-----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, OyhmuFIsXlVRsDWcBBAp5BALbcX/RRz/fV9HGrav4bZxv/+m7xvrEv2UJKtpz3IC zLIZouo5YxO4RQCWFk6oAQ== 0001144204-06-003778.txt : 20060202 0001144204-06-003778.hdr.sgml : 20060202 20060202160543 ACCESSION NUMBER: 0001144204-06-003778 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060202 DATE AS OF CHANGE: 20060202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTER BANCORP INC CENTRAL INDEX KEY: 0000712771 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 521273725 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11486 FILM NUMBER: 06573738 BUSINESS ADDRESS: STREET 1: 2455 MORRIS AVE CITY: UNION STATE: NJ ZIP: 07083 BUSINESS PHONE: 9086889500 MAIL ADDRESS: STREET 1: 2455 MORRIS AVE CITY: UNION STATE: NJ ZIP: 07083 8-K 1 v033918_8k.txt 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): January 31, 2006 CENTER BANCORP, INC. ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) New Jersey 2-81353 52-1273725 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 2455 Morris Avenue, Union, New Jersey 07083 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (800) 862-3683 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): |X| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. On January 31, 2006, Center Bancorp, Inc. (the "Registrant") issued a press release regarding results for the quarter and year ended December 31, 2005. A copy of this press release is being filed as Exhibit 99.1 to this Current Report on Form 8-K. Item 9.01. Financial Statements and Exhibits. (c) Exhibits Exhibit 99.1 - Press release, dated January 31, 2006, regarding results for the quarter and year ended December 31, 2005. The only portions of Exhibit 99.1 which are to be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 are the Registrant's consolidated statements of condition, consolidated statements of income and average balance sheets with interest and average rates. All other portions of Exhibit 99.1 are deemed "furnished", and not "filed", for purposes of Section 18 of the Securities Exchange Act of 1934. -2- SIGNATURE 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. CENTER BANCORP, INC. By: /s/ John J. Davis -------------------------------------------- Name: John J. Davis Title: President and Chief Executive Officer Dated: January 31, 2006 -3- EXHIBIT INDEX Exhibit 99.1 - Press release, dated January 31, 2006, regarding results for the quarter and year ended December 31, 2005 -4- EX-99.1 2 v033918_ex99-1.txt Contact: Anthony C. Weagley, Vice President & Treasurer Center Bancorp, Inc. Reports Fourth Quarter 2005 Earnings Union, NJ, January 31, 2006 UNION, N.J., January 31, 2006 -- Center Bancorp, Inc. (CNBC), parent company to Union Center National Bank, today reported earnings results for the fourth quarter and year ended December 31, 2005. Center Bancorp reported: o Net income of $1,989,000 for the fourth quarter of 2005 and $7,703,000 for the year 2005, as compared with $2,099,000 for the fourth quarter of 2004 and $7,622,000 for the year 2004. o EPS of $.15 per share for the fourth quarter of 2005, as compared with $.20 per share for the fourth quarter of 2004, reflecting the additional shares issued in September 2004 and June 2005. o Total assets at $1.1 billion at December 31, 2005, which positions Center as one of the largest New Jersey headquartered financial institutions. o Continued growth in the Corporation's loan portfolio. The Corporation achieved a net growth in loan volume on average of 31.8% for the fourth quarter and 24.5% for the twelve months ended December 31, 2005. Commercial and commercial real estate loans provided the bulk of the loan growth in the fourth quarter. o Net interest margin declined on a linked sequential quarter, 4 basis points from 2.88% to 2.84% for the fourth quarter of 2005. o Book value per common share increased to $7.41 at December 31, 2005 from $6.59 a year ago. o Credit quality continues to remain high. o Deposit growth continues to remain strong with total deposits increasing to $700.6 million at December 31, 2005, including a growth of $12.7 million in non-interest demand deposits for the year. o The Corporation has undertaken a repositioning of its consolidated balance sheet designed to enhance its earnings profile and reduce exposure to future interest rate risk. o The Board of Directors and management team recognize the need to improve operating efficiency in light of declining margins. A primary focus is on controlling overall operating expense. Net income for the fourth quarter of 2005 amounted to $1,989,000 or $.15 per fully diluted common share, a decrease of $110,000 or 5.24% over the $2,099,000 or $.20 per fully diluted common share earned for the comparable quarter of the previous year. Net income for the twelve-months ended December 31, 2005 amounted to $7,703,000 or $.64 per fully diluted common share, an increase of $81,000 or 1.06% over the $7,622,000 or $.78 per fully diluted common share earned for the comparable twelve-month period ended December 31, 2004. All common stock per share amounts have been restated to reflect all previously declared and paid common stock splits and common stock dividends. Commenting on Center Bancorp's financial results for the fourth quarter 2005, John J. Davis, President and Chief Executive Officer, said "The combination of the continuation of the Fed tightening cycle, the continued flattening of the yield curve and increased competition for commercial loans and retail deposits has caused a compression of our net interest margin in the fourth quarter, and as a result, led to a slight decline in net interest margins for the last two quarters. Despite the challenges resulting from the economic and competitive environment, we are encouraged by the results of the Corporation for the fourth quarter. We continue to see progress in maintaining positive growth, with the loan portfolio reflecting healthy increases with strong credit quality." As previously announced in December of 2005, the Corporation has undertaken a repositioning of its consolidated balance sheet designed to enhance its earnings profile and reduce exposure to future interest rate risk and the flat yield curve. The Corporation was successful in reducing the size of its securities portfolio during the fourth quarter by $57.4 million at the Bank subsidiary level and by $54.5 million on a consolidated company basis. Net proceeds from the sale of these securities were used to reduce borrowings. Mr. Davis said, "We believe these actions and positive performance trends in loan growth coupled with a stable margin should have a continued visible positive impact on net income in 2006." Total interest income on a fully taxable-equivalent basis for the fourth quarter of 2005 increased by $3.2 million or 28.3% to $14.4 million, from the comparable 2004 quarterly period, while total interest expense increased by $2.8 million or 70.5% to $6.8 million. For the full year total interest income on a fully taxable-equivalent basis increased by $11.1 million or 26.5%, while total interest expense increased by $9.3 million or 66.8% or as compared to 2004. The Corporation continues to experience good levels of loan demand. Total average loan volumes for the fourth quarter of 2005 increased to $501.3 million, an increase of $121.0 million (up 31.8% from $380.3 million for the comparable prior year quarter). On a linked sequential quarter comparison, total average loans increased by $3.1 million from $498.1 million on average or an increase of ..63% as compared to the third quarter of 2005. During the fourth quarter of 2005 the Company experienced increased levels of payoffs and principal reductions primarily in its commercial sectors, which offset in part, the $17.3 million in new volume booked for the quarter to the commercial portfolios. The merger with Red Oak Bank on May 20, 2005 contributed $89.6 million in net loans. Asset quality continues to remains strong during the fourth quarter of 2005. Despite the increase in the size of the loan portfolio, the Corporation did not make any provisions to the allowance for loan and lease losses during 2005. At December 31, 2005, the total allowance for loan and lease amounted to $4.9 million or .98% of total loans. At December 31, 2005 total non-accrual loans amounted to $387,000 or .07% to total loans. The Federal Reserve Board raised rates 200 basis points over 2005. For the three months ended December 31, 2005, the net interest margin (net interest income as a percentage of earning assets), decreased 26 basis points to 2.84% from 3.10% for the fourth quarter in 2004. For the full twelve months ended December 31, 2005 the net interest margin decreased 29 basis points to 2.90% as compared to 3.19% for the comparable 12 months in 2004. "Net interest margin compression negatively impacted fourth quarter results," cited Anthony C. Weagley, Vice President & Treasurer. "As announced, we have taken steps designed to protect our net interest margin." Ongoing efforts to improve the yield on earning-assets and to control the cost of funds have helped to sustain the current margin. Management believes that the margin can be maintained at or near the current levels into 2006 and that continuing growth in the loan portfolio can be expected in 2006, which should help to support margins. "We believe that we are on track to achieve solid earnings growth in 2006, fueled by loan growth." "On balance we are continuing to project the previously announced decline in the investment securities portfolio of approximately $90.0 million in 2006. We believe we will be able to continue a reduction in short-term borrowings, designed to improve margins in the current interest rate environment," Mr. Weagley indicated. Other non-interest income decreased $47,000 or 5.6% for the fourth quarter compared with the comparable quarter in 2004. The decrease from the comparable period in 2004 was driven primarily by decreased levels of core service charges, commissions and fees and other income comprised of loan fees. Total non-interest expense in the fourth quarter of 2005 was $5.5 million, up 14.2% from the fourth quarter of 2004. Personnel-related expenses, the Corporation's largest non-interest operating expense component, increased 40.5% from a year ago, as a result of a credit of $478,000 in 2004 to benefits expense representing a reduction in the Corporation's obligation related to certain long-term benefit plans. The increase in salary and benefit expenses was related to increased staffing levels, merit and promotional pay increases and certain employee related expenses offset in certain cases by expense reductions, such as employee health insurance costs. Full time equivalent staffing levels were 202 as of December 31, 2005 compared to 192 as of December 31, 2004. The increase of 19.8% in occupancy and premises and equipment in the fourth quarter of 2005 compared to the comparable quarter in 2004 was attributable primarily to the new operations center, which commenced operations in October 2005, and the expanded facilities related to the Red Oak merger. The 30.1% decrease in other expense in the fourth quarter was primarily attributable to a decline in accounting, legal, and consulting fees related to the implementation of section 404 of Sarbanes Oxley in 2004 offset in part by the amortization associated with the core deposit intangible resulting from the acquisition of Red Oak Bank. Amortization of core deposit intangible amounted to $75,000 for 2005. 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 investments. Total assets at December 31, 2005, reached $1.1 billion, an increase of $105.5 million or 10.46% from assets of $1.0 billion at December 31, 2004. Average deposits increased $15.3 million or 2.29% for the three months ended December 31, 2005 as compared to the comparable period in 2004. The growth in average deposits was reflected in core interest bearing deposits and non-interest bearing demand accounts. The acquisition of Red Oak Bank on May 20, 2005 contributed to this growth. At December 31, 2005, the Corporation continues to remain "well capitalized" with a total Tier 1 Risk Based Capital ratio was 15.52% and the Total Risk Based Capital ratio was 16.27%. At December 31, 2005, book value per common share was $7.41 as compared with $6.59 a year ago. At December 31, 2005, tangible book value per common share was at $6.11 as compared to $6.39 a year ago. The Corporation recorded approximately $15.3 million in goodwill and core deposit intangibles resulting from the acquisition of Red Oak Bank. The Corporation expects its Boonton / Mountain Lakes office to open in the third quarter of 2006. Current expansion plans also include new branch locations in the Cranford and Florham Park markets in New Jersey. Management believes that such growth will enhance the Corporation's ability to achieve growth goals. Mr. Davis noted, "We continue to stay the course by focusing on our commercial business base and increasing loans. We also remain committed to containing and controlling operating expense and have begun the efficiency review that was initiated in December of 2005, with the Kafafian group. We anticipate being able to report results of that analysis in the first quarter. While the results for the current quarter were flat in comparison with the prior period results we believe that the fourth quarter results are stable in this challenging rate environment and 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 fourteen banking locations. Banking centers are located in Union Township (6 locations), Berkeley Heights, Madison, Millburn/Vauxhall, Morristown (3 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 which are scheduled to be operational in 2006. 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 All non-historical statements in this press release (including statements regarding anticipated loan and earnings growth, the Corporation's net interest margin and the Corporation's expansion plans) 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. CONSOLIDATED STATEMENTS OF CONDITION
December 31 December 31 - ----------------------------------------------------------------------------------------------- (Dollars In Thousands) 2005 2004 - ----------------------------------------------------------------------------------------------- (unaudited) ASSETS Cash and due from banks $ 19,343 $ 12,033 Investment securities held to maturity (approximate market value of $140,628 in 2005, $127,898 in 2004) 140,514 124,162 Investment securities available-for-sale 388,170 453,524 - ----------------------------------------------------------------------------------------------- Total investment securities 528,684 577,686 Loans, net of unearned income 505,826 377,304 Less-Allowance for loan losses 4,937 3,781 - ----------------------------------------------------------------------------------------------- Net loans 500,889 373,523 Premises and equipment, net 18,343 17,622 Accrued interest receivable 5,965 4,533 Bank owned separate account life insurance 18,588 17,848 Other assets 5,670 3,679 Goodwill and other intangible assets 17,437 2,091 - ----------------------------------------------------------------------------------------------- Total assets $ 1,114,919 $ 1,009,015 =============================================================================================== LIABILITIES Deposits: Non-interest bearing $ 139,911 $ 127,226 Interest bearing: Certificates of deposit $100,000 and over 154,409 163,810 Savings and time deposits 406,281 411,236 - ----------------------------------------------------------------------------------------------- Total deposits 700,601 702,272 Short-term borrowings 178,270 131,600 Long-term borrowings 115,693 84,757 Subordinated debentures 15,465 15,465 Accounts payable and accrued liabilities 5,344 6,278 - ----------------------------------------------------------------------------------------------- Total liabilities 1,015,373 940,372 - ----------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY Preferred Stock, no par value, Authorized 5,000,000 shares; None Issued -- -- 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 3,787 4,477 Retained earnings 38,560 36,973 Treasury stock at cost (1,036,334 and 1,056,972 shares in 2005 and 2004 respectively) (3,701) (3,775) Accumulated other comprehensive (loss) income (4,642) 527 - ----------------------------------------------------------------------------------------------- Total stockholders' equity 99,546 68,643 - ----------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,114,919 $ 1,009,015 ===============================================================================================
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year Ended (Unaudited) December 31, December 31, - --------------------------------------------------------------------------------------------------------------------------- (In Thousands, Except Per Share Data) 2005 2004 2005 2004 - --------------------------------------------------------------------------------------------------------------------------- Interest income: Interest and fees on loans $ 7,324 $ 4,958 $ 25,329 $ 18,529 Interest and dividends on investment securities: Taxable interest income 4,692 4,192 18,939 16,459 Non-taxable interest income 1,047 938 4,001 3,596 Dividends 663 538 2,295 1,465 Interest on Federal funds sold and securities Purchased under agreement -- -- 29 -- - --------------------------------------------------------------------------------------------------------------------------- Total interest income 13,726 10,626 50,593 40,049 - --------------------------------------------------------------------------------------------------------------------------- Interest expense: Interest on certificates of deposit $100,000 and over 1,022 740 3,828 1,278 Interest on other deposits 2,210 1,445 7,771 6,137 Interest on borrowings 3,616 1,832 11,697 6,553 - --------------------------------------------------------------------------------------------------------------------------- Total interest expense 6,848 4,017 23,296 13,968 - --------------------------------------------------------------------------------------------------------------------------- Net interest income 6,878 6,609 27,297 26,081 Provision for loan losses -- 137 -- 752 - --------------------------------------------------------------------------------------------------------------------------- Net interest income after provision for loan losses 6,878 6,472 27,297 25,329 - --------------------------------------------------------------------------------------------------------------------------- Other income: Service charges, commissions and fees 451 477 1,922 1,948 Other income 141 155 631 499 Annuity & Insurance 30 34 193 59 Bank Owned Life Insurance 188 188 740 734 Gain (Loss) on securities sold (12) (9) 350 148 - --------------------------------------------------------------------------------------------------------------------------- Total other income 798 845 3,836 3,388 - --------------------------------------------------------------------------------------------------------------------------- Other expense: Salaries and employee benefits 3,059 2,177 12,108 10,140 Occupancy, net 578 466 2,165 1,943 Premises and equipment 550 475 1,990 1,852 Stationery and printing 170 116 628 539 Marketing and advertising 129 121 644 529 Other 1,028 1,471 4,678 4,468 - --------------------------------------------------------------------------------------------------------------------------- Total other expense 5,514 4,826 22,213 19,471 - --------------------------------------------------------------------------------------------------------------------------- Income before income tax expense 2,162 2,491 8,920 9,246 Income tax expense 173 392 1,217 1,624 - --------------------------------------------------------------------------------------------------------------------------- Net income $ 1,989 $ 2,099 $ 7,703 $ 7,622 =========================================================================================================================== Earnings per share: Basic $ 0.15 $ 0.20 $ 0.64 $ 0.79 Diluted $ 0.15 $ 0.20 $ 0.64 $ 0.78 Weighted average common shares outstanding: Basic 13,429,606 10,413,147 12,074,870 9,679,880 Diluted 13,471,205 10,457,061 12,119,291 9,737,706 ===========================================================================================================================
All per common share amounts have been adjusted retroactively for common stock splits and common stock dividends impacting the periods presented. AVERAGE STATEMENTS OF CONDITION WITH INTEREST AND AVERAGE RATES
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 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 $ 422,507 $ 19,686 4.66% $ 404,641 $ 17,565 4.34% Non-taxable 150,149 8,094 5.39% 110,225 5,919 5.37% Federal funds sold and securities purchased 1,091 29 2.66% 0 0 0.00% Loans, net of unearned income (2) 454,372 25,329 5.57% 365,104 18,529 5.07% - ---------------------------------------------------------------------------------------------------------------------------------- Total interest-earning assets $ 1,028,119 53,138 5.17% $ 879,970 42,013 4.77% ================================================================================================================================== Non-interest earning assets Cash and due from banks 19,418 20,006 BOLI 18,200 16,857 Other assets 40,434 28,220 Allowance for possible loan losses (4,534) (3,414) - ---------------------------------------------------------------------------------------------------------------------------------- Total non-interest earning assets 73,518 61,669 - ---------------------------------------------------------------------------------------------------------------------------------- Total assets $ 1,101,637 $ 941,639 ================================================================================================================================== Liabilities and stockholders' equity Interest-bearing liabilities: Money market deposits $ 92,875 1,963 2.11% $ 95,071 978 1.03% Savings deposits 114,305 1,610 1.41% 139,406 1,368 0.98% Time deposits 227,249 6,766 2.98% 181,094 4,560 2.52% Other interest - bearing deposits 118,881 1,260 1.06% 77,203 509 0.66% Short-term Borrowings & FHLB Advances 304,364 10,624 3.49% 241,536 5,811 2.41% Subordinated Debentures 15,465 1,073 6.94% 15,465 742 4.80% - ---------------------------------------------------------------------------------------------------------------------------------- Total interest-bearing liabilities 873,139 23,296 2.67% 749,775 13,968 1.86% ================================================================================================================================== Non-interest-bearing liabilities: - ---------------------------------------------------------------------------------------------------------------------------------- Demand deposits 134,837 127,617 Other non-interest-bearing deposits 2,813 763 Other liabilities 5,076 5,630 - ---------------------------------------------------------------------------------------------------------------------------------- Total non-interest-bearing liabilities 142,726 134,010 - ---------------------------------------------------------------------------------------------------------------------------------- Stockholders' equity 85,772 57,854 - ---------------------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,101,637 $ 941,639 - ---------------------------------------------------------------------------------------------------------------------------------- Net interest income (tax-equivalent basis) $ 29,842 $ 28,045 - ---------------------------------------------------------------------------------------------------------------------------------- Net Interest Spread 2.50% 2.91% - ---------------------------------------------------------------------------------------------------------------------------------- Net interest income as percent of earning-assets (net interest margin) 2.90% 3.19% - ---------------------------------------------------------------------------------------------------------------------------------- Tax equivalent adjustment (3) (2,545) (1,964) - ---------------------------------------------------------------------------------------------------------------------------------- Net interest income $ 27,297 $ 26,081 ==================================================================================================================================
(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 AVERAGE STATEMENTS OF CONDITION WITH INTEREST AND AVERAGE RATES
Three Month Period Ended December 31, - ---------------------------------------------------------------------------------------------------------------------------------- 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 $ 411,088 $ 4,932 4.80% $ 394,653 $ 4,371 4.43% Non-taxable 151,098 2,141 5.67% 153,971 1,892 4.92% Federal funds sold and securities purchased 0 0 0.00% 0 0 0.00% Loans, net of unearned income (2) 501,260 7,324 5.84% 380,287 4,958 5.22% - ---------------------------------------------------------------------------------------------------------------------------------- Total interest-earning assets 1,063,446 14,397 5.42% 928,911 11,221 4.83% - ---------------------------------------------------------------------------------------------------------------------------------- Non-interest earning assets Cash and due from banks 19,350 21,580 BOLI 18,479 17,735 Other assets 46,875 29,526 Allowance for possible loan losses (4,967) (3,724) - ---------------------------------------------------------------------------------------------------------------------------------- Total non-interest earning assets 79,737 65,117 - ---------------------------------------------------------------------------------------------------------------------------------- Total assets $ 1,143,183 $ 994,028 ================================================================================================================================== Liabilities and stockholders' equity Interest-bearing liabilities: Money market deposits $ 81,410 458 2.25% $ 88,746 250 1.13% Savings deposits 111,643 423 1.52% 132,680 341 1.03% Time deposits 226,908 1,927 3.40% 226,353 1,403 2.48% Other interest - bearing deposits 122,088 424 1.39% 87,173 191 0.88% Short-term Borrowings 341,149 3,299 3.87% 236,810 1,625 2.74% Subordinated Debentures 15,465 317 8.20% 15,465 207 5.35% - ---------------------------------------------------------------------------------------------------------------------------------- Total interest-bearing liabilities 898,663 6,848 3.05% 787,227 4,017 2.04% - ---------------------------------------------------------------------------------------------------------------------------------- Non-interest-bearing liabilities: - ---------------------------------------------------------------------------------------------------------------------------------- Demand deposits 137,450 132,266 Other non-interest-bearing deposits 3,361 338 Other liabilities 4,537 6,293 - ---------------------------------------------------------------------------------------------------------------------------------- Total non-interest-bearing liabilities 145,348 138,897 - ---------------------------------------------------------------------------------------------------------------------------------- Stockholders' equity 99,172 67,904 - ---------------------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,143,183 $ 994,028 - ---------------------------------------------------------------------------------------------------------------------------------- Net interest income (tax-equivalent basis) $ 7,549 $ 7,204 - ---------------------------------------------------------------------------------------------------------------------------------- Net Interest Spread 2.37% 2.79% - ---------------------------------------------------------------------------------------------------------------------------------- Net interest income as percent of earning-assets (net interest margin) 2.84% 3.10% - ---------------------------------------------------------------------------------------------------------------------------------- Tax equivalent adjustment (3) (672) (595) - ---------------------------------------------------------------------------------------------------------------------------------- Net interest income $ 6,877 $ 6,609 ==================================================================================================================================
(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 -----END PRIVACY-ENHANCED MESSAGE-----