ORRSTOWN FINANCIAL SERVICES, INC.
|
(Exact name of registrant as specified in its charter)
|
Pennsylvania
|
001-34292
|
23-2530374
|
(State or other jurisdiction
of incorporation)
|
(SEC File Number)
|
(IRS Employer
Identification No.)
|
77 East King Street, P.O. Box 250, Shippensburg, Pennsylvania
|
17257
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(717) 532-6114
|
Not Applicable
|
(Former name or former address, if changed since last report)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
|
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 hereunto duly authorized.
|
|||
ORRSTOWN FINANCIAL SERVICES, INC.
|
|||
Date: October 26, 2011
|
By:
|
/s/ Thomas R. Quinn, Jr.
|
|
Thomas R. Quinn, Jr.
President and Chief Executive Officer
(Duly Authorized Representative)
|
·
|
Quarterly earnings were $4.3 million for the third quarter ended September 30, 2011 versus $4.9 million for the same period in 2010. YTD earnings decreased from $12.2 million in 2010 to a loss of $2.5 million in 2011.
|
·
|
Quarterly and year-to-date operating results include provisions for loan losses of $7.9 million and $32.3 million for the periods. YTD provision for loan losses represents 1.43x net charge-offs for the period.
|
·
|
Net interest income for 2011 increased 9.9% and 13.6% on a quarter and year-to-date basis over 2010 results.
|
·
|
Net interest margin increased from 3.62% in the third quarter of 2010 to 3.66% in the third quarter of 2011.
|
·
|
Efficiency ratio improved on a linked-quarter basis to 52.4% for the third quarter of 2011 compared to 52.6% in the second quarter of 2011 and 54.8% in the third quarter of 2010.
|
·
|
Quarterly dividend discontinued per regulatory guidance.
|
·
|
An additional charge-off of $5.6 million on a previously reported commercial credit in which the borrower is currently in bankruptcy. As a result of the Bank’s recent termination of its involvement with the borrower’s Plan of Reorganization exit financing, it was determined prudent to charge-off the entire loan balance, as the Bank is presently listed as an unsecured non-priority claimant in the pre-petition indebtedness.
|
·
|
Prolonged softening real estate conditions, particularly in the bank’s southern market, have resulted in additional loan loss provisions, as the allowance for loan losses was increased by $9.2 million after charge-offs that related to borrowings that were collateral dependent. Upon receiving updated appraisals in 2011, it was noted that the appraised values were significantly less than previous appraisals, or even listed sales prices. Real estate values are depressed due to lack of growth in the market and abundance of properties available.
|
·
|
The Bank’s recognition of continuing softness in overall economic conditions and deterioration of underlying collateral securing lending relationships resulted in an ongoing credit review process during the second and third quarters that covered nearly 100% of the commercial loan portfolio as measured in dollars. This process led to downgraded internal risk ratings on many existing credits, and subsequently raised required reserve levels. Loans classified as ‘substandard’ or ‘doubtful’ have increased to $146.3 million as of September 30, 2011, compared to $67.8 at December 31, 2010. Classified loans have declined 2.5% from June 30, 2011, principally the result of charge-offs, or partial charge-off of loans.
|
·
|
The continued economic pressures on customers and valuations on underlying collateral resulted in management increasing its qualitative reserve allocations on its loan portfolios to reflect these conditions. In addition, the $22.7 million in net charge-offs experienced in 2011 resulted in increased quantitative reserve allocations to specific loan portfolios.
|
For Quarter Ended:
|
September 30, 2011
|
September 30, 2010
|
% Change
|
|||||||||
Net income
|
$ | 4,314,000 | $ | 4,896,000 | -11.9 | % | ||||||
Basic earnings per share
|
$ | 0.54 | $ | 0.61 | -11.5 | % | ||||||
Diluted earnings per share
|
$ | 0.54 | $ | 0.61 | -11.5 | % | ||||||
Dividends per share
|
$ | 0.23 | $ | 0.225 | 2.2 | % | ||||||
Return on average assets
|
1.11 | % | 1.36 | % | ||||||||
Return on average equity
|
10.82 | % | 12.18 | % | ||||||||
Return on average tangible assets (1)
|
1.13 | % | 1.39 | % | ||||||||
Return on average tangible equity (1)
|
12.54 | % | 14.03 | % | ||||||||
Net interest income
|
12,825,000 | 11,668,000 | 9.9 | % | ||||||||
Net interest margin
|
3.66 | % | 3.62 | % | ||||||||
For Nine Months Ended:
|
September 30, 2011
|
September 30, 2010
|
% Change
|
|||||||||
Net income (loss)
|
$ | (2,482,000 | ) | $ | 12,206,000 | -120.3 | % | |||||
Basic earnings (loss) per share
|
$ | (0.31 | ) | $ | 1.62 | -119.1 | % | |||||
Diluted earnings (loss) per share
|
$ | (0.31 | ) | $ | 1.62 | -119.1 | % | |||||
Dividends per share
|
$ | 0.69 | $ | 0.665 | 3.8 | % | ||||||
Return on average assets
|
-0.22 | % | 1.23 | % | ||||||||
Return on average equity
|
-2.06 | % | 11.47 | % | ||||||||
Return on average tangible assets (1)
|
-0.21 | % | 1.26 | % | ||||||||
Return on average tangible equity (1)
|
-2.27 | % | 13.57 | % | ||||||||
Net interest income
|
$ | 38,023,000 | $ | 33,465,000 | 13.6 | % | ||||||
Net interest margin
|
3.69 | % | 3.72 | % | ||||||||
Balance Sheet Highlights:
|
September 30, 2011
|
September 30, 2010
|
% Change
|
|||||||||
Assets
|
$ | 1,517,315,000 | $ | 1,477,780,000 | 2.7 | % | ||||||
Loans, gross
|
996,488,000 | 921,807,000 | 8.1 | % | ||||||||
Allowance for loan losses
|
25,677,000 | 15,386,000 | 66.9 | % | ||||||||
Deposits
|
1,286,901,000 | 1,138,869,000 | 13.0 | % | ||||||||
Shareholders' equity
|
159,171,000 | 163,933,000 | -2.9 | % | ||||||||
Tangible equity (1)
|
138,630,000 | 143,182,000 | -3.2 | % |
September 30,
|
September 30,
|
|||||||
For Quarter Ended:
|
2011
|
2010
|
||||||
Return on average assets (GAAP basis)
|
1.11 | % | 1.36 | % | ||||
Effect of excluding average intangible
|
||||||||
assets and related amortization, net of tax
|
0.02 | % | 0.03 | % | ||||
Return on average tangible assets
|
1.13 | % | 1.39 | % | ||||
Return on average equity (GAAP basis)
|
10.82 | % | 12.18 | % | ||||
Effect of excluding average intangible
|
||||||||
assets and related amortization, net of tax
|
1.72 | % | 1.85 | % | ||||
Return on average tangible equity
|
12.54 | % | 14.03 | % | ||||
September 30,
|
September 30,
|
|||||||
For Nine Months Ended:
|
2011
|
2010
|
||||||
Return on average assets (GAAP basis)
|
(0.22 | %) | 1.23 | % | ||||
Effect of excluding average intangible
|
||||||||
assets and related amortization, net of tax
|
0.01 | % | 0.03 | % | ||||
Return on average tangible assets
|
(0.21 | %) | 1.26 | % | ||||
Return on average equity (GAAP basis)
|
(2.06 | %) | 11.47 | % | ||||
Effect of excluding average intangible
|
||||||||
assets and related amortization, net of tax
|
(0.21 | %) | 2.10 | % | ||||
Return on average tangible equity
|
(2.27 | %) | 13.57 | % |
September 30,
|
September 30,
|
|||||||
Total At End of Quarter:
|
2011
|
2010
|
||||||
Shareholders' equity
|
$ | 159,171,000 | $ | 163,933,000 | ||||
Less: intangible assets
|
20,541,000 | 20,751,000 | ||||||
Tangible equity
|
$ | 138,630,000 | $ | 143,182,000 |
September 30,
|
September 30,
|
|||||||
For Quarter Ended:
|
2011
|
2010
|
||||||
Net interest income
|
$ | 12,825 | $ | 11,668 | ||||
Effect of tax exempt income
|
720 | 532 | ||||||
Net interest income, tax equivalent basis
|
$ | 13,545 | $ | 12,200 | ||||
Nine Months Ended:
|
||||||||
Net interest income
|
$ | 38,023 | $ | 33,465 | ||||
Effect of tax-exempt income
|
2,122 | 1,315 | ||||||
Net interest income, tax equivalent basis
|
$ | 40,145 | $ | 34,780 |
ORRSTOWN FINANCIAL SERVICES, INC. AND ITS WHOLLY-OWNED SUBSIDIARY
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
(Unaudited)
|
(Audited)*
|
(Unaudited)
|
||||||||||
September 30,
|
December 31,
|
September 30,
|
||||||||||
(Dollars in thousands, Except per Share Data)
|
2011
|
2010
|
2010
|
|||||||||
Assets
|
||||||||||||
Cash and due from banks
|
$ | 16,233 | $ | 10,400 | $ | 14,966 | ||||||
Federal funds sold
|
- | 8,800 | 18,645 | |||||||||
Cash and cash equivalents
|
16,233 | 19,200 | 33,611 | |||||||||
Short-term investments
|
248 | 2,728 | 2,728 | |||||||||
Interest bearing deposits with banks
|
65,398 | 925 | 587 | |||||||||
Restricted investments in bank stock
|
9,757 | 8,798 | 8,596 | |||||||||
Securities available for sale
|
354,042 | 431,772 | 429,156 | |||||||||
Loans held for sale
|
7,470 | 2,693 | 5,580 | |||||||||
Loans
|
989,018 | 964,293 | 916,227 | |||||||||
Less: Allowance for loan losses
|
(25,677 | ) | (16,020 | ) | (15,386 | ) | ||||||
Net Loans
|
970,811 | 950,966 | 906,421 | |||||||||
Premises and equipment, net
|
27,125 | 27,774 | 28,163 | |||||||||
Cash surrender value of life insurance
|
23,903 | 22,649 | 22,578 | |||||||||
Goodwill and intangible assets
|
20,541 | 20,698 | 20,751 | |||||||||
Accrued interest receivable
|
5,172 | 5,715 | 6,003 | |||||||||
Other assets
|
24,085 | 20,497 | 19,186 | |||||||||
Total assets
|
$ | 1,517,315 | $ | 1,511,722 | $ | 1,477,780 | ||||||
Liabilities
|
||||||||||||
Deposits:
|
||||||||||||
Non-interest bearing
|
$ | 116,839 | $ | 104,646 | $ | 105,452 | ||||||
Interest bearing
|
1,170,062 | 1,083,731 | 1,033,417 | |||||||||
Total deposits
|
1,286,901 | 1,188,377 | 1,138,869 | |||||||||
Short-term borrowings
|
27,534 | 87,850 | 124,869 | |||||||||
Long-term debt
|
34,120 | 65,178 | 40,828 | |||||||||
Accrued interest and other liabilities
|
9,589 | 9,833 | 9,281 | |||||||||
Total liabilities
|
1,358,144 | 1,351,238 | 1,313,847 | |||||||||
Shareholders' Equity
|
||||||||||||
Preferred Stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding
|
0 | 0 | 0 | |||||||||
Common stock, no par value - $ 0.05205 stated value per share 50,000,000 shares authorized; 8,041,067, 7,986,966 and 7,986,966 shares issued; 8,040,255; 7,985,667 and 7,976,018 shares outstanding
|
419 | 416 | 416 | |||||||||
Additional paid - in capital
|
122,324 | 121,508 | 121,534 | |||||||||
Retained earnings
|
30,676 | 38,680 | 36,102 | |||||||||
Accumulated other comprehensive income (loss)
|
5,772 | (88 | ) | 6,129 | ||||||||
Treasury stock - common, 812, 1,299 and 10,948 shares, at cost
|
(20 | ) | (32 | ) | (248 | ) | ||||||
Total shareholders' equity
|
159,171 | 160,484 | 163,933 | |||||||||
Total liabilities and shareholders' equity
|
$ | 1,517,315 | $ | 1,511,722 | $ | 1,477,780 | ||||||
*The consolidated balance sheet at December 31, 2010 has been derived from audited financial statements at that date.
|
ORRSTOWN FINANCIAL SERVICES, INC. AND ITS WHOLLY-OWNED SUBSIDIARY
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
||||||||||
Three Months Ended
|
||||||||||
September 30,
|
September 30,
|
|
||||||||
(Dollars in thousands, Except per Share Data)
|
2011
|
2010
|
|
|||||||
Interest and dividend income
|
||||||||||
Interest and fees on loans
|
$ | 12,406 | $ | 12,122 | ||||||
Interest and dividends on investment securities
|
||||||||||
Taxable
|
2,287 | 2,016 | ||||||||
Tax-exempt
|
756 | 611 | ||||||||
Short-term investments
|
42 | 31 | ||||||||
Total interest and dividend income
|
15,491 | 14,780 | ||||||||
Interest expense
|
||||||||||
Interest on deposits
|
2,322 | 2,645 | ||||||||
Interest on short-term borrowings
|
68 | 95 | ||||||||
Interest on long-term debt
|
276 | 372 | ||||||||
Total interest expense
|
2,666 | 3,112 | ||||||||
Net interest income
|
12,825 | 11,668 | ||||||||
Provision for loan losses
|
7,900 | 1,130 | ||||||||
Net interest income after provision for loan losses
|
4,925 | 10,538 | ||||||||
Other income
|
||||||||||
Service charges on deposit accounts
|
1,674 | 1,682 | ||||||||
Other service charges, commissions and fees
|
323 | 666 | ||||||||
Trust department income
|
1,046 | 964 | ||||||||
Brokerage income
|
372 | 358 | ||||||||
Mortgage banking revenues
|
927 | 706 | ||||||||
Earnings on life insurance
|
256 | 279 | ||||||||
Merchant processing fees
|
1,310 | 297 | ||||||||
Other income
|
692 | (7 | ) | |||||||
Investment securities gains
|
2,351 | 1,074 | ||||||||
Total other income
|
8,951 | 6,019 | ||||||||
Other expenses
|
||||||||||
Salaries and employee benefits
|
4,690 | 5,011 | ||||||||
Occupancy expense
|
477 | 506 | ||||||||
Furniture and equipment
|
672 | 720 | ||||||||
Data processing
|
375 | 319 | ||||||||
Telephone
|
141 | 189 | ||||||||
Advertising and bank promotions
|
276 | 384 | ||||||||
FDIC Insurance
|
690 | 305 | ||||||||
Professional services
|
1,125 | 122 | ||||||||
Taxes other than income
|
226 | 238 | ||||||||
Intangible asset amortization
|
52 | 59 | ||||||||
Other operating expenses
|
2,103 | 1,662 | ||||||||
Total other expenses
|
10,827 | 9,515 | ||||||||
Income before income tax (benefit)
|
3,049 | 7,042 | ||||||||
Income tax expense (benefit)
|
(1,265 | ) | 2,146 | |||||||
Net income
|
$ | 4,314 | $ | 4,896 | ||||||
Per share information:
|
||||||||||
Basic earnings per share
|
$ | 0.54 | $ | 0.61 | ||||||
Diluted earnings per share
|
0.54 | 0.61 | ||||||||
Dividends per share
|
0.23 | 0.225 | ||||||||
Average shares and common stock equivalents outstanding
|
8,026,925 | 7,990,735 |
ORRSTOWN FINANCIAL SERVICES, INC. AND ITS WHOLLY-OWNED SUBSIDIARY
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
||||||||
Nine Months Ended
|
||||||||
September 30,
|
September 30,
|
|||||||
(Dollars in thousands, Except per Share Data)
|
2011
|
2010
|
||||||
Interest and dividend income
|
||||||||
Interest and fees on loans
|
$ | 37,224 | $ | 36,166 | ||||
Interest and dividends on investment securities
|
||||||||
Taxable
|
6,746 | 5,452 | ||||||
Tax-exempt
|
2,296 | 1,387 | ||||||
Short-term investments
|
87 | 94 | ||||||
Total interest and dividend income
|
46,353 | 43,099 | ||||||
Interest expense
|
||||||||
Interest on deposits
|
7,206 | 8,072 | ||||||
Interest on short-term borrowings
|
286 | 340 | ||||||
Interest on long-term debt
|
838 | 1,222 | ||||||
Total interest expense
|
8,330 | 9,634 | ||||||
Net interest income
|
38,023 | 33,465 | ||||||
Provision for loan losses
|
32,325 | 7,550 | ||||||
Net interest income after provision for loan losses
|
5,698 | 25,915 | ||||||
Other income
|
||||||||
Service charges on deposit accounts
|
4,804 | 4,715 | ||||||
Other service charges, commissions and fees
|
1,020 | 1,696 | ||||||
Trust department income
|
3,092 | 2,629 | ||||||
Brokerage income
|
1,260 | 1,101 | ||||||
Mortgage banking activities
|
2,259 | 1,731 | ||||||
Earnings on life insurance
|
836 | 884 | ||||||
Merchant processing revenues
|
1,850 | 842 | ||||||
Other income
|
916 | 1,000 | ||||||
Investment securities gains
|
3,199 | 3,253 | ||||||
Total other income
|
19,236 | 17,851 | ||||||
Other expenses
|
||||||||
Salaries and employee benefits
|
13,698 | 14,087 | ||||||
Occupancy expense
|
1,516 | 1,540 | ||||||
Furniture and equipment
|
2,045 | 1,980 | ||||||
Data processing
|
1,036 | 922 | ||||||
Telephone
|
482 | 545 | ||||||
Advertising and bank promotions
|
830 | 795 | ||||||
FDIC Insurance
|
2,002 | 1,139 | ||||||
Professional services
|
1,993 | 569 | ||||||
Taxes other than income
|
636 | 587 | ||||||
Intangible asset amortization
|
157 | 187 | ||||||
Other operating expenses
|
5,593 | 4,345 | ||||||
Total other expenses
|
29,988 | 26,696 | ||||||
Income (loss) before income tax (benefit)
|
(5,054 | ) | 17,070 | |||||
Income tax expense (benefit)
|
(2,572 | ) | 4,864 | |||||
Net income (loss)
|
$ | (2,482 | ) | $ | 12,206 | |||
Per share information:
|
||||||||
Basic earnings (loss) per share
|
$ | (0.31 | ) | $ | 1.62 | |||
Diluted earnings (loss) per share
|
(0.31 | ) | 1.62 | |||||
Dividends per share
|
0.69 | 0.665 | ||||||
Average shares and common stock equivalents outstanding
|
8,017,550 | 7,510,469 |
ANALYSIS OF NET INTEREST INCOME
|
||||||||||||||||||||||||
Average Balances and Interest Rates, Taxable Equivalent Basis
|
||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||
September 30, 2011
|
September 30, 2010
|
|||||||||||||||||||||||
Tax
|
Tax
|
Tax
|
Tax
|
|||||||||||||||||||||
Average
|
Equivalent
|
Equivalent
|
Average
|
Equivalent
|
Equivalent
|
|||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Federal funds sold
|
||||||||||||||||||||||||
& interest bearing
|
||||||||||||||||||||||||
bank balances
|
$ | 48,621 | $ | 42 | 0.34 | % | $ | 26,835 | $ | 31 | 0.46 | % | ||||||||||||
Securities
|
408,951 | 3,450 | 3.38 | 394,867 | 2,956 | 2.99 | ||||||||||||||||||
Loans
|
1,002,964 | 12,719 | 4.97 | 907,026 | 12,325 | 5.33 | ||||||||||||||||||
Total interest-earning
|
||||||||||||||||||||||||
Assets
|
1,460,536 | 16,211 | 4.38 | 1,328,728 | 15,312 | 4.54 | ||||||||||||||||||
Other assets
|
87,511 | 94,986 | ||||||||||||||||||||||
Total
|
$ | 1,548,047 | $ | 1,423,714 | ||||||||||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||
Interest bearing
|
||||||||||||||||||||||||
demand deposits
|
$ | 503,972 | $ | 415 | 0.33 | $ | 424,375 | $ | 594 | 0.56 | ||||||||||||||
Savings deposits
|
72,845 | 36 | 0.20 | 64,574 | 37 | 0.23 | ||||||||||||||||||
Time deposits
|
585,030 | 1,871 | 1.27 | 534,457 | 2,014 | 1.45 | ||||||||||||||||||
Short term borrowings
|
53,015 | 68 | 0.51 | 63,818 | 95 | 0.59 | ||||||||||||||||||
Long term debt
|
43,192 | 276 | 2.55 | 59,047 | 372 | 2.45 | ||||||||||||||||||
Total interest bearing
|
||||||||||||||||||||||||
Liabilities
|
1,258,054 | 2,666 | 0.84 | 1,146,271 | 3,112 | 1.06 | ||||||||||||||||||
Non-interest bearing
|
||||||||||||||||||||||||
demand deposits
|
121,749 | 108,087 | ||||||||||||||||||||||
Other
|
10,094 | 9,862 | ||||||||||||||||||||||
Total Liabilities
|
1,389,897 | 1,264,220 | ||||||||||||||||||||||
Shareholders' Equity
|
158,150 | 159,494 | ||||||||||||||||||||||
Total
|
$ | 1,548,047 | 0.72 | % | $ | 1,423,714 | 0.92 | % | ||||||||||||||||
Net interest income (FTE)/
|
||||||||||||||||||||||||
net interest spread
|
13,545 | 3.54 | % | $ | 12,200 | 3.48 | % | |||||||||||||||||
Net interest margin
|
3.66 | % | 3.62 | % | ||||||||||||||||||||
Tax-equivalent adjustment
|
(720 | ) | (532 | ) | ||||||||||||||||||||
Net interest income
|
$ | 12,825 | $ | 11,668 |
NOTES:
|
Yields and interest income on tax-exempt assets have been computed on a fully taxable equivalent basis assuming a 35% tax rate. For yield calculation purposes, nonaccruing loans are included in the average loan balance.
|
ANALYSIS OF NET INTEREST INCOME
|
||||||||||||||||||||||||
Average Balances and Interest Rates, Taxable Equivalent Basis
|
||||||||||||||||||||||||
Nine Months Ended
|
||||||||||||||||||||||||
September 30, 2011
|
September 30, 2010
|
|||||||||||||||||||||||
Tax
|
Tax
|
Tax
|
Tax
|
|||||||||||||||||||||
Average
|
Equivalent
|
Equivalent
|
Average
|
Equivalent
|
Equivalent
|
|||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Federal funds sold
|
||||||||||||||||||||||||
& interest bearing
|
||||||||||||||||||||||||
bank balances
|
$ | 32,184 | $ | 87 | 0.36 | % | $ | 27,819 | $ | 94 | 0.46 | % | ||||||||||||
Securities
|
413,483 | 10,277 | 3.32 | 308,142 | 7,586 | 3.29 | ||||||||||||||||||
Loans
|
997,504 | 38,111 | 5.06 | 899,697 | 36,734 | 5.40 | ||||||||||||||||||
Total interest-earning
|
||||||||||||||||||||||||
assets
|
1,443,171 | 48,475 | 4.46 | 1,235,658 | 44,414 | 4.76 | ||||||||||||||||||
Other assets
|
89,389 | 94,036 | ||||||||||||||||||||||
Total
|
$ | 1,532,560 | $ | 1,329,694 | ||||||||||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||
Interest bearing
|
||||||||||||||||||||||||
demand deposits
|
$ | 463,737 | $ | 1,280 | 0.37 | $ | 392,799 | $ | 2,005 | 0.68 | ||||||||||||||
Savings deposits
|
70,784 | 110 | 0.21 | 62,919 | 127 | 0.27 | ||||||||||||||||||
Time deposits
|
593,612 | 5,816 | 1.31 | 486,809 | 5,940 | 1.60 | ||||||||||||||||||
Short term borrowings
|
73,882 | 286 | 0.52 | 84,196 | 340 | 0.53 | ||||||||||||||||||
Long term debt
|
46,027 | 838 | 2.43 | 54,342 | 1,222 | 3.00 | ||||||||||||||||||
Total interest bearing
|
||||||||||||||||||||||||
liabilities
|
1,248,042 | 8,330 | 0.89 | 1,081,065 | 9,634 | 1.18 | ||||||||||||||||||
Non-interest bearing
|
||||||||||||||||||||||||
demand deposits
|
113,662 | 97,577 | ||||||||||||||||||||||
Other
|
9,901 | 8,770 | ||||||||||||||||||||||
Total Liabilities
|
1,371,605 | 1,187,412 | ||||||||||||||||||||||
Shareholders' Equity
|
160,955 | 142,282 | ||||||||||||||||||||||
Total
|
$ | 1,532,560 | 0.77 | % | $ | 1,329,694 | 1.04 | % | ||||||||||||||||
Net interest income (FTE)/
|
||||||||||||||||||||||||
net interest spread
|
40,145 | 3.57 | % | $ | 34,780 | 3.58 | % | |||||||||||||||||
Net interest margin
|
3.69 | % | 3.72 | % | ||||||||||||||||||||
Tax-equivalent adjustment
|
(2,122 | ) | (1,315 | ) | ||||||||||||||||||||
Net interest income
|
$ | 38,023 | $ | 33,465 |
NOTES:
|
Yields and interest income on tax-exempt assets have been computed on a fully taxable equivalent basis assuming a 35% tax rate. For yield calculation purposes, nonaccruing loans are included in the average loan balance.
|
Nonperforming Assets / Risk Elements
|
||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||
(Dollars in Thousands)
|
2011
|
2011
|
2011
|
2010
|
||||||||||||
Nonaccrual loans (cash basis)
|
$ | 31,174 | $ | 14,762 | $ | 13,106 | $ | 13,896 | ||||||||
Other real estate (OREO)
|
2,754 | 1,240 | 847 | 1,112 | ||||||||||||
Total nonperforming assets
|
33,928 | 16,002 | 13,953 | 15,008 | ||||||||||||
Restructured loans still accruing
|
37,725 | 34,844 | 1,177 | 1,181 | ||||||||||||
Loans past due 90 days or more and still accruing
|
2,956 | 3,617 | 3,687 | 2,248 | ||||||||||||
Total risk assets
|
$ | 74,609 | $ | 54,463 | $ | 18,817 | $ | 18,437 | ||||||||
Loans 30-89 days past due
|
$ | 21,365 | $ | 11,021 | $ | 14,272 | $ | 5,335 | ||||||||
Asset quality ratios:
|
||||||||||||||||
Total nonaccrual loans to loans
|
3.15 | % | 1.48 | % | 1.33 | % | 1.44 | % | ||||||||
Total nonperforming assets to assets
|
2.24 | % | 1.05 | % | 0.92 | % | 0.99 | % | ||||||||
Total nonperforming assets to total loans and OREO
|
3.42 | % | 1.60 | % | 1.42 | % | 1.55 | % | ||||||||
Total risk assets to total loans and OREO
|
7.52 | % | 5.44 | % | 1.91 | % | 1.91 | % | ||||||||
Total risk assets to total assets
|
4.92 | % | 3.56 | % | 1.24 | % | 1.22 | % | ||||||||
Allowance for loan losses to total loans
|
2.60 | % | 2.72 | % | 1.87 | % | 1.66 | % | ||||||||
Allowance for loan losses to nonaccrual loans
|
82.37 | % | 184.34 | % | 140.38 | % | 115.28 | % | ||||||||
Allowance for loan losses to nonaccrual and
|
||||||||||||||||
restructured loans still accruing
|
37.27 | % | 54.86 | % | 128.80 | % | 106.25 | % |
Roll Forward of Allowance for Loan Losses
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
(Dollars in Thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Balance at beginning of period
|
$ | 27,212 | $ | 14,582 | $ | 16,020 | $ | 11,067 | ||||||||
Provision for loan losses
|
7,900 | 1,130 | 32,325 | 7,550 | ||||||||||||
Recoveries
|
5 | 6 | 29 | 91 | ||||||||||||
Loans charged-off
|
(9,440 | ) | (332 | ) | (22,697 | ) | (3,322 | ) | ||||||||
Balance at end of period
|
$ | 25,677 | $ | 15,386 | $ | 25,677 | $ | 15,386 |
0C(CAC+-^0H&145U.C_!#XN:Z`VG?#O5=IZ//:F%3]#)M!KJ=)
M_8\^-&I`&\L=/T_/47=^K8_[]!Z5T%F>6T5[SI/["^N2A6UWX@VD!_B6TL6E
M_`%F3^5=+I7[$'P]M\-J_BG5[DCJ(3'$I_#:Q]>]+GB.S/F&BOL'2_V4/@?I
MN&D\*RW3`?>NK^4_HK`?I71Z;\'/A1I)!L?AUHRL.COI\;L.O=@3WI0N=@;<*_\`P3N_
M;*\>?MU?!=_CQK_P+L_!.AW=VT'A\1^+3J<]\8I)(YWD7[)`(%5T55Y
/V9?ACHGQ'\-^-]8T[38KNZ\9MI
M!MIM0N[>SLR%^QW&\&: ^.
MG@KX\_LI^"=2^'NKE;?3/VF;31H=2#1R1W$MI:W\4UQ#@D/&LC;