-----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, UW/zAtwHjArVPc2G+iPM+vcXvKy8KGole3HL0tjG0e/kyfel8VqM6jCvaqtuu/km eMWbwxB1tErLpwlfonBuhQ== 0001169232-03-004623.txt : 20030718 0001169232-03-004623.hdr.sgml : 20030718 20030718090252 ACCESSION NUMBER: 0001169232-03-004623 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030717 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030718 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNITY BANK SYSTEM INC CENTRAL INDEX KEY: 0000723188 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 161213679 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13695 FILM NUMBER: 03792232 BUSINESS ADDRESS: STREET 1: 5790 WIDEWATERS PKWY CITY: DEWITT STATE: NY ZIP: 13214 BUSINESS PHONE: 8007242262 MAIL ADDRESS: STREET 1: 5790 WIDEWATERS PARKWAY CITY: DEWITT STATE: NY ZIP: 13214 8-K 1 d56289_8-k.txt FORM 8-K 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): July 17, 2003 ------------------------------------------------------ [LOGO] COMMUNITY BANK SYSTEM, INC. (Exact name of registrant as specified in its charter) ------------------------------------------------------ New York Stock Exchange (Name of Each Exchange on Which Registered) Delaware 16-1213679 (State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.) 5790 Widewaters Parkway, DeWitt, New York 13214-1883 (Address of principal executive offices) (Zip Code) (315) 445-2282 (Registrant's telephone number, including area code) ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements and Exhibits. The following exhibit is filed as a part of this report: Exhibit No. Description ----------- ----------- 99 Press Release, dated July 17, 2003 Item 9. Information Being Provided Under Item 12. On July 17, 2003, Community Bank System, Inc. announced its results of operations for the fiscal quarter ending June 30, 2003. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99 hereto. This information is being furnished pursuant to Item 12 of Form 8-K and is being presented under Item 9 as provided in the Commission's final rule; interim guidance regarding Form 8-K Item 11 and Item 12 filing requirements (Release No. 34-47583). SIGNATURES Pursuant to the requirements of The Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Community Bank System, Inc. Date: July 17, 2003 /s/ Sanford A. Belden ----------------------------------------- Sanford A. Belden, President and Chief Executive Officer Date: July 17, 2003 /s/ Mark E. Tryniski ----------------------------------------- Mark E. Tryniski, Chief Financial Officer EX-99 3 d56289_ex-99.txt PRESS RELEASE Exhibit 99 [LOGO] News Release COMMUNITY BANK SYSTEM, INC. 5790 Widewaters Parkway, DeWitt, N.Y. 13214 For further information, please contact: Mark E. Tryniski, Chief Financial Officer Office: (315) 445-7378 Fax: (315) 445-7347 COMMUNITY BANK SYSTEM SECOND QUARTER EPS RISES 7% Net Interest Margin Increases; Non-Interest Income Up 22% Syracuse, N.Y. - July 17, 2003 - Community Bank System, Inc. (NYSE: CBU), a bank holding company with $3.4 billion in assets, has announced that diluted earnings per share for the second quarter were $0.75, up 7.1% from the prior year's level of $0.70 and equal to first quarter 2003 results. Diluted earnings per share for the six months ended June 30, 2003 of $1.50 represent a 10.3% increase over 2002 results for the same period of $1.36. Operating Results Net income for the second quarter was $10.0 million, an increase of 8.2% over the $9.3 million reported in 2002. For the six months ended June 30, 2003, net income increased 12.1% from $17.8 million to $20.0 million in 2002. Increased earnings resulted from improved net interest margins as well as significant increases in non-interest income. Net interest income for the quarter of $32.1 million was up 2.1% over 2002's level of $31.4 million, and down nominally from $32.5 million in the first quarter of 2003. The increase in 2003 reflects an improvement in net interest margin, partially offset by a decline in net average earning assets due to the planned reduction of certain investment securities and borrowings as previously announced. Net interest margins for the quarter remained strong at 4.75%, increasing from 4.54% for the comparative 2002 quarter and down only five basis points from 4.80% in the first quarter of 2003. While the total earning asset yield of 6.76% for this quarter is down 39 basis points from 7.15% for the 2002 quarter, that decline was more than offset by a 56 basis point reduction in the total cost of funds from 2.58% to 2.02%. Year-to-date net interest margin of 4.77% compares to 4.53% for six month period of 2002. Sanford A. Belden, President and Chief Executive, stated, "Our continued earnings improvement in the second quarter reflects the consistent strength of our net interest margins and a 22% increase in non-interest income, despite continued softness in our financial services business caused by adverse market conditions. Along with achieving strong operating results during the second quarter, we continued to take strategic steps to increase shareholder value. The acquisition of Grange National Banc Corp. will enhance our Pennsylvania banking franchise, while the addition of the PricewaterhouseCoopers Upstate New York Global Human Resources Solutions consulting group will enhance our strong retirement plan administration and consultant services business, which has achieved significant organic growth recently." Loan loss provision for the second quarter of 2003 was $2.7 million, down from $3.4 million in the same quarter of 2002 and the first quarter of 2003. For the six months ended June 2003, loan loss provision of $6.1 million compares to $4.9 million for the same period of 2002. The increase in 2003 principally reflects specific provisioning in the first quarter related to four non-performing commercial credits. Non-interest income (excluding security gains and losses) increased 22% this quarter, from $7.6 million in 2002 to $9.2 million in 2003. For the six-month period, non-interest income increased 19.2% from $15.3 million in 2002 to $18.2 million in 2003. These increases are attributable principally to the introduction of a particular new deposit services product late in the fourth quarter of 2002, which accounts for approximately $1.8 million of the quarterly increase and $3.3 million of the six month increase. Also contributing to this improvement are increases from 2002 to 2003 in mortgage banking revenues of $.2 million and $.8 million for the quarterly and six-month periods, respectively. Revenues from financial services were unfavorably impacted by the difficult investment environment experienced in part of this quarter and declined from $3.6 million in the second quarter of 2002 to $3.1 million in 2003. Year-to-date financial services income of $6.2 million compares to $7.2 million for the same 2002 period. Declines in investment management and broker-dealer activities were offset by continued revenue growth in the benefit plan administration business, which has increased 36% from second quarter 2002 to 2003 ($1.1 million to $1.5 million) and 29% for the six-month period 2002 to 2003 ($2.2 million to $2.8 million). Operating expenses for the second quarter increased from $24.1 million in 2002 to $25.4 million in 2003, or 5.6%, resulting in an efficiency ratio (excluding intangible amortization and security gain/loss) of 54.6% for 2003 and 53.5% for 2002. Year-to-date, the company's efficiency ratio improved from 54.6% in 2002 to 53.5% in 2003 due to operating expense increases of only 2.8% and higher levels of interest income and non-interest income. The company's effective tax rate declined to 25% for the six-month period ended June 30, 2003 compared to 27% for the same period of 2002, due principally to an increased level of average tax-exempt securities. Financial Position End-of-period earning assets for the second quarter declined $94 million to $2.94 billion from $3.03 billion in second quarter 2002, consisting of an increase in total loans of $107 million, or 6.1%, and a decrease of investment securities (excluding market value adjustments) of $200 million, or 15.6%. Outstanding borrowings decreased $153 million, from $550 million at June 30, 2002 to $397 million at June 30, 2003. The decreases in both investment securities and borrowings reflect the company's deleveraging strategy initiated in mid-2002 as a result of unfavorable investment market conditions. Deposits increased 1.1%, from $2.51 billion in second quarter 2002 to $2.54 billion for 2003. The increase in total loans of $107 million was driven principally by residential real estate activity, which accounted for $81 million of the increase and a 17% increase in consumer mortgage loans outstanding. This increase excludes approximately $61 million of longer-term loans originated and sold in the secondary market, $52 million of which occurred in the first and second quarters of 2003. The remainder of the increase represents consumer indirect loans of $37 million (14%) and business loans of $7 million (1%), offset by a decrease in consumer direct of $18 million (5%). Year-to date, total loans have grown $51 million, or 3%, including consumer mortgage loans of $36 million (7%), business loans of $8 million (1%), consumer indirect loans of $18 million (6%), and a reduction in consumer direct loans of $11 million (3%). The allowance for loan losses at June 30, 2003 of $27.4 million is up from $23.9 million at June 30, 2002 largely as a result of increased provisioning related to commercial credits. The ratio of allowance for loan losses to total loans of 1.48% compares to 1.34% at June 30, 2002 and 1.46% at December 31, 2002. Year-to-date net charge-offs for 2003 of $5.0 million are comparable to the $4.9 million reported for the same 2002 period. Non-performing loans of $15.1 million at June 30, 2003 are up from $11.2 million at June 30, 2002 as a result of the same credits discussed above, however, have declined $.7 million from March 31, 2003's level of $15.8 million. The ratio of non-performing loans to total loans of .81% at June 30, 2003 remains higher than management's target range, but is below the .87% reported at March 31, 2003 and well below the company's most recent peer ratio of .95% (BHCPR, March 2003). Total delinquent loans (>30 days plus non-accrual) have also experienced an improving trend, declining from 1.88% at December 31, 2002, to 1.85% at March 31 2003 and 1.79% at June 30, 2003. Mr. Belden further stated, "The benefits of our deleveraging strategy have been validated by the ongoing strength of our earnings and net interest margins. We continue, however, to monitor opportunities to further enhance earnings through capital market investment transactions that are consistent with our overall asset/liability management objectives. Real estate lending remains robust, as reflected in increased year-to-date originations of $187 million in 2003 from $104 million in 2002. Total loan growth has been moderated by low, single-digit growth rates in business and consumer lending, which we expect to continue through the remainder of 2003. We are very pleased with the improvement in credit quality this quarter - - non-performing loans declined slightly, and delinquencies have shown improvement in each of the past two quarters. We continue to be effective and focused in managing credit quality, particularly with respect to certain peer measures and a challenging economic environment." Other Matters On June 9, 2003, the Company announced that its Board of Directors had authorized a stock repurchase program to acquire up to 700,000 common shares, or approximately 5.4% of total outstanding shares, over the course of the ensuing twelve months. As of July 17, 2003, 40,300 shares had been repurchased at an aggregate cost of $1.51 million and an average price per share of $37.58. On June 9, 2003, the company announced an agreement to acquire all of the outstanding stock of Grange National Banc Corp., a $280-million-asset national bank based in Tunkhannock, Pa. The transaction is expected to be accretive to earnings within the first 12 months based on anticipated cost reductions, modest revenue enhancements, and the stock repurchase program. Grange's 12 branches will operate as part of First Liberty Bank & Trust, a division of Community Bank, N.A. Thomas A. McCullough, current President and Chief Executive Officer of Grange, will become President of Pennsylvania Banking and manage all of the Company's banking business in Northeastern Pennsylvania, including the 13 current First Liberty Bank & Trust branches. The acquisition is expected to close during the fourth quarter of 2003, pending approval by Grange shareholders and customary regulatory approval. On June 9, 2003, the company announced an agreement to acquire PricewaterhouseCoopers' (PwC) Upstate New York Global Human Resources Solutions consulting group. This practice is a leading provider of retirement and employee benefits consulting services throughout Upstate New York, and will be complementary to Benefit Plans Administrative Services, Inc. (BPA), the company's defined contribution plan administration subsidiary. Following the acquisition, which is expected to close July 31, 2003, BPA will employ over 70 professionals and provide retirement plan administration and consulting services to more than 700 clients. Belden went on to say, "Both of these transactions are consistent with our objective of enhancing shareholder value through strategic, high-quality acquisitions. Grange has been a high-performing bank in its marketplace for many years, with a peer-leading track record of earnings growth, loan generation and consistently superior asset quality. We are particularly pleased that Tom McCullough, with 35 years of banking experience, will be joining our senior management team to take responsibility for all our Pennsylvania banking business. The acquired PwC consulting group brings to BPA a well-known reputation for superior service capabilities and a strong client base that will approximately double the revenue of this business. Importantly, the complementary nature of the service offerings of BPA and PwC will provide substantial opportunities for enhanced revenue generation." Updated Earnings Guidance The company's present expectations for full-year 2003 diluted earnings per share (excluding the effect of the share repurchase program and acquisitions described above) remain consistent with the guidance previously reported and the current earnings estimates of the four analysts that cover CBU, which range from $2.95 to $3.00 per share. Mark Tryniski, Executive Vice President and Chief Financial Officer, stated, "We have managed our balance sheet prudently and expect net interest margins to remain strong throughout the second half of 2003; full year 2003 net interest margin should exceed that reported in 2002. We expect asset quality and loss provisioning to remain stable based on improving delinquency trends over the past two quarters and diligent management of existing non-performing assets. Total non-interest income should exceed that reported in the first half of 2003, benefited by increasing revenue growth of BPA and improved financial services revenues that may result from continuation of the recent strength in the investment markets. Recurring operating expenses for the second half of 2003 should be comparable with those reported for the first half of the year." Mr. Tryniski concluded, "We continue to expect an outstanding year of financial performance for the company, including consummation in the third and fourth quarters of the announced acquisitions that will further strengthen the earnings opportunities of both our banking and financial services businesses as we move toward 2004." Conference Call Scheduled A conference call will be held with company management at 10:00 a.m. (ET) on Friday, July 18, to discuss the above results at 1-866-453-8880 (access code 6439208). An audio recording will be available one hour after the call until September 26, and may be accessed at 1-866-453-6660 (access code 137057). Investors may also listen to the call live via the Internet over PR Newswire, at: http://www.firstcallevents.com/service/ajwz384295572gf12.html The call will be archived on this site for 90 days and may be accessed at any time at no cost. This earnings release, including supporting financial tables, is available within the "Press Release" section of the company's website at www.communitybankna.com. Community Bank System, Inc. (NYSE: CBU) is a registered bank holding company based in DeWitt, N.Y. with $3.4 billion in assets. Its wholly-owned banking subsidiary, Community Bank, N.A. (http://www.communitybankna.com), is the third largest community banking franchise headquartered in Upstate New York, having 116 customer facilities and 85 ATMs stretching diagonally from Northern New York to the Southern Tier, west to Lake Erie, and in Northeastern Pennsylvania. Other subsidiaries within the CBU family are Elias Asset Management, Inc., an investment management firm based in Williamsville, N.Y.; Benefit Plans Administrative Services, Inc. (BPA), a pension administration and consulting firm located in Utica, N.Y., serving sponsors of defined benefit and defined contribution plans; and Community Investment Services, Inc. (CISI), a broker-dealer delivering financial products, including mutual funds, annuities, individual stocks and bonds, and long-term health care and other selected insurance products, from various locations within Community Bank's branch system and from offices in Jamestown and Lockport, N.Y. * * * * * * * This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU's operations to differ materially from CBU's expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. CBU does not assume any duty to update forward-looking statements. Community Bank System, Inc. Summary of Financial Data (Dollars in thousands, except per share data)
Jun 30, Jun 30, Change Change 2003 2002 Amount Percent ---- ---- ------ ------- Quarterly Net interest income $ 32,102 $31,437 $ 665 2.1% Loan loss provision 2,673 3,384 (711) -21.0% Net interest income after provision for loan losses 29,429 28,053 1,376 4.9% Financial services non-interest income 3,104 3,550 (446) -12.6% Banking services non-interest income 6,094 4,017 2,077 51.7% Total non-interest income before security gains & debt ext 9,198 7,567 1,631 21.6% Security gains & debt ext 0 1,144 (1,144) 0.0% Total non-interest income 9,198 8,711 487 5.6% Financial services operating expenses 2,854 2,645 209 7.9% Banking services operating expenses 21,320 19,821 1,499 7.6% Intangible amortization 1,251 1,504 (253) -16.8% Total recurring operating expenses 25,425 23,970 1,455 6.1% Acquisition expenses 5 108 (103) -95.4% Total operating expenses 25,430 24,078 1,352 5.6% Income before taxes 13,197 12,686 511 4.0% Income tax 3,165 3,416 (251) -7.3% Net income $ 10,032 $ 9,270 $ 762 8.2% Basic earnings per share $ 0.77 $ 0.71 $ 0.06 8.5% Diluted earnings per share $ 0.75 $ 0.70 $ 0.05 7.1% Year to Date Net interest income $ 64,586 $61,605 $ 2,981 4.8% Loan loss provision 6,073 4,902 1,171 23.9% Net interest income after provision for loan losses 58,513 56,703 1,810 3.2% Financial services non-interest income 6,192 7,193 (1,001) -13.9% Banking services non-interest income 12,046 8,109 3,937 48.6% Total non-interest income before security gains & debt ext 18,238 15,302 2,936 19.2% Security gains & debt ext (45) 1,144 (1,189) -103.9% Total non-interest income 18,193 16,446 1,747 10.6% Financial services operating expenses 5,435 5,370 65 1.2% Banking services operating expenses 42,095 39,613 2,482 6.3% Intangible amortization 2,532 3,044 (512) -16.8% Total recurring operating expenses 50,062 48,027 2,035 4.2% Acquisition expenses 5 700 (695) -99.3% Total operating expenses 50,067 48,727 1,340 2.8% Income before taxes 26,639 24,422 2,217 9.1% Income tax 6,660 6,594 66 1.0% Net income $ 19,979 $17,828 $ 2,151 12.1% Basic earnings per share $ 1.53 $ 1.38 $ 0.15 10.9% Diluted earnings per share $ 1.50 $ 1.36 $ 0.14 10.3%
Community Bank System, Inc. Summary of Financial Data (Dollars in thousands, except per share data)
2003 2002 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr ------- ------- ------- ------- ------- Earnings Net interest income $ 32,102 $ 32,484 $ 33,847 $ 32,397 $ 31,437 Loan loss provision 2,673 3,400 5,041 2,278 3,384 Net interest income after provision for loan losses 29,429 29,084 28,806 30,119 28,053 Financial services non-interest income 3,104 3,090 2,843 3,689 3,550 Banking services non-interest income 6,094 5,952 4,910 4,183 4,017 Total non-interest income before security gains & debt ext 9,198 9,042 7,753 7,872 7,567 Security gains & debt ext 0 (45) 313 216 1,144 Total non-interest income 9,198 8,997 8,066 8,088 8,711 Financial services operating expenses 2,854 2,581 2,610 2,500 2,645 Banking services operating expenses 21,320 20,775 20,105 18,972 19,821 Intangible amortization 1,251 1,281 1,312 1,597 1,504 Total recurring operating expenses 25,425 24,637 24,027 23,069 23,970 Acquisition expenses 5 0 0 0 108 Total operating expenses 25,430 24,637 24,027 23,069 24,078 Income before taxes 13,197 13,444 12,845 15,138 12,686 Income tax 3,165 3,495 3,206 4,087 3,416 Net income $ 10,032 $ 9,949 $ 9,639 $ 11,051 $ 9,270 Basic earnings per share $ 0.77 $ 0.76 $ 0.74 $ 0.85 $ 0.71 Diluted earnings per share $ 0.75 $ 0.75 $ 0.73 $ 0.84 $ 0.70 Profitability Return on assets 1.20% 1.19% 1.11% 1.28% 1.10% Return on equity 11.74% 12.25% 11.91% 14.56% 13.21% Net interest margin (FTE) 4.75% 4.80% 4.83% 4.61% 4.54% Non interest income/operating income (FTE) 20.8% 20.3% 17.3% 18.1% 18.0% (excluding net security gains) Efficiency ratio (1) 54.6% 52.5% 50.6% 49.4% 53.5% Components of Net Interest Margin (FTE) Loan yield 6.81% 7.04% 7.33% 7.45% 7.43% Investment yield 6.69% 6.75% 6.79% 6.58% 6.78% Earning asset yield 6.76% 6.93% 7.11% 7.08% 7.15% Interest bearing deposits rate 1.92% 2.07% 2.24% 2.48% 2.63% Borrowed funds rate - FHLB & other 4.12% 3.89% 3.83% 3.88% 4.03% Borrowed funds rate - Trust preferred 7.02% 7.17% 7.31% 7.38% 7.36% Cost of all interest bearing funds 2.38% 2.50% 2.66% 2.87% 3.01% Cost of funds (includes DDA) 2.02% 2.12% 2.27% 2.46% 2.58% Cost of funds / earning assets 2.01% 2.13% 2.28% 2.47% 2.61% Net interest margin (FTE) 4.75% 4.80% 4.83% 4.61% 4.54% Average Balances for Period Loans $1,834,610 $ 1,807,889 $1,797,678 $1,763,855 $1,742,110 Investments (excluding market value adjustment) 1,126,151 1,189,466 1,254,285 1,302,928 1,296,787 Earning assets 2,960,761 2,997,355 3,051,963 3,066,783 3,038,897 Total assets 3,356,400 3,388,435 3,445,620 3,438,076 3,390,665 Deposits-IPC 2,362,058 2,352,546 2,377,402 2,388,182 2,353,187 Deposits-public funds 167,516 184,457 161,443 154,051 192,114 Total deposits 2,529,574 2,537,003 2,538,845 2,542,233 2,545,301 FHLB borrowings & other borrowings 347,954 388,783 446,535 468,841 449,542 Trust preferred 76,896 77,193 77,368 77,354 77,498 Total borrowings 424,850 465,976 523,903 546,195 527,040 Total shareholders' equity $ 342,830 $ 329,503 $ 320,979 $ 301,148 $ 281,436
(1) Excludes intangible amortization, acquisition expenses, securities gain/loss, and debt extinguishment Community Bank System, Inc. Summary of Financial Data (Dollars in thousands, except per share data)
2003 2002 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr ------- ------- ------- ------- ------- Balances At Period End Loans $1,858,015 $1,820,686 $1,806,905 $1,779,440 $1,751,184 Investments (excluding market value adjustment) 1,081,241 1,154,188 1,219,254 1,284,695 1,281,724 Earning assets 2,939,256 2,974,874 3,026,159 3,064,135 3,032,908 Loan loss allowance 27,417 27,350 26,331 24,080 23,883 Core deposit intangibles,net 28,237 29,488 30,769 32,081 33,678 Goodwill, net 104,059 104,059 104,059 103,628 102,602 Total intangible assets, net 132,296 133,547 134,828 135,709 136,280 Market value adjustment 85,878 71,099 64,567 73,222 42,816 Total assets 3,356,261 3,374,840 3,434,204 3,468,592 3,408,893 Deposits 2,541,974 2,535,960 2,505,356 2,551,735 2,513,261 FHLB borrowings & other borrowings 319,864 365,213 463,241 450,869 472,497 Trust preferred borrowings 76,903 76,889 77,375 77,361 77,347 Total borrowings 396,767 442,102 540,616 528,230 549,844 Total shareholders' equity 351,819 336,984 325,038 324,161 298,529 Assets under management or administration $1,577,584 $1,438,869 $1,363,631 $1,267,289 $1,370,346 Capital Tier I leverage ratio 7.77% 7.44% 7.05% 6.87% 6.66% Tangible equity / tangible assets 6.81% 6.28% 5.77% 5.65% 4.96% Accumulated other comprehensive income $ 52,438 $ 43,414 $ 38,551 $ 43,728 $ 25,546 Diluted weighted average common shares outstanding 13,346 13,244 13,167 13,172 13,194 Period end common shares outstanding 13,019 13,017 12,979 12,963 12,959 Cash dividends declared per common share $ 0.29 $ 0.29 $ 0.29 $ 0.29 $ 0.27 Book value $ 27.02 $ 25.89 $ 25.04 $ 25.01 $ 23.04 Tangible book value $ 16.86 $ 15.63 $ 14.66 $ 14.54 $ 12.52 Common stock price (end of period) $ 38.00 $ 31.43 $ 31.35 $ 29.63 $ 32.25 Total shareholder return - trailing 12 months 22.0% 8.1% 24.1% 11.8% 19.6% Asset Quality Nonperforming loans $ 15,135 $ 15,841 $ 11,644 $ 12,217 $ 11,170 Other real estate 943 700 704 1,033 1,671 Nonperforming assets 16,108 16,580 12,391 13,296 12,900 Net charge-offs $ 2,606 $ 2,381 $ 2,791 $ 2,080 $ 3,511 Loan loss allowance / loans outstanding 1.48% 1.50% 1.46% 1.35% 1.36% Nonperforming loans / loans outstanding 0.81% 0.87% 0.64% 0.69% 0.64% Loan loss allowance / nonperforming loans 181% 173% 226% 197% 214% Net charge-offs / average loans 0.57% 0.53% 0.62% 0.47% 0.81% Loan loss provision / net charge-offs 103% 143% 181% 110% 96% Nonperforming assets / loans outstanding + OREO 0.87% 0.91% 0.69% 0.75% 0.74%
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