-----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, NEuBvzy7hGBectIXL2SntgA5wEjcCDkTSO5pRZpb2/cDalvxDZJIKp9Il94lp8OU 8lIu/jizT94u7gj2/9B5Gw== 0000790183-02-000006.txt : 20020413 0000790183-02-000006.hdr.sgml : 20020413 ACCESSION NUMBER: 0000790183-02-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020123 ITEM INFORMATION: Other events FILED AS OF DATE: 20020123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROGRESS FINANCIAL CORP CENTRAL INDEX KEY: 0000790183 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 232413363 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14815 FILM NUMBER: 02514826 BUSINESS ADDRESS: STREET 1: 4 SENTRY PARKWAY SUITE 200 CITY: BLUE BELL STATE: PA ZIP: 19422-0764 BUSINESS PHONE: 6108258800 MAIL ADDRESS: STREET 1: 4 SENTRY PARKWAY STREET 2: SUITE 200 CITY: BLUE BELL STATE: PA ZIP: 19422-0764 8-K 1 e8k-4qearnana.txt 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 January 23, 2002 - -------------------------------------------------------------------------------- (Date of earliest event reported) - -------------------------------------------------------------------------------- Progress Financial Corporation - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-14815 25-2413363 - -------------------------------------------------------------------------------- (State of other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identified No.) 4 Sentry Parkway, Suite 200, Blue Bell, Pennsylvania 19422-0764 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (610)-825-8800 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name,owner address and former fiscal year,if changed since last report) - -------------------------------------------------------------------------------- Exhibit Index appears on page 4 Item 5. Other Events On January 23, 2002 Progress Financial Corporation reported fourth quarter net income of $555,000 or $.10 per share. For further information see the press release attached as Exhibit 99(a) and incorporated herein by reference. In response to the July 2001 directive from the Office of Thrift Supervision, the company is currently raising up to $10 million through the private placement of common stock to accredited investors. A portion of the proceeds of the offering will be contributed to Progress Bank in order to satisfy the Bank's capital requirements under the directive. The offering is expected to close during the first quarter of 2002. Such securities will not initially be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration under the Act or an applicable exemption from such registration requirements. On January 23, 2002, Progress Financial Corporation distributed an earnings package to analysts. For further information see the attached Exhibit 99(b) and incorporated herein by reference. 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. PROGRESS FINANCIAL CORPORATION Dated: January 23, 2002 By: /s/ Michael B. High ----------------------------------- Michael B. High Chief Operating Officer and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description 99(a) Press Release on Fourth Quarter 2001 earnings distributed on January 23, 2002 99(b) Analyst package distributed on January 23, 2002 Exhibit 99(a) Press Release on Fourth Quarter 2001 Earnings FOR IMMEDIATE RELEASE Contacts: January 23, 2002 Michael B. High, COO/CFO 610-941-4804 mike_high@progressbank.com Dorothy Jaworski, Director of Investor Relations 484-322-4822 djaworski@progressbank.com Progress Financial Corporation Announces Fourth Quarter Net Income of $555,000 or $.10 per share Blue Bell, PA, January 23, 2002 - Progress Financial Corporation (the "Company" - Nasdaq: PFNC) today reported fourth quarter 2001 earnings of $555,000, or diluted earnings per share of $.10. Operating earnings, which excludes gain from sale of securities, gain on sale of investments in unconsolidated entities, equity (loss) in unconsolidated entities, gain on sale of Maryland leasing division, client warrant income (loss), additional loan loss provisions, income from discontinued operations, non-recurring write-offs and data processing conversion costs, net of tax, for the fourth quarter of 2001 were $447,000, or diluted earnings per share of $.08, compared to $1.8 million, or diluted earnings per share of $.31 in the fourth quarter of 2000. Operating earnings, net of tax, for the year ended December 31, 2001 were $4.0 million, or diluted earnings per share of $.69 compared to $5.8 million, or diluted earnings per share of $.96 for the year ended December 31, 2000. Net income for the three months ended December 31, 2001, was $555,000, or diluted earnings per share of $.10, compared to net income of $1.4 million, or diluted earnings per share of $.24 for the fourth quarter of 2000. Results for the three months ended December 31, 2001 included a gain on the sale of investments in unconsolidated entities of $802,000 and a gain on sale of securities of $509,000 as compared to a gain on the sale of securities of $270,000 for same quarter in 2000. Results for the fourth quarter of 2001 included goodwill write-offs of $440,000 and an extraordinary loss of $301,000 relating to the early extinguishment of debt. During the fourth quarter of 2000, the Company had recognized a $1.7 million gain on the sale of the Maryland-based leasing division. Net income for the twelve months ended December 31, 2001, was $544,000, or diluted earnings per share of $.10, compared to net income of $7.3 million, or diluted earnings per share of $1.22 for the twelve months ended December 31, 2000. A gain on sale of securities of $2.8 million was realized for 2001 as compared to a gain of $533,000 for 2000. Results for year ended December 31, 2001 included losses of $1.9 million from client warrants, due to the permanent impairment of equity securities received from warrants, compared to gains of $3.5 million in 2000, which were primarily due to market appreciation on these same warrants recorded in accordance with FASB 133. The provision for loan and leases losses was $7.1 million for the year ended December 31, 2001 as compared to $4.4 million for 2000. The increase was undertaken primarily due to increases in criticized loans, the level of charge-offs, non-performing assets, and continued economic concerns. To comply with the directive issued by the Office of Thrift Supervision ("OTS") to reduce lending to early stage technology companies, Progress Bank entered into an agreement to sell loans totaling $25.6 million at December 31, 2001 from the Bank's specialized lending division to Comerica Bank-California (Comerica). The sale was announced during November 2001 and has been approved by OTS and the Board of Governors of the Federal Reserve System and the transaction is expected to close by January 31, 2002, subject to approval of State regulatory authorities. At December 31, 2001, Progress Bank's Tier 1 leverage ratios and total risked-based capital ratios were 7.90% and 12.85%, respectively. As a result, Progress Bank was in compliance with the terms of the directive which requires the Bank to maintain 7.50% and 12.00% Tier 1 leverage and total risked-based capital ratios at December 31, 2001, respectively. In December 2001, the OTS agreed to extend the dates by which the Bank must comply with a designated ratio of classified assets to capital. As revised, the Bank's classified assets to capital ratio must not exceed 25% on March 31, 2002 and must not exceed 20% on June 30, 2002. At December 31, 2001, the Bank's classified assets to capital ratio was approximately 36%. Commenting on the fourth quarter results, W. Kirk Wycoff, President and CEO, stated, "We completed a number of important transactions in the fourth quarter to enable us to refocus on community banking. While it was expensive and time-consuming to exit these business lines, we are committed to restoring our shareholder value based on our community banking franchise. Our results for the fourth quarter and the year 2001 reflect the significant reserve additions to address credit and economic concerns as well as flat net interest income due to rapidly declining interest rates. These costs reflect our transition to a credit-based and asset-sensitive community bank model, which we believe will generate consistent results in varying interest rate and credit environments." Mr. Wycoff went on to say, "The expansion of our retail branch franchise by 25% and the excellent performance of our real estate and SBA lending divisions in 2001 contributed to our ability to weather the technology and economic downturn. When the Comerica sale is completed, we will have significantly reduced our Company's risk profile, and we look forward to continued growth in 2002 based on our community banking strategy." Average earning assets for the fourth quarter of 2001 decreased slightly to $833.3 million from $835.2 million for the same period in 2000. Tax-equivalent interest income for the fourth quarter of 2001 decreased $3.9 million, or 21%, over the same period in 2000 while interest expense decreased $3.0 million or 30% for the same period. Tax-equivalent net interest income decreased $861,000, or 10% as compared to the fourth quarter of 2000. The net interest margin for the fourth quarter of 2001 was 3.58% compared to 3.99% for the same period in 2000 and 3.78% for the third quarter of 2001. The margin has been compressed by an environment of unprecedented decreases in short-term rates during 2001 of 475 basis points and the reduction in earnings assets from the third quarter. Average earning assets for the year ended December 31, 2001 were $845.9 million compared to $773.3 million for 2000. The growth in average assets relates primarily to purchases of mortgage-backed securities and higher commercial real estate and business loan production funded by higher levels of deposits. Tax-equivalent interest income for the twelve months ended December 31, 2001 increased $2.0 million, or 3%, over the same period in 2000. Tax-equivalent net interest income remained level for 2001 as compared to 2000. The net interest margin was 3.79% for the year ended December 31, 2001 compared to 4.17% for 2000. Loans and leases outstanding totaled $530.5 million at December 31, 2001 compared to $543.1 million at December 31, 2000. This decrease was primarily due to payoffs and sales of commercial business loans and lease receivables partially offset by increases in construction loans and commercial real estate loans. Loans outstanding at December 31, 2001 include loans held for sale of $25.6 million which are primarily commercial business loans from Progress Bank's specialized lending division included in the previously announced sale to Comerica. The Company reported non-performing assets of $10.9 million at December 31, 2001 compared to $5.8 million at December 31, 2000 and $6.3 million at September 30, 2001. The increase in non-performing assets at December 31, 2001 is primarily the result of two additional non-accrual commercial business loans. The Company's non-performing assets to total assets ratio at December 31, 2001 was 1.28% compared to .63% at December 31, 2000. The non-performing loans to assets ratio was 1.10% at December 31, 2001 compared to .44% at December 31, 2000. The ratio of the allowance for loan and lease losses to total loans and leases has increased to 1.87% at December 31, 2001 compared to 1.36% at December 31, 2000. Non-interest income for the three months ended December 31, 2001 amounted to $5.5 million compared to $6.5 million for the same period in 2000. The quarter ended December 31, 2001 included a gain on the sale of investments in unconsolidated entities of $802,000. The Company's subsidiary, Progress Capital, Inc., sold its limited partnership interest in a venture capital fund resulting in a gain of $964,000 representing the amount by which the Company had previously written down its investment. The Company's subsidiary, Progress Development Corporation, sold its interest in Progress Development I, L.P. resulting in a loss of $162,000. For the three months ended December, 31, 2001, a gain on sale of securities of $509,000 was realized as compared to $270,000 for the same quarter in 2000. Equity in unconsolidated entities was $184,000 for the fourth quarter of 2001 as compared with a loss of $802,000 for the same period in 2000. Fee income for the quarter decreased $800,000 primarily due to lower mutual fund, annuity and insurance commissions from the Company's subsidiary, Progress Financial Resources, Inc. During the fourth quarter of 2000, the Company recognized a $1.7 million gain on the sale of the Maryland-based leasing division. Non-interest income for the twelve months ended December 31, 2001 amounted to $16.1 million, compared to $19.5 million for 2000. The year ended December 31, 2001 included a gain on sale of securities of $2.8 million compared to a gain of $533,000 for 2000. The securities gain during 2001 included a $708,000 gain on the disposition of the Company's investment in NewSeasons Assisted Living Communities Series B and C stock. The Company recognized a loss of $1.9 million from client warrants during 2001 compared with a gain of $3.5 million during 2000. Loss in unconsolidated entities was $634,000 for the year ended December 31, 2001 compared with a loss of $2.8 million for 2000. The 2001 loss in the unconsolidated entities primarily relates to a loss on its investment in a venture capital fund and the 2000 loss primarily relates to a loss on its investment in its mezzanine debt fund and venture capital fund. Fee income decreased $1.2 million for the year primarily due to lower mutual fund, annuity and insurance commissions from the Company's subsidiary, Progress Financial Resources, Inc., and decreased loan, brokerage and advisory fees from the Company's subsidiary, Progress Realty Advisors, Inc., which was partially offset by increased consulting fees generated by the Company's subsidiary, KMR Management, Inc. During 2000, the Company recognized a $1.7 million gain on the sale of the Maryland-based leasing division. Total non-interest expense remained level at $10.8 million for the quarter ended December 31, 2001 compared to the quarter ended December 31, 2000. Excluding non-recurring expenses of $710,000 in 2001 and non-recurring expenses of $501,000 in 2000, non-interest expense decreased $192,000. The non-recurring expenses for 2001 primarily included write-offs related to Progress Leasing Company, including a goodwill write-off of $440,000. Non-recurring expenses for 2000 included a write-down of goodwill associated with the AMIC Division of Progress Realty Advisors, Inc. for $373,000. Professional services expenses increased $162,000 primarily due to legal expenses related to loans to pre-profit companies and the business activities of KMR Management, Inc. Salaries and employee benefits decreased $445,000 mainly due to lower commission expense for Progress Financial Resources, Inc. Total non-interest expense was $39.6 million for the twelve months ended December 31, 2001 compared to $38.3 million for 2000. Excluding non-recurring expenses of $1.1 million in 2001 and non-recurring expenses of $752,000 in 2000, non-interest expense increased $925,000. The non-recurring expenses for 2001 primarily included write-offs related to Progress Leasing Company, including a goodwill write-off of $440,000 and a write-down of used asset inventory for $422,000. Non-recurring expenses for 2000 included a write-down of goodwill associated with the AMIC Division of Progress Realty Advisors, Inc. of $373,000 and data processing conversion costs of $379,000. Professional services expenses increased $1.2 million primarily due to the business activities of KMR Management, Inc. and legal expenses related to loans to pre-profit companies. Occupancy expense increased $239,000 in 2001 mainly due to the establishment of four new banking offices. Capital securities expense increased $371,000 due to the issuance of $6.0 million of 11.445% capital securities in July 2000. Salaries and employee benefits decreased $1.0 million in 2001 mainly due to lower commission expense for Progress Financial Resources, Inc. During the fourth quarter of 2001, the Company paid off $10.0 million of long-term Federal Home Loan Bank borrowings resulting in an extraordinary loss on the early extinguishment of debt of $301,000. Total assets decreased to $851.4 million at December 31, 2001 from $914.2 million at December 31, 2000. Total deposits increased to $629.5 million at December 31, 2001 from $617.5 million at December 31, 2000. Progress Financial Corporation is a unitary thrift holding company headquartered in Blue Bell, Pennsylvania. The business of the Company consists primarily of the operation of Progress Bank, which serves businesses and consumers through twenty full service offices. The Company also offers financial planning services, life insurance, and investments through Progress Financial Resources, Inc., headquartered in Philadelphia, Pa. In addition, the Company receives fees for financial and operational management consulting services for commercial clients through KMR Management, Inc. located in Willow Grove, Pa. The Company's common stock is traded on The Nasdaq Stock Market under the Symbol "PFNC". FINANCIAL DATA ATTACHED Progress Financial Corporation Consolidated Statements of Financial Condition (Dollars in Thousands)
December 31, December 31, 2001 2000 --------------- ------------- Assets: (Unaudited) (Audited) Cash and due from banks: Non-interest earning $ 21,250 $ 25,360 Interest earning 11,276 59,637 Investments and mortgage-backed securities Available for sale at fair value (amortized cost: $212,793 and $207,795) 211,828 205,166 Held to maturity at amortized cost (fair value: $38,020 and $40,225) 38,173 41,940 Loans and leases, net (net of reserve: $9,917 and $7,407) 495,025 535,712 Loans held for sale 25,587 -- Premises and equipment 26,038 18,343 Other assets 22,203 28,091 -------- -------- Total assets $851,380 $914,249 ======== ======== Liabilities, Capital Securities and Shareholders' Equity Liabilities: Deposits $629,523 $617,543 Short-term borrowings 93 79,360 Other liabilities 10,430 31,954 Long-term debt: Federal Home Loan Bank advances 117,000 102,000 Other debt 20,475 10,000 Subordinated debt 3,000 3,000 -------- -------- Total liabilities 780,521 843,857 -------- -------- Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding solely junior subordinated debentures of the 20,260 20,232 Corporation Commitments and contingencies -- -- Shareholders' equity: Serial preferred - $.01 par value; 1,000,000 shares authorized but unissued -- -- Junior participating preferred stock - $.01 par value; 1,010 shares -- -- authorized but unissued Common stock - $1 par value; 12,000,000 shares authorized; 5,818,000 and 5,814,000 shares issued, including treasury shares of 84,000 and 125,000 5,818 5,814 and unallocated shares held by the Employee Stock Ownership Plan of 182,000 and 0 Other common shareholders' equity, net 45,466 46,145 Net accumulated other comprehensive loss (685) (1,799) -------- -------- Total shareholders' equity 50,599 50,160 -------- -------- Total liabilities, capital securities and shareholders' equity $851,380 $914,249 ======== ========
Progress Financial Corporation Consolidated Statements of Operations (Dollars in Thousands, except per share data)
Three Months Ended Twelve Months Ended December 31, December 31, 2001 2000 2001 2000 --------------------------- -------------------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income: Loans and leases, including fees $10,511 $13,644 $47,215 $51,132 Mortgage-backed securities 3,176 3,125 13,935 10,461 Investment securities 622 1,121 2,890 4,115 Other 142 426 945 1,320 ------- ------- ------- ------- Total interest income 14,451 18,316 64,985 67,028 Interest expense: Deposits 4,882 7,003 23,397 24,162 Short-term borrowings 30 1,572 1,759 4,707 Long-term borrowings 2,134 1,494 8,216 6,306 ------- ------- ------- ------- Total interest expense 7,046 10,069 33,372 35,175 Net interest income 7,405 8,247 31,613 31,853 Provision for loan and lease losses 972 1,666 7,116 4,416 ------- ------- ------- ------- Net interest income after provision for loan and 6,433 6,581 24,497 27,437 lease losses Non-interest income: Service charges on deposits 768 514 2,616 2,236 Lease financing fees 1 397 751 1,433 Mutual fund, annuity and insurance commissions 1,000 1,710 3,094 4,605 Loan brokerage and advisory fees 573 540 1,319 2,193 Private equity fund management fees 614 614 2,457 2,235 Gain from sale of securities 509 270 2,819 533 Gain on sale of loans and lease receivables 240 418 975 667 Gain on sale of investments in unconsolidated entities 802 -- 802 -- Gain on sale of leasing division -- 1,686 -- 1,686 Client warrant income (loss) 9 41 (1,948) 3,523 Equity (loss) in unconsolidated entities 184 (802) (634) (2,791) Fees and other 816 1,157 3,860 3,222 ------- ------- ------- ------- Total non-interest income 5,516 6,545 16,111 19,542 ------- ------- ------- ------- Non-interest expense: Salaries and employee benefits 4,961 5,406 19,159 20,180 Occupancy 648 618 2,541 2,302 Data processing 280 223 1,001 1,098 Furniture, fixtures and equipment 588 563 2,234 2,147 Professional services 989 827 3,662 2,466 Capital securities expense 572 572 2,278 1,907 Other 2,772 2,584 8,688 8,206 ------- ------- ------- ------- Total non-interest expense 10,810 10,793 39,563 38,306 ------- ------- ------- ------- Income from continuing operations before income taxes 1,139 2,333 1,045 8,673 Income tax expense 385 907 302 3,016 ------- ------- ------- ------- Income from continuing operations 754 1,426 743 5,657 Gain on sale of discontinued operations, net of tax -- -- -- 1,519 Income from discontinued operations, net of tax -- -- -- 123 ------- ------- ------- ------- Income before extraordinary loss 754 1,426 743 7,299 Extraordinary loss on early extinguishment of debt, netof tax (199) -- (199) -- ------- ------- ------- ------- Net income $555 $1,426 $544 $7,299 ====== ======= ======= ======= Basic income from continuing operations per common share $.13 $.25 $.13 $.98 ==== ==== ==== ==== Diluted income from continuing operations per common share $.13 $.24 $.13 $.95 ==== ==== ==== ==== Basic earnings per common share, before extraordinary loss $.13 $.25 $.13 $1.26 ==== ==== ==== ===== Diluted earnings per common share, before extraordinary $.13 $.24 $.13 $1.22 ==== ==== ==== ===== loss Basic earnings per common share $.10 $.25 $.10 $1.26 ==== ==== ==== ===== Diluted earnings per common share $.10 $.24 $.10 $1.22 ==== ==== ==== ===== Dividends per common share $.00 $.06 $.12 $.21 ==== ==== ==== ==== Basic average common shares outstanding 5,545,478 5,731,664 5,599,358 5,793,607 ========= ========= ========= ========= Diluted average common shares outstanding 5,642,897 5,889,374 5,717,568 5,984,594 ========= ========= ========= =========
Progress Financial Corporation Supplemental Data
Three Months Ended Twelve Months Ended December 31, December 31, 2001 2000 2001 2000 ---------------------------- ---------------------------- Profitability Measures: Return on average assets 0.25% 0.63% 0.06% 0.88% Return on average equity 4.12 11.41 1.04 15.16 Net interest spread (FTE) (1) 3.05 3.27 3.18 3.50 Net interest margin (FTE) (1) 3.58 3.99 3.79 4.17 Efficiency ratio 77.65 74.37 72.57 71.40 Diluted net income per common share $ .10 $ .24 $ .10 $ 1.22 Selected Loan Data: Non-performing assets $10,864 $5,784 $10,864 $5,784 Ratio of non-performing assets to total assets 1.28% .63% 1.28% .63% Ratio of allowance for loan and lease losses to total loans and leases receivable 1.87 1.36 1.87 1.36 Ratio of allowance for loan and lease losses to non-performing loans and leases receivable 106.28 183.61 106.28 183.61 Loan delinquency ratio 2.13 2.25 2.13 2.25 Ratio of loans and leases to deposits 84.27 87.95 84.27 87.95 Selected Equity Data: Book value per share $9.11 $8.82 $9.11 $8.82 Tangible book value per share 8.76 8.28 8.76 8.28 Dividends per common share .00 .06 .12 .21 Average equity to average assets 6.05% 5.56% 5.82% 5.78% Tier 1 risk-based capital ratio (Bank) 11.60 9.79 11.60 9.79 Total risk-based capital ratio (Bank) 12.85 11.04 12.85 11.04 Tier 1 leverage ratio (Bank) 7.90 6.46 7.90 6.46 Selected Average Balances: Loans, gross $547,087 $565,995 $553,705 $541,178 Earning assets 833,265 835,202 845,942 773,271 Total assets 883,538 894,731 895,827 833,305 Deposits 646,462 604,321 626,923 561,450 Equity 53,483 49,723 52,140 48,141 (1) FTE represents a fully tax equivalent basis.
Progress Financial Corporation Supplemental Balances
Period-End Balances At : December 31, 2001 December 31, 2000 % Change --------------------------------------------------------------- Loans and Leases, Net: Commercial business (2) $146,844 $175,972 (16.6%) Commercial real estate (2) 197,394 178,874 10.4 Construction, net of loans in process 77,380 60,172 28.6 Single family residential real estate 26,518 34,676 (23.5) Consumer 44,821 37,242 20.4 Leases receivable 37,572 56,183 (33.1) --------------------------------------------------------------- Total loans and leases 530,529 543,119 (2.3) Allowance for loan and lease losses (9,917) (7,407) 33.9 --------------------------------------------------------------- Loans and leases, net $520,612 $535,712 (2.8%) =============================================================== Deposits: Non-interest bearing demand deposits $ 84,783 $ 88,356 (4.0)% NOW and SuperNow 120,665 104,047 16.0 Money Market 45,779 37,157 23.2 Passbook and Statement Savings 30,191 27,337 10.4 Time deposits 348,105 360,646 (3.5) ---------------------------------------------------------------- Total Deposits $629,523 $617,543 1.9% ================================================================ (2) Includes loans held for sale: commercial business loans of $23,298 and commercial real estate loans of $2,289.
### Exhibit 99(b) Analyst Package Distributed January 23, 2002
Three months ended Twelve months ended December 31, December 31, Percent Percent 2001 2000 change 2001 2000 change ------------------------------------------------------------------------- Per Common Share Data Net income: Basic $0.10 $0.25 -60.00% $0.10 $1.26 -92.06% Diluted 0.10 0.24 -58.33% 0.10 1.22 -91.80% Cash dividends declared - 0.06 -100.00% 0.12 0.21 -42.86% Book value 9.11 8.82 3.29% 9.11 8.82 3.29% Tangible book value 8.76 8.28 5.80% 8.76 8.28 5.80% Average shares outstanding: Basic 5,545,478 5,731,664 -3.25% 5,599,358 5,793,607 -3.35% Diluted 5,642,897 5,889,374 -4.19% 5,717,568 5,984,594 -4.46% Financial Ratios Return on average shareholders' equity 4.12% 11.41% -63.91% 1.04% 15.16% -93.12% Return on average total assets 0.25% 0.63% -60.69% 0.06% 0.88% -93.07% Average yield on earning assets 6.93% 8.79% -21.16% 7.74% 8.72% -11.24% Average rate on interest bearing liabilities 3.88% 5.52% -29.71% 4.56% 5.22% -12.64% Net interest spread 3.05% 3.27% -6.73% 3.18% 3.50% -9.14% Net interest margin (FTE) 3.58% 3.99% -10.28% 3.79% 4.17% -9.11% Efficiency ratio 77.65% 74.37% 4.41% 72.57% 71.40% 1.64% Risk-based capital - Tier 1 11.60% 9.79% 18.49% 11.60% 9.79% 18.49% - Total capital 12.85% 11.04% 16.39% 12.85% 11.04% 16.39% Tier 1 leverage ratio 7.90% 6.46% 22.29% 7.90% 6.46% 22.29% Average shareholders' equity/average total assets 6.05% 5.56% 8.92% 5.82% 5.78% 0.75% Asset Quality (dollars in thousands) Allowance for loan losses $ 9,917 $ 7,407 33.89% $ 9,917 $ 7,407 33.89% Allowance for loan losses/Loans 1.87% 1.36% 37.50% 1.87% 1.36% 37.50% Net charge-offs (recoveries) $ 1,615 $ 772 109.20% $ 4,606 $ 2,936 56.88% Net charge-offs/Average loans (annualized) 1.17% 0.54% 115.84% 0.83% 0.54% 53.33% Nonperforming assets $ 10,864 $ 5,784 87.83% $ 10,864 $ 5,784 87.83% Nonperforming assets/Total loans plus OREO 2.08% 1.08% 92.59% 2.08% 1.08% 92.59% Nonperforming assets/Total assets 1.28% 0.63% 103.17% 1.28% 0.63% 103.17% Allowance for loan losses/Nonperforming loans 106.28% 183.61% -42.12% 106.28% 183.61% -42.12% Average Balances (in thousands) Loans and leases (gross of reserves) $547,087 $ 565,995 -3.34% $553,705 $ 541,178 2.31% Earning assets 833,265 835,202 -0.23% 845,942 773,271 9.40% Total assets 883,538 894,731 -1.25% 895,827 833,305 7.50% Deposits 646,462 604,321 6.97% 626,923 561,450 11.66% Interest bearing liabilities 719,822 726,245 -0.88% 731,650 674,091 8.54% Shareholders' equity 53,483 49,723 7.56% 52,140 48,141 8.31% Period End Balances (in thousands) Loans and leases (gross of reserves) $530,529 $ 543,119 -2.32% $530,529 $ 543,119 -2.32% Total assets 851,380 914,249 -6.88% 851,380 914,249 -6.88% Deposits 629,523 617,543 1.94% 629,523 617,543 1.94% Total liabilities 780,521 843,857 -7.51% 780,521 843,857 -7.51% Shareholders' equity 50,599 50,160 0.88% 50,599 50,160 0.88%
Three months Three months Three months Three months Twelve months ended December 31, ended September 30, ended June 30, ended March 31, ended December 31, ------------------ ------------------ ---------------- ----------------- ------------------- Percent Percent Percent Percent Percent 2001 2000 change 2001 2000 change 2001 2000 change 2001 2000 change 2001 2000 change ----- ---- ------- ---- ---- ------- ---- ---- ------- ---- ---- ------- ---- ---- ------ TAX EQUIVALENT INCOME STATEMENT ($ in thousands, except per share data) Net interest income(FTE) $7,519 $8,380 -10% $8,210 $8,165 1% $8,112 $8,018 1% $8,235 $ 7,684 7% $32,076$32,247 -1% FTE adjustment (114) (133) 14% (115) (86) -34% (118) (87) -36% (116) (88) -32% (463) (394)-18% ------------- ---- ------------- --- ------------- --- -------------- --- -------------- ---- Net interest income 7,405 8,247 -10% 8,095 8,079 0% 7,994 7,931 1% 8,119 7,596 7% 31,613 31,853 -1% Provision for losses on loans 972 1,666 -42% 1,543 517 198% 3,554 1,175 202% 1,047 1,058 -1% 7,116 4,416 61% Non-Interest Income: Service charges on deposits 768 514 49% 640 493 30% 623 687 -9% 585 542 8% 2,616 2,236 17% Lease financing fees 1 397 -100% 231 372 -38% 242 374 -35% 277 290 -4% 751 1,433 -48% Mutual fund, annuity and insurance commissions 1,000 1,710 -42% 313 1,056 -70% 981 960 2% 800 879 -9% 3,094 4,605 -33% Loan brokerage and advisory fees 573 540 6% 158 591 -73% 365 541 -33% 223 521 -57% 1,319 2,193 -40% Private equity fund management fees 614 614 0% 614 615 0% 615 632 -3% 614 374 64% 2,457 2,235 10% Gain(loss) from sale of securities 509 270 89% 1,073 373 188% (21) 2-1150% 1,258 (112)1223% 2,819 533 429% Client warrant income (loss) 9 41 -78% 1 (103) 101% 1 985 -100% (1,959) 2,600 -175% (1,948) 3,523-155% Equity (loss) in unconsolidated entities 184 (802) 123% (240) 8-3100% (551)(1,042) 47% (27) (955) 97% (634) (2,791) 77% Fees and other income 1,858 3,261 -43% 1,462 788 86% 1,030 785 31% 1,287 741 74% 5,637 5,575 1% ------------- ---- ------------- ---- ------------- ---- ------------- --- ------------- ---- Total non-interest income 5,516 6,545 -16% 4,252 4,193 1% 3,285 3,924 -16% 3,058 4,880 -37% 16,111 19,542 -18% Non-Interest Expenses: Salaries and employee benefits 4,961 5,406 -8% 4,225 4,903 -14% 4,983 5,087 -2% 4,990 4,784 4% 19,159 20,180 -5% Occupancy 648 618 5% 647 576 12% 633 513 23% 613 595 3% 2,541 2,302 10% Data processing 280 223 26% 230 239 -4% 276 231 19% 215 405 -47% 1,001 1,098 -9% Furniture, fixtures and equipment 588 563 4% 528 556 -5% 572 560 2% 546 468 17% 2,234 2,147 4% Loan and real estate owned expenses, net 402 399 1% 557 328 70% 151 270 -44% 284 231 23% 1,394 1,228 14% Professional services 989 827 20% 943 500 89% 915 524 75% 815 615 33% 3,662 2,466 48% Capital securities expense 572 572 0% 573 537 7% 572 399 43% 561 399 41% 2,278 1,907 19% Other 2,370 2,185 8% 1,705 1,538 11% 1,723 1,558 11% 1,496 1,697 -12% 7,294 6,978 5% ------------- --- ------------- --- ------------- ---- -------------- --- ------------- ---- Total non-interest expense 10,810 10,793 0% 9,408 9,177 3% 9,825 9,142 7% 9,520 9,194 4% 39,563 38,306 3% ------------- ---- ------------- ---- ------------- ---- -------------- --- ------------- ---- Income from continuing operations before income taxes 1,139 2,333 -51% 1,396 2,578 -46% (2,100)1,538 -237% 610 2,224 -73% 1,045 8,673 -88% Provision for income tax expense 385 907 -58% 463 841 -45% (731) 529 -238% 185 739 -75% 302 3,016 -90% ------------- ---- ------------- ---- ------------- ---- ------------- --- ------------- ---- Income from Continuing Operations 754 1,426 -47% 933 1,737 -46% (1,369)1,009 -236% 425 1,485 -71% 743 5,657 -87% Gain on sale of discontinued operations,net of tax - - 0% - 6 -100% - 1,513 -100% - - - - 1,519-100% Income from discontinued operations, net of tax - - 0% - 9 -100% - 61 -100% - 53 -100% - 123-100% ------------- ---- ------------- ---- ------------- ---- -------------- --- ------------- ---- Income before extraordinary loss 754 1,426 -47% 933 1,752 -47% (1,369)2,583 -153% 425 1,538 -72% 743 7,299 -90% Extraordinary loss on extinguishment of debt net of tax(199) - 0% - - 0% - - 0% - - 0% (199) - 0% ------------- ---- ------------- ---- ------------- ---- -------------- --- ------------- ---- Net income $ 555 $1,426 -61% $933 $1,752 -47% $(1,369)$2,583-153% $ 425 $1,538 -72% $ 544 $7,299 -93% ============= ===== ============= ===== ============== === =============== === ============= ====
QUARTERLY INCOME STATEMENT (Unaudited)
($ in thousands, except per share) Fourth Third Second First Year- 2000 Quarter Quarter Quarter Quarter to-date ---- ----------- ----------- ---------- ----------- ---------- FTE interest income $18,449 $17,256 $16,418 $15,299 $67,422 Interest expense 10,069 9,091 8,400 7,615 35,175 ----------- ----------- ---------- ----------- ---------- FTE net interest income 8,380 8,165 8,018 7,684 32,247 Less: FTE adjustment (133) (86) (87) (88) (394) ---------- ----------- ---------- ----------- ---------- Net Interest Income 8,247 8,079 7,931 7,596 31,853 Provision for Losses on Loans 1,666 517 1,175 1,058 4,416 Non-Interest Income: Service charges on deposits 514 493 687 542 2,236 Lease financing fees 397 372 374 290 1,433 Mutual fund, annuity and insurance commissions 1,710 1,056 960 879 4,605 Loan brokerage and advisory fees 540 591 541 521 2,193 Private equity fund management fees 614 615 632 374 2,235 Gain(loss) from sale of securities 270 373 2 (112) 533 Client warrant income (loss) 41 (103) 985 2,600 3,523 Equity (loss) in unconsolidated entities (802) 8 (1,042) (955) (2,791) Fees and other income 3,261 788 785 741 5,575 ---------- ----------- ---------- ----------- ---------- Total non-interest income 6,545 4,193 3,924 4,880 19,542 Non-Interest Expenses: Salaries and employee benefits 5,406 4,903 5,087 4,784 20,180 Occupancy 618 576 513 595 2,302 Data processing 223 239 231 405 1,098 Furniture, fixtures and equipment 563 556 560 468 2,147 Loan and real estate owned expenses, net 399 328 270 231 1,228 Professional services 827 500 524 615 2,466 Capital securities expense 572 537 399 399 1,907 Other 2,185 1,538 1,558 1,697 6,978 ----------- ----------- ---------- ----------- ---------- Total non-interest expenses 10,793 9,177 9,142 9,194 38,306 Income from Continuing Operations Before Income Taxes 2,333 2,578 1,538 2,224 8,673 Provision for income tax expense 907 841 529 739 3,016 ----------- ----------- ---------- ----------- ---------- Income from Continuing Operations 1,426 1,737 1,009 1,485 5,657 Gain on sale of discontinued operations, net of tax - 6 1,513 - 1,519 Income from discontinued operations, net of tax - 9 61 53 123 ----------- ----------- ---------- ----------- ---------- Net Income $1,426 $1,752 $2,583 $1,538 $7,299 =========== =========== ========== =========== ========== Other Data: EPS - Basic income from continuing operations $0.25 $0.30 $0.18 $0.25 $0.98 EPS - Diluted income from continuing operations $0.24 $0.29 $0.17 $0.25 $0.95 EPS - Basic $0.25 $0.30 $0.45 $0.26 $1.26 EPS - Diluted $0.24 $0.29 $0.43 $0.26 $1.22 ROA 0.63% 0.83% 1.27% 0.79% 0.88% ROE 11.41% 14.33% 22.69% 12.81% 15.16% Net interest margin (FTE) 3.99% 4.18% 4.25% 4.28% 4.17% Dividends declared on common stock $0.06 $0.05 $0.05 $0.05 $0.21 FTE employees 313 326 319 301 313 FTE employees -- Continued Operations 313 326 319 279 313
QUARTERLY INCOME STATEMENT (Unaudited) ($ in thousands, except per share) Fourth Third Second First Year- 2001 Quarter Quarter Quarter Quarter to-date ----------------------------------------------- ----------- FTE interest income $ 14,565 $ 16,445 $ 17,024 $ 17,414 $ 65,448 Interest expense 7,046 8,235 8,912 9,179 33,372 ----------- ---------- ----------------------- ----------- FTE net interest income 7,519 8,210 8,112 8,235 32,076 Less: FTE adjustment (114) (115) (118) (116) (463) ----------- ---------- ----------------------- ----------- Net Interest Income 7,405 8,095 7,994 8,119 31,613 Provision for Losses on Loans 972 1,543 3,554 1,047 7,116 Non-Interest Income: Service charges on deposits 768 640 623 585 2,616 Lease financing fees 1 231 242 277 751 Mutual fund, annuity and insurance commissions 1,000 313 981 800 3,094 Loan brokerage and advisory fees 573 158 365 223 1,319 Private equity fund management fees 614 614 615 614 2,457 Gain(loss) from sale of securities 509 1,073 (21) 1,258 2,819 Client warrant income 9 1 1 (1,959) (1,948) Equity (loss) in unconsolidated entities 184 (240) (551) (27) (634) Fees and other income 1,858 1,462 1,030 1,287 5,637 ---------- ---------- ----------------------- ----------- Total non-interest income 5,516 4,252 3,285 3,058 16,111 Non-Interest Expenses: Salaries and employee benefits 4,961 4,225 4,983 4,990 19,159 Occupancy 648 647 633 613 2,541 Data processing 280 230 276 215 1,001 Furniture, fixtures and equipment 588 528 572 546 2,234 Loan and real estate owned expenses, net 402 557 151 284 1,394 Professional services 989 943 915 815 3,662 Capital securities expense 572 573 572 561 2,278 Other 2,370 1,705 1,723 1,496 7,294 ---------- ---------- ----------------------- ----------- Total non-interest expenses 10,810 9,408 9,825 9,520 39,563 Income from Continuing Operations Before Income Taxes 1,139 1,396 (2,100) 610 1,045 Provision for income tax expense 385 463 (731) 185 302 ----------- ---------- ----------------------- ----------- Income from Continuing Operations 754 933 (1,369) 425 743 Gain on sale of discontinued operations, net of tax - - - - - Income from discontinued operations, net of tax - - - - - ---------- ---------- ----------- ---------- ----------- Income before extraordinary loss 754 933 (1,369) 425 743 Extraordinary loss on extinguishment of debt, net of tax (199) - - - (199) ---------- ---------- ----------- ---------- ----------- Net Income $ 555 $ 933 $ (1,369) $ 425 $ 544 ========== ========== ======================= =========== Other Data: EPS - Basic income from continuing operations $0.13 $0.17 ($0.24) $0.07 $0.13 EPS - Diluted income from continuing operations $0.13 $0.17 ($0.24) $0.07 $0.13 EPS - Basic $0.10 $0.17 ($0.24) $0.07 $0.10 EPS - Diluted $0.10 $0.17 ($0.24) $0.07 $0.10 ROA 0.25% 0.41% -0.61% 0.20% 0.06% ROE 4.12% 7.25% -10.57% 3.31% 1.04% Net interest margin (FTE) 3.58% 3.78% 3.79% 4.03% 3.79% Dividends declared on common stock $0.00 $0.00 $0.06 $0.06 $0.12 FTE employees 306 302 318 298 306 FTE employees--Continued Operations 306 302 318 298 306
ASSET QUALITY (Unaudited) 2001 2000 --------------------------------------------- -------------------------------------------------- ($ in thousands) Year- Fourth Third Second First Year- Fourth Third Second First Allowance for Loan Losses to-date Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter - ------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Balance at beginning of period $ 7,407 $10,560 $10,309 $ 7,708 $ 7,407 $ 5,927 $ 6,513 $ 6,527 $ 5,618 $ 5,927 Provision 7,116 972 1,543 3,554 1,047 4,416 1,666 517 1,175 1,058 Charge-offs 5,299 2,124 1,344 1,049 782 3,618 839 704 542 1,533 ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Recoveries (693) (509) (52) (96) (36) (682) (67) (173) (276) (166) ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Net loan charge-offs 4,606 1,615 1,292 953 746 2,936 772 531 266 1,367 ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Balance at end of period $ 9,917 $ 9,917 $10,560 $10,309 $ 7,708 $ 7,407 $ 7,407 $6,513 $ 6,527 $ 5,618 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======== Allowance as percentage of loans 1.87% 1.87% 1.92% 1.82% 1.39% 1.36% 1.36% 1.16% 1.20% 1.04% Net charge-offs/average loans 0.83% 0.30% 0.23% 0.17% 0.14% 0.54% 0.14% 0.10% 0.05% 0.26% Allowance as percentage of non-performing loans 106.28% 106.28% 221.15% 203.21% 128.42% 183.61% 183.61% 149.79% 162.08% 135.73% Non-performing assets - ---------------------- Non-accrual loans and leases $ 9,331 $ 9,331 $ 4,775 $ 5,073 $ 6,002 $ 4,034 $ 4,034 $ 4,348 $ 4,027 $ 4,139 Other real estate owned 1,533 1,533 1,498 3,340 1,356 1,750 1,750 3,536 5,692 - ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Total non-performing assets $ 10,864 10,864 $ 6,273 $ 8,413 $ 7,358 $ 5,784 $ 5,784 $ 7,884 $ 9,719 $ 4,139 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======== Non-performing assets to: Loans and leases plus OREO 2.08% 2.08% 1.16% 1.50% 1.34% 1.08% 1.08% 1.41% 1.80% 0.77% Total assets 1.28% 1.28% 0.72% 0.92% 0.81% 0.63% 0.63% 0.90% 1.16% 0.50% Loans past due 90 days $1,125 $1,125 $2,540 $2,473 $2,971 $4,502 $4,502 $2,015 $3,049 $4,569 Total under-performing assets $11,989 $11,989 $8,813 $10,886 $10,329 $10,286 $10,286 $9,899 $12,768 $8,708
AVERAGE BALANCE SHEET DATA (Unaudited) 2001 2000 ------------------------------------------------ ------------------------------------------------- ($ in thousands) Fourth Third Second First Year- Fourth Third Second First Year- Average balances Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Cash and due from banks (Interest-earning) $ 27,686 $26,971 $ 21,353 $ 26,385 $ 25,606 $ 27,595 $ 18,630 $ 22,015 $ 16,945 $ 21,244 Trading securities - - - - - - - - 1,077 264 Loans,net of unearned discounts: Commercial business 158,298 182,187 186,230 177,260 175,959 164,230 149,579 140,605 130,946 146,332 Commercial mortgage 200,495 195,209 185,864 179,400 190,313 174,199 166,918 172,716 166,847 170,180 Residential real estate 28,123 30,887 32,436 33,870 31,312 35,568 38,866 41,205 40,686 39,078 Construction loans 76,503 68,694 70,094 64,141 69,889 58,052 48,936 50,959 59,720 54,435 Consumer 45,008 41,612 38,742 37,401 40,714 40,371 38,080 36,850 34,853 37,538 Lease financing 38,660 43,962 45,513 54,123 45,518 93,575 97,348 95,065 88,474 93,615 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total loans 547,087 562,551 558,879 546,195 553,705 565,995 539,727 537,400 521,526 541,178 Investment securities (available for sale) 5,608 4,719 5,873 23,269 10,798 26,916 28,467 30,324 31,429 29,283 Investment securities (held to maturity) 37,970 37,675 37,381 38,261 37,821 40,460 35,205 34,874 34,418 36,246 Mortgage-backed securities 214,914 230,158 235,432 195,436 218,012 174,236 155,086 134,391 116,534 145,056 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Earning assets 833,265 862,074 858,918 829,546 845,942 835,202 777,115 759,004 721,929 773,271 Cash and due from banks (non-interest bearing) 16,788 16,663 16,206 16,612 16,568 18,125 17,270 15,146 16,426 16,762 Other non-earning assets 33,485 30,158 32,054 37,394 33,317 41,404 46,102 46,007 40,400 43,272 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total assets $883,538 $908,895 $907,178 $883,552 $895,827 $894,731 $840,487 $820,157 $778,755 $833,305 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Deposits: Demand $ 81,334 $ 77,796 $69,629 $ 80,637 $ 77,352 $ 74,730 $70,700 $ 75,546 $69,559 $72,626 Interest bearing: NOW and Supernow accounts 118,912 116,900 113,218 104,396 113,406 96,067 95,516 93,225 83,141 91,975 Money Market Accounts 45,471 40,946 37,282 45,848 42,382 39,713 37,133 36,234 35,855 37,223 Passbook and Stmt Savings 30,036 29,086 28,614 27,804 28,892 27,704 29,148 30,699 31,452 29,752 Time deposits 370,709 373,851 362,414 352,287 364,891 366,107 335,111 312,146 306,189 329,874 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total interest bearing deposits 565,128 560,783 541,528 530,335 549,571 529,591 496,908 472,304 456,637 488,824 Federal Home Loan Bank borrowings 126,891 127,000 126,999 121,366 125,584 112,693 100,500 98,658 88,126 100,010 Other borrowings 27,803 62,632 81,071 54,704 56,495 83,961 83,085 89,722 84,257 85,257 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Interest bearing liabilities 719,822 750,415 749,598 706,405 731,650 726,245 680,493 660,684 629,020 674,091 Non-interest bearing liabilities 8,645 9,352 15,747 24,248 14,440 23,805 18,636 23,689 17,425 20,652 Capital securities 20,254 20,250 20,241 20,235 20,245 20,228 22,009 14,458 14,453 17,795 Total shareholders' equity 53,483 51,082 51,963 52,027 52,140 49,723 48,649 45,780 48,298 48,141 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total Liabilities and Shareholders' Equity $883,538 $908,895 $907,178 $883,552 $895,827 $894,731 $840,487 $820,157 $778,755 $833,305 ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
AVERAGE BALANCE SHEET DATA - continued (Unaudited) 2001 2000 ----------------------------------------------- --------------------------------------------------- Fourth Third Second First Year- Fourth Third Second First Year- Average yields and rates Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date - ------------------------ ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Interest - earning assets Interest-earning deposits 2.03% 3.28% 4.21% 5.47% 3.69% 6.14% 6.58% 6.34% 5.67% 6.21% Investment securities 6.55% 6.90% 6.84% 7.17% 6.75% 7.08% 6.83% 6.75% 6.37% 6.76% Mortgage-backed securities 5.86% 6.29% 6.53% 6.80% 6.39% 7.14% 7.21% 7.37% 7.12% 7.21% Single family residential loans 7.42% 7.89% 8.36% 9.78% 8.41% 7.81% 7.78% 7.55% 7.50% 7.65% Commercial real estate loans 8.15% 8.39% 8.60% 8.95% 8.51% 8.75% 8.91% 8.87% 8.68% 8.80% Construction loans 7.08% 8.43% 9.20% 10.38% 8.69% 11.41% 11.60% 10.52% 10.23% 10.92% Commercial business loans 6.81% 8.18% 8.61% 9.54% 8.32% 9.91% 9.62% 9.14% 8.90% 9.43% Lease financing 10.66% 10.06% 10.73% 10.33% 10.44% 10.93% 11.08% 11.27% 11.35% 11.16% Consumer loans 6.71% 7.31% 7.67% 7.86% 7.35% 8.30% 8.25% 8.08% 7.81% 8.12% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total interest-earning assets 6.93% 7.57% 7.95% 8.51% 7.74% 8.79% 8.83% 8.70% 8.52% 8.72% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Interest - bearing liabilities Interest - bearing deposits NOW and SuperNOW 1.68% 2.27% 2.81% 3.41% 2.51% 3.53% 3.54% 3.34% 3.10% 3.39% Money Market 1.88% 2.48% 2.63% 3.50% 2.62% 3.31% 3.16% 3.12% 2.98% 3.15% Passbook and Statement Savings 1.14% 1.47% 1.60% 1.71% 1.47% 1.78% 1.77% 1.76% 1.78% 1.77% Time deposits 4.36% 4.97% 5.52% 6.07% 5.21% 6.19% 5.99% 5.72% 5.47% 5.86% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total interest - bearing deposits 3.43% 4.04% 4.54% 5.10% 4.26% 5.26% 5.06% 4.80% 4.59% 4.94% FHLB borrowings 5.50% 5.59% 5.49% 5.65% 5.60% 6.06% 5.98% 5.85% 5.50% 5.87% Other borrowings 5.37% 4.68% 4.95% 5.93% 5.20% 6.40% 6.05% 5.97% 5.73% 6.03% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total interest - bearing liabilities 3.88% 4.35% 4.77% 5.27% 4.56% 5.52% 5.31% 5.11% 4.87% 5.22% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Interest Rate Spread 3.05% 3.22% 3.18% 3.24% 3.18% 3.27% 3.52% 3.59% 3.65% 3.50% Net Interest Margin 3.58% 3.78% 3.79% 4.03% 3.79% 3.99% 4.18% 4.25% 4.28% 4.17% Avg Int-earning assets to int-bearing liabilities 115.76% 114.88% 114.58% 117.43% 115.62% 115.00% 114.20% 114.88% 114.77% 114.71%
PERIOD END BALANCE SHEET DATA (Unaudited) 2001 2000 ---------------------------------------- -------------------------------------------- Fourth Third Second First Fourth Third Second First ($ in thousands) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Assets - ------ Cash and due from bank(interest bearing) $ 11,276 $ 15,545 $ 11,342 $ 16,548 $ 59,637 $ 16,380 $ 18,658 $ 19,668 Loans and lease(net) 520,612 538,741 555,981 548,749 535,712 555,630 535,354 535,084 Investment securities: Held-to-maturity: Book 38,173 37,869 37,570 37,278 41,940 35,382 35,103 34,578 Market 38,020 38,077 37,330 37,350 40,225 32,031 33,440 33,151 Available-for-sale 6,682 5,217 5,965 5,826 21,698 27,558 28,830 32,167 Mortgage-backed securities 205,146 191,714 239,829 241,431 183,468 175,960 152,779 135,162 -------- -------- -------- -------- -------- -------- -------- -------- Earning assets 781,889 789,086 850,687 849,832 842,455 810,910 770,724 756,659 Cash and due from bank (non-interest bearing) 21,250 30,126 16,631 14,009 25,360 18,076 16,926 18,687 Other non-earning assets 48,241 56,587 47,052 41,066 46,434 49,308 51,659 46,101 Net assets of discontinued operations - - - - - - - 1,164 -------- -------- -------- -------- -------- -------- -------- -------- Total assets $851,380 $875,799 $914,370 $904,907 $914,249 $878,294 $839,309 $822,611 ======== ======== ======== ======== ======== ======== ======== ======== Liabilities and shareholders' equity - ------------------------------------ Deposits: Demand $ 84,783 $ 79,318 $ 76,588 $ 67,105 $ 88,356 $ 77,558 $ 79,213 $ 80,230 Interest bearing 544,740 550,417 556,283 528,067 529,187 512,087 491,120 467,410 -------- -------- -------- -------- -------- -------- -------- -------- Total deposits 629,523 629,735 632,871 595,172 617,543 589,645 570,333 547,640 Federal Home Loan Bank borrowings 117,000 127,000 127,000 127,000 127,000 100,500 100,500 88,000 Other borrowings 23,568 34,147 72,549 89,738 67,360 91,689 90,630 91,111 -------- -------- -------- -------- -------- -------- -------- -------- Interest bearing liabilities 770,091 790,882 832,420 811,910 811,903 781,834 761,463 726,751 Other Liabilities 10,430 12,157 12,073 20,695 31,954 27,912 16,590 35,011 -------- -------- -------- -------- -------- -------- -------- -------- Total liabilities 780,521 803,039 844,493 832,605 843,857 809,746 778,053 761,762 Capital Securities 20,260 20,253 20,246 20,239 20,232 20,225 14,461 14,456 Total shareholders' equity 50,599 52,507 49,631 52,063 50,160 48,323 46,795 46,393 -------- -------- -------- -------- -------- -------- -------- -------- Total Liabilities, cap sec, and equity $ 851,380 $ 875,799 $ 914,370 $ 904,907 $ 914,249 $ 878,294 $ 839,309 $ 822,611 ======== ======== ======== ======== ======== ======== ======== ======== Other selected balances Intangible assets -- Goodwill 1,974 2,478 2,541 2,605 3,042 5,377 5,499 5,832 Amount included in shareholders' equity for net unrealized gains on investments available-for-sale (685) 1,848 48 130 (1,799) (3,330) (3,749) (2,023)
Capital Data (Unaudited)
2001 2000 ------------------------------------------------ ---------------------------------------------- Fourth Third Second First Year- Fourth Third Second First Year- Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date ------------------------------------------------- ----------------------------------------------- Per common share - ---------------- Shares outstanding: Average-basic 5,545,478 5,584,133 5,584,582 5,684,940 5,599,358 5,731,664 5,801,653 5,795,006 5,846,695 5,793,607 Average-diluted 5,642,897 5,680,014 5,715,918 5,829,134 5,717,568 5,889,374 6,005,429 5,991,080 6,048,070 5,984,594 Period-end 5,551,535 5,584,361 5,563,378 5,648,895 5,551,535 5,688,594 5,773,706 5,798,495 5,813,995 5,688,594 Book value $9.11 $9.40 $8.92 $9.22 $9.11 $8.82 $8.37 $8.07 $7.98 $8.82 Tangible Book Value $8.76 $8.96 $8.46 $8.76 $8.76 $8.28 $7.44 $7.12 $6.98 $8.28 Price: High 7 3/5 7 47/50 8 2/5 9 5/8 9 5/8 10 3/4 12 79/128 11 27/32 12 67/256 12 79/128 Low 5 9/10 5 3/5 6 7/8 7 1/16 5 3/5 7 1/8 11 3/16 10 15/128 10 107/256 7 1/8 Close 7 1/2 6 2/5 7 19/20 7 3/8 7 1/2 7 1/8 11 1/41 11 201/256 10 107/256 7 1/8 Capital ratios ($ in thousands) Risk-based capital: Tier 1 capital $66,395 $65,343 $61,449 $61,935 $66,395 $57,921 $55,182 $53,125 $50,282 $55,182 % risk adjusted assets 11.60% 11.34% 10.32% 10.61% 11.60% 9.79% 9.23% 9.24% 9.05% 9.23% Total capital $73,582 $72,583 $68,929 $69,236 $73,582 $65,311 $61,678 $59,633 $55,873 $61,678 % risk adjusted assets 12.85% 12.59% 11.57% 11.86% 12.85% 11.04% 10.32% 10.37% 10.06% 10.32% Tier 1 leverage ratio 7.90% 7.58% 6.83% 6.95% 7.90% 6.46% 6.42% 6.42% 6.22% 6.42% Average shareholders' equity to total average assets 6.05% 5.62% 5.73% 5.89% 5.82% 5.56% 5.79% 5.58% 6.20% 5.78%
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