New Jersey | 2-81353 | 52-1273725 |
(State or other jurisdiction
of incorporation)
|
(Commission File No.)
|
(IRS Employer
Identification No.)
|
2455 Morris Avenue, Union, New Jersey | 07083 | |
(Address of principal executive offices) | (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)) |
CENTER BANCORP, INC.
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|||
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By:
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/s/ Anthony C. Weagley | |
Name: | Anthony C. Weagley | ||
Title: | President and Chief Executive Officer | ||
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·
|
Net interest income increased to $9.8 million, compared to $8.7 million for the second quarter 2010. Net interest margin on a fully taxable equivalent annualized basis increased 16 basis points to 3.53%, compared to 3.37% for the second quarter of 2010, driven by a lower cost of funds on the deposits mix and lower rates and volume on borrowings.
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·
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Focus on internal processes and expense controls further improved operating efficiency. The efficiency ratio for the second quarter of 2011 on an annualized basis was 52.8% as compared to 54.8% in the first quarter of 2011 and 65.9% in the second quarter of 2010.
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·
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Deposits increased by $31.1 million at June 30, 2011, or 3.33%, to $965.7 million from $934.6 million at March 31, 2011 and increased $163.2 million from the balance reported at June 30, 2010. Growth occurred throughout all segments of the deposit mix: noninterest-bearing checking deposits, savings and money market deposit accounts.
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·
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At June 30, 2011, total loans amounted to $698.1 million, a decrease of $17.9 million, compared to total loans at March 31, 2011. The decrease occurred primarily in the real estate and commercial loan portfolios.
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·
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Credit quality in the loan portfolio remained strong during the quarter. Non-performing assets, consisting of non-accrual loans, accruing loans past due 90 days or more, other real estate owned (“OREO”) and other nonperforming assets , amounted to 0.88% of total assets at June 30, 2011, compared to 1.04% at March 31, 2011 and 0.98% at December 31, 2010. At June 30, 2011, the allowance for loan losses amounted to approximately $9.8 million, or 1.41% of total loans compared to $9.6 million, or 1.34% of total loans at March 31, 2011, and $8.9 million, or 1.25% of total loans at December 31, 2010. The allowance for loan losses as a percentage of total non-performing loans was 88.2% at June 30, 2011 compared to 73.6% at March 31, 2011 and 74.6% at December 31, 2010.
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·
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The Corporation successfully grew its capital base by $5.5 million in the second quarter as a result of its successful operations in the second quarter and first half of 2011. The Tier 1 leverage capital ratio was 9.50% at June 30, 2011, compared to 9.83% at March 31, 2011, and 8.57% at June 30, 2010, exceeding regulatory guidelines in all periods.
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Selected Financial Ratios
(unaudited; annualized where applicable)
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As of or for the quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
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|||||||||||||||
Return on average assets
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1.10 | % | 0.98 | % | 0.86 | % | 0.72 | % | 0.69 | % | ||||||||||
Return on average equity
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11.17 | % | 9.86 | % | 8.34 | % | 7.74 | % | 7.60 | % | ||||||||||
Net interest margin (tax equivalent basis)
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3.53 | % | 3.55 | % | 3.18 | % | 3.30 | % | 3.37 | % | ||||||||||
Loans / deposits ratio
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72.30 | % | 76.62 | % | 82.35 | % | 83.87 | % | 90.04 | % | ||||||||||
Stockholders’ equity / total assets
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9.95 | % | 9.67 | % | 10.02 | % | 10.00 | % | 8.98 | % | ||||||||||
Efficiency ratio (1)
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52.8 | % | 54.8 | % | 63.9 | % | 57.3 | % | 65.9 | % | ||||||||||
Book value per common share
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$ | 7.39 | $ | 7.05 | $ | 6.83 | $ | 6.90 | $ | 6.71 | ||||||||||
Return on average tangible stockholders’ equity (1)
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12.86 | % | 11.44 | % | 9.68 | % | 9.14 | % | 9.06 | % | ||||||||||
Tangible common stockholders’ equity / tangible assets (1)
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8.02 | % | 7.70 | % | 7.92 | % | 7.93 | % | 6.87 | % | ||||||||||
Tangible book value per common share (1)
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$ | 6.35 | $ | 6.01 | $ | 5.79 | $ | 5.86 | $ | 5.54 |
Condensed Consolidated Statements of Income (unaudited)
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(dollars in thousands, except per share data) | ||||||||||||||||||||
For the quarter ended:
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6/30/11
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3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
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|||||||||||||||
Net interest income
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$ | 9,793 | $ | 9,945 | $ | 8,381 | $ | 8,382 | $ | 8,657 | ||||||||||
Provision for loan losses
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250 | 878 | 2,048 | 1,307 | 781 | |||||||||||||||
Net interest income after provision for loan losses
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9,543 | 9,067 | 6,333 | 7,075 | 7,876 | |||||||||||||||
Other income (loss)
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1,732 | 1,597 | 1,304 | 2,135 | 1,482 | |||||||||||||||
Other expense
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5,757 | 5,935 | 5,997 | 5,442 | 6,268 | |||||||||||||||
Income (loss) before income tax expense (benefit)
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5,518 | 4,729 | 1,640 | 3,768 | 3,090 | |||||||||||||||
Income tax expense (benefit)
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1,934 | 1,711 | (930 | ) | 1,629 | 1,076 | ||||||||||||||
Net income
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$ | 3,584 | $ | 3,018 | $ | 2,570 | $ | 2,139 | $ | 2,014 | ||||||||||
Net income available to common stockholders
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$ | 3,439 | $ | 2,872 | $ | 2,426 | $ | 1,993 | $ | 1,868 | ||||||||||
Earnings per common share:
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Basic
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$ | 0.21 | $ | 0.18 | $ | 0.15 | $ | 0.14 | $ | 0.13 | ||||||||||
Diluted
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$ | 0.21 | $ | 0.18 | $ | 0.15 | $ | 0.14 | $ | 0.13 |
Weighted average common shares outstanding:
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||||||||||||||||||||
Basic
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16,290,700 | 16,290,391 | 16,289,832 | 14,649,397 | 14,574,832 | |||||||||||||||
Diluted
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16,315,667 | 16,300,604 | 16,290,071 | 14,649,397 | 14,576,223 |
(in thousands, unaudited)
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||||||||||||||||||||
For the quarter ended:
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6/30/11
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3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
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|||||||||||||||
Service charges on deposit accounts
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$ | 328 | $ | 328 | $ | 427 | $ | 413 | $ | 337 | ||||||||||
Loan related fees
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145 | 87 | 132 | 104 | 40 | |||||||||||||||
Annuities and Insurance commissions
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33 | 6 | 4 | 3 | 23 | |||||||||||||||
Debit card and ATM fees
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133 | 121 | 124 | 122 | 122 | |||||||||||||||
Bank-owned life insurance
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261 | 260 | 269 | 429 | 264 | |||||||||||||||
Net investment securities gains (losses)
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801 | 766 | 315 | 1,033 | 657 | |||||||||||||||
Other service charges and fees
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31 | 29 | 33 | 31 | 39 | |||||||||||||||
Total other income (loss)
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$ | 1,732 | $ | 1,597 | $ | 1,304 | $ | 2,135 | $ | 1,482 |
(in thousands, unaudited)
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||||||||||||||||||||
For the quarter ended:
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6/30/11
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3/31/11
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12/31/10
|
9/30/10
|
6/30/10
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Salaries
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$ | 2,253 | $ | 2,208 | $ | 2,132 | $ | 2,178 | $ | 2,103 | ||||||||||
Employee benefits
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650 | 659 | 527 | 543 | 624 | |||||||||||||||
Occupancy and equipment
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667 | 866 | 804 | 754 | 734 | |||||||||||||||
Professional and consulting
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245 | 241 | 272 | 153 | 422 | |||||||||||||||
Stationery and printing
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99 | 101 | 74 | 68 | 90 | |||||||||||||||
FDIC Insurance
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528 | 528 | 540 | 510 | 458 | |||||||||||||||
Marketing and advertising
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65 | 21 | 34 | 36 | 105 | |||||||||||||||
Computer expense
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350 | 339 | 366 | 320 | 340 | |||||||||||||||
Bank regulatory related expenses
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100 | 98 | 97 | 97 | 97 | |||||||||||||||
Postage and delivery
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51 | 76 | 69 | 65 | 74 | |||||||||||||||
ATM related expenses
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57 | 58 | 55 | 59 | 66 | |||||||||||||||
Other real estate owned expense
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- | (1 | ) | 221 | 20 | 43 | ||||||||||||||
Amortization of core deposit intangible
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16 | 16 | 16 | 16 | 19 | |||||||||||||||
Loss on fixed assets
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- | - | - | - | 437 | |||||||||||||||
All other expenses
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676 | 725 | 790 | 623 | 656 | |||||||||||||||
Total other expense
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$ | 5,757 | $ | 5,935 | $ | 5,997 | $ | 5,442 | $ | 6,268 |
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·
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Total assets amounted to $1.3 billion at June 30, 2011.
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·
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Total loans were $698.1 million at June 30, 2011, decreasing $24.4 million, or 3.37%, from June 30, 2010. Total real estate loans declined $33.3 million or 6.24%, from the comparable period in 2010. Commercial loans increased $9.4 million, or 5.00%, year over year.
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·
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Investment securities totaled $419.0 million at June 30, 2011, increasing $8.6 million compared to March 31, 2011, and reflecting an increase from June 30, 2010 of $124.7 million. During the second quarter, the Corporation bifurcated its investment portfolio into available for sale and held to maturity by transferring approximately $35.6 million into held to maturity.
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·
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Deposits totaled $965.7 million at June 30, 2011, increasing $163.2 million, or 20.3%, since June 30, 2010. Total Demand, Savings, Money Market, and Cd’s < $100,000 deposits increased $104.2 million or 15.0% from June 30, 2010. Time certificates of deposit of $100,000 or more also increased by $59.0 million or 53.7% from June 30, 2010. These increases were attributable to continued core deposit growth in overall segments of the deposits base and in niche areas, such as municipal government, private schools and universities.
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·
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Total deposit funding sources, including overnight repurchase agreements (which agreements are considered part of the demand deposit base), amounted to $998.1 million at June 30, 2011, an increase of $152.9 million or 18.1% from June 30, 2010. Increases of $115.6 million or 18.4% in the Demand, Savings and Money Market deposit portfolios were supplemented by net inflows of $47.6 million, or 27.5%, in Certificates of Deposit time deposits. The Corporation’s core deposit gathering efforts remain strong.
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·
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Borrowings totaled $198.5 million at June 30, 2011, decreasing $50.4 million from June 30, 2010, primarily due to repayment of Federal Home Loan Bank advances and a structured repurchase agreement in 2010, coupled with a reduction in overnight repurchase agreement activity.
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Condensed Consolidated Statements of Condition (unaudited)
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(in thousands)
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At quarter ended:
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6/30/11
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3/31/11
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12/31/10
|
9/30/10
|
6/30/10
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Cash and due from banks
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$ | 109,467 | $ | 80,129 | $ | 37,497 | $ | 75,478 | $ | 97,651 | ||||||||||
Investment securities
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Available for sale
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377,214 | 410,376 | 378,080 | 362,683 | 294,277 | |||||||||||||||
Held to maturity (fair value $42,122)
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41,804 | — | — | — | — | |||||||||||||||
Loans
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698,148 | 716,096 | 708,444 | 701,936 | 722,527 | |||||||||||||||
Allowance for loan losses
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(9,836 | ) | (9,591 | ) | (8,867 | ) | (8,770 | ) | (8,595 | ) | ||||||||||
Restricted investment in bank stocks, at cost
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9,194 | 9,146 | 9,596 | 10,255 | 10,707 | |||||||||||||||
Premises and equipment, net
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12,578 | 12,747 | 12,937 | 13,178 | 13,349 | |||||||||||||||
Goodwill
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16,804 | 16,804 | 16,804 | 16,804 | 16,804 | |||||||||||||||
Core deposit intangible
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123 | 138 | 155 | 170 | 186 | |||||||||||||||
Bank-owned life insurance
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28,426 | 28,165 | 27,905 | 27,636 | 26,832 | |||||||||||||||
Other real estate owned
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0 | 0 | 0 | 1,927 | 1,780 | |||||||||||||||
Other assets
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23,516 | 24,636 | 24,834 | 19,981 | 20,301 | |||||||||||||||
Total assets
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$ | 1,307,438 | $ | 1,288,646 | $ | 1,207,385 | $ | 1,221,278 | $ | 1,195,819 | ||||||||||
Deposits
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$ | 965,676 | $ | 934,646 | $ | 860,332 | $ | 836,902 | $ | 802,459 | ||||||||||
Borrowings
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198,529 | 202,072 | 218,010 | 232,568 | 248,883 | |||||||||||||||
Other liabilities
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13,129 | 27,344 | 8,086 | 29,651 | 37,058 | |||||||||||||||
Stockholders' equity
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130,104 | 124,584 | 120,957 | 122,157 | 107,419 | |||||||||||||||
Total liabilities and stockholders’ equity
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$ | 1,307,438 | $ | 1,288,646 | $ | 1,207,385 | $ | 1,221,278 | $ | 1,195,819 |
Deposits (unaudited)
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(in thousands)
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At quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Demand:
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Non interest-bearing
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$ | 158,689 | $ | 154,910 | $ | 144,210 | $ | 147,213 | $ | 138,152 | ||||||||||
Interest-bearing
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190,994 | 179,990 | 186,509 | 176,728 | 176,284 | |||||||||||||||
Savings
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204,051 | 200,195 | 196,291 | 202,242 | 189,920 | |||||||||||||||
Money market
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191,277 | 178,956 | 159,200 | 139,440 | 125,055 | |||||||||||||||
Time
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220,665 | 220,595 | 174,122 | 171,279 | 173,048 | |||||||||||||||
Total deposits
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$ | 965,676 | $ | 934,646 | $ | 860,332 | $ | 836,902 | $ | 802,459 |
Loans (unaudited)
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(in thousands)
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At quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
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Real estate loans:
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Residential
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$ | 150,271 | $ | 147,833 | $ | 154,909 | $ | 165,535 | $ | 176,697 | ||||||||||
Commercial
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310,475 | 321,367 | 301,284 | 295,003 | 299,694 | |||||||||||||||
Construction
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40,421 | 46,310 | 49,752 | 52,518 | 58,118 | |||||||||||||||
Total real estate loans
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501,167 | 515,510 | 505,945 | 513,056 | 534,509 | |||||||||||||||
Commercial loans
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196,464 | 200,018 | 201,663 | 188,052 | 187,104 | |||||||||||||||
Consumer and other loans
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434 | 361 | 577 | 445 | 467 | |||||||||||||||
Total loans before deferred fees and costs
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698,065 | 715,889 | 708,185 | 701,553 | 722,080 | |||||||||||||||
Deferred costs, net
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83 | 207 | 259 | 383 | 447 | |||||||||||||||
Total loans
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$ | 698,148 | $ | 716,096 | $ | 708,444 | $ | 701,936 | $ | 722,527 |
(dollars in thousands, unaudited)
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As of or for the quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
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Non-accrual loans
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$ | 10,137 | $ | 12,336 | $ | 11,174 | $ | 8,339 | $ | 7,312 | ||||||||||
Loans 90 days or more past due and still accruing
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1,013 | 687 | 714 | 3,402 | 336 | |||||||||||||||
Total non-performing loans
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11,150 | 13,023 | 11,888 | 11,741 | 7,648 | |||||||||||||||
Other non-performing assets
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327 | 327 | - | - | - | |||||||||||||||
Other real estate owned
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0 | 0 | 0 | 1,927 | 1,780 | |||||||||||||||
Total non-performing assets
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$ | 11,477 | $ | 13,350 | $ | 11,888 | $ | 13,668 | $ | 9,428 | ||||||||||
Performing troubled debt restructured loans
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$ | 8,223 | $ | 7,035 | $ | 7,035 | $ | 10,417 | $ | 9,388 | ||||||||||
Non-performing assets / total assets
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0.88 | % | 1.04 | % | 0.98 | % | 1.12 | % | 0.79 | % | ||||||||||
Non-performing loans / total loans
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1.60 | % | 1.82 | % | 1.68 | % | 1.67 | % | 1.06 | % | ||||||||||
Net charge-offs
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$ | 5 | $ | 154 | $ | 1,950 | $ | 1,133 | $ | 325 | ||||||||||
Net charge-offs / average loans (1)
|
0.003 | % | 0.09 | % | 1.13 | % | 0.63 | % | 0.18 | % | ||||||||||
Allowance for loan losses / total loans
|
1.41 | % | 1.34 | % | 1.25 | % | 1.25 | % | 1.19 | % | ||||||||||
Allowance for loan losses / non-performing loans
|
88.2 | % | 73.6 | % | 74.6 | % | 74.7 | % | 112.4 | % | ||||||||||
Total assets
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$ | 1,307,438 | $ | 1,288,646 | $ | 1,207,385 | $ | 1,221,278 | $ | 1,195,819 | ||||||||||
Total loans
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698,148 | 716,096 | 708,444 | 701,936 | 722,527 | |||||||||||||||
Average loans
|
701,056 | 716,568 | 692,166 | 715,849 | 718,078 | |||||||||||||||
Allowance for loan losses
|
9,836 | 9,591 | 8,867 | 8,770 | 8,595 |
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(1)
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Annualized.
|
|
·
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Two non-accrual relationships secured by senior residential liens totaling $714,000 and $614,000, respectively, located in Morris and Somerset counties in New Jersey are currently in foreclosure; no loss to the Corporation is anticipated,although no assurance can be made with respect to the outcome at this time.
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·
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A $2.3 million nonaccrual loan, secured by a commercial property located in Essex County, New Jersey, represents an expired participation with Highlands State Bank. The Corporation continues to aggressively pursue litigation in this matter.
|
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·
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A $3.6 million non-accrual participation loan secured by an operating oceanfront property in Nassau County, NY, is currently being marketed for sale by the lead bank. There have been multiple prospective purchasers interested in purchasing this note. An agreement is currently being negotiated by the lead bank; however, no assurance can be made with respect to the outcome at this time.
|
(dollars in thousands)
|
||||||||||||||||||||
For the quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Net income
|
$ | 3,584 | $ | 3,018 | $ | 2,570 | $ | 2,139 | $ | 2,014 | ||||||||||
Average stockholders’ equity
|
$ | 128,391 | $ | 122,492 | $ | 123,218 | $ | 110,544 | $ | 105,947 | ||||||||||
Less:
Average goodwill and other intangible assets
|
16,936 | 16,952 | 16,968 | 16,984 | 17,001 | |||||||||||||||
Average tangible stockholders’ equity
|
$ | 111,455 | $ | 105,540 | $ | 106,250 | $ | 93,560 | $ | 88,946 | ||||||||||
Return on average stockholders’ equity
|
11.17 | % | 9.86 | % | 8.34 | % | 7.74 | % | 7.60 | % | ||||||||||
Add:
Average goodwill and other intangible assets
|
1.70 | % | 1.58 | % | 1.34 | % | 1.40 | % | 1.46 | % | ||||||||||
Return on average tangible stockholders’ equity
|
12.86 | % | 11.44 | % | 9.68 | % | 9.14 | % | 9.06 | % |
(dollars in thousands, except per share data)
|
||||||||||||||||||||
At quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Common shares outstanding
|
16,290,700 | 16,290,700 | 16,289,832 | 16,289,832 | 14,574,832 | |||||||||||||||
Stockholders’ equity
|
$ | 130,104 | $ | 124,584 | $ | 120,957 | $ | 122,157 | $ | 107,419 | ||||||||||
Less: Preferred stock
|
9,741 | 9,721 | 9,700 | 9,680 | 9,660 | |||||||||||||||
Less: Goodwill and other intangible assets
|
16,927 | 16,942 | 16,958 | 16,974 | 16,990 | |||||||||||||||
Tangible common stockholders’ equity
|
$ | 103,436 | $ | 97,921 | $ | 94,299 | $ | 95,503 | $ | 80,769 | ||||||||||
Book value per common share
|
$ | 7.39 | $ | 7.05 | $ | 6.83 | $ | 6.90 | $ | 6.71 | ||||||||||
Less: Goodwill and other intangible assets
|
1.04 | 1.04 | 1.04 | 1.04 | 1.17 | |||||||||||||||
Tangible book value per common share
|
$ | 6.35 | $ | 6.01 | $ | 5.79 | $ | 5.86 | $ | 5.54 |
(dollars in thousands)
|
||||||||||||||||||||
At quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Total assets
|
$ | 1,307,438 | $ | 1,288,646 | $ | 1,207,385 | $ | 1,221,278 | $ | 1,195,819 | ||||||||||
Less: Goodwill and other intangible assets
|
16,927 | 16,942 | 16,958 | 16,974 | 16,990 | |||||||||||||||
Tangible assets
|
$ | 1,290,511 | $ | 1,271,704 | $ | 1,190,427 | $ | 1,204,304 | $ | 1,178,829 | ||||||||||
Total stockholders' equity / total assets
|
9.95 | % | 9.67 | % | 10.02 | % | 10.00 | % | 8.98 | % | ||||||||||
Tangible common stockholders'
equity / tangible assets
|
8.02 | % | 7.70 | % | 7.92 | % | 7.93 | % | 6.85 | % |
(in thousands)
|
||||||||||||||||||||
For the quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Other income (loss)
|
$ | 1,732 | $ | 1,597 | $ | 1,304 | $ | 2,135 | $ | 1,482 | ||||||||||
Less: Net investment securities gains
(losses)
|
801 | 766 | 315 | 1,033 | 657 | |||||||||||||||
Other income, excluding net investment
securities gains
|
$ | 931 | $ | 831 | $ | 989 | $ | 1,102 | $ | 825 |
(dollars in thousands)
|
||||||||||||||||||||
For the quarter ended:
|
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Other expense
|
$ | 5,757 | $ | 5,935 | $ | 5,997 | $ | 5,442 | $ | 6,268 | ||||||||||
Net interest income (tax equivalent basis)
|
$ | 9,974 | $ | 9,990 | $ | 8,394 | $ | 8,393 | $ | 8,686 | ||||||||||
Other income, excluding net investment
securities gains (losses)
|
932 | 831 | 989 | 1,102 | 825 | |||||||||||||||
Total
|
$ | 10,906 | $ | 10,821 | $ | 9,383 | $ | 9,495 | $ | 9,511 | ||||||||||
Efficiency ratio
|
52.8 | % | 54.8 | % | 63.9 | % | 57.3 | % | 65.9 | % |
(in thousands)
|
||||||||||||||||||||
For the quarter ended: |
6/30/11
|
3/31/11
|
12/31/10
|
9/30/10
|
6/30/10
|
|||||||||||||||
Investment securities
|
||||||||||||||||||||
Available for sale
|
$ | 390,391 | $ | 410,014 | $ | 362,312 | $ | 301,316 | $ | 313,905 | ||||||||||
Held to maturity
|
38,985 | — | — | — | — | |||||||||||||||
Loans
|
701,056 | 716,568 | 692,166 | 715,849 | 718,078 | |||||||||||||||
Allowance for loan losses
|
(9,601 | ) | (9,139 | ) | (8,843 | ) | (8,738 | ) | (8,362 | ) | ||||||||||
All other assets
|
180,753 | 111,688 | 149,377 | 180,974 | 150,842 | |||||||||||||||
Total assets
|
$ | 1,301,584 | $ | 1,229,131 | $ | 1,195,012 | $ | 1,189,401 | $ | 1,174,463 | ||||||||||
Non interest-bearing deposits
|
$ | 157,002 | $ | 152,074 | $ | 151,038 | $ | 142,829 | $ | 139,759 | ||||||||||
Interest-bearing deposits
|
805,752 | 737,196 | 697,619 | 685,830 | 659,608 | |||||||||||||||
Borrowings
|
202,902 | 213,664 | 216,483 | 238,266 | 256,854 | |||||||||||||||
Other liabilities
|
7,537 | 3,705 | 6,654 | 11,932 | 12,295 | |||||||||||||||
Stockholders’ equity
|
128,391 | 122,492 | 123,218 | 110,544 | 105,947 | |||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,301,584 | $ | 1,229,131 | $ | 1,195,012 | $ | 1,189,401 | $ | 1,174,463 |
(in thousands, except for share data)
|
June 30,
2011
|
December 31,
2010
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 109,467 | $ | 37,497 | ||||
Investment securities
|
||||||||
Available for sale
|
377,214 | 378,080 | ||||||
Held to maturity (fair value of $42,122 in 2011 and $0 in 2010)
|
41,804 | — | ||||||
Loans
|
698,148 | 708,444 | ||||||
Less: Allowance for loan losses
|
9,836 | 8,867 | ||||||
Net loans
|
688,312 | 699,577 | ||||||
Restricted investment in bank stocks, at cost
|
9,194 | 9,596 | ||||||
Premises and equipment, net
|
12,578 | 12,937 | ||||||
Accrued interest receivable
|
5,229 | 4,134 | ||||||
Bank-owned life insurance
|
28,426 | 27,905 | ||||||
Goodwill
|
16,804 | 16,804 | ||||||
Prepaid FDIC assessments
|
2,521 | 3,582 | ||||||
Other assets
|
15,889 | 17,273 | ||||||
Total assets
|
$ | 1,307.438 | $ | 1,207,385 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$ | 158,689 | $ | 144,210 | ||||
Interest-bearing:
|
||||||||
Time deposits $100 and over
|
168,925 | 119,651 | ||||||
Interest-bearing transaction, savings and time deposits $100 and less
|
638,062 | 596,471 | ||||||
Total deposits
|
965,676 | 860,332 | ||||||
Short-term borrowings
|
32,374 | 41,855 | ||||||
Long-term borrowings
|
161,000 | 171,000 | ||||||
Subordinated debentures
|
5,155 | 5,155 | ||||||
Accounts payable and accrued liabilities
|
9,321 | 8,086 | ||||||
Due to brokers for investment securities
|
3,808 | - | ||||||
Total liabilities
|
1,177,334 | 1,086,428 | ||||||
STOCKHOLDERS’ EQUITY
|
||||||||
Preferred stock, $1,000 liquidation value per share, authorized 5,000,000 shares; issued 10,000 shares
|
9,741 | 9,700 | ||||||
Common stock, no par value, authorized 25,000,000 shares; issued 18,477,412 shares at
June 30, 2011 and December 31, 2010; outstanding 16,290,700 shares at June 30, 2011
and 16,289,832 shares at December 31, 2010
|
110,056 | 110,056 | ||||||
Additional paid in capital
|
4,960 | 4,941 | ||||||
Retained earnings
|
26,963 | 21,633 | ||||||
Treasury stock, at cost (2,186,712 common shares at June 30, 2011 and 2,187,580
common shares at December 31, 2010)
|
(17,691 | ) | (17,698 | ) | ||||
Accumulated other comprehensive loss
|
(3,925 | ) | (7,675 | ) | ||||
Total stockholders’ equity
|
130,104 | 120,957 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,307,438 | $ | 1,207,385 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(in thousands, except for share data)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Interest income
|
||||||||||||||||
Interest and fees on loans
|
$ | 8,950 | $ | 9,419 | $ | 18,167 | $ | 18,787 | ||||||||
Interest and dividends on investment securities:
|
||||||||||||||||
Taxable
|
3,428 | 2,864 | 6,806 | 5,873 | ||||||||||||
Tax-exempt
|
351 | 56 | 439 | 173 | ||||||||||||
Dividends
|
40 | 27 | 81 | 54 | ||||||||||||
Dividends on restricted investment in bank stocks
|
109 | 122 | 252 | 273 | ||||||||||||
Total interest income
|
12,878 | 12,488 | 25,745 | 25,160 | ||||||||||||
Interest expense
|
||||||||||||||||
Interest on certificates of deposit $100 or more
|
348 | 340 | 613 | 754 | ||||||||||||
Interest on other deposits
|
1,072 | 1,235 | 2,074 | 2,499 | ||||||||||||
Interest on borrowings
|
1,665 | 2,256 | 3,320 | 4,741 | ||||||||||||
Total interest expense
|
3,085 | 3,831 | 6,007 | 7,994 | ||||||||||||
Net interest income
|
9,793 | 8,657 | 19,738 | 17,166 | ||||||||||||
Provision for loan losses
|
250 | 781 | 1,128 | 1,721 | ||||||||||||
Net interest income after provision for loan losses
|
9,543 | 7,876 | 18,610 | 15,445 | ||||||||||||
Other income
|
||||||||||||||||
Service charges, commissions and fees
|
461 | 459 | 910 | 889 | ||||||||||||
Annuities and insurance commissions
|
33 | 23 | 39 | 116 | ||||||||||||
Bank-owned life insurance
|
261 | 264 | 521 | 528 | ||||||||||||
Other
|
176 | 79 | 292 | 187 | ||||||||||||
Other-than-temporary impairment losses on investment securities
|
(142 | ) | (706 | ) | (237 | ) | (8,472 | ) | ||||||||
Portion of losses recognized in other comprehensive
|
||||||||||||||||
income, before taxes
|
- | — | - | 3,377 | ||||||||||||
Net other-than-temporary impairment losses on
investment securities
|
(142 | ) | (706 | ) | (237 | ) | (5,095 | ) | ||||||||
Net gains on sale of investment securities
|
943 | 1,363 | 1,804 | 2,408 | ||||||||||||
Net investment securities gains (losses)
|
801 | 657 | 1,567 | (2,687 | ) | |||||||||||
Total other income (loss)
|
1,732 | 1,482 | 3,329 | (967 | ) | |||||||||||
Other expense
|
||||||||||||||||
Salaries and employee benefits
|
2,903 | 2,727 | 5,770 | 5,384 | ||||||||||||
Occupancy and equipment
|
667 | 734 | 1,533 | 1,623 | ||||||||||||
FDIC insurance
|
528 | 458 | 1,056 | 1,076 | ||||||||||||
Professional and consulting
|
245 | 422 | 486 | 696 | ||||||||||||
Stationery and printing
|
99 | 90 | 200 | 174 | ||||||||||||
Marketing and advertising
|
65 | 105 | 86 | 197 | ||||||||||||
Computer expense
|
350 | 340 | 689 | 680 | ||||||||||||
Other real estate owned, net
|
- | 43 | (1 | ) | 43 | |||||||||||
Loss on fixed assets, net
|
- | 437 | - | 427 | ||||||||||||
Repurchase agreement termination fee
|
- | — | - | 594 | ||||||||||||
Other
|
900 | 912 | 1,873 | 1,766 | ||||||||||||
Total other expense
|
5,757 | 6,268 | 11,692 | 12,660 | ||||||||||||
Income before income tax expense (benefit)
|
5,518 | 3,090 | 10,247 | 1,818 | ||||||||||||
Income tax expense (benefit)
|
1,934 | 1,076 | 3,645 | (477 | ) | |||||||||||
Net Income
|
3,584 | 2,014 | 6,602 | 2,295 | ||||||||||||
Preferred stock dividends and accretion
|
145 | 146 | 291 | 291 | ||||||||||||
Net income available to common stockholders
|
$3,439 | $ | 1,868 | $ | 6,311 | $ | 2,004 | |||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$ | 0.21 | $ | 0.13 | $ | 0.39 | $ | 0.14 | ||||||||
Diluted
|
$ | 0.21 | $ | 0.13 | $ | 0.39 | $ | 0.14 | ||||||||
Weighted Average Common Shares Outstanding
|
||||||||||||||||
Basic
|
16,290,700 | 14,574,832 | 16,290,547 | 14,574,832 | ||||||||||||
Diluted
|
16,315,667 | 14,576,223 | 16,309,026 | 14,577,897 |
Three Months Ended
|
||||||||||||
(in thousands, except for share data)
|
6/30/2011
|
3/31/2011
|
6/30/2010
|
|||||||||
Statements of Income Data
|
||||||||||||
Interest income
|
$ | 12,878 | $ | 12,867 | $ | 12,488 | ||||||
Interest expense
|
3,085 | 2,922 | 3,831 | |||||||||
Net interest income
|
9,793 | 9,945 | 8,657 | |||||||||
Provision for loan losses
|
250 | 878 | 781 | |||||||||
Net interest income after provision for loan losses
|
9,543 | 9,067 | 7,876 | |||||||||
Other income
|
1,732 | 1,597 | 1,482 | |||||||||
Other expense
|
5,757 | 5,935 | 6,268 | |||||||||
Income before income tax expense (benefit)
|
5,518 | 4,729 | 3,090 | |||||||||
Income tax expense (benefit)
|
1,934 | 1,711 | 1,076 | |||||||||
Net income
|
$ | 3,584 | $ | 3,018 | $ | 2,014 | ||||||
Net income available to common stockholders
|
$ | 3,439 | $ | 2,872 | $ | 1,868 | ||||||
Earnings per Common Share
|
||||||||||||
Basic
|
$ | 0.21 | $ | 0.18 | $ | 0.13 | ||||||
Diluted
|
$ | 0.21 | $ | 0.18 | $ | 0.13 | ||||||
Statements of Condition Data (Period-End)
|
||||||||||||
Investment securities
|
||||||||||||
Available for sale
|
$ | 377,214 | $ | 410,376 | $ | 294,277 | ||||||
Held for maturity( fair value $42,122, $0, and $0)
|
41,804 | — | — | |||||||||
Loans
|
698,148 | 716,096 | 722,527 | |||||||||
Assets
|
1,307,438 | 1,288,646 | 1,195,819 | |||||||||
Deposits
|
965,676 | 934,646 | 802,459 | |||||||||
Borrowings
|
198,529 | 202,072 | 248,883 | |||||||||
Stockholders' equity
|
130,104 | 124,584 | 107,419 | |||||||||
Common Shares Dividend Data
|
||||||||||||
Cash dividends
|
$ | 489 | $ | 489 | $ | 437 | ||||||
Cash dividends per share
|
$ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||
Dividend payout ratio
|
14.22 | % | 17.03 | % | 23.39 | % | ||||||
Weighted Average Common Shares Outstanding
|
||||||||||||
Basic
|
16,290,700 | 16,290,391 | 14,574,832 | |||||||||
Diluted
|
16,315,667 | 16,300,604 | 14,576,223 | |||||||||
Operating Ratios
|
||||||||||||
Return on average assets
|
1.10 | % | 0.98 | % | 0.69 | % | ||||||
Return on average equity
|
11.17 | % | 9.86 | % | 7.60 | % | ||||||
Return on average tangible equity
|
12.86 | % | 11.44 | % | 9.06 | % | ||||||
Average equity / average assets
|
9.86 | % | 9.97 | % | 9.02 | % | ||||||
Book value per common share (period-end)
|
$ | 7.39 | $ | 7.05 | $ | 6.71 | ||||||
Tangible book value per common share (period-end)
|
$ | 6.35 | $ | 6.01 | $ | 5.54 | ||||||
Non-Financial Information (Period-End)
|
||||||||||||
Common stockholders of record
|
575 | 585 | 592 | |||||||||
Full-time equivalent staff
|
167 | 165 | 163 |