EX-99.1 2 ex99_1.htm EARNINGS RELEASE 4Q04 Earnings Release 4Q04

 
For further information:
Dennis Klaeser, CFO
PrivateBancorp, Inc.
312-683-7100
For Immediate Release

PrivateBancorp Reports Record Earnings Per Share of $0.36,
an increase of 29 percent over the prior year fourth quarter

Chicago, IL, January 18, 2005--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported earnings of $0.36 per diluted share for the fourth quarter of 2004, an increase of 29 percent compared to fourth qu```arter 2003 earnings per diluted share of $0.28. Net income for the fourth quarter was $7.5 million, an increase of 32 percent over fourth quarter 2003 net income of $5.7 million. Earnings per diluted share for the twelve months ended December 31, 2004 was $1.30, an increase of 23 percent from 2003 diluted earnings per share of $1.06. Net income for the twelve months ended December 31, 2004 was $27.0 million compared to net income of $19.1 million for the twelve months ended December 31, 2003. All per share amounts have been adjusted to reflect the two-for-one stock split that occurred on May 31, 2004.
"Increased earnings were fueled by strong growth in our core banking business. Loan demand has been substantial, with total loans outstanding up 35 percent since the prior year-end, and credit quality remaining very high. We have also experienced core deposit growth of 32 percent year over year. Our wealth management business continued its strong performance, with assets under management increasing by 16 percent during the year," said Ralph B. Mandell, Chairman, President and CEO.
Net interest income totaled $20.2 million in the fourth quarter of 2004, an increase of 20 percent over fourth quarter 2003 net interest income of $16.8 million, primarily due to growth in average earning assets. Net interest margin (on a tax equivalent basis) was 3.63 percent in the fourth quarter 2004, down from 3.82 percent in the prior year fourth quarter and up from 3.58 percent in the third quarter of 2004. On a quarter linked basis, yields on earning assets increased by 24 basis points offset by an increase in the cost of funds of 22 basis points. The increase in earning asset yields was primarily due to the increases in the prime interest rate during the fourth quarter. Approximately two-thirds of the loan portfolio floats with prime or is indexed to other short-term interest rates. The increase in cost of funds was primarily due to increased costs of wholesale funds and short-term borrowings.
At the end of the year, the Company had a total of $207.0 million invested in the stock of the Federal Home Loan Bank of Chicago (FHLBC). As a result of strong loan growth and to take advantage of increasing yields available in other earning assets, on January 11, 2005, the Company redeemed $20.0 million of its FHLBC stock, reducing this investment to $187.0 million. The Company’s annualized yield on this investment was 6.0 percent for the fourth quarter 2004, and will be a maximum of 5.5 percent for the first quarter 2005. The Company closely monitors the activities of the FHLBC, and continues to believe the FHLBC stock is a prudent investment for the Company.
    The provision for loan losses was $1.5 million for the fourth quarter of 2004, compared to $1.6 million in the prior year fourth quarter and $851,000 in the third quarter of 2004. Net charge-offs totaled $262,000 in the quarter ended December 31, 2004 versus net charge-offs of $360,000 in the prior year quarter and net charge-offs of $404,000 in the third quarter of 2004. At December 31, 2004, nonperforming loans as a percentage of total loans were 0.15 percent, an increase from 0.09 percent in the prior year quarter and a decrease from 0.17 percent at September 30, 2004. Non-performing loans increased to $2.5 million at December 31, 2004 compared to $2.4 million at September 30, 2004, and non-accrual loans increased to $1.1 million from $797,000 in the third quarter. The increase in non-accrual loans during the fourth quarter 2004 was primarily due to two commercial loans with aggregate exposure of $330,000. The Company believes its overall asset quality remains strong. Additionally, asset quality trends continue to be positive as measured by watch list loans, which decreased year over year. As a result, the Company’s allowance for loan losses as a percentage of total loans decreased to 1.15 percent as of December 31, 2004, from 1.21 percent at September 30, 2004 and 1.23 percent at December 31, 2003.
    Non-interest income was $3.7 million in the fourth quarter 2004, reflecting an increase of approximately $710,000 from the fourth quarter 2003, despite a decrease of $134,000 due to the combination of securities losses of $123,000 and fair market loss adjustments on an interest rate swap of $11,000. In the fourth quarter 2003, securities losses of $163,000 combined with $280,000 of gains on the interest rate swap resulted in $117,000 of non-interest income.
Wealth management, mortgage banking and other income increased by $961,000, or 33 percent, from the prior year quarter, and decreased $49,000, or 1 percent, over the third quarter 2004. The growth in non-interest income as compared to the prior year quarter was primarily driven by growth in wealth management fee income, which grew $257,500, or 14 percent, to $2.1 million compared to $1.9 million for the fourth quarter 2003 and was flat with third quarter 2004. Wealth management assets under management increased 16 percent to $1.73 billion at December 31, 2004 compared to $1.49 billion at December 31, 2003 and $1.62 billion at September 30, 2004. Residential mortgage fee income was $834,000 for the fourth quarter 2004, up $383,000 from $451,000 in the fourth quarter 2003 and up from $776,000 in the third quarter 2004.
Non-interest expense increased 16 percent to $12.0 million in the fourth quarter 2004 from $10.4 million in the prior year quarter and increased 1 percent from $11.9 million in third quarter 2004. Full-time equivalent employees at quarter’s end increased 19 percent to 261 from 219 at December 31, 2003 and increased 3 percent from 253 at September 30, 2004. During 2004, the Company added 17 managing directors, increasing the number of managing directors to 80 compared to 63 at December 31, 2003 and 72 managing directors at September 30, 2004. The efficiency ratio was 49 percent in the fourth quarter 2004 compared to 50 percent in the prior year quarter and in the third quarter 2004.
During the fourth quarter, the Company’s subsidiary, The PrivateBank and Trust Company, announced that it had signed a long-term 67,000 sq. ft. lease at 70 West Madison Street in Chicago. The Company will relocate its headquarters and Loop banking office to that location by mid 2006. The Company and the Bank’s downtown Chicago office have been located at Ten North Dearborn, Chicago, since the Company’s founding in 1989, where it now occupies approximately 42,000 sq. ft. over seven floors.
Total assets were $2.5 billion at December 31, 2004 compared to $2.0 billion at December 31, 2003, an increase of 28 percent. Asset growth was driven primarily by loan growth, which increased 35 percent year over year to $1.7 billion at December 31, 2004 and grew 12 percent from September 30, 2004.
Deposits increased by 21 percent to $1.9 billion during the year as compared to $1.5 billion at December 31, 2003 and increased by 4 percent from $1.8 billion as of September 30, 2004. Core deposits, defined as total deposits less brokered deposits, increased 32 percent during the year to $1.4 billion compared with $1.1 billion at December 31, 2003 and remained unchanged from $1.4 billion at September 30, 2004. Brokered deposits were $423.1 million at December 31, 2004, a decrease of 6 percent, or $24.8 million, from $447.9 million at December 31, 2003 and an increase of 19 percent, or $66.8 million, from $356.4 million at September 30, 2004. Funds borrowed, which include Federal Home Loan Bank advances, increased 89 percent to $414.5 million at December 31, 2004 from $219.6 million at December 31, 2003 and up from $301.6 million at September 30, 2004, an increase of 37 percent.
PrivateBancorp, Inc. was organized in 1989 to provide highly personalized financial services primarily to affluent individuals, professionals, owners of closely held businesses and commercial real estate investors. The Company operates two banking subsidiaries, The PrivateBank and Trust Company and The PrivateBank - St. Louis, and a mortgage company, The PrivateBank Mortgage Company. The PrivateBank and Trust Company subsidiary has a controlling interest in a Chicago-based investment advisor, Lodestar Investment Counsel, LLC. The Company, which had assets of $2.5 billion at December 31, 2004, currently has banking offices in Chicago, Wilmette, Oak Brook, St. Charles, Lake Forest, Winnetka, and Geneva, Illinois, and in St. Louis, Missouri. In April 2004 the Company announced plans to open two new offices -- one on Chicago’s Gold Coast in the historic Palmolive Building at the corner of North Michigan Avenue and Walton Place and one in downtown Milwaukee to be known as The PrivateBank. On December 20, 2004, Wallace L. Head joined the Company as chief executive officer of a new soon-to-be created subsidiary which will include the Company’s wealth management and trust business. This subsidiary will include Lodestar as well as our trust company, both of which are now part of The PrivateBank Chicago.
 
Additional information can be found in the Investor Relations section of PrivateBancorp, Inc.'s website at www.pvtb.com.

Forward-Looking Statements: Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing, greater than anticipated deterioration in asset quality due to a prolonged economic downturn in the greater Chicago and St. Louis metropolitan areas, legislative or regulatory changes, adverse developments in the Company’s loan or investment portfolios, changes in the current redemption practices of the FHLBC relating to its stock, unexpected difficulties in integrating or operating the mortgage banking business, unanticipated construction or other delays relating to our new offices to be located in Chicago and in Milwaukee, Wisconsin, competition and the possible dilutive effect of potential acquisitions, expansion or future capital raises. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update publicly any of these statements in light of future events.

Editor’s Note: Financial highlights attached.
     

 
     
 



Consolidated Statements of Income
  
(dollars in thousands except per share data)
  
 
 
 
 
Three Months Ended
  
Twelve Months Ended
  
 
December 31,
 
December 31,
 
 
2004
  
2003
  
2004
  
2003
  
 
unaudited
  
audited
  
unaudited
  
audited
  
Interest Income
    
Interest and fees on loans
$22,802
 
$16,588
 
$79,499
 
$62,793
 
Interest on investment securities
9,386
 
7,773
 
33,571
 
24,633
 
Interest on short-term investments
12
 
6
 
40
 
68
 
Total Interest Income
32,200
 
24,367
 
113,110
 
87,494
 
     
Interest Expense
        
Interest on deposits
9,495
 
6,140
 
30,970
 
23,912
 
Interest on borrowings
2,049
 
970
 
6,659
 
4,502
 
Interest on long-term debt - trust preferred securities
484
 
485
 
1,939
 
1,940
 
Total Interest Expense
12,028
 
7,595
 
39,568
 
30,354
 
     
Net Interest Income
20,172
 
16,772
 
73,542
 
57,140
 
Provision for loan losses
1,498
 
1,595
 
4,399
 
4,373
 
Net Interest Income After Provision
18,674
 
15,177
 
69,143
 
52,767
 
     
Non Interest Income
        
Wealth management income
2,113
 
1,856
 
8,316
 
6,630
 
Mortgage banking income
834
 
451
 
2,856
 
3,474
 
Other income
903
 
582
 
3,029
 
2,324
 
Net securities gains (losses)
(123)
  
(163)
  
968
 
1,759
 
(Losses) gains on interest rate swap
(11)
  
280
 
(870)
  
(239)
  
Total Non Interest Income
3,716
 
3,006
 
14,299
 
13,948
 
     
Non Interest Expense
    
Salaries and benefits
7,124
 
5,670
 
26,027
 
20,856
 
Occupancy expense
1,567
 
1,472
 
5,671
 
5,564
 
Professional fees
1,082
 
1,189
 
5,054
 
4,672
 
Marketing
695
 
678
 
2,521
 
2,527
 
Data processing
529
 
391
 
2,009
 
1,528
 
Amortization of intangibles
42
 
42
 
168
 
169
 
Insurance
276
 
200
 
919
 
700
 
Other operating expenses
717
 
724
 
3,305
 
4,128
 
Total Non Interest Expense
12,032
 
10,366
 
45,674
 
40,144
 
     
Minority interest expense
64
 
52
 
270
 
193
 
Income Before Income Taxes
10,294
 
7,765
 
37,498
 
26,378
 
Income tax expense
2,768
 
2,042
 
10,503
 
7,309
 
Net Income
$7,526
 
$5,723
 
$26,995
 
$19,069
 
     
     
Weighted Average Shares Outstanding
19,911,662
 
19,321,310
 
19,725,855
 
16,974,407
 
Diluted Average Shares Outstanding
20,992,893
 
20,581,020
 
20,706,118
 
17,981,092
 
     
Earnings Per Share
    
Basic
$ 0.38
 
$ 0.30
 
$ 1.37
 
$ 1.12
 
Diluted
$ 0.36
 
$ 0.28
 
$ 1.30
 
$ 1.06
 
           
         
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements.
  
Note 2: All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004
 


  
     
 


Consolidated Balance Sheets
(dollars in thousands except per share data)
             
             
 
12/31/04
  
09/30/04
  
12/31/03
  
 
unaudited
  
unaudited
  
audited
Assets
  
Cash and due from banks
$49,534
 
$44,814
 
$49,115
 
Short-term investments
1,120
 
11,004
 
985
 
Investment securities: available-for-sale
763,985
 
759,328
 
669,262
 
Loans held for sale
7,200
 
8,014
 
4,420
 
     
Loans
1,653,363
 
1,471,083
 
1,224,657
 
Allowance for loan losses
(18,986)
  
(17,751)
  
(15,100)
  
Net loans
1,634,377
 
1,453,332
 
1,209,557
 
   
Premises and equipment, net
6,486
 
6,013
 
6,233
 
Goodwill
20,547
 
20,547
 
19,242
 
Other assets
52,568
 
49,314
 
26,109
 
Total Assets
$2,535,817
 
$2,352,366
 
$1,984,923
 
   
Liabilities
    
Non-interest bearing deposits
$165,170
 
$170,315
 
$135,110
 
Interest bearing deposits
1,707,465
 
1,638,217
 
1,412,249
 
Total deposits
1,872,635
 
1,808,532
 
1,547,359
 
   
Funds borrowed
414,519
 
301,558
 
219,563
 
Long-term debt - trust preferred securities
20,000
 
20,000
 
20,000
 
Other liabilities
34,590
 
35,241
 
31,045
 
Total Liabilities
2,341,744
 
2,165,331
 
1,817,967
 
     
Stockholders' Equity
   
Common stock and additional paid-in-capital less treasury stock
118,284
 
117,653
 
113,650
 
Retained earnings
73,789
 
64,136
 
46,193
 
Accumulated other comprehensive income
7,056
 
9,842
 
9,909
 
Deferred compensation
(5,056)
  
(4,596)
  
(2,796)
  
Total Stockholders' Equity
194,073
 
187,035
 
166,956
 
   
Total Liabilities and
    
Stockholders' Equity
$2,535,817
 
$2,352,366
 
$1,984,923
 
   
Book Value Per Share
$9.51
 
$9.19
 
$8.47
 
   
     
Note 1: Certain reclassifications have been made to prior period statements to place them on a basis comparable with the current period financial statements.
       
Note 2: All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004



  
     
 


Key Financial Data
Unaudited
(dollars in thousands except per share data)
   
   
   
   
4Q04
  
3Q04
  
2Q04
  
1Q04
  
4Q03
  
Key Statistics
  
 
Net income
$7,526
 
$7,063
 
$6,456
 
$5,950
 
$5,723
 
 
Basic earnings per share
$0.38
 
$0.35
 
$0.33
 
$0.31
 
$0.30
 
 
Diluted earnings per share
$0.36
 
$0.34
 
$0.31
 
$0.29
 
$0.28
 
       
       
 
Return on average total assets
1.24%
  
1.23%
  
1.20%
  
1.17%
  
1.19%
  
 
Return on average total equity
15.65%
  
15.29%
  
14.86%
  
13.87%
  
14.03%
  
 
Dividend payout ratio
8.11%
  
8.63%
  
9.42%
  
10.03%
  
6.89%
  
 
Fee revenue as a percent of total revenue (1)
16.03%
  
17.41%
  
16.69%
  
14.51%
  
14.69%
  
       
       
 
Non-interest income to average assets
0.61%
  
0.71%
  
0.67%
  
0.57%
  
0.63%
  
 
Non-interest expense to average assets
1.98%
  
2.08%
  
2.08%
  
2.08%
  
2.16%
  
 
Net overhead ratio (2)
1.37%
  
1.37%
  
1.41%
  
1.51%
  
1.53%
  
 
Efficiency ratio (3)
48.3%
  
50.0%
  
50.8%
  
49.1%
  
50.1%
  
       
       
 
Net interest margin (4)
3.63%
  
3.58%
  
3.51%
  
3.80%
  
3.82%
  
 
Yield on average earning assets
5.70%
  
5.46%
  
5.27%
  
5.46%
  
5.48%
  
 
Cost of average interest-bearing liabilities
2.36%
  
2.14%
  
2.03%
  
1.89%
  
1.88%
  
 
Net interest spread (5)
3.34%
  
3.32%
  
3.24%
  
3.57%
  
3.60%
  
 
Tax equivalent adjustment to net interest income (6)
$1,040
  
$1,224
  
$1,100
  
$1,017
  
$925
  
                       
     
(1)
Represents wealth management, mortgage banking and other income as a percentage of the sum of net interest income and wealth management, mortgage banking and other income.
  
(2)
Non-interest expense less non-interest income divided by average total assets.
  
(3)
Non-interest expense divided by the sum of net interest income, on a tax equivalent basis, plus non-interest income.
  
(4)
Net interest income, on a tax equivalent basis, divided by average interest-earning assets.
  
(5)
Yield on average interest-earning assets less rate on average interest-bearing liabilities.
  
(6)
The company adjusts GAAP reported net interest income by the tax equivalent adjustment amount to account for the tax attributes on federally tax exempt municipal securities. For GAAP purposes, tax benefits associated with federally tax exempt municipal securities are recorded as a benefit in income tax expense. The following table reconciles reported net interest income to net interest income on a tax equivalent basis for the periods presented:
 
   
Reconciliation of net interest income to net interest income on a tax equivalent basis
  
   
4Q04
  
3Q04
  
2Q04
  
1Q04
  
4Q03
  
 
Net interest income
$ 20,172
 
$ 18,485
 
$ 17,334
 
$ 17,551
 
$ 16,772
 
 
Tax equivalent adjustment to net interest income
1,040
 
1,224
 
1,100
 
1,017
 
925
 
 
Net interest income, tax equivalent basis
$ 21,212
$ 19,709
$ 18,434
$ 18,568
$ 17,697
 
   
Note:
All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004
 


  
     
 


Key Financial Data
  
Unaudited
  
(dollars in thousands except per share data)
  
 
 
4Q04
  
3Q04
  
2Q04
  
1Q04
  
4Q03
  
Balance Sheet Ratios
  
 
Loans to Deposits (period end)
88.29%
  
81.34%
  
84.12%
  
82.86%
  
79.14%
  
       
       
 
Average interest-earning assets to average interest-bearing liabilities
114.1
 
114.0
 
114.9
 
113.5
 
113.9
 
       
Per Share Data
    
 
Dividends
$0.03
 
$0.03
 
$0.03
 
$0.03
 
$0.02
 
 
Book value (period end)
$9.51
 
$9.19
 
$8.54
 
$8.72
 
$8.47
 
 
Tangible book value (period end) (1)
$8.40
 
$8.07
 
$7.41
 
$7.64
 
$7.38
 
       
Share Price Data (period end)
    
 
Closing Price
$32.23
 
$26.96
 
$27.48
 
$25.80
 
$22.65
 
 
Diluted earnings multiple (2)
22.57
x
19.99
x
22.10
x
22.53
x
20.53
x
 
Book value multiple
3.39
x
2.93
x
3.22
x
2.96
x
2.67
x
       
Common Stock Information
    
 
Outstanding shares at end of period
20,400,103
 
20,346,303
 
20,344,073
 
19,954,848
 
19,707,328
 
       
Number of shares used to compute:
    
 
Basic earnings per share
19,911,662
 
19,921,465
 
19,706,993
 
19,461,134
 
19,321,310
 
 
Diluted earnings per share
20,992,893
 
20,947,078
 
20,708,906
 
20,614,694
 
20,581,020
 
       
Capital Ratios (period end) (3):
    
 
Total equity to total assets
7.65%
  
7.95%
  
7.90%
  
8.14%
  
8.41%
  
 
Total risk-based capital ratio
11.29%
  
11.59%
  
12.14%
  
12.14%
  
12.71%
  
 
Tier-1 risk-based capital ratio
10.24%
  
10.52%
  
11.00%
  
11.01%
  
11.59%
  
 
Leverage ratio
7.71%
  
7.74%
  
7.82%
  
8.03%
  
8.25%
  
   
(1) Tangible book value is total capital less goodwill and other intangibles divided by outstanding shares at end of period.
 
(2) Period end closing stock price divided by annualized quarterly earnings for the quarter then ended.
 
(3) Capital ratios for the most recent period presented in the press release are based on preliminary data.
 
Note: All previously reported share and per share data has been restated to reflect the 2-for-1 stock split, effected in the form of a stock dividend, which occurred on May 31, 2004
 


  
     
 


Key Financial Data
  
Unaudited
  
(dollars in thousands)
  
 
 
4Q04
  
3Q04
  
2Q04
  
1Q04
  
4Q03
  
Summary Income Statement
  
Interest Income
  
 
Interest and fees on loans
$22,802
 
$20,315
 
$18,702
 
$17,680
 
$16,588
 
 
Interest on investment securities
9,386
 
8,436
 
7,820
 
7,929
 
7,773
 
 
Interest on short-term investments
12
 
18
 
4
 
6
 
6
 
Total Interest Income
32,200
 
28,769
 
26,526
 
25,615
 
24,367
 
       
Interest Expense
12,028
 
10,284
 
9,192
 
8,064
 
7,595
 
       
Net Interest Income
20,172
 
18,485
 
17,334
 
17,551
 
16,772
 
 
Provision for loan losses
1,498
 
851
 
724
 
1,326
 
1,595
 
Net Interest Income after Provision for Loan Losses
18,674
 
17,634
 
16,610
 
16,225
 
15,177
 
     
Non Interest Income
    
 
Wealth management income
2,113
 
2,117
 
2,129
 
1,957
 
1,856
 
 
Mortgage banking income
834
 
776
 
782
 
464
 
451
 
 
Other income
903
 
1,006
 
561
 
559
 
582
 
 
Net securities gains (losses)
(123)
  
1,259
 
(1,166)
  
998
 
(163)
  
 
(Losses) gains on interest rate swap
(11)
  
(1,118)
  
1,325
 
(1,066)
  
280
 
Total Non Interest Income
3,716
 
4,040
 
3,631
 
2,912
 
3,006
 
       
Non Interest Expense
    
 
Salaries and benefits
7,124
 
6,811
 
6,057
 
6,035
 
5,670
 
 
Occupancy expense
1,567
 
1,394
 
1,350
 
1,360
 
1,472
 
 
Professional fees
1,082
 
1,407
 
1,451
 
1,114
 
1,189
 
 
Marketing
695
 
628
 
703
 
495
 
678
 
 
Data processing
529
 
520
 
513
 
446
 
391
 
 
Insurance
276
 
221
 
207
 
215
 
200
 
 
Amortization of intangibles
42
 
42
 
42
 
42
 
42
 
 
Other operating expenses
717
 
860
 
897
 
832
 
724
 
Total Non Interest Expense
12,032
 
11,883
 
11,220
 
10,539
 
10,366
 
       
 
Minority interest expense
64
 
74
 
65
 
67
 
52
 
Income Before Income Taxes
10,294
 
9,717
 
8,956
 
8,531
 
7,765
 
 
Income tax expense
2,768
 
2,654
 
2,500
 
2,581
 
2,042
 
Net income
$7,526
 
$7,063
 
$6,456
 
$5,950
 
$5,723
 
     


  
     
 


Key Financial Data
  
Unaudited
  
(dollars in thousands)
  
     
   
4Q04
  
3Q04
  
2Q04
  
1Q04
  
4Q03
  
Credit Quality
  
Key Ratios
  
 
Net charge-offs (recoveries) to average loans
0.07%
  
0.11%
  
-0.01%
  
-0.03%
  
0.12%
  
 
Total non-performing loans to total loans
0.15%
  
0.17%
  
0.06%
  
0.06%
  
0.09%
  
 
Total non-performing assets to total assets
0.10%
  
0.10%
  
0.04%
  
0.04%
  
0.06%
  
 
Nonaccrual loans to:
    
 
total loans
0.07%
  
0.05%
  
0.01%
  
0.01%
  
0.00%
  
 
total assets
0.04%
  
0.03%
  
0.01%
  
0.01%
  
0.00%
  
 
Allowance for loan losses to:
    
 
total loans
1.15%
  
1.21%
  
1.23%
  
1.23%
  
1.23%
  
 
non-performing loans
751%
  
729%
  
2175%
  
1954%
  
1343%
  
 
nonaccrual loans
1742%
  
2228%
  
11422%
  
12626%
  
41369%
  
       
Non-performing assets:
    
 
Loans delinquent over 90 days
$1,438
 
$1,638
 
$644
 
$715
 
$1,088
 
 
Nonaccrual loans
1,090
 
797
 
151
 
131
 
36
 
 
Total non-performing assets
$2,528
 
$2,435
 
$795
 
$846
 
$1,124
 
       
Net loan charge-offs (recoveries):
    
 
Loans charged off
$328
 
$831
 
$0
 
$5
 
$367
 
 
(Recoveries)
(66)
  
(427)
  
(51)
  
(108)
  
(7)
  
 
Net charge-offs (recoveries)
$262
 
$404
 
($51)
  
($103)
  
$360
 
       
Provision for loan losses
$1,498
 
$851
 
$724
 
$1,326
 
$1,595
 
       
Allowance for Loan Losses Summary
    
 
Balance at beginning of period
$17,751
 
$17,304
 
$16,529
 
$15,100
 
$13,865
 
 
Provision
1,498
 
851
 
724
 
1,326
 
1,595
 
 
Net charge-offs (recoveries)
262
 
404
 
(51)
  
(103)
  
360
 
 
Balance at end of period
$18,987
 
$17,751
 
$17,304
 
$16,529
 
$15,100
 
       
Net loan charge-offs (recoveries):
    
 
Commercial real estate
-
 
-
 
-
 
-
 
-
 
 
Residential real estate
-
 
-
 
-
 
-
 
-
 
 
Commercial
$185
 
($314)
  
($49)
  
($105)
  
$312
 
 
Personal
77
 
718
 
(2)
  
2
 
48
 
 
Home equity
-
 
-
 
-
 
-
 
-
 
 
Construction
-
 
-
 
-
 
-
 
-
 
 
Total net loan charge-offs (recoveries)
$262
 
$404
 
($51)
  
($103)
  
$360
 
 


  
     
 


Balance Sheets
(dollars in thousands)
 
 
   
unaudited
  
unaudited
  
unaudited
  
unaudited
  
audited
 
12/31/04
  
09/30/04
  
06/30/04
  
03/31/04
  
12/31/03
Assets
    
Cash and due from banks
  
$49,534
 
$44,814
 
$22,414
 
$60,047
 
$49,115
Short-term investments
  
1,120
 
11,004
 
1,779
 
1,224
 
985
Investment securities: available-for-sale
  
763,985
 
759,328
 
722,582
 
692,678
 
669,262
Loans held for sale
  
7,200
 
8,014
 
6,419
 
4,133
 
4,420
Loans
  
1,653,363
 
1,471,083
 
1,407,586
 
1,344,706
 
1,224,657
Less: Allowance for loan losses
    
(18,986)
  
(17,751)
  
(17,304)
  
(16,529)
  
(15,100)
Net loans
    
1,634,377
 
1,453,332
 
1,390,282
 
1,328,177
 
1,209,557
Premises and equipment, net
  
6,486
 
6,013
 
5,711
 
5,924
 
6,233
Goodwill
  
20,547
 
20,547
 
20,547
 
19,242
 
19,242
Other assets
  
52,568
 
49,314
 
29,436
 
27,669
 
26,109
Total Assets
    
$2,535,817
 
$2,352,366
 
$2,199,170
 
$2,139,094
 
$1,984,923
   
Liabilities and Stockholders' Equity
    
Non-interest bearing deposits
  
$165,170
 
$170,315
 
$163,543
 
$153,197
 
$135,110
Interest bearing demand deposits
  
106,846
 
89,538
 
89,810
 
79,453
 
85,083
Savings and money market deposits
  
854,163
 
864,794
 
683,205
 
646,838
 
562,234
Time deposits
  
746,456
 
683,885
 
736,846
 
743,411
 
764,932
Total deposits
    
1,872,635
 
1,808,532
 
1,673,404
 
1,622,899
 
1,547,359
Funds borrowed
  
414,519
 
301,558
 
306,447
 
297,537
 
219,563
Long-term debt - Trust Preferred Securities
  
20,000
 
20,000
 
20,000
 
20,000
 
20,000
Other liabilities
  
34,590
 
35,241
 
25,650
 
24,617
 
31,045
Total liabilities
    
2,341,744
 
2,165,331
 
2,025,501
 
1,965,053
 
1,817,967
Stockholders' equity
 
194,073
 
187,035
 
173,669
 
174,041
 
166,956
Total Liabilities and Stockholders' Equity
  
$2,535,817
 
$2,352,366
 
$2,199,170
 
$2,139,094
 
$1,984,923


  
     
 


Average Quarterly Balance Sheets
  
(unaudited, dollars in thousands)
  
 
 
     
 
12/31/04
  
09/30/04
  
06/30/04
  
03/31/04
  
12/31/03
  
Assets
    
Cash and due from banks
$27,459
 
$26,706
 
$31,788
 
$35,533
 
$33,812
 
Short-term investments
1,878
 
3,949
 
1,944
 
1,648
 
1,597
 
Investment securities: available-for-sale
775,602
 
744,446
 
713,099
 
690,826
 
652,463
 
Loans held for sale
  
6,324
 
4,704
 
10,335
 
3,640
 
4,481
 
Loans
  
1,535,642
 
1,432,003
 
1,370,030
 
1,263,047
 
1,175,718
 
Less: Allowance for loan losses
  
(18,167)
  
(17,781)
  
(16,838)
  
(15,544)
  
(14,332)
  
Net loans
    
1,517,475
 
1,414,222
 
1,353,192
 
1,247,503
 
1,161,386
 
Premises and equipment, net
6,251
 
5,788
 
5,854
 
6,153
 
6,332
 
Goodwill
  
20,547
 
20,547
 
19,242
 
21,338
 
19,233
 
Other assets
  
52,493
 
51,115
 
28,874
 
25,179
 
25,079
 
Total Assets
  
$2,408,029
 
$2,271,477
 
$2,164,328
 
$2,031,820
 
$1,904,383
 
     
Liabilities and Stockholders' Equity
    
Non-interest bearing deposits
$168,942
 
$157,312
 
$152,817
 
$127,635
 
$122,372
 
Interest bearing demand deposits
99,758
 
89,754
 
88,982
 
84,975
 
82,293
 
Savings and money market deposits
867,787
 
780,746
 
660,324
 
580,663
 
541,432
 
Time deposits
  
688,156
 
719,528
 
724,794
 
717,282
 
772,564
 
Total deposits
    
1,824,643
 
1,747,340
 
1,626,917
 
1,510,555
 
1,518,661
 
Funds borrowed
  
342,184
 
293,942
 
320,766
 
305,930
 
183,290
 
Long-term debt - Trust Preferred Securities
20,000
 
20,000
 
20,000
 
20,000
 
20,000
 
Other liabilities
  
30,412
 
26,901
 
22,469
 
23,301
 
20,619
 
Total liabilities
    
2,217,239
 
2,088,183
 
1,990,152
 
1,859,786
 
1,742,570
 
Stockholders' equity
  
190,790
 
183,294
 
174,176
 
172,034
 
161,813
 
Total Liabilities and Stockholders' Equity
  
$2,408,029
 
$2,271,477
 
$2,164,328
 
$2,031,820
 
$1,904,383
 


  
     
 


Average Year-To-Date Balance Sheets
  
(unaudited, dollars in thousands)
  
 
 
     
 
12/31/04
  
09/30/04
  
06/30/04
  
03/31/04
  
12/31/03
  
Assets
    
Cash and due from banks
$30,387
 
$31,557
 
$33,630
 
$35,533
 
$36,548
 
Short-term investments
2,358
 
2,468
 
1,797
 
1,648
 
6,348
 
Investment securities: available-for-sale
731,152
 
727,466
 
701,963
 
690,826
 
569,718
 
Loans held for sale
  
7,028
 
5,350
 
8,842
 
3,640
 
9,359
 
Loans
  
1,399,849
 
1,365,261
 
1,314,683
 
1,263,047
 
1,075,344
 
Less: Allowance for loan losses
  
(17,087)
  
(16,844)
  
(16,191)
  
(15,544)
  
(13,109)
  
Net loans
    
1,382,762
 
1,348,417
 
1,298,492
 
1,247,503
 
1,062,235
 
Premises and equipment, net
6,013
 
5,895
 
6,008
 
6,153
 
6,478
 
Goodwill
  
20,850
 
20,917
 
20,290
 
21,338
 
19,353
 
Other assets
  
39,735
 
35,278
 
25,929
 
25,179
 
24,531
 
Total Assets
  
$2,220,285
 
$2,177,348
 
$2,096,951
 
$2,031,820
 
$1,734,570
 
     
Liabilities and Stockholders' Equity
    
Non-interest bearing deposits
$151,588
 
$147,818
 
$140,188
 
$127,635
 
$103,073
 
Interest bearing demand deposits
90,888
 
87,906
 
86,978
 
84,975
 
74,926
 
Savings and money market deposits
722,923
 
683,121
 
620,493
 
580,663
 
496,607
 
Time deposits
  
712,399
 
734,053
 
721,038
 
717,282
 
722,990
 
Total deposits
    
1,677,798
 
1,652,898
 
1,568,697
 
1,510,555
 
1,397,596
 
Funds borrowed
  
315,719
 
302,291
 
313,348
 
305,930
 
175,451
 
Long-term debt - Trust Preferred Securities
20,000
 
20,000
 
20,000
 
20,000
 
20,000
 
Other liabilities
  
26,370
 
24,646
 
21,459
 
23,301
 
17,924
 
Total liabilities
    
2,039,887
 
1,999,835
 
1,923,504
 
1,859,786
 
1,610,971
 
Stockholders' equity
  
180,398
 
177,513
 
173,447
 
172,034
 
123,599
 
Total Liabilities and Stockholders' Equity
  
$2,220,285
 
$2,177,348
 
$2,096,951
 
$2,031,820
 
$1,734,570