5.00 | % | ||||||
Tier 1 capital to risk-weighted assets
|
10.53 | % | 10.13 | % | 6.00 | % | ||||||
Total capital to risk-weighted assets
|
11.81 | % | 11.41 | % | 10.00 | % |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(unaudited)
|
||||||||
Assets
|
(In thousands, except share amounts)
|
|||||||
Cash and due from banks
|
$ | 53,690 | $ | 62,777 | ||||
Interest bearing deposits
|
299,159 | 278,331 | ||||||
Cash and Cash Equivalents
|
352,849 | 341,108 | ||||||
Trading securities
|
69 | 77 | ||||||
Securities available for sale
|
303,658 | 157,444 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
20,828 | 20,828 | ||||||
Loans held for sale, carried at fair value
|
40,321 | 44,801 | ||||||
Loans
|
||||||||
Commercial
|
649,552 | 651,155 | ||||||
Mortgage
|
571,251 | 590,876 | ||||||
Installment
|
210,360 | 219,559 | ||||||
Payment plan receivables
|
103,544 | 115,018 | ||||||
Total Loans
|
1,534,707 | 1,576,608 | ||||||
Allowance for loan losses
|
(56,006 | ) | (58,884 | ) | ||||
Net Loans
|
1,478,701 | 1,517,724 | ||||||
Other real estate and repossessed assets
|
30,918 | 34,042 | ||||||
Property and equipment, net
|
63,417 | 62,548 | ||||||
Bank-owned life insurance
|
49,695 | 49,271 | ||||||
Other intangibles
|
7,337 | 7,609 | ||||||
Capitalized mortgage loan servicing rights
|
11,795 | 11,229 | ||||||
Prepaid FDIC deposit insurance assessment
|
11,788 | 12,609 | ||||||
Vehicle service contract counterparty receivables, net
|
28,925 | 29,298 | ||||||
Accrued income and other assets
|
18,977 | 18,818 | ||||||
Total Assets
|
$ | 2,419,278 | $ | 2,307,406 | ||||
Liabilities and Shareholders' Equity
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$ | 519,819 | $ | 497,718 | ||||
Savings and interest-bearing checking
|
1,093,799 | 1,019,603 | ||||||
Retail time
|
524,694 | 526,525 | ||||||
Brokered time
|
46,000 | 42,279 | ||||||
Total Deposits
|
2,184,312 | 2,086,125 | ||||||
Other borrowings
|
33,039 | 33,387 | ||||||
Subordinated debentures
|
50,175 | 50,175 | ||||||
Vehicle service contract counterparty payables
|
6,813 | 6,633 | ||||||
Accrued expenses and other liabilities
|
39,907 | 28,459 | ||||||
Total Liabilities
|
2,314,246 | 2,204,779 | ||||||
Shareholders' Equity
|
||||||||
Preferred stock, no par value, 200,000 shares authorized; 74,426 shares issued and outstanding at March 31, 2012 and December 31, 2011; liquidation preference: $82,024 at March 31, 2012 and $81,023 at December 31, 2011
|
80,913 | 79,857 | ||||||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 8,546,342 shares at March 31, 2012 and 8,491,526 shares at December 31, 2011
|
248,995 | 248,950 | ||||||
Accumulated deficit
|
(211,811 | ) | (214,259 | ) | ||||
Accumulated other comprehensive loss
|
(13,065 | ) | (11,921 | ) | ||||
Total Shareholders' Equity
|
105,032 | 102,627 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 2,419,278 | $ | 2,307,406 |
Three Months Ended
|
||||||||||||
March 31,
|
December 31,
|
March 31,
|
||||||||||
2012
|
2011
|
2011
|
||||||||||
(unaudited)
|
||||||||||||
(In thousands)
|
||||||||||||
Interest Income
|
||||||||||||
Interest and fees on loans
|
$ | 24,346 | $ | 25,766 | $ | 29,484 | ||||||
Interest on securities
|
||||||||||||
Taxable
|
658 | 314 | 467 | |||||||||
Tax-exempt
|
296 | 288 | 332 | |||||||||
Other investments
|
396 | 362 | 435 | |||||||||
Total Interest Income
|
25,696 | 26,730 | 30,718 | |||||||||
Interest Expense
|
||||||||||||
Deposits
|
2,424 | 2,571 | 4,945 | |||||||||
Other borrowings
|
1,172 | 1,198 | 1,323 | |||||||||
Total Interest Expense
|
3,596 | 3,769 | 6,268 | |||||||||
Net Interest Income
|
22,100 | 22,961 | 24,450 | |||||||||
Provision for loan losses
|
5,131 | 6,917 | 10,702 | |||||||||
Net Interest Income After Provision for Loan Losses
|
16,969 | 16,044 | 13,748 | |||||||||
Non-interest Income
|
||||||||||||
Service charges on deposit accounts
|
4,201 | 4,617 | 4,282 | |||||||||
Interchange income
|
2,322 | 2,259 | 2,168 | |||||||||
Net gains (losses) on assets
|
||||||||||||
Mortgage loans
|
3,860 | 3,509 | 1,935 | |||||||||
Securities
|
684 | (22 | ) | 213 | ||||||||
Other than temporary impairment loss on securities
|
||||||||||||
Total impairment loss
|
(177 | ) | (614 | ) | (469 | ) | ||||||
Loss recognized in other comprehensive loss
|
- | - | 327 | |||||||||
Net impairment loss recognized in earnings
|
(177 | ) | (614 | ) | (142 | ) | ||||||
Mortgage loan servicing
|
736 | (126 | ) | 896 | ||||||||
Title insurance fees
|
508 | 375 | 473 | |||||||||
(Increase) decrease in fair value of U.S. Treasury warrant
|
(154 | ) | 112 | 354 | ||||||||
Other
|
2,604 | 2,381 | 2,532 | |||||||||
Total Non-interest Income
|
14,584 | 12,491 | 12,711 | |||||||||
Non-interest Expense
|
||||||||||||
Compensation and employee benefits
|
12,482 | 12,452 | 12,349 | |||||||||
Loan and collection
|
2,890 | 2,309 | 3,867 | |||||||||
Occupancy, net
|
2,716 | 2,768 | 3,101 | |||||||||
Data processing
|
2,339 | 2,524 | 2,310 | |||||||||
Furniture, fixtures and equipment
|
1,294 | 1,307 | 1,418 | |||||||||
Net losses on other real estate and repossessed assets
|
987 | 1,710 | 1,406 | |||||||||
Legal and professional
|
897 | 1,611 | 778 | |||||||||
Communications
|
875 | 852 | 948 | |||||||||
FDIC deposit insurance
|
857 | 735 | 1,235 | |||||||||
Credit card and bank service fees
|
651 | 727 | 1,047 | |||||||||
Advertising
|
556 | 539 | 554 | |||||||||
Vehicle service contract counterparty contingencies
|
471 | 6,046 | 2,346 | |||||||||
Provision for loss reimbursement on sold loans
|
432 | 973 | 406 | |||||||||
Cost (recoveries) related to unfunded lending commitments
|
(47 | ) | (48 | ) | 95 | |||||||
Other
|
649 | 2,208 | 2,008 | |||||||||
Total Non-interest Expense
|
28,049 | 36,713 | 33,868 | |||||||||
Income (Loss) Before Income Tax
|
3,504 | (8,178 | ) | (7,409 | ) | |||||||
Income tax expense (benefit)
|
- | 536 | (8 | ) | ||||||||
Net Income (Loss)
|
$ | 3,504 | $ | (8,714 | ) | $ | (7,401 | ) | ||||
Preferred stock dividends and discount accretion
|
1,056 | 1,055 | 1,008 | |||||||||
Net Income (Loss) Applicable to Common Stock
|
$ | 2,448 | $ | (9,769 | ) | $ | (8,409 | ) |
Three Months Ended
|
||||||||||||
March 31,
|
December 31,
|
March 31,
|
||||||||||
2012
|
2011
|
2011
|
||||||||||
(unaudited)
|
||||||||||||
Per Common Share Data
|
||||||||||||
Net Income (Loss) Per Common Share (A)
|
||||||||||||
Basic (B)
|
$ | 0.29 | $ | (1.15 | ) | $ | (1.06 | ) | ||||
Diluted (C)
|
0.07 | (1.15 | ) | (1.06 | ) | |||||||
Cash dividends declared per common share
|
.00 | .00 | .00 | |||||||||
Selected Ratios (D)
|
||||||||||||
As a Percent of Average Interest-Earning Assets
|
||||||||||||
Interest income
|
4.82 | % | 5.12 | % | 5.46 | % | ||||||
Interest expense
|
0.68 | 0.72 | 1.12 | |||||||||
Net interest income
|
4.14 | 4.40 | 4.34 | |||||||||
Net Income (Loss) to (A)
|
||||||||||||
Average common shareholders’ equity
|
42.29 | % | (124.60 | )% | (83.75 | )% | ||||||
Average assets
|
0.42 | (1.68 | ) | (1.36 | ) | |||||||
Average Shares
|
||||||||||||
Basic (B)
|
8,533,584 | 8,480,507 | 7,933,276 | |||||||||
Diluted (C)
|
47,318,098 | 69,908,107 | 32,555,495 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
Non-accrual loans
|
$ | 51,475 | $ | 59,309 | ||||
Loans 90 days or more past due and still accruing interest
|
258 | 574 | ||||||
Total non-performing loans
|
51,733 | 59,883 | ||||||
Other real estate and repossessed assets
|
30,918 | 34,042 | ||||||
Total non-performing assets
|
$ | 82,651 | $ | 93,925 | ||||
As a percent of Portfolio Loans
|
||||||||
Non-performing loans
|
3.37 | % | 3.80 | % | ||||
Allowance for loan losses
|
3.65 | 3.73 | ||||||
Non-performing assets to total assets
|
3.42 | 4.07 | ||||||
Allowance for loan losses as a percent of non-performing loans
|
108.26 | 98.33 |
(1)
|
Excludes loans classified as “troubled debt restructured” that are not past due and vehicle service contract counterparty receivables, net.
|
March 31, 2012
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR’s
|
$ | 34,301 | $ | 86,724 | $ | 121,025 | ||||||
Non-performing TDR’s (1)
|
12,655 | 12,518 | (2) | 25,173 | ||||||||
Total
|
$ | 46,956 | $ | 99,242 | $ | 146,198 |
December 31, 2011
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR’s
|
$ | 29,799 | $ | 86,770 | $ | 116,569 | ||||||
Non-performing TDR’s (1)
|
14,567 | 14,081 | (2) | 28,648 | ||||||||
Total
|
$ | 44,366 | $ | 100,851 | $ | 145,217 |
(1)
|
Included in non-performing loans table above.
|
(2)
|
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
|
Allowance for loan losses
|
Three months ended
|
|||||||||||||||
March 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Unfunded
|
Unfunded
|
|||||||||||||||
Loans
|
Commitments
|
Loans
|
Commitments
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance at beginning of period
|
$ | 58,884 | $ | 1,286 | $ | 67,915 | $ | 1,322 | ||||||||
Additions (deduction)
|
||||||||||||||||
Provision for loan losses
|
5,131 | - | 10,702 | - | ||||||||||||
Recoveries credited to allowance
|
1,880 | - | 935 | - | ||||||||||||
Loans charged against the allowance
|
(9,889 | ) | - | (13,791 | ) | - | ||||||||||
Additions (deductions) included in non-interest expense
|
- | (47 | ) | - | 95 | |||||||||||
Balance at end of period
|
$ | 56,006 | $ | 1,239 | $ | 65,761 | $ | 1,417 | ||||||||
Net loans charged against the allowance to average Portfolio Loans
|
2.07 | % | 2.93 | % |
March 31,
|
December 31,
|
|||||||||||||||||
2012
|
2011
|
|||||||||||||||||
Average
|
Average
|
|||||||||||||||||
Amount
|
Maturity
|
Rate
|
Amount
|
Maturity
|
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Brokered CDs
|
$ | 46,000 |
1.1 years
|
1.31 | % | $ | 42,279 |
1.0 years
|
1.59 | % | ||||||||
Fixed-rate FHLB advances
|
30,030 |
3.2 years
|
3.95 | 30,384 |
3.3 years
|
3.99 | ||||||||||||
Variable-rate FHLB advances(1)
|
3,000 |
2.1 years
|
0.66 | 3,000 |
2.3 years
|
0.51 | ||||||||||||
Total
|
$ | 79,030 |
1.9 years
|
2.29 | % | $ | 75,663 |
2.0 years
|
2.51 | % |
|
(1)
|
Certain of these items have had their average maturity and rate altered through the use of derivative instruments, such as pay-fixed interest-rate swaps.
|
March 31,
|
December 31,
|
|||||||
2012
|
2010
|
|||||||
(In thousands)
|
||||||||
Subordinated debentures
|
$ | 50,175 | $ | 50,175 | ||||
Amount not qualifying as regulatory capital
|
(1,507 | ) | (1,507 | ) | ||||
Amount qualifying as regulatory capital
|
48,668 | 48,668 | ||||||
Shareholders’ equity
|
||||||||
Preferred stock
|
80,913 | 79,857 | ||||||
Common stock
|
248,995 | 248,950 | ||||||
Accumulated deficit
|
(211,811 | ) | (214,259 | ) | ||||
Accumulated other comprehensive loss
|
(13,065 | ) | (11,921 | ) | ||||
Total shareholders’ equity
|
105,032 | 102,627 | ||||||
Total capitalization
|
$ | 153,700 | $ | 151,295 |
Three months ended
|
||||||||||||
March 31,
|
December 31,
|
March 31,
|
||||||||||
2012
|
2011
|
2011
|
||||||||||
(In thousands)
|
||||||||||||
Service charges on deposit accounts
|
$ | 4,201 | $ | 4,617 | $ | 4,282 | ||||||
Interchange income
|
2,322 | 2,259 | 2,168 | |||||||||
Net gains (losses) on assets
|
||||||||||||
Mortgage loans
|
3,860 | 3,509 | 1,935 | |||||||||
Securities
|
684 | (22 | ) | 213 | ||||||||
Other than temporary impairment loss on securities
|
||||||||||||
Total impairment loss
|
(177 | ) | (614 | ) | (469 | ) | ||||||
Loss recognized in other comprehensive loss
|
- | - | 327 | |||||||||
Net impairment loss recognized in earnings
|
(177 | ) | (614 | ) | (142 | ) | ||||||
Mortgage loan servicing
|
736 | (126 | ) | 896 | ||||||||
Investment and insurance commissions
|
447 | 437 | 555 | |||||||||
Bank owned life insurance
|
424 | 493 | 425 | |||||||||
Title insurance fees
|
508 | 375 | 473 | |||||||||
(Increase) decrease in fair value of U.S. Treasury warrant
|
(154 | ) | 112 | 354 | ||||||||
Other
|
1,733 | 1,451 | 1,552 | |||||||||
Total non-interest income
|
$ | 14,584 | $ | 12,491 | $ | 12,711 |
Three months ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Balance at beginning of period
|
$ | 11,229 | $ | 14,661 | ||||
Originated servicing rights capitalized
|
924 | 1,064 | ||||||
Amortization
|
(1,062 | ) | (749 | ) | ||||
Change in valuation allowance
|
704 | 555 | ||||||
Balance at end of period
|
$ | 11,795 | $ | 15,531 | ||||
Valuation allowance at end of period
|
$ | 5,840 | $ | 2,655 |
Three months ended
|
||||||||||||
March 31,
|
December 31,
|
March 31,
|
||||||||||
2012
|
2011
|
2011
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Mortgage loans originated
|
$ | 112,798 | $ | 139,351 | $ | 95,573 | ||||||
Mortgage loans sold
|
112,141 | 117,643 | 121,488 | |||||||||
Mortgage loans sold with servicing rights released
|
15,340 | 21,017 | 16,572 | |||||||||
Net gains on the sale of mortgage loans
|
3,860 | 3,509 | 1,935 | |||||||||
Net gains as a percent of mortgage loans sold (“Loan Sales Margin”)
|
3.44 | % | 2.98 | % | 1.59 | % | ||||||
Fair value adjustments included in the Loan Sales Margin
|
0.92 | 0.29 | (0.72 | ) |
Three months ended
|
||||||||||||
March 31,
|
December 31,
|
March 31,
|
||||||||||
2012
|
2011
|
2011
|
||||||||||
(In thousands)
|
||||||||||||
Compensation
|
$ | 9,945 | $ | 9,845 | $ | 9,812 | ||||||
Performance-based compensation
|
85 | 677 | 157 | |||||||||
Payroll taxes and employee benefits
|
2,452 | 1,930 | 2,380 | |||||||||
Compensation and employee benefits
|
12,482 | 12,452 | 12,349 | |||||||||
Loan and collection
|
2,890 | 2,309 | 3,867 | |||||||||
Occupancy, net
|
2,716 | 2,768 | 3,101 | |||||||||
Data processing
|
2,339 | 2,524 | 2,310 | |||||||||
Furniture, fixtures and equipment
|
1,294 | 1,307 | 1,418 | |||||||||
Net losses on other real estate and repossessed assets
|
987 | 1,710 | 1,406 | |||||||||
Legal and professional fees
|
897 | 1,611 | 778 | |||||||||
Communications
|
875 | 852 | 948 | |||||||||
FDIC deposit insurance
|
857 | 735 | 1,235 | |||||||||
Credit card and bank service fees
|
651 | 727 | 1,047 | |||||||||
Advertising
|
556 | 539 | 554 | |||||||||
Vehicle service contract counterparty contingencies
|
471 | 6,046 | 2,346 | |||||||||
Provision for loss reimbursement on sold loans
|
432 | 973 | 406 | |||||||||
Supplies
|
394 | 401 | 402 | |||||||||
Amortization of intangible assets
|
272 | 342 | 343 | |||||||||
Costs (recoveries) related to unfunded lending commitments
|
(47 | ) | (48 | ) | 95 | |||||||
Other
|
(17 | ) | 1,465 | 1,263 | ||||||||
Total non-interest expense
|
$ | 28,049 | $ | 36,713 | $ | 33,868 |
Three Months Ended
|
||||||||||||||||||||||||
March 31,
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Balance
|
Interest
|
Rate(3)
|
Balance
|
Interest
|
Rate(3)
|
|||||||||||||||||||
Assets (1)
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Taxable loans
|
$ | 1,582,444 | $ | 24,270 | 6.16 | % | $ | 1,798,106 | $ | 29,397 | 6.60 | % | ||||||||||||
Tax-exempt loans (2)
|
7,239 | 76 | 4.22 | 8,391 | 87 | 4.20 | ||||||||||||||||||
Taxable securities
|
184,798 | 658 | 1.43 | 41,621 | 467 | 4.55 | ||||||||||||||||||
Tax-exempt securities (2)
|
27,145 | 296 | 4.39 | 30,956 | 332 | 4.35 | ||||||||||||||||||
Cash – interest bearing
|
318,573 | 199 | 0.25 | 369,793 | 232 | 0.25 | ||||||||||||||||||
Other investments
|
20,828 | 197 | 3.80 | 23,630 | 203 | 3.48 | ||||||||||||||||||
Interest Earning Assets
|
2,141,027 | 25,696 | 4.82 | 2,272,497 | 30,718 | 5.46 | ||||||||||||||||||
Cash and due from banks
|
56,080 | 50,888 | ||||||||||||||||||||||
Other assets, net
|
164,120 | 191,884 | ||||||||||||||||||||||
Total Assets
|
$ | 2,361,227 | $ | 2,515,269 | ||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Savings and interest-bearing checking
|
$ | 1,053,896 | 472 | 0.18 | $ | 994,530 | 589 | 0.24 | ||||||||||||||||
Time deposits
|
576,967 | 1,952 | 1.36 | 805,645 | 4,356 | 2.19 | ||||||||||||||||||
Other borrowings
|
83,384 | 1,172 | 5.65 | 104,907 | 1,323 | 5.11 | ||||||||||||||||||
Interest Bearing Liabilities
|
1,714,247 | 3,596 | 0.84 | 1,905,082 | 6,268 | 1.33 | ||||||||||||||||||
Non-interest bearing deposits
|
504,019 | 448,979 | ||||||||||||||||||||||
Other liabilities
|
39,252 | 44,231 | ||||||||||||||||||||||
Shareholders’ equity
|
103,709 | 116,977 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 2,361,227 | $ | 2,515,269 | ||||||||||||||||||||
Net Interest Income
|
$ | 22,100 | $ | 24,450 | ||||||||||||||||||||
Net Interest Income as a Percent of Average Interest Earning Assets
|
4.14 | % | 4.34 | % |
(1)
|
All domestic, except for $0.03 million for the three months ended March 31, 2011, of average payment plan receivables included in taxable loans for customers domiciled in Canada.
|
(2)
|
Interest on tax-exempt loans and securities is not presented on a fully tax equivalent basis due to the current net operating loss carryforward position and the deferred tax asset valuation allowance.
|
(3)
|
Annualized.
|
Total Commercial Loans
|
||||||||||||||||||||
Watch Credits
|
Percent of
Loan
|
|||||||||||||||||||
Loan Category
|
All Loans
|
Performing
|
Non- performing
|
Total
|
Category in
Watch Credit
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Land
|
$ | 16,955 | $ | 1,147 | $ | 4,302 | $ | 5,449 | 32.1 | % | ||||||||||
Land Development
|
17,213 | 9,330 | 947 | 10,277 | 59.7 | |||||||||||||||
Construction
|
15,513 | 478 | 330 | 808 | 5.2 | |||||||||||||||
Income Producing
|
276,572 | 51,462 | 11,000 | 62,462 | 22.6 | |||||||||||||||
Owner Occupied
|
182,242 | 23,253 | 6,074 | 29,327 | 16.1 | |||||||||||||||
Total Commercial Real Estate Loans (1)
|
$ | 508,495 | $ | 85,670 | 22,653 | $ | 108,323 | 21.3 | ||||||||||||
Other Commercial Loans(1)
|
$ | 139,511 | $ | 19,109 | 1,942 | $ | 21,051 | 15.1 | ||||||||||||
Total non-performing commercial loans
|
$ | 24,595 |
(1)
|
The total of these two categories is different than the March 31, 2012, Consolidated Statement of Financial Condition due primarily to loans in process.
|