EX-99.1 2 v022662_ex99-1.txt Anthony C. Weagley, Vice President & Treasurer FOR IMMEDIATE RELEASE CENTER BANCORP, INC. REPORTS 8.47% INCREASE IN SECOND QUARTER EARNINGS ----------------------------------------------------------------------- Union, New Jersey, July 28, 2005 ---Center Bancorp, Inc. (NASDAQ, NM: CNBC), parent company to Union Center National Bank of Union, New Jersey, today reported earnings results for the second quarter ended June 30, 2005. Highlights for the quarter: o Successful completion of the acquisition of Red Oak Bank, a $98.3 million commercial bank, on May 20, 2005. This merger serves to strengthen the Corporation's presence in the Morris County market. o Second Quarter EPS of $.18 per share. o Total assets increased to $1.2 billion and positions Center as one of the largest New Jersey headquartered commercial banks. o Consummation of a $20.0 million private placement of the Corporation's stock on June 30, 2005. o Continued growth in the Corporation's loan portfolio. Excluding the impact of the merger with Red Oak, the Corporation achieved a net growth in loan volume on average of 11.06% for the second quarter and 9.2%, annualized for the six months ended June 30, 2005. o Credit quality continues to remain high. o Deposit growth continues to remain strong with total deposits increasing to $721.2 million at June 30, 2005. o Payment of a 5% stock dividend to shareholders on June 15, 2005. o Book value increased to $7.57 at June 30, 2005 from $5.41 a year ago. Net income for the second quarter of 2005 amounted to $1,933,000, an increase of 8.47% or $151,000 from the $1,782,000 earned for the comparable quarter of the previous year. On a per share basis, basic and fully diluted earnings per share were $.18; a 5.26% decrease from $.19 earned in the comparable three month period ended June 30, 2004. All common stock per share amounts in this press release have been restated to reflect all previously declared and paid common stock splits and common stock dividends. For the six months ended June 30, 2005, net income amounted to $3,678,000, an increase of $172,000 or 4.91% as compared with the comparable six month period ended June 30, 2004. On a per share basis, basic and fully diluted earnings per share were $.34; a decrease of 8.11% from $.37 earned in the comparable six month period ended June 30, 2004. The Corporation's earnings per share figures include the increase in shares as a result of the acquisition of Red Oak Bank on May 20, 2005, the issuance of 1,904,761 shares of the holding company's common stock on June 30, 2005 in a private placement of its securities and the issuance of 888,888 shares of the holding company's common stock in a private placement of its securities on September 29, 2004. John J. Davis, President & CEO of Center Bancorp, welcomed the shareholders and customers of Red Oak Bank, which was merged into the Corporation's Union Center National Bank subsidiary on May 20, 2005. He stated: "We welcome the opportunity to continue to expand our franchise in the attractive Morris County market with the addition of a true community bank. The merger with Red Oak was consistent with our company's continued strategy of highly focused growth within approximately 50 miles of our headquarters, through new branches and acquisitions of other financial institutions with a similar customer culture. In our view, Red Oak represented Center's best possible acquisition candidate currently in Morris County. This compliments our existing business strategies and core focus of providing personalized service to local markets through a diversified product line. We additionally see significant loan and core deposit growth opportunities as a result of an expanded market." Commenting on the financial results for the quarter, he noted: "Results are consistent with prior periods, an achievement given the challenges resulting from both a highly competitive marketplace and the uncertainties of the economy. We did continue to experience some margin compression as a result of the continued flattening of the yield curve and increased cost of funds. We continue to make progress in sustaining positive trends such as loan and core deposit growth and an increase in noninterest income. Other factors which contributed to the results for the second quarter included a reduction in the provision for loan losses, offset by an increase in other expense." Total interest income, on a fully tax-equivalent basis, for the second quarter of 2005, increased $2.8 million or 27.4% over the comparable 2004 quarterly period. Total interest expense increased by $2.3 million or 69.7% over the same quarterly period of 2004. For the six months ended June 30, 2005 total interest income on a fully tax-equivalent increased $4.3 million or 21.3% as compared to the comparable six month period in 2004. For the six months ended June 30, 2005 total interest expense increased $3.6 million or 56.2% as compared to the comparable six month period in 2004. The Corporation's net interest margin declined by 30 basis points to 2.93% for the second quarter period ended June 30, 2005 as compared to the comparable period in 2004; on a linked sequential quarter, the Corporation's net interest margin declined 4 basis points from 2.97% for the first quarter of 2005. For the six months ended June 30, 2005, the Corporation's net interest margin declined 26 basis points from 3.21% for the comparable six month period in 2004. The decline in margin for both periods was in part due to the recent actions by the Federal Reserve Board raising rates 50 basis points in the second quarter of 2005 and 200 basis points since June 30, 2004; the flattening of the yield curve and a shift toward higher costing funds as part of the funding mix also contributed to the increase in interest expense in both periods. Continued efforts to improve the yield on interest earning-assets and to control the cost of funds have helped to mitigate some of the effects of the current margin compression. Management believes that the margin can be stabilized; however, a protracted flat yield curve is expected to have further impact on compression. Management believes that continuing growth in the loan portfolio can be expected in 2005, which should help to support margins as the yield curve continues to moderate and short term rates continue to rise. The impact on net interest margins was to some extent mitigated by non-interest income, which increased by 12.8%, net of gains on securities sold, for the quarter and continues to be a strong contributing factor to the performance of the Corporation. Mr. Davis noted: "The Corporation continues to seek strategic initiatives to develop new sources of noninterest income to enhance current earnings and to create long-term sustainable quality earnings performance." Interest expense for the second quarter increased $2.3 million or 69.7%. Mr. Davis stated: "As we had noted in the first quarter, the flattening of the yield curve has had a negative effect on our ability to increase spreads. We experienced an increase in the cost of funds during the second quarter, which increased at a faster pace (as a result of the Federal Reserve's rate tightening policy) than our ability to substantially increase asset yields." Mr. Davis added: "We remain encouraged by the prospects for continued revenue growth in subsequent quarters in light of the sustained growth of the loan portfolio and increased opportunities to further increase the size of the loan portfolio with the completion of the Red Oak acquisition. The continued change in the earning asset mix should have a positive impact on net interest income." Total average loan volumes for the second quarter of 2005 increased to $435.5 million, an increase of $74.0 million or 20.5% on average from $361.5 million on average for the comparable prior year quarter. On a linked sequential quarter comparison, total average loans increased by $54.8 million or 14.4% from $380.7 million on average during the first quarter of 2005. The merger with Red Oak Bank contributed $89.6 million in net loans. Strong growth in commercial and commercial real estate related loans provided the bulk of the loan growth in the second quarter. For the six months ended June 30, 2005, total average loan volumes increased to $408.3 million, an increase of $53.6 million on average (up 15.1% from $354.7 million on average for the comparable six months ended June 30, 2004). Mr. Davis stated: "We are encouraged by the key credit quality trends, which have been maintained during a period of strong loan growth and national economic instability." Asset quality continues to remain high and no additional provisions were made to the allowance for loan losses during the quarter. At June 30, 2005, the total allowance for loan and lease losses amounted to $4.9 million or 1.0% of total loans. The acquisition of Red Oak Bank contributed $1.2 million to the allowance. Net recoveries amounted to $6,000 for the six month period. Non-performing assets at June 30, 2005 consisted of non-accrual loans totaling $350,000 comprised of five commercial loans, $300,000 was related to assets acquired from Red Oak Bank; no loans were on non-accrual status at December 31, 2004 or March 31, 2005. Interest-bearing liabilities increased $139.8 million on average during the second quarter of 2005, as compared to the second quarter in 2004. Total non-interest bearing core deposits increased $10.4 million on average in the second quarter of 2005 in comparison to the comparable quarter in 2004. At June 30, 2005 this source of funding amounted to $148.7 million or 20.6% of total deposits. The Corporation acquired $70.8 million total deposits with the merger with Red Oak Bank. Non-interest income, increased $101,000, exclusive of gains on securities sold (which decreased $8,000). This was an increase of 12.8% for the second quarter compared with the comparable quarter in 2004. Noninterest income, including gains on securities sold, increased $93,000 or 11.3% for the second quarter compared with the comparable quarter in 2004. The increased revenue was primarily driven by the increase in other income, which includes loan fees, and annuity and insurance sales fees. Total non-interest expense in the second quarter of 2005 was $5.4 million, up 10.58% as compared to the second quarter of 2004. Personnel-related expenses, the Corporation's largest non-interest operating expense component, increased 13.7% from a year ago. The increase was driven primarily by increased staffing levels, coupled with merit and promotional pay increases and certain employee related expenses. Red Oak Bank added $38,465 to personnel-related expenses during the second quarter. Full time equivalent staffing levels were 212 for the quarter compared to 189 in the second quarter of 2004. The 11.08% increase in other expense in the second quarter was primarily attributable to increased audit, legal and consulting expenses, in part due to continued compliance with Sarbanes Oxely. The effective tax rate continues to be less than the statutory rates, substantially as a result of tax free income generated from the Corporation's municipal and other tax advantaged securities. Total assets at June 30, 2005 reached $1.2 billion, an increase of $245.6 million or 26.3% from assets of $933.8 million at June 30, 2004 and $169.6 million or 16.8% from December 31, 2004. The acquisition of Red Oak Bank on May 20, 2005 contributed to this growth. On June 30, 2005 Center Bancorp, Inc. announced that it issued 1,904,761 shares of the holding company's common stock to a limited number of accredited investors in a private placement of its securities. The shares were issued at a purchase price of $10.50 per share. Net proceeds to the holding company were approximately $18.9 million, after commissions and expenses. Center Bancorp intends to utilize the net proceeds from this offering for general working capital purposes and to expand the Company's capital position in order to support future asset growth, to fund bank and non-bank acquisitions and to supply capital at the holding company (as distinct from the bank subsidiary) level. At June 30, 2005, the total Tier 1 capital leverage ratio was 9.45%, the total Tier 1 Risk Based Capital ratio was 14.67% and the Total Risk Based Capital ratio was 15.39%. Total Tier 1 capital increased to approximately $101.4 million at June 30, 2005 from $67.7 million at June 30, 2004. These ratios continue to exceed those necessary to be considered a well-capitalized institution under Federal Regulatory guidelines. At June 30, 2005, book value per common share was $7.57 as compared with $5.41 a year ago. At June 30, 2005, tangible book value per common share was $6.32 as compared to $5.19 a year ago. The Corporation recorded approximately $15.3 million in goodwill resulting from the merger with Red Oak Bank. Annualized return on average stockholders' equity for the three months ended June 30, 2005 was 10.45% compared to 13.25% for the comparable period in 2004. Mr. Davis concluded: "Our challenge will be to continue to grow our commercial business base and increase loans while containing operating expense and the more significant cost of funds as we make progress in driving more revenue to the bottom line. We believe that the second quarter results are supportive of the Company's stated goals to deliver consistent earnings performance." Center Bancorp, Inc., through its wholly owned subsidiary, Union Center National Bank, Union, New Jersey, currently operates thirteen banking locations. Banking centers are located in Union Township (6 locations), Berkeley Heights, Madison, Millburn/Vauxhall, Morristown (2 locations), Springfield, and Summit, New Jersey. The Bank also operates remote ATM locations in the Union New Jersey Transit train station and in Union Hospital. The Bank recently received approvals to install and operate two additional off-premise ATM locations in the Chatham and Madison New Jersey Transit Stations. Union Center National Bank is the largest commercial Bank headquartered in Union County; it was chartered in 1923 and is a full-service banking company. For further information regarding Center Bancorp Inc., call 1-(800)-862-3683. For information regarding Union Center National Bank, visit our web site at "http://www.centerbancorp.com" ~http://www.centerbancorp.com. All non-historical statements in this press release (including statements regarding loan and core deposit growth, interest rates and the Corporation's net interest margin) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may use such forward-looking terminology as "expect," "look," "believe," "plan," "anticipate," "may," "will" or similar statements or variations of such terms or otherwise express views concerning trends and the future. Such forward-looking statements involve certain risks and uncertainties. These include, but are not limited to, the direction of interest rates, continued levels of loan quality and origination volume, continued relationships with major customers including sources for loans, as well as the effects of international, national, regional and local economic conditions and legal and regulatory barriers and structure, including those relating to the deregulation of the financial services industry, and other risks cited in reports filed by the Corporation with the Securities and Exchange Commission. Actual results may differ materially from such forward-looking statements. Center Bancorp, Inc. assumes no obligation for updating any such forward-looking statement at any time. Center Bancorp, Inc. and Subsidiaries Consolidated Statements of Condition June 30, December 31, ------------------------------------------ ----------- ----------- (Dollars In Thousands) 2005 2004 ------------------------------------------ ----------- ----------- (unaudited) ------------------------------------------ ----------- ----------- ASSETS Cash and due from banks $ 32,001 $ 12,033 Federal funds sold and securities purchased under agreement to resell 0 0 ------------------------------------------ ----------- ----------- Total cash and cash equivalents $ 32,001 12,033 Investment securities held to maturity (approximate market value of $154,017 in 2005 and $127,898 in 2004) 151,088 124,162 Investment securities available-for-sale 436,670 453,524 ------------------------------------------ ----------- ----------- Total investment securities 587,758 577,686 Loans, net of unearned income 498,602 377,304 Less--Allowance for loan losses 4,995 3,781 ------------------------------------------ ----------- ----------- Net loans 493,607 373,523 Premises and equipment, net 18,110 17,622 Accrued interest receivable 5,649 4,533 Bank owned separate account life insurance 18,215 17,848 Other assets 6,452 3,679 Goodwill 16,776 2,091 ------------------------------------------ ----------- ----------- Total assets $ 1,178,568 $ 1,009,015 ========================================== =========== ============ LIABILITIES Deposits: Non-interest-bearing $ 148,742 $ 127,226 Interest-bearing: Certificates of deposit $100,000 and over 118,126 163,810 Interest-bearing demand, savings and time deposits 454,338 411,236 ------------------------------------------ ----------- ----------- Total deposits 721,206 702,272 Short-term borrowings 164,934 101,357 Long-term borrowings 168,555 115,000 Subordinated debentures 15,465 15,465 Accounts payable and accrued liabilities 6,724 6,278 ------------------------------------------ ----------- ----------- Total liabilities 1,076,884 940,372 ------------------------------------------ ----------- ----------- STOCKHOLDERS' EQUITY Preferred Stock, no par value, Authorized 5,000,000 shares; None Issued 0 0 Common stock, no par value: Authorized 20,000,000 shares; issued 14,467,962 and 11,475,446 shares in 2005 and 2004, respectively 65,592 30,441 Additional paid in capital 3,775 4,477 Retained earnings 37,081 36,973 Treasury stock at cost (1,041,920 and 1,056,972 shares in 2005 and 2004, respectively) (3,721) (3,775) Restricted stock 0 0 Accumulated other comprehensive (loss)/income (1,043) 527 ------------------------------------------ ----------- ----------- Total stockholders' equity 101,684 68,643 ------------------------------------------ ----------- ----------- Total liabilities and stockholders' equity $ 1,178,568 $ 1,009,015 ========================================== =========== ============ All per common share amounts have been adjusted retroactively for common stock splits and common stock dividends impacting the periods presented.
Center Bancorp, Inc. and Subsidiaries Consolidated Statements of Income Three Months Ended Six Months Ended (Unaudited) June 30, June 30, ------------------------------------------------------------- ----------- ----------- ----------- ----------- (In Thousands, Except Per Share Data) 2005 2004 2005 2004 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Interest income: Interest and fees on loans $ 5,928 $ 4,490 $ 10,961 $ 8,866 Interest and dividends on investment securities: Taxable interest income 4,935 4,119 9,423 8,099 Non-taxable interest income 992 853 1,965 1,733 Dividends 465 270 915 604 Interest on Federal funds sold and securities purchased under agreement to resell 17 0 29 0 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Total interest income 12,337 9,732 23,293 19,302 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Interest expense: Interest on certificates of deposit $100,000 and over 987 92 1,986 193 Interest on other deposits 1,896 1,561 3,456 3,202 Interest on borrowings 2,605 1,580 4,587 3,025 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Total interest expense 5,488 3,233 10,029 6,420 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Net interest income 6,849 6,499 13,264 12,882 Provision for loan losses 0 205 0 410 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Net interest income after provision for loan losses 6,849 6,294 13,264 12,472 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Other income: Service charges, commissions and fees 475 477 970 958 Other income 159 109 255 211 Annuity & Insurance 72 12 114 20 Bank Owned Life Insurance 185 192 367 358 Gain on securities sold 23 31 36 157 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Total other income 914 821 1,742 1,704 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Other expense: Salaries and employee benefits 3,004 2,641 5,881 5,278 Occupancy, net 442 459 1,012 1,022 Premises and equipment 483 475 941 920 Stationery and printing 181 144 302 296 Marketing and advertising 160 147 332 296 Other 1,153 1,038 2,294 2,083 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Total other expense 5,423 4,904 10,762 9,895 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Income before income tax expense 2,340 2,211 4,244 4,281 Income tax expense 407 429 566 775 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Net income $ 1,933 $ 1,782 $ 3,678 $ 3,506 ============================================================= =========== =========== =========== =========== Earnings per share: (Note 4) Basic $ .18 $ .19 $ .34 $ .37 Diluted $ .18 $ .19 $ .34 $ .37 ------------------------------------------------------------- ----------- ----------- ----------- ----------- Weighted average common shares outstanding: Basic 10,962,507 9,422,960 10,697,411 9,410,420 Diluted 11,005,043 9,482,201 10,741,239 9,481,883 ============================================================= =========== =========== =========== ===========
All per common share amounts have been adjusted retroactively for common stock splits and common stock dividends impacting the periods presented. Center Bancorp, Inc. and Subsidiaries Average Balance Sheet with Interest and Average Rates Period Ended June 30 (unaudited)
Six Month Period Ended June 30, ------------------------------------------------------------------------------- 2005 2004 ------------------------------------------------------------------------------- Interest Average Interest Average (tax-equivalent basis, Average Income/ Yield/ Average Income/ Yield/ dollars in thousands) Balance Expense Rate Balance Expense Rate -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Assets Interest-earning assets: Investment securities: (1) Taxable $ 425,932 $ 9,676 4.54% $ 409,582 $ 8,676 4.24% Non-taxable 145,900 3,846 5.27% 93,883 2,663 5.67% Loans, net of unearned income (2) 408,292 10,961 5.37% 354,665 8,865 5.00% Federal funds sold and securities purchased under agreement to resell 2,201 29 2.64% 0 0 0.00% -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total interest-earning assets 982,325 24,512 4.99% 858,130 20,204 4.71% Non-interest-earning assets Cash and due from banks 19,840 19,841 BOLI 18,013 16,062 Other assets 33,541 27,380 Allowance for possible loan losses (4,082) (3,205) -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total non-interest-earning assets 67,312 60,078 -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total assets $ 1,049,637 $ 918,208 ============================================ =========== =========== ========= =========== =========== ========= Liabilities and stockholders' equity Interest-bearing liabilities: Money market deposits $ 87,849 932 2.12% $ 86,634 497 1.15% Savings deposits 113,732 765 1.35% 113,220 693 1.12% Time deposits 240,274 3,311 2.76% 154,383 2,013 2.61% Other interest - bearing deposits 120,873 434 0.72% 109,365 192 0.35% Short-term Borrowings & FHLB Advances 260,048 4,125 3.17% 242,323 2,683 2.21% Subordinated Debentures 15,465 462 5.97% 15,465 342 4.42% -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total interest-bearing liabilities 838,241 10,029 2.39% 731,390 6,420 1.76% -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Non-interest-bearing liabilities: Demand deposits 132,781 125,327 Other non-interest-bearing deposits 2,224 1,220 Other liabilities 5,042 5,655 -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total non-interest-bearing liabilities 140,047 132,202 -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Stockholders' equity 71,349 54,616 -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total liabilities and stockholders' equity $ 1,049,637 $ 918,208 ============================================ =========== =========== ========= =========== =========== ========= Net interest income (tax-equivalent basis) $ 14,483 $ 13,784 -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net Interest Spread 2.60% 2.95% -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net interest income as percent of earning-assets (net interest margin) 2.95% 3.21% -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Tax-equivalent adjustment (3) (1,219) (902) -------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net interest income $ 13,264 $ 12,882 ============================================ =========== =========== ========= =========== =========== =========
(1) Average balances for available-for-sale securities are based on amortized cost (2) Average balances for loans include loans on non-accrual status (3) The tax-equivalent adjustment was computed based on a statutory Federal income tax rate of 34 percent Center Bancorp, Inc. and Subsidiaries Average Balance Sheet with Interest and Average Rates Period Ended June 30 (unaudited)
Three Month Period Ended June 30, ------------------------------------------------------------------------------------------------------------------------------------ 2005 2004 ---------------------------------------------------------------------------------- Interest Average Interest Average (tax-equivalent basis, Average Income/ Yield/ Average Income/ Yield/ dollars in thousands) Balance Expense Rate Balance Expense Rate ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Assets Interest-earning assets: Investment securities: (1) Taxable $ 437,799 $ 5,041 4.61% $ 409,893 $ 4,384 4.28% Non-taxable 143,506 1,974 5.50% 89,277 1,299 5.82% Loans, net of unearned income (2) 435,539 5,928 5.44% 361,523 4,490 4.97% Federal funds sold and securities purchased under agreement to resell 2,397 17 2.84% 0 0 0.00% ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total interest-earning assets 1,019,241 12,960 5.09% 860,693 10,173 4.73% Non-interest-earning assets Cash and due from banks 20,478 18,743 BOLI 18,103 16,062 Other assets 38,143 30,027 Allowance for possible loan losses (4,343) (3,315) ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total non-interest-earning assets 72,381 61,517 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total assets $ 1,091,622 $ 922,210 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Liabilities and stockholders' equity Interest-bearing liabilities: Money market deposits $ 91,206 526 2.31% $ 95,255 235 0.99% Savings deposits 137,004 410 1.20% 141,138 339 0.96% Time deposits 235,311 1,672 2.84% 151,299 977 2.58% Other interest - bearing deposits 109,153 275 1.01% 75,424 102 0.54% Short-term Borrowings & FHLB Advances 286,144 2,364 3.30% 255,941 1,411 2.21% Subordinated Debentures 15,465 241 6.23% 15,465 169 4.37% ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total interest-bearing liabilities 874,283 5,488 2.51% 734,522 3,233 1.76% ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Non-interest-bearing liabilities: Demand deposits 135,433 127,222 Other non-interest-bearing deposits 2,785 631 Other liabilities 5,150 6,047 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total non-interest-bearing liabilities 143,368 133,900 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Stockholders' equity 73,971 53,788 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Total liabilities and stockholders' equity $ 1,091,622 $ 922,210 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net interest income (tax-equivalent basis) $ 7,472 $ 6,940 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net Interest Spread 2.58% 2.97% ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net interest income as percent of earning-assets (net interest margin) 2.93% 3.23% ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Tax-equivalent adjustment (3) (623) (441) ----------------------------------------------- ----------- ----------- --------- ----------- ----------- --------- Net interest income $ 6,849 $ 6,499 ----------------------------------------------- ----------- ----------- --------- ----------- ----------- ---------
(1) Average balances for available-for-sale securities are based on amortized cost (2) Average balances for loans include loans on non-accrual status (3) The tax-equivalent adjustment was computed based on a statutory Federal income tax rate of 34 percent