-----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, Tmc/DIbDUqqRlOktFDwwtfuuGibGjEHBnwDASbIMy21RiOm5OqNI9ysP1zIB+hHy nnj5T8/hGweyPSANCeFqvg== 0000755933-03-000022.txt : 20030124 0000755933-03-000022.hdr.sgml : 20030124 20030124163759 ACCESSION NUMBER: 0000755933-03-000022 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030122 ITEM INFORMATION: Other events FILED AS OF DATE: 20030124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERCHANGE FINANCIAL SERVICES CORP /NJ/ CENTRAL INDEX KEY: 0000755933 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 222553159 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10518 FILM NUMBER: 03524420 BUSINESS ADDRESS: STREET 1: PARK 80 WEST PLAZA TWO STREET 2: ATTN INTERCHANGE STATE BANK CITY: SADDLE BROOK STATE: NJ ZIP: 07662 BUSINESS PHONE: 2017032265 MAIL ADDRESS: STREET 1: PARK 80 WEST STREET 2: PLAZA II CITY: SADDLE BROOK STATE: NJ ZIP: 07663 FORMER COMPANY: FORMER CONFORMED NAME: INTERCHANGE FINANCIAL SERVICES CORP DATE OF NAME CHANGE: 19861209 FORMER COMPANY: FORMER CONFORMED NAME: INTERCHANGER STATE BANK DATE OF NAME CHANGE: 19870416 8-K 1 fourthqtrearnings012403.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 22, 2003 INTERCHANGE FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) New Jersey 1-10518 22-2553159 ________________________________ _______________________ _________________ (State or other jurisdiction of) Commission File Number) (I.R.S. Employer incorporation or organization) Identification No.) Park 80 West/Plaza Two, Saddle Brook, N.J. 07663 __________________________________________ __________ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (201) 703-2265 Not Applicable ________________________________________________________________________________ (Former name or former address, if changed since last report.) Item 5. Other Events On January 22, 2003, Interchange Financial Services Corporation issued a press release reporting earnings for the year and quarter ended December 31, 2002. A copy of the company's press release is attached hereto as Exhibit 99.1 and incorporated herein by this reference. Item 7. Financial Statement and Exhibits (c) Exhibits 99.1 Press Release of Interchange Financial Services Corporation dated January 22, 2003. 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. Date: January 24, 2003 Interchange Financial Services Corporation By: /s/ Anthony Labozzetta ______________________________ Anthony Labozzetta Executive Vice President & CFO Exhibit 99.1 ____________ Interchange Financial Services Corporation Reports Record Annual Financial Performance Fueled by a 22% Growth in Earnings SADDLE BROOK, NJ - January 22, 2003 Anthony S. Abbate, President and Chief Executive Officer of Interchange Financial Services Corporation ("Company") (NASDAQ: IFCJ), today reported that earnings per diluted share of common stock for the year ended December 31, 2002 increased $0.23 to $1.30 as compared to the preceding year, an increase of 21.5%. For the fourth quarter of 2002, net income per diluted share of common stock was $0.34, an increase of $0.04, or 13.3%, as compared to the prior year. For the fourth quarter of 2002, the Company's return on assets ("ROA") increased to 1.46% from 1.42% in the comparable 2001 period. For the year, the Company's ROA increased to 1.43% from 1.31% in 2001. The Company's return on equity ("ROE") remained strong and was 16.98% and 17.35% for the quarter and the year, respectively. The Company's continued record earnings performance was attributable to strong deposit and interest earning asset growth as well as an improved net interest margin ("margin"). "The momentum that we have gathered from the successful execution of our business plan has enabled us to evolve into a high performing financial institution. The quality growth of 12.7% on the Balance Sheet, year over year, was a contributing factor to our earnings performance, as our employees, who are dedicated to the performance of their functions, produced the loans and gathered the deposits which gave rise to these fine results," said Mr. Abbate. On December 19, 2002, the Company announced the declaration of a special year-end cash dividend of $0.04 per common share payable on January 29, 2003 to holders of record date December 30, 2002. "2002 has been an extraordinary year in terms of earnings growth and we generally maintain a dividend payout of approximately one third of earnings. This special cash dividend is a reward to our shareholders for a very good year", said Mr. Abbate. On November 18, 2002 the Company also announced that it had entered into a definitive agreement to acquire Bridge View Bancorp, a $272 million Bergen County-based bank holding company with eleven locations, which will be merged into the banking subsidiary, bringing the total offices of the combined institutions to twenty-nine. The transaction is expected to be completed by April 30, 2003 and is conditioned upon receiving the necessary bank regulatory approvals, the approval of shareholders from both companies and other customary conditions. For the fourth quarter, net interest income, on a taxable equivalent basis, increased $1.5 million, or 16.3%, from the same period in 2001. The growth for the quarter was attributed to a $103.1 million growth in average interest earning assets of which $58.9 million was in commercial loans and leases and a 14 basis point improvement in the margin. For the year 2002, net interest income, on a taxable equivalent basis, increased $5.1 million, or 14.9%. The improvement resulted from the Company's ability to generate $79.3 million of growth in interest earning assets of which $48.7 million was in commercial loans and leases. This occurred despite the declining interest rate environment, which gave rise to accelerated loan prepayments. In addition, a 19 basis point expansion in the margin also contributed to the increase in net interest income. For each of the reporting periods, the margin improved largely due to a decrease in the Company's cost of funds, which was affected by a decline in market interest rates and a favorable shift in the mix of deposits. Non-interest income amounted to $1.7 million for the fourth quarter of 2002 and 2001. For the year, non-interest income increased $936 thousand to $6.5 million as compared to the same period in 2001. The improvement was due primarily to $517 thousand of income related to bank owned life insurance ("BOLI") contracts and a strong growth in mutual fund and annuity income, which increased $331 thousand. Non-interest expenses for the quarter amounted to $6.3 million, an increase of $554 thousand, or 9.6%, as compared to same quarter in 2001. For the year, non-interest expenses amounted to $25.1 million, an increase of $2.2 million, or 9.6%, as compared to the same period last year. Contributing to the increase for each reporting period were costs resulting from the opening of a new branch in Hackensack and the assumption of Monarch Capital Corporation's ("MCC") operations by Interchange Capital Company, which resulted from the Company's acquisition of certain assets and certain liabilities of MCC in January 2002. For the year, the Company's efficiency ratio improved by 3 percentage points to 54.5% from 57.5% in 2001. The Company's non-performing assets at December 31, 2002 amounted to $6.1 million, or 0.66%, of total assets. Included in non-performing assets are $3.1 of commercial loans and $2.3 million of commercial leases. The Allowance for Loan and Lease Losses ("ALLL") totaled $7.2 million at year-end and represented 120.9% of non-performing loans and 1.17% of total loans. Net charge-offs for 2002 amounted to $862 thousand, or 0.14%, of average loans. The Bank will hold a conference call on Friday, January 24, 2002, at 11:00 a.m. (Eastern Time) to discuss the financial results for its fourth quarter ending December 31, 2002. This web-cast can be accessed through the Bank's website, www.interchangebank.com on the investor relations page, as well as the web address www.companyboardroom.com. The replay will begin shortly after the completion of the live call and will be available for approximately two weeks. The Company is a $936 million-asset commercial bank holding company, whose principal subsidiary is Interchange Bank. The Company is a financial intermediary that, along with traditional banking, offers a broad range of services including 24-hour, 7-day-a-week online banking and bill paying services through InterBank. Customers can also do their stock trading, obtain insurance services and apply for a loan through the Bank's web site. Mutual Funds and Annuities are offered through the Company's Investment Services Program. The Interchange Bank-Line Call Center enables customers to open new accounts over the telephone; and customers can do basic banking transactions over the telephone with Interchange Bank-Line. The Business Class Banking Account offers checking with a variety of extra services including Interbanking - a proprietary product, which allows the business customer to do routine business banking right from their office PC. And through our subsidiary, Interchange Capital Company, L.L.C., we are able to extend cost-effective equipment leasing solutions for a variety of expansion and upgrading projects. The Bank is headquartered in Saddle Brook, New Jersey and has 18 branch offices located in Elmwood Park, Franklin Lakes, Garfield, Hackensack, Hillsdale, Little Ferry, Lodi, Montvale, Oakland, Paramus, Park Ridge, Ramsey, River Edge, Rochelle Park, Saddle Brook (2), Waldwick and Washington Township. Further information on the Bank, its core values and focus, and its products and services can be found on our web site at www.interchangebank.com. This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition to discussing historical information, certain statements included in or incorporated into this report relate to the financial condition, results of operations and business of the Company which are not historical facts, but which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used herein, the words "anticipate," "believe," "estimate" "expect," "will" and other similar expressions are generally intended to identify such forward-looking statements. Such statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in such Act, and we are including this statement for purposes of invoking these safe harbor provisions. These forward-looking statements include, but are not limited to; statements about the operations of the Company, the adequacy of the Company's allowance for losses associated with the loan portfolio, the prospects of continued loan and deposit growth, and improved credit quality. The forward-looking statements in this report involve certain estimates or assumptions, known and unknown risks and uncertainties, many of which are beyond the control of the Company, and reflect what we currently anticipate will happen in each case. What actually happens could differ materially from what we currently anticipate will happen due to a variety of factors, including, among others, (i) increased competitive pressures among financial services companies; (ii) changes in the interest rate environment, reducing interest margins or increasing interest rate risk; (iii) deterioration in general economic conditions, internationally, nationally, or in the State of New Jersey; (iv) the occurrence of acts of terrorism, such as the events of September 11, 2001, or acts of war; (v) legislation or regulatory requirements or changes adversely affecting the business of the Company, and (vi) other risks detailed in reports filed by the Company with the Securities and Exchange Commission. Readers should not place undue expectations on any forward-looking statements. We are not promising to make any public announcement when we consider forward-looking statements in this document to be no longer accurate, whether as a result of new information, what actually happens in the future or for any other reason. Financial Data Attached
INTERCHANGE FINANCIAL SERVICES CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS --------------------------------- CONSOLIDATED BALANCE SHEETS (dollars in thousands) December 31, December 31, 2002 2001 Change ____________ ____________ ______ (unaudited) Assets Federal funds sold $10,650 $0 - % Securities 252,512 193,902 30.2 Loans and leases Commercial 338,530 289,385 17.0 Commercial Lease Financing 26,356 15,850 66.3 Consumer 250,755 276,088 (9.2) ____________ ____________ ______ 615,641 581,323 5.9 Cash and due from banks 23,266 22,211 4.7 Allowance for loan and lease losses -7,207 -6,569 9.7 Premises and equipment, net 10,512 10,235 2.7 Foreclosed real estate and other repossesed assets 176 492 (64.2) Bank Owned Life Insurance 21,274 15,378 38.3 Accrued interest receivable and other assets 9,508 13,977 (32.0) ____________ ____________ ______ Total assets $936,332 $830,949 12.7 ============ ============ ====== Liabilities Deposits $815,672 $726,483 12.3 Borrowings 27,390 24,800 10.4 Accrued interest payable and other liabilities 12,590 11,433 10.1 ____________ ____________ ______ Total liabilities 855,652 762,716 12.2 ____________ ____________ ______ Total stockholders' equity 80,680 68,233 18.2 ____________ ____________ ______ Total liabilities and stockholders' equity $936,332 $830,949 12.7 ============ ============ ======
INTERCHANGE FINANCIAL SERVICES CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS --------------------------------- CONSOLIDATED INCOME STATEMENTS (dollars in thousands) Three Months Ended Year Ended December 31, December 31, __________________________________ ________________________________ 2002 2001 Change 2002 2001 Change ___________ ___________ ________ ___________ __________ _______ (unaudited) (unaudited) (unaudited) (unaudited) Interest and fees on loans $11,428 $11,287 1.2 % $45,343 $46,175 (1.8)% Interest on federal funds sold 82 62 32.3 246 557 (55.8) Interest and dividends on securities Taxable interest income 2,457 2,482 (1.0) 10,122 9,890 2.3 Interest income exempt from federal income taxes 163 122 33.6 599 532 12.6 Dividends 55 53 3.8 189 248 (23.7) __________ __________ _______ _________ __________ ______ Total interest income 14,185 14,006 1.3 56,499 57,402 (1.6) __________ __________ _______ _________ __________ ______ Interest expense Interest on deposits 3,669 4,859 (24.5) 16,357 22,070 (25.9) Interest on borrowings 249 292 (14.7) 1,121 1,374 (18.4) __________ __________ _______ ________ __________ ______ Total interest expense 3,918 5,151 (23.9) 17,478 23,444 (25.4) __________ __________ _______ ________ __________ ______ Net interest income 10,267 8,855 15.9 39,021 33,958 14.9 Provision for loan and lease losses 615 485 26.8 1,500 1,075 39.5 __________ __________ _______ ________ __________ ______ Net interest income after provision for loan & lease losses 9,652 8,370 15.3 37,521 32,883 14.1 __________ __________ _______ ________ __________ ______ Non-interest income Service fees on deposit accounts 659 623 5.7 2,581 2,459 5.0 Net gain on sale of securities 69 5 1,280.0 564 252 123.8 Other 973 1,107 (12.1) 3,369 2,867 17.5 __________ __________ _______ ________ __________ ______ Total non-interest income 1,701 1,735 (1.9) 6,514 5,578 16.8 __________ __________ _______ ________ __________ ______ Non-interest expenses Salaries and benefits 3,606 3,194 12.9 13,673 12,353 10.7 Net occupancy 862 773 11.5 3,438 3,275 5.0 Furniture and equipment 267 338 (21.0) 1,124 1,157 (2.9) Advertising and promotion 247 289 (14.5) 1,295 1,251 3.5 Other 1,330 1,164 14.3 5,533 4,837 14.4 __________ __________ _______ ________ __________ ______ Total non-interest expenses 6,312 5,758 9.6 25,063 22,873 9.6 __________ __________ _______ ________ __________ ______ Income before income taxes 5,041 4,347 16.0 18,973 15,588 21.7 Income taxes 1,625 1,406 15.6 6,096 5,048 20.8 __________ __________ _______ ________ __________ ______ Net income $ 3,416 $ 2,941 16.2 $ 12,877 $ 10,540 22.2 ========== ========== ======= ======== ========== ======
INTERCHANGE FINANCIAL SERVICES CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS --------------------------------- Analysis of Net Interest Income for the quarter ended December 31, (dollars in thousands) 2002 2001 __________________________________________________________________________________ Average Average Average Average Balance Interest Rate Balance Interest Rate ________ ________ _______ ________ ________ _______ Assets Interest earning assets Loans (1) $620,840 $11,475 7.39 % $587,966 $11,324 7.70 % Taxable securities (4) 215,843 2,512 4.66 167,564 2,535 6.05 Tax-exempt securities (2) (4) 16,743 245 5.85 10,115 167 6.60 Federal funds sold 24,339 82 1.35 12,018 62 2.06 ________ ________ ________ ________ Total interest-earning assets 877,765 14,314 6.52 777,663 14,088 7.25 ________ ________ Non-interest earning assets Cash and due from banks 21,660 20,344 Allowance for loan and lease losses (6,902) (6,365) Other assets 45,137 39,549 ________ ________ Total assets $937,660 $831,191 ======== ======== Liabilities and stockholders' equity Interest-bearing liabilities Interest bearing deposits $694,451 3,669 2.11 $620,436 4,859 3.13 Borrowings 32,089 249 3.10 22,413 292 5.21 ________ ________ ________ ________ Total interest-bearing liabilities 726,540 3,918 2.16 642,849 5,151 3.21 ________ ________ Non-interest bearing liabilities Demand deposits 118,356 110,261 Other liabilities 12,288 9,360 ________ ________ Total liabilities (3) 857,184 762,470 Stockholders' equity 80,476 68,722 ________ ________ Total liabilities and stockholders' equity $937,660 $831,191 ======== ======== Net interest income (tax-equivalent basis) 10,396 4.37 8,937 4.04 Tax-equivalent basis adjustment (129) (82) ________ ________ Net interest income $10,267 $8,855 ======== ======== Net interest income as a percent of interest- earning assests (tax-equivalent basis) 4.74 % 4.60 % - ------------------------------------------------------------------------------------------------------------------------------------ (1)Nonaccrual loans and any related interest recorded have been included in computing the average rate earned on the loan portfolio. When applicable, tax exempt loans are computed on a fully taxable equivalent basis using the corporate federal tax rate of 34%. (2)Computed on a fully taxable equivalent basis using the corporate federal tax rate of 34%. (3) All deposits are in domestic bank offices. (4) The average balances are based on historical cost and do not reflect unrealized gains or losses.
INTERCHANGE FINANCIAL SERVICES CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS --------------------------------- Analysis of Net Interest Income for the year ended December 31, (dollars in thousands) 2002 2001 __________________________________________________________________________________ Average Average Average Average Balance Interest Rate Balance Interest Rate ________ ________ _______ ________ ________ _______ Assets Interest earning assets Loans (1) $611,659 $45,496 7.44 % $579,034 $46,319 8.00 % Taxable securities (4) 200,257 10,311 5.15 160,202 10,138 6.33 Tax-exempt securities (2) (4) 14,545 822 5.65 11,844 712 6.01 Federal funds sold 15,730 246 1.56 13,138 557 4.24 ________ ________ ________ ________ Total interest-earning assets 842,191 56,875 6.75 764,218 57,726 7.55 ________ ________ Non-interest earning assets Cash and due from banks 20,635 20,216 Allowance for loan and lease losses (6,572) (6,368) Other assets 41,303 29,265 ________ ________ Total assets $897,557 $807,331 ======== ======== Liabilities and stockholders' equity Interest-bearing liabilities Interest bearing deposits $666,366 16,357 2.45 $597,517 22,070 3.69 Borrowings 29,064 1,121 3.86 25,545 1,374 5.38 ________ ________ ________ ________ Total interest-bearing liabilities 695,430 17,478 2.51 623,062 23,444 3.76 ________ ________ Non-interest bearing liabilities Demand deposits 115,714 110,576 Other liabilities 12,175 8,078 ________ ________ Total liabilities (3) 823,319 741,716 Stockholders' equity 74,238 65,615 ________ ________ Total liabilities and stockholders' equity $897,557 $807,331 ======== ======== Net interest income (tax-equivalent basis) 39,397 4.24 34,282 3.79 Tax-equivalent basis adjustment (376) (324) ________ ________ Net interest income $39,021 $33,958 ======== ======== Net interest income as a percent of interest- earning assests (tax-equivalent basis) 4.68 % 4.49 % - ------------------------------------------------------------------------------------------------------------------------------------ (1)Nonaccrual loans and any related interest recorded have been included in computing the average rate earned on the loan portfolio. When applicable, tax exempt loans are computed on a fully taxable equivalent basis using the corporate federal tax rate of 34%. (2)Computed on a fully taxable equivalent basis using the corporate federal tax rate of 34%. (3) All deposits are in domestic bank offices. (4) The average balances are based on historical cost and do not reflect unrealized gains or losses.
INTERCHANGE FINANCIAL SERVICES CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS --------------------------------- STATEMENT OF CONDITION - SELECTED DATA (Period Ending) December 31, September 30, 3 month December 31, 12 month 2002 2002 Change 2001 Change ____________ _____________ _______ ____________ ________ (unaudited) (unaudited) (unaudited) Loans $615,641 $624,571 (1.4)% $581,323 5.9 % Securities 252,512 229,900 9.8 193,902 30.2 Earning assets 878,803 865,321 1.6 775,225 13.4 Total Assets 936,332 920,912 1.7 830,949 12.7 Deposits 815,672 790,282 3.2 726,483 12.3 Borrowings 27,390 39,049 (29.9) 24,800 10.4 Shareholders' equity 80,680 79,034 2.1 68,233 18.2 Leverage ratio 8.12 % 8.10 % 8.09 % Risk weighted ratios: Tier 1 12.16 11.85 11.74 Total 13.33 12.93 12.89 Asset quality Quarter ended ___________________________________________________________________________ Net charge offs $116 $128 (9.4) % $255 (54.5)% Loan loss allowance (7,207) (6,707) 7.4 (6,569) 9.7 Nonperforming loans $5,963 $3,675 62.3 $2,310 158.1 Foreclosed real estate & other repossessed assets 176 358 (50.8) 492 (64.2) ____________ ______________ _______ ____________ ________ Total Nonperforming assets ("NPA") $6,139 $4,033 52.2 $2,802 119.1 ============ ============== ======= ============ ======== Ratio's - -------- Net charge offs as % of average loans (annualized) 0.07 % 0.08 % 0.04 % Loan loss allowance as % of period-end loans 1.17 1.07 1.13 Loan loss allowance as % of nonperforming loans 120.9 182.5 284.4 NPA's as a percent of loans + foreclosed assets 1.00 0.65 0.48 Year Ended ____________________________________________ December 31, December 31, 12 month 2002 2001 Change ____________ ______________ _______ Net charge offs $862 $660 $202 Net charge offs as % of average loans 0.14 % 0.11 % 0.03 %
INTERCHANGE FINANCIAL SERVICES CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS --------------------------------- PROFITABILITY (dollars in thousands, except per share data) Quarter ended ___________________________________________________________________ December 31, September 30, 3 month December 31, 12 month 2002 2002 Change 2001 Change ____________ _____________ _______ ____________ ________ (unaudited) (unaudited) (unaudited) Net interest income (taxable equivalent) $10,396 $10,159 2.3 % $8,937 16.3 % Provision for loan and lease losses 615 405 51.9 485 26.8 Net gain on sale of securities 69 214 (67.8) 5 1,280.0 Non-interest income, excluding net gain on sale of securities 1,632 1,561 4.5 1,730 (5.7) Non-interest expenses 6,312 6,325 (0.2) 5,758 9.6 Net income $3,416 $3,457 (1.2) $2,941 16.2 Basic earnings per common share $0.35 $0.35 - % $0.30 16.7 % Diluted earnings per common share 0.34 0.35 (2.9) 0.30 13.3 Dividends declared per common share 0.100 0.100 (0.0) 0.090 11.1 Special dividends declared per common share 0.040 0.000 - 0.000 - Book value per common share - end of period $8.22 $8.04 2.2 $7.04 16.8 Shares outstanding - end of period 9,815,058 9,824,958 (0.1) 9,690,650 1.3 Weighted average shares outstanding Basic 9,818,504 9,823,841 (0.1) 9,705,375 1.2 Diluted 9,948,158 9,956,409 (0.1) 9,771,575 1.8 Return on average assets 1.46 % 1.51 % 1.42 % Return on average equity 16.98 18.22 17.12 Net interest margin 4.74 4.71 4.60 Year Ended ______________________________________ December 31, December 31, 12 month 2002 2001 Change ____________ ____________ ________ Net interest income (taxable equivalent) $39,397 $34,282 14.9 % Provision for loan and lease losses 1,500 1,075 39.5 Net gain on sale of securities 564 252 123.8 Non-interest income, excluding net gain on sale of securities 5,950 5,326 11.7 Non-interest expenses 25,063 22,873 9.6 Net income $12,877 $10,540 22.2 Basic earnings per common share $1.31 $1.08 21.3 % Diluted earnings per common share & share equivalents 1.30 1.07 21.5 Dividends declared per common share 0.400 0.360 11.1 Special dividends declared per common share 0.040 0.000 - Book value per common share - end of period $8.22 $7.04 16.8 Shares outstanding - end of period 9,815,058 9,690,650 1.3 Weighted average shares outstanding Basic 9,809,127 9,777,869 0.3 Diluted 9,932,900 9,822,276 1.1 Return on average assets 1.43 % 1.31 % Return on average equity 17.35 16.06 Net interest margin 4.68 4.49
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