-----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, EumwZaAkv/JT8phu+ld49brnuuLqvgcC0Mzci1M252Skruj+Hp3/ONsHqS7JFChh sVS5CzslRByxCaxEDP7IGA== 0000790183-03-000002.txt : 20030122 0000790183-03-000002.hdr.sgml : 20030122 20030122112910 ACCESSION NUMBER: 0000790183-03-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030122 ITEM INFORMATION: Other events FILED AS OF DATE: 20030122 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: 03520439 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 e03-4qrtearnana.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 22, 2003 - -------------------------------------------------------------------------------- (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,former address and former fiscal year,if changed since last report) Exhibit Index appears on page 4 Item 5. Other Events On January 22, 2003 Progress Financial Corporation reported fourth quarter net income of $1.0 million, or diluted earnings of $.15 per share. For further information see the press release attached as Exhibit 99(a) and incorporated herein by reference. On January 22, 2003 Progress Financial Corporation declared increase in quarterly cash dividend. For further information see the press release attached as Exhibit 99(b) and incorporated herein by reference. On January 22, 2003, Progress Financial Corporation distributed an earnings package to analysts. For further information see the attached Exhibit 99(c) 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 22, 2003 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 2002 earnings distributed on January 22, 2003. 99(b) Press Release on Fourth Quarter Cash Dividend. 99(c) Analyst package distributed on January 22, 2003. Exhibit 99(a) Press Release on Fourth Quarter 2002 Earnings FOR IMMEDIATE RELEASE Contacts: January 23, 2003 Michael B. High, COO/CFO 610-941-4804 mhigh@progressbank.com Dorothy Jaworski, Director of Investor Relations 484-322-4822 djaworski@progressbank.com Progress Financial Corporation Announces 50% Increase in Fourth Quarter 2002 Earnings Per Share Blue Bell, PA, January 22, 2003 - Progress Financial Corporation (the "Company" - Nasdaq: PFNC), reported fourth quarter 2002 net income of $1.0 million, or diluted earnings per share of $.15, compared to net income of $555,000, or diluted earnings per share of $.10, for the fourth quarter of 2001. Net income for the year ended December 31, 2002 was $4.0 million, or diluted earnings per share of $.59, compared to net income of $544,000, or diluted earnings per share of $.10, for the year ended December 31, 2001. Commenting on the fourth quarter results, W. Kirk Wycoff, President and CEO, stated, "We are pleased to report significant success in growing the Progress Bank franchise in 2002, achieving $1 billion in assets and significant deposit growth. We are particularly pleased with the overall improvement in asset quality during the year, although both loan loss provision and charge-offs exceeded expected levels. Finally, the OTS lifting of our capital directive in October confirms the success of our new strategy and allows us to move ahead with our plan to grow the community banking business in our markets." Tax-equivalent net interest income for the quarter ended December 31, 2002 remained level compared to the third quarter of 2002 and the fourth quarter of 2001. The net interest margin for the fourth quarter of 2002 was 3.09% compared to 3.24% for the third quarter of 2002 and 3.31% for the fourth quarter of 2001. Tax-equivalent net interest income for the twelve months ended December 31, 2002 decreased $2.3 million, or 8%, compared to the same period in 2001. The net interest margin for the twelve months ended December 31, 2002 was 3.23% compared to 3.52% for the same period in 2001. The Company reclassified its capital securities to debt and the related expense from non-interest expense to interest on borrowings. This reclassification reduced the net interest margin by 24 basis points and 26 basis points for the fourth quarters of 2002 and 2001, respectively, and 27 basis points for the years ended December 31, 2002 and 2001. The provision for loan and lease losses was $875,000 for the quarter ended December 31, 2002, compared to $972,000 for the same period in 2001. The provision for loan and lease losses was $3.8 million for the twelve months ended December 31, 2002, compared to $7.1 million for the same period in 2001. The higher provision during 2001 reflected the reserve additions to address credit and economic concerns which have now been reduced as a result of the sale of TechBanc loans to Comerica in January 2002, the pay-off of higher risk credits and the resulting reduction in the Company's classified assets. Non-interest income for the quarter ended December 31, 2002 was $3.2 million compared to $5.2 million for the same period in 2001. This decrease was the result of a variety of factors. The quarter ended December 31, 2001 included a gain on the sale of investments in unconsolidated entities of $802,000. Fee income for the quarter decreased $1.0 million primarily due to the decline in private equity fund management fees from the Company's subsidiary, Progress Capital Management, Inc., as the Company exited the venture fund management business at December 31, 2001, a reduction in consulting fees from the Company's subsidiary, KMR Management, Inc., and a decrease in mutual fund, annuity and insurance commissions from the Company's subsidiary Progress Financial Resources, Inc. Gain on sale of securities was $219,000 for the fourth quarter of 2002 compared to $509,000 for the same quarter in 2001. Non-interest income for the twelve months ended December 31, 2002 was $15.3 million compared to $15.8 million for the same period in 2001. The twelve months ended December 31, 2002 included income of $1.9 million primarily from the sale of client warrants compared to losses of $1.9 million from client warrants for the comparable period in 2001 due to the permanent impairment of equity securities received from warrants. A net gain on sale of real estate of $1.6 million was recognized during 2002 resulting from the sale of land and commercial real estate owned. Gain on sale of securities for the twelve months ended December 31, 2002 was $655,000, a decrease of $2.1 million compared to $2.8 million for the same period in 2001. Equity in unconsolidated entities was $88,000 for the year ended December 31, 2002 compared to a loss of $634,000 for the same period in 2001. Fee income for the twelve months decreased $3.6 million primarily due to the decline in private equity fund management fees from the Company's subsidiary, Progress Capital Management, Inc., of $2.2 million as the Company exited the venture fund management business at December 31, 2001, a reduction in consulting fees from the Company's subsidiary, KMR Management, Inc. and a decrease in lease financing fees. Service charges on deposits amounted to $3.7 million for the twelve months ended December 31, 2002 compared to $2.6 million for the same period in 2001. This 41% growth is primarily attributable to new deposit products offered during the first quarter of 2002. Total non-interest expense was $7.7 million for the quarter ended December 31, 2002, a decrease of $2.5 million compared to $10.2 million for the fourth quarter of 2001. Total non-interest expense was $32.2 million for the twelve months ended December 31, 2002 compared to $37.3 million for same period in 2001. Salaries and employee benefits decreased by $1.1 million and $3.1 million for the three and twelve months ended December 31, 2002 from the comparable periods in 2001, respectively, mainly due to the Company exiting the fund management, TechBanc and Asset-Based Lending businesses, lower staffing levels at Progress Leasing Company and decreased commission volume for Progress Financial Resources, Inc. which were partially offset by additional expense to support the Company's expanded community based banking strategy. Professional services expenses decreased during the three and twelve months ended December 31, 2002 from the comparable periods in 2001 primarily due to a reduction in the business activities of KMR Management, Inc. in 2002, Progress Capital Management, Inc. exiting the fund management business and legal expenses related to collecting loans to pre-profit companies during 2001. Other expenses were lower in 2002 primarily due to broker expenses and write-downs of used asset inventory for Progress Leasing Company during 2001. Average earning assets for the fourth quarter of 2002 were $900.2 million compared to $833.3 million for the fourth quarter of 2001 and $851.3 million for the twelve months ended December 31, 2002 compared to $845.9 million for the same period in 2001. The increases in earning assets during the three and twelve months ended December 31, 2002 from the comparable periods in 2001 were primarily due to higher levels of investments in mortgage-backed securities partially offset by lower commercial business loan volume as a result of the TechBanc sale and pay-offs of TechBanc loans. Tax-equivalent interest income for the fourth quarter of 2002 decreased $1.1 million, or 8%, over the same period in 2001 while interest expense decreased $1.2 million, or 15%, for the same period. Tax-equivalent interest income for the twelve months ended December 31, 2002 decreased $11.7 million, or 18%, over the same period in 2001 while interest expense decreased $9.3 million, or 26%, for the same period. Loans and leases outstanding totaled $465.8 million at December 31, 2002 compared to $530.5 million at December 31, 2001. This decrease was primarily due to the sale of TechBanc loans to Comerica totaling $25.6 million during January 2002, which were primarily commercial business loans, the Asset-Based Loan sale totaling $4.9 million and payoffs of commercial business loans during the first quarter of 2002, and runoff of lease financing receivables. The Company reported non-performing assets of $5.4 million at December 31, 2002, a decrease of $5.5 million compared to $10.9 million at December 31, 2001 and a decrease of $3.0 million compared to $8.4 million at September 30, 2002. The decrease in non-performing assets was primarily the result of principal payments, charge-offs and a net decrease in real estate owned of $1.5 million from acquisitions and sales related to commercial real estate loans. As of December 31, 2002, the Company had no real estate owned. The Company's non-performing assets to total assets ratio at December 31, 2002 was .54% compared to 1.28% at December 31, 2001. The non-performing loans to assets ratio was .54 % at December 31, 2002 compared to 1.10% at December 31, 2001. The ratio of the allowance for loan and lease losses to total loans and leases was 1.39% at December 31, 2002 compared to 1.87% at December 31, 2001. Total deposits increased $62.0 million to $691.5 million at December 31, 2002 from $629.5 million at December 31, 2001 as a result of $108.2 million in deposit growth during the twelve months of 2002 partially offset by the sale of $46.2 million in deposits to Comerica in January 2002. Total assets increased to $1.02 billion at December 31, 2002 from $851.4 million at December 31, 2001. In October 2002, the Office of Thrift Supervision released the Company and Progress Bank from the Supervisory Directive dated July 2001 and the Individual Minimum Capital Directive dated September 2001 after achieving compliance with the requirements of such Directive. At December 31, 2002, Progress Bank's Tier 1 leverage and total risk-based capital ratios were 7.82% and 15.20% as compared to 7.90% and 12.85% at December 31, 2001. At December 31, 2002, the Bank's classified assets to capital ratio was approximately 12%, a decline from 18% at September 30, 2002 and 37% at December 31, 2001. The Bank reduced classified assets during the fourth quarter of 2002 primarily through the sale of a commercial real estate owned property, principal payments and charge-offs. 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, group employee benefits, 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". #### This release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from estimates. When used in filings by the Company with the Securities and Exchange Commission, in the Company's press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "project", or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. FINANCIAL DATA ATTACHED Progress Financial Corporation Consolidated Statements of Financial Condition (Dollars in Thousands)
December 31, December 31, 2002 2001 ---------------- -------------- Assets: Cash and due from other financial institutions: Non-interest earning $ 20,650 $ 21,250 Interest earning 17,570 11,276 Investments and mortgage-backed securities Available for sale at fair value (amortized cost: $353,688 and $212,793) 359,290 211,828 Held to maturity at amortized cost (fair value: $121,968 and $38,020) 120,006 38,173 Loans and leases, net (net of reserve: $6,463 and $9,917) 459,350 495,025 Loans held for sale -- 25,587 Premises and equipment 26,726 26,038 Other assets 14,252 22,203 ---------- -------- Total assets $1,017,844 $851,380 ========== ======== Liabilities and Shareholders' Equity: Liabilities: Deposits $ 691,538 $629,523 Short-term borrowings 96,882 200 Other liabilities 12,132 10,430 Long-term debt: Federal Home Loan Bank advances 120,500 117,000 Other debt 1,227 20,368 Subordinated debt -- 3,000 Capital securities 28,836 20,260 ---------- -------- Total liabilities 951,115 800,781 ---------- -------- 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; 7,058,000 and 5,818,000 shares issued and outstanding, including treasury shares of 114,000 and 84,000 and unallocated shares held by the Employee Stock 7,058 5,818 Ownership Plan of 169,000 and 182,000 Other common shareholders' equity, net 56,006 45,466 Net accumulated other comprehensive income (loss) 3,665 (685) ---------- -------- Total shareholders' equity 66,729 50,599 ---------- -------- Total liabilities and shareholders' equity $1,017,844 $851,380 ========== ========
Progress Financial Corporation Consolidated Statements of Operations (Dollars in Thousands, except per share data)
At or For The At or For The Three Months Ended Twelve Months Ended December 31, December 31, 2002 2001 2002 2001 ------------------------------------------------------ Interest income: Loans and leases, including fees $ 7,911 $10,511 $33,636 $47,215 Mortgage-backed securities 4,784 3,176 16,929 13,935 Investment securities 543 622 2,451 2,890 Other 38 142 219 945 ------- ------- ------- ------- Total interest income 13,276 14,451 53,235 64,985 Interest expense: Deposits 3,793 4,882 15,665 23,397 Short-term borrowings 439 30 1,172 1,759 Long-term borrowings 1,678 2,134 7,258 8,216 Capital securities 537 572 2,230 2,278 ------- ------- ------- ------- Total interest expense 6,447 7,618 26,325 35,650 Net interest income 6,829 6,833 26,910 29,335 Provision for loan and lease losses 875 972 3,814 7,116 ------- ------- ------- ------- Net interest income after provision for loan and 5,954 5,861 23,096 22,219 lease losses Non-interest income: Service charges on deposits 937 768 3,685 2,616 Lease financing fees 42 1 218 751 Mutual fund, annuity and insurance commissions 685 1,000 2,781 3,094 Loan brokerage and advisory fees 489 573 1,142 1,319 Private equity fund management fees 65 614 247 2,457 Gain on sale of securities 219 509 655 2,819 Gain on sale of loans and lease receivables 206 240 701 975 Gain on sale of investments in unconsolidated entities -- 802 11 802 Gain on sale of real estate 76 -- 1,646 -- Loss on extinguishment of debt (80) (301) (55) (301 Client warrant income (loss) 20 9 1,947 (1,948) Equity (loss) in unconsolidated entities (14) 184 88 (634) Fees and other 563 816 2,253 3,860 ------- ------- ------- -------- Total non-interest income 3,208 5,215 15,319 15,810 ------- ------- ------- -------- Non-interest expense: Salaries and employee benefits 3,814 4,961 16,025 19,159 Occupancy 624 648 2,591 2,541 Data processing 209 280 911 1,001 Furniture, fixtures and equipment 505 588 2,071 2,234 Professional services 712 989 2,528 3,662 Other 1,873 2,772 8,024 8,688 ------- ------- ------- ------- Total non-interest expense 7,737 10,238 32,150 37,285 ------- ------- ------- ------- Income before income taxes 1,425 838 6,265 744 Income tax expense 401 283 2,269 200 ------- ------- ------- ------- Net income $ 1,024 $555 $3,996 $544 ======= ======= ======= ======= Basic earnings per common share $.15 $.10 $.60 $.10 ==== ==== ==== ==== Diluted earnings per common share $.15 $.10 $.59 $.10 ==== ==== ==== ==== Dividends per common share $.05 $.00 $.10 $.12 ==== ==== ==== ==== Basic average common shares outstanding 6,809,902 5,545,478 6,658,880 5,599,358 ========= ========= ========= ========= Diluted average common shares outstanding 7,015,172 5,642,897 6,827,539 5,717,568 ========= ========= ========= =========
Progress Financial Corporation Supplemental Data (Dollars in Thousands, except per share data)
Three Months Ended Twelve Months Ended December 31, December 31, 2002 2001 2002 2001 -------------- --------------- ------------- ---------------- Profitability Measures: Return on average assets 0.43% 0.25% 0.44% 0.06% Return on average equity 6.09 4.12 6.38 1.04 Net interest spread (FTE) (1) 2.67 2.85 2.83 3.00 Net interest margin (FTE) (1) 3.09 3.31 3.23 3.52 Efficiency ratio 73.78 81.51 75.88 76.06 Diluted net income per common share $ .15 $ .10 $ .59 $ .10 Selected Loan Data: Non-performing assets $ 5,447 $10,864 $ 5,447 $10,864 Ratio of non-performing assets to total assets .54% 1.28% .54% 1.28% Ratio of allowance for loan and lease losses to total loans and leases receivable 1.39 1.87 1.39 1.87 Ratio of allowance for loan and lease losses to non-performing loans and leases receivable 118.65 106.28 118.65 106.28 Loan delinquency ratio 1.21 2.13 1.21 2.13 Ratio of loans and leases to deposits 67.36 84.27 67.36 84.27 Selected Equity Data: Book value per share $9.85 $9.11 $9.85 $9.11 Tangible book value per share 9.68 8.76 9.68 8.76 Dividends per common share .05 .00 .10 .12 Average equity to average assets 7.00% 6.05% 6.93% 5.82% Tier 1 risk-based capital ratio (Bank) 14.09 11.60 14.09 11.60 Total risk-based capital ratio (Bank) 15.20 12.85 15.20 12.85 Tier 1 leverage ratio (Bank) 7.82 7.90 7.82 7.90 Selected Average Balances: Loans, gross $463,363 $547,087 $479,604 $553,705 Earning assets 900,209 833,265 851,250 845,942 Total assets 953,315 883,538 903,429 895,827 Deposits 671,380 646,462 642,496 626,923 Equity 66,718 53,483 62,585 52,140 (1) FTE represents a fully tax equivalent basis.
Progress Financial Corporation Supplemental Balances (Dollars in Thousands)
Period-End Balances At : December 31, 2002 December 31, 2001 % Change ------------------------------------------------------------------ Loans and Leases, Net: Commercial business $ 83,994 $146,844 (2) (42.8%) Commercial real estate 199,672 197,394 (2) 1.2 Construction, net of loans in process 87,728 77,380 13.4 Single family residential real estate 26,870 26,518 1.3 Consumer 50,105 44,821 11.8 Leases receivable 17,444 37,572 (53.6) ------------------------------------------------------------------ Total loans and leases 465,813 530,529 (12.2) Allowance for loan and lease losses (6,463) (9,917) (34.8) ------------------------------------------------------------------ Loans and leases, net $459,350 $520,612 (11.8%) ================================================================== Deposits: Non-interest bearing demand deposits $100,075 $ 84,783 18.0% NOW and SuperNow 93,182 120,665 (22.8) Money Market 105,563 45,779 130.6 Passbook and Statement Savings 34,148 30,191 13.1 Time deposits 358,570 348,105 3.0 ------------------------------------------------------------------ Total deposits $691,538 $629,523 9.9% ================================================================== (2) Includes loans held for sale at December 31, 2001: commercial business loans of $23,298 and commercial real estate loans of $2,289.
### Exhibit 99(b) Press Release on Fourth Quarter Cash Dividend FOR IMMEDIATE RELEASE Contacts: January 22, 2003 Michael B. High, COO/CFO 610-941-4804 mhigh@progressbank.com Dorothy Jaworski, Director of Investor Relations 484-322-4822 djaworski@progressbank.com Progress Financial Corporation Declares 20% Increase in Cash Dividend Blue Bell, PA, January 22, 2003 - The Board of Directors of Progress Financial Corporation (the "Company" - Nasdaq: PFNC) declared a 20% increase in its quarterly cash dividend on its common stock, according to W. Kirk Wycoff, Chairman, President and Chief Executive Officer. The quarterly cash dividend was increased from $.05 to $.06 per share. The cash dividend of $.06 will be paid on February 14, 2003 to shareholders of record on January 31, 2003. 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, group employee benefits 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". #### Exhibit 99(c) Analyst Package Distributed January 22, 2003
Three months ended Twelve months ended December 31, December 31, ----------------------------------------------------------------------- Percent Percent 2002 2001 change 2002 2001 change ----------------------------------------------------------------------- Per Common Share Data - --------------------- Net income: Basic $ 0.15 $ 0.10 50.00% $ 0.60 $ 0.10 500.00% Diluted 0.15 0.10 50.00% 0.59 0.10 490.00% Cash dividends declared 0.05 - - 0.10 0.12 -16.67% Book value 9.85 9.11 8.12% 9.85 9.11 8.12% Tangible book value 9.68 8.76 10.50% 9.68 8.76 10.50% Average shares outstanding: Basic 6,809,902 5,545,478 22.80% 6,658,880 5,599,358 18.92% Diluted 7,015,172 5,642,897 24.32% 6,827,539 5,717,568 19.41% Financial Ratios - ---------------- Return on average shareholders' equity 6.09% 4.12% 47.82% 6.38% 1.04% 511.49% Return on average total assets 0.43% 0.25% 72.00% 0.44% 0.06% 624.57% Average yield on earning assets 5.93% 6.93% -14.43% 6.32% 7.74% -18.35% Average rate on interest bearing liabilities 3.26% 4.08% -20.10% 3.49% 4.74% -26.37% Net interest spread 2.67% 2.85% -6.32% 2.83% 3.00% -5.67% Net interest margin (FTE) 3.09% 3.31% -6.65% 3.23% 3.52% -8.24% Efficiency ratio 73.78% 81.51% -9.49% 75.88% 76.06% -0.24% Risk-based capital - Tier 1 14.09% 11.60% 21.47% 14.09% 11.60% 21.47% - Total capital 15.20% 12.85% 18.29% 15.20% 12.85% 18.29% Tier 1 leverage ratio 7.82% 7.90% -1.01% 7.82% 7.90% -1.01% Average shareholders' equity/average total assets 7.00% 6.05% 15.70% 6.93% 5.82% 19.07% Asset Quality (dollars in thousands) - ------------------------------------ Allowance for loan losses $ 6,463 $ 9,917 -34.83% $ 6,463 $ 9,917 -34.83% Allowance for loan losses/Loans 1.39% 1.87% -25.67% 1.39% 1.87% -25.67% Net charge-offs (recoveries) $ 1,512 $ 1,615 -6.38% $ 7,268 $ 4,606 57.79% Net charge-offs/Average loans (annualized) 1.29% 1.17% 10.26% 1.52% 0.83% 82.17% Nonperforming assets $ 5,447 $ 10,864 -49.86% $ 5,447 $ 10,864 -49.86% Nonperforming assets/Total loans plus OREO 1.19% 2.08% -42.79% 1.19% 2.08% -42.79% Nonperforming assets/Total assets 0.54% 1.28% -57.81% 0.54% 1.28% -57.81% Allowance for loan losses/Nonperforming loans 118.65% 106.28% 11.64% 118.65% 106.28% 11.64% Average Balances (in thousands) - ------------------------------- Loans and leases (gross of reserves) $ 463,363 $ 547,087 -15.30% $ 479,604 $ 553,705 -13.38% Earning assets 900,209 833,265 8.03% 851,250 845,942 0.63% Total assets 953,315 883,538 7.90% 903,429 895,827 0.85% Deposits 671,380 646,462 3.85% 642,496 626,923 2.48% Interest bearing liabilities 785,719 740,076 6.17% 753,288 751,895 0.19% Shareholders' equity 66,718 53,483 24.75% 62,585 52,140 20.03% Period End Balances (in thousands) - ---------------------------------- Loans and leases (gross of reserves) $ 465,813 $ 530,529 -12.20% $ 465,813 $ 530,529 -12.20% Total assets 1,017,844 851,380 19.55% 1,017,844 851,380 19.55% Deposits 691,538 629,523 9.85% 691,538 629,523 9.85% Total liabilities 951,115 800,781 18.77% 951,115 800,781 18.77% Shareholders' equity 66,729 50,599 31.88% 66,729 50,599 31.88%
Three months Three months Three months Three months Twelve months ended ended ended ended ended December 31, September 30, June 30, March 31, December 31, ------------------- -------------------- ------------------ -------------------- ----------------- Percent Percent Percent Percent Percent 2002 2001 change 2002 2001 change 2002 2001 change 2002 2001 change 2002 2001 change ---- ---- -------- ----- ----- ------- ------ ---- ------- ------ ---- -------- ----- ---- ------- TAX EQUIVALENT INCOME STATEMENT - ------------------------------- ($ in thousands, except per share data) Net interest income(FTE) $7,008 $6,947 1% $6,965 $7,637 -9% $7,021 $7,540 -7% $6,479 $7,674 -16% $27,473 $29,798 -8% FTE adjustment (179) (114) -57% (145) (115) -26% (128) (118) -8% (111) (116) 4% (563) (463) -22% ------------- --- ------------- --- ------------- --- ------------- --- --------------- ---- Net interest income 6,829 6,833 0% 6,820 7,522 -9% 6,893 7,442 -7% 6,368 7,558 -16% 26,910 29,335 -8% Provision for losses on loans 875 972 -10% 500 1,543 -68% 1,000 3,554 -72% 1,439 1,047 37% 3,814 7,116 -46% Non-Interest Income: Service charges on deposits 937 768 22% 916 640 43% 978 623 57% 854 585 46% 3,685 2,616 41% Lease financing fees 42 1 4100% 50 231 -78% 63 242 -74% 63 277 -77% 218 751 -71% Mutual fund, annuity and insurance commissions 685 1,000 -32% 478 313 53% 678 981 -31% 940 800 18% 2,781 3,094 -10% Loan brokerage and advisory fees 489 573 -15% 78 158 -51% 302 365 -17% 273 223 22% 1,142 1,319 -13% Private equity fund management fees 65 614 -89% 65 614 -89% 65 615 -89% 52 614 -92% 247 2,457 -90% Gain(loss) on securities 219 509 -57% 84 1,073 -92% 352 (21)1776% - 1,258 -100% 655 2,819 -77% Gain on sale of real estate 76 (301) 125% 1,570 - - - - - - - - 1,646 (301) 647% Client warrant income (loss) 20 9 122% 466 1 46500% 35 1 3400% 1,426 (1,959) 173% 1,947 (1,948) 200% Equity (loss) in unconsolidated entities (14) 184 -108% 1 (240) 100% 6 (551) 101% 95 (27) 452% 88 (634) 114% Fees and other income 689 1,858 -63% 643 1,462 -56% 737 1,030 -28% 841 1,287 -35% 2,910 5,637 -48% ------------- --- ------------- ----- ------------- ---- ------------- ---- --------------- ---- Total non-interest income 3,208 5,215 -38% 4,351 4,252 2% 3,216 3,285 -2% 4,544 3,058 49% 15,319 15,810 -3% Non-Interest Expenses: Salaries and employee benefits 3,814 4,961 -23% 3,906 4,225 -8% 3,904 4,983 -22% 4,401 4,990 -12% 16,025 19,159 -16% Occupancy 624 648 -4% 720 647 11% 661 633 4% 586 613 -4% 2,591 2,541 2% Data processing 209 280 -25% 215 230 -7% 230 276 -17% 257 215 20% 911 1,001 -9% Furniture, fixtures and equipment 505 588 -14% 511 528 -3% 509 572 -11% 546 546 - 2,071 2,234 -7% Loan and real estate owned expenses, net 231 402 -43% 226 557 -59% 243 151 61% 295 284 4% 995 1,394 -29% Professional services 712 989 -28% 597 943 -37% 641 915 -30% 578 815 -29% 2,528 3,662 -31% Other 1,642 2,370 -31% 2,115 1,705 24% 1,579 1,723 -8% 1,693 1,496 13% 7,029 7,294 -4% ------------- --- ------------- ---- ------------- ---- ------------- --- --------------- ---- Total non-interest expenses 7,737 10,238 -24% 8,290 8,835 -6% 7,767 9,253 -16% 8,356 8,959 -7% 32,150 37,285 -14% ------------- --- ------------- ---- ------------- ---- ------------- --- --------------- ---- Income before income taxes 1,425 838 70% 2,381 1,396 71% 1,342 (2,100) 164% 1,117 610 83% 6,265 744 742% Provision for income tax expense 401 283 42% 1,066 463 130% 435 (731) 160% 367 185 98% 2,269 200 1035% ------------- --- ------------- ---- ------------- --- ------------- --- --------------- ---- Net income $ 1,024 $ 555 85% $1,315 $ 933 41% $ 907 $1,369 166% $ 750 $ 425 76% $ 3,996 $ 544 635% ======= ====== === ====== ====== ==== ============= === ============= === ======= ======= ====
QUARTERLY INCOME STATEMENT (Unaudited)
($ in thousands, except per share) Fourth Third Second First Year- 2002 Quarter Quarter Quarter Quarter to-date - ---------------------------------------------------------- ------------- ------------ ------------ ------------- ----------- FTE interest income $13,455 $13,618 $13,602 $13,123 $53,798 Interest expense 6,447 6,653 6,581 6,644 26,325 ------------- ------------ ------------ ------------- ----------- FTE net interest income 7,008 6,965 7,021 6,479 27,473 Less: FTE adjustment (179) (145) (128) (111) (563) ------------- ------------ ------------ ------------- ----------- Net Interest Income 6,829 6,820 6,893 6,368 26,910 Provision for Losses on Loans 875 500 1,000 1,439 3,814 Non-Interest Income: - -------------------- Service charges on deposits 937 916 978 854 3,685 Lease financing fees 42 50 63 63 218 Mutual fund, annuity and insurance commissions 685 478 678 940 2,781 Loan brokerage and advisory fees 489 78 302 273 1,142 Private equity fund management fees 65 65 65 52 247 Gain(loss) on securities 219 84 352 - 655 Gain on sale of real estate 76 1,570 - - 1,646 Client warrant income (loss) 20 466 35 1,426 1,947 Equity (loss) in unconsolidated entities (14) 1 6 95 88 Fees and other income 689 643 737 841 2,910 ------------- ------------ ------------ ------------- ----------- Total non-interest income 3,208 4,351 3,216 4,544 15,319 Non-Interest Expenses: - --------------------- Salaries and employee benefits 3,814 3,906 3,904 4,401 16,025 Occupancy 624 720 661 586 2,591 Data processing 209 215 230 257 911 Furniture, fixtures and equipment 505 511 509 546 2,071 Loan and real estate owned expenses, net 231 226 243 295 995 Professional services 712 597 641 578 2,528 Other 1,642 2,115 1,579 1,693 7,029 ------------- ------------ ------------ ------------- ----------- Total non-interest expenses 7,737 8,290 7,767 8,356 32,150 Income Before Income Taxes 1,425 2,381 1,342 1,117 6,265 Provision for income tax expense 401 1,066 435 367 2,269 ------------- ------------ ------------ ------------- ----------- Net Income $ 1,024 $ 1,315 $ 907 $ 750 $ 3,996 ============= ============ ============ ============= =========== Other Data: - ----------- EPS - Basic $0.15 $0.20 $0.13 $0.12 $0.60 EPS - Diluted $0.15 $0.19 $0.13 $0.12 $0.59 ROA 0.43% 0.57% 0.41% 0.35% 0.44% ROE 6.09% 8.05% 5.90% 5.33% 6.38% Net interest margin (FTE) 3.09% 3.24% 3.35% 3.25% 3.23% Dividends declared on common stock $0.05 $0.05 $0.00 $0.00 $0.10 FTE employees 268 271 282 277 271
QUARTERLY INCOME STATEMENT (Unaudited)
($ 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 7,618 8,808 9,484 9,740 35,650 ------------ ------------ ------------ ------------ ------------ FTE net interest income 6,947 7,637 7,540 7,674 29,798 Less: FTE adjustment (114) (115) (118) (116) (463) ------------ ------------ ------------ ------------ ------------ Net Interest Income 6,833 7,522 7,422 7,558 29,335 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) on securities 509 1,073 (21) 1,258 2,819 Loss on extinguishment of debt* (301) - - - (301) Client warrant income (loss) 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 5,215 4,252 3,285 3,058 15,810 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 Other 2,370 1,705 1,723 1,496 7,294 ------------ ------------ ------------ ------------ ------------ Total non-interest expenses 10,238 8,835 9,253 8,959 37,285 Income Before Income Taxes 838 1,396 (2,100) 610 744 Provision for income tax expense (benefit)* 283 463 (731) 185 200 ------------ ------------ ------------ ------------ ------------ Net Income $ 555 $ 933 $ (1,369) $ 425 $ 544 ============ ============ ============ ============ ============ Other Data: - ---------- 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) 3.31% 3.51% 3.52% 3.75% 3.52% Dividends declared on common stock $0.00 $0.00 $0.06 $0.06 $0.12 FTE employees 306 302 318 298 306 *Restated for FAS 145
ASSET QUALITY (Unaudited)
2002 2001 --------------------------------------------- ------------------------------------------------ ($ 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 $ 9,917 $ 7,100 $ 8,024 $ 8,775 $ 9,917 $ 7,407 $ 10,560 $ 10,309 $ 7,708 $ 7,407 Provision 3,814 875 500 1,000 1,439 7,116 972 1,543 3,554 1,047 Charge-offs 8,054 1,689 1,827 1,817 2,721 5,299 2,124 1,344 1,049 782 ------- ------- ------- ------- ------- ------- -------- -------- ------- ------- Recoveries (786) (177) (403) (66) (140) (693) (509) (52) (96) (36) ------- ------- ------- ------- ------- ------- -------- -------- ------- ------- Net loan charge-offs 7,268 1,512 1,424 1,751 2,581 4,606 1,615 1,292 953 746 ------- ------- ------- ------- ------- ------- -------- -------- ------- ------- Balance at end of period $ 6,463 $ 6,463 $ 7,100 $ 8,024 $ 8,775 $ 9,917 $ 9,917 $ 10,560 $ 10,309 $ 7,708 ======= ======= ======= ======= ======= ======= ======= ======== ======== ======= Allowance as percentage of loans 1.39% 1.39% 1.55% 1.67% 1.84% 1.87% 1.87% 1.92% 1.82% 1.39% Net charge-offs/average loans 1.52% 0.33% 0.30% 0.36% 0.51% 0.83% 0.30% 0.23% 0.17% 0.14% Allowance as percentage of non-performing loans 118.65% 118.65% 94.14% 91.83% 93.93% 106.28% 106.28% 221.15% 203.21% 128.42% Non-performing assets - --------------------- Non-accrual loans and leases $ 5,447 $ 5,447 $ 7,542 $ 8,738 $ 9,342 $ 9,331 $ 9,331 $ 4,775 $ 5,073 $ 6,002 Other real estate owned - - 872 4,495 4,243 1,533 1,533 1,498 3,340 1,356 ------- ------- ------- ------- ------- ------- -------- -------- ------- ------- Total non-performing assets $ 5,447 $ 5,447 $ 8,414 $13,233 $ 13,585 $10,864 $10,864 $ 6,273 $ 8,413 $ 7,358 ======= ======= ======= ======= ======= ======= ======= ======== ======== ======= Non-performing assets to: Loans and leases plus OREO 1.19% 1.19% 1.86% 2.77% 2.87% 2.08% 2.08% 1.16% 1.50% 1.34% Total assets 0.54% 0.54% 0.91% 1.46% 1.55% 1.28% 1.28% 0.72% 0.92% 0.81% Loans past due 90 days $ 918 $ 918 $ 2,735 $1,766 $ 3,244 $ 1,125 $ 1,125 $ 2,540 $ 2,473 $ 2,971 Total under-performing assets $6,365 $6,365 $11,149 $14,999 $16,829 $11,989 $11,989 $ 8,813 $10,886 $10,329
AVERAGE BALANCE SHEET DATA (Unaudited)
2002 2001 ------------------------------------------- ------------------------------------------ ($ 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)$ 12,202 $ 14,743 $ 9,022 $22,496 $ 14,588 $ 27,686 $ 26,971 $ 21,353 $ 26,385 $ 25,606 Loans,net of unearned discounts: Commercial business 84,226 87,127 96,440 123,173 97,606 158,298 182,187 186,230 177,260 175,959 Commercial mortgage 199,731 193,867 196,331 193,250 195,807 200,495 195,209 185,864 179,400 190,313 Residential real estate 27,339 28,764 27,929 25,688 27,438 28,123 30,887 32,436 33,870 31,312 Construction loans 82,566 84,863 86,253 83,831 84,376 76,503 68,694 70,094 64,141 69,889 Consumer 49,179 47,547 45,416 44,437 46,660 45,008 41,612 38,742 37,401 40,714 Lease financing 20,322 24,954 30,080 35,712 27,717 38,660 43,962 45,513 54,123 45,518 -------- -------- ------- ------- -------- -------- -------- -------- -------- -------- Total loans 463,363 467,122 482,449 506,091 479,604 547,087 562,551 558,879 546,195 553,705 Investment securities(available for sale) 10,667 6,110 6,465 5,967 7,312 5,608 4,719 5,873 23,269 10,798 Investment securities(held to maturity) 37,113 40,600 40,977 38,224 39,229 37,970 37,675 37,381 38,261 37,821 Mortgage-backed securities 376,864 323,706 302,946 236,869 310,517 214,914 230,158 235,432 195,436 218,012 -------- -------- ------- ------- -------- -------- -------- -------- -------- -------- Earning assets 900,209 852,281 841,859 809,647 851,250 833,265 862,074 858,918 829,546 845,942 Cash and due from banks (non-interest bearing) 16,181 15,408 14,445 15,563 15,401 16,788 16,663 16,206 16,612 16,568 Other non-earning assets 36,925 40,436 35,854 33,822 36,778 33,485 30,158 32,054 37,394 33,317 -------- -------- ------- -------- -------- -------- -------- -------- -------- ------- Total assets $953,315 $908,125 $892,158 $859,032 $903,429 $883,538 $908,895 $907,178 $883,552 $895,827 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Deposits: Demand $ 92,744 $ 74,920 $ 77,860 $ 73,734 $ 79,853 $ 81,334 $ 77,796 $ 69,629 $ 80,637 $ 77,352 Interest bearing: NOW and Supernow accounts 88,918 105,115 116,734 119,129 107,385 118,912 116,900 113,218 104,396 113,406 Money Market Accounts 98,823 89,022 75,009 61,776 81,281 45,471 40,946 37,282 45,848 42,382 Passbook and Stmt Savings 33,470 31,963 33,081 30,956 32,373 30,036 29,086 28,614 27,804 28,892 Time deposits 357,425 357,784 321,895 328,822 341,604 370,709 373,851 362,414 352,287 364,891 -------- -------- ------- -------- -------- -------- -------- -------- -------- -------- Total interest bearing deposits 578,636 583,884 546,719 540,683 562,643 565,128 560,783 541,528 530,335 549,571 Federal Home Loan Bank borrowings 133,438 120,500 117,609 120,333 122,999 126,891 127,000 126,999 121,366 125,584 Other borrowings 51,364 36,303 61,377 39,311 47,092 27,803 62,632 81,071 54,704 56,495 Capital securities 22,281 19,394 20,269 20,263 20,554 20,254 20,250 20,241 20,235 20,245 -------- ------- -------- -------- -------- -------- -------- -------- -------- -------- Interest bearing liabilities 785,719 760,081 745,974 720,590 753,288 740,076 770,665 769,839 726,640 751,895 Non-interest bearing liabilities 8,134 8,316 6,675 7,674 7,703 8,645 9,352 15,747 24,248 14,440 Total shareholders' equity 66,718 64,808 61,649 57,034 62,585 53,483 51,082 51,963 52,027 52,140 -------- ------- -------- -------- -------- -------- -------- -------- -------- -------- Total Liabilities and Shareholders' Equity $ 953,315 $908,125 $892,158 $859,032 $903,429 $883,538 $908,895 $907,178 $883,552 $895,827 ========= ======== ======== ======== ======== ======== ======== ======== ======== ========
AVERAGE BALANCE SHEET DATA - continued (Unaudited)
2002 2001 ------------------------------------------- ------------------------------------------------- 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 1.24% 1.59% 1.60% 1.55% 1.50% 2.03% 3.28% 4.21% 5.47% 3.69% Investment securities 5.91% 6.86% 6.29% 6.47% 6.38% 6.55% 6.90% 6.84% 7.17% 6.75% Mortgage-backed securities 5.04% 5.50% 5.67% 5.77% 5.45% 5.86% 6.29% 6.53% 6.80% 6.39% Single family residential loans 6.36% 6.94% 7.07% 7.44% 6.94% 7.42% 7.89% 8.36% 9.78% 8.41% Commercial real estate loans 7.57% 7.72% 7.85% 7.48% 7.65% 8.15% 8.39% 8.60% 8.95% 8.51% Construction loans 6.40% 6.40% 6.44% 6.47% 6.42% 7.08% 8.43% 9.20% 10.38% 8.69% Commercial business loans 5.29% 5.76% 5.50% 6.55% 5.84% 6.81% 8.18% 8.61% 9.54% 8.32% Lease financing 10.13% 9.98% 10.21% 10.27% 10.16% 10.66% 10.06% 10.73% 10.33% 10.44% Consumer loans 5.64% 6.07% 6.44% 6.38% 6.12% 6.71% 7.31% 7.67% 7.86% 7.35% ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- Total interest - earning assets 5.93% 6.34% 6.48% 6.57% 6.32% 6.93% 7.57% 7.95% 8.51% 7.74% ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- Interest - bearing liabilities Interest - bearing deposits NOW and SuperNOW 1.14% 1.11% 1.20% 1.40% 1.22% 1.68% 2.27% 2.81% 3.41% 2.51% Money Market 2.11% 2.26% 2.11% 1.91% 2.11% 1.88% 2.48% 2.63% 3.50% 2.62% Passbook and Statement Savings 0.85% 0.98% 0.99% 1.02% 0.96% 1.14% 1.47% 1.60% 1.71% 1.47% Time deposits 3.26% 3.47% 3.76% 4.00% 3.61% 4.36% 4.97% 5.52% 6.07% 5.21% ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- Total interest - bearing deposits 2.60% 2.73% 2.82% 3.02% 2.78% 3.43% 4.04% 4.54% 5.10% 4.26% FHLB borrowings 4.87% 5.47% 5.52% 5.43% 5.38% 5.50% 5.59% 5.49% 5.65% 5.60% Other borrowings 3.48% 4.41% 3.39% 4.24% 3.84% 5.37% 4.68% 4.95% 5.93% 5.20% Capital securities 9.56% 11.21% 11.34% 11.45% 10.85% 11.20% 11.23% 11.33% 11.24% 11.25% ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- Total interest - bearing liabilities 3.26% 3.47% 3.54% 3.74% 3.49% 4.08% 4.53% 4.94% 5.44% 4.74% ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- Interest Rate Spread 2.67% 2.87% 2.94% 2.83% 2.83% 2.85% 3.04% 3.01% 3.07% 3.00% Net Interest Margin 3.09% 3.24% 3.35% 3.25% 3.23% 3.31% 3.51% 3.52% 3.75% 3.52% Avg Int-earning assets to int-bearing liabilities 114.57% 112.13% 112.85% 112.36% 113.00% 112.59% 111.86% 111.57% 114.16% 112.51%
PERIOD END BALANCE SHEET DATA (Unaudited)
2002 2001 ----------------------------------------- ----------------------------------------- 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) $ 17,570 $ 3,506 $ 5,603 $ 12,130 $ 11,276 $ 15,545 $ 11,342 $ 16,548 Loans and lease(net) 459,350 451,237 473,435 469,173 520,612 538,741 555,981 548,749 Investment securities: Held-to-maturity: Book 46,536 29,778 43,912 39,570 38,173 37,869 37,570 37,278 Market 47,134 30,787 44,532 38,660 38,020 38,077 37,330 37,350 Available-for-sale 20,193 5,419 5,962 5,941 6,682 5,217 5,965 5,826 Mortgage-backed securities: Held-to-maturity: Book 73,470 59,440 44,870 25,304 - - - - Market 74,834 60,736 45,262 24,952 - - - - Available-for-sale 339,097 298,888 265,056 263,908 205,146 191,714 239,829 241,431 -------- -------- -------- -------- -------- -------- -------- -------- Earning assets 956,216 848,268 838,838 816,026 781,889 789,086 850,687 849,832 Cash and due from bank (non-interest bearing) 20,650 20,434 17,030 11,906 21,250 30,126 16,631 14,009 Other non-earning assets 40,978 58,993 48,134 47,047 48,241 56,587 47,052 41,066 ---------- -------- -------- -------- -------- -------- -------- -------- Total assets $1,017,844 $927,695 $904,002 $874,979 $851,380 $875,799 $914,370 $904,907 ========== ======== ======== ======== ======== ======== ======== ======== Liabilities and shareholders' equity - ------------------------------------ Deposits: Demand $ 100,075 $ 74,261 $ 83,538 $ 72,567 $ 84,783 $ 79,318 $ 76,588 $ 67,105 Interest bearing 591,463 588,721 548,084 546,240 544,740 550,417 556,283 528,067 --------- -------- -------- -------- -------- -------- -------- -------- Total deposits 691,538 662,982 631,622 618,807 629,523 629,735 632,871 595,172 Federal Home Loan Bank borrowings 120,500 120,500 120,500 117,000 117,000 127,000 127,000 127,000 Other borrowings 98,109 41,062 55,012 46,087 23,568 34,147 72,549 89,738 Capital Securities 28,836 18,824 20,274 20,267 20,260 20,253 20,246 20,239 -------- -------- -------- -------- -------- -------- -------- -------- Interest bearing liabilities 938,983 843,368 827,408 802,161 790,351 811,135 852,666 832,149 Other Liabilities 12,132 17,815 13,178 13,498 10,430 12,157 12,073 20,695 -------- -------- -------- -------- -------- -------- -------- -------- Total liabilities 951,115 861,183 840,586 815,659 800,781 823,292 864,739 852,844 Total shareholders' equity 66,729 66,512 63,416 59,320 50,599 52,507 49,631 52,063 ---------- -------- -------- -------- -------- -------- -------- -------- Total liabilities and equity $1,017,844 $927,695 $904,002 $874,979 $851,380 $875,799 $914,370 $904,907 ========== ======== ======== ======== ======== ======== ======== ======== Other selected balances Intangible assets -- Goodwill $ 1,164 $ 1,155 $ 1,757 $ 1,865 $ 1,974 $ 2,478 $ 2,541 $ 2,605 Amount included in shareholders' equity for net unrealized gains on investments available-for-sale $ 3,665 $ 3,634 $ 1,643 $ (1,269) $ (685) $ 1,848 $ 48 $ 130
Capital Data (Unaudited)
2002 2001 ------------------------------------------------------------------------------------------------------ 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 6,809,902 6,815,956 6,795,122 6,206,177 6,658,880 5,545,478 5,584,133 5,584,582 5,684,940 5,599,358 Average-diluted 7,015,172 6,967,686 6,962,428 6,342,450 6,827,539 5,642,897 5,680,014 5,715,918 5,829,134 5,717,568 Period-end 6,774,919 6,816,494 6,800,380 6,768,458 6,774,919 5,551,535 5,584,361 5,563,378 5,648,895 5,551,535 Book value $ 9.85 $ 9.76 $ 9.33 $ 8.76 $ 9.85 $ 9.11 $ 9.40 $ 8.92 $ 9.22 $ 9.11 Tangible Book Value 9.68 9.59 9.07 8.49 9.68 8.76 8.96 8.46 8.76 8.76 Price: High $ 11.61 $ 10.15 $ 10.40 $ 9.65 $ 11.61 $ 7.60 $ 7.94 $ 8.40 $ 9.63 $ 9.63 Low 9.90 7.46 8.61 7.44 7.44 5.90 5.60 6.88 7.06 5.60 Close 11.61 9.40 9.74 8.94 11.61 7.50 6.40 7.95 7.38 7.50 Capital ratios ($ in thousands) Risk-based capital: Tier 1 capital $77,879 $76,071 $73,567 $71,957 $77,879 $66,395 $65,343 $61,449 $61,935 $66,395 % risk adjusted assets 14.09% 14.76% 13.97% 13.58% 14.09% 11.60% 11.34% 10.32% 10.61% 11.60% Total capital $84,028 $82,519 $80,167 $78,606 $84,028 $73,582 $72,583 $68,929 $69,236 $73,582 % risk adjusted assets 15.20% 16.01% 15.22% 14.84% 15.20% 12.85% 12.59% 11.57% 11.86% 12.85% Tier 1 leverage ratio 7.82% 8.31% 8.23% 8.30% 7.82% 7.90% 7.58% 6.83% 6.95% 7.90% Average shareholders' equity to total average assets 7.00% 7.14% 6.91% 6.64% 6.93% 6.05% 5.62% 5.73% 5.89% 5.82%
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