-----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, Lst1S7eNsNPnl7TgQNgQIWy38PjG81kywkfI6JYtslPDAIcyORMuJF4ZENvhP5/6 pytlQ/Aj7v076DICoY/RRQ== 0000913849-05-000335.txt : 20050418 0000913849-05-000335.hdr.sgml : 20050418 20050418060126 ACCESSION NUMBER: 0000913849-05-000335 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050418 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050418 DATE AS OF CHANGE: 20050418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRIVATEBANCORP INC CENTRAL INDEX KEY: 0000889936 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 363681151 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25887 FILM NUMBER: 05755302 BUSINESS ADDRESS: STREET 1: TEN NORTH DEARBORN SUITE 900 CITY: CHICAGO STATE: IL ZIP: 60602 MAIL ADDRESS: STREET 1: TEN NORTH DEARBORN STREET CITY: CHICAGO STATE: IL ZIP: 60602 8-K 1 f8k_041405.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): APRIL 18, 2005 PRIVATEBANCORP, INC. (Exact Name of Registrant as Specified in its Charter) ---------------------------- DELAWARE 000-25887 36-3681151 (State or other jurisdiction (Commission file number) (I.R.S. employer of incorporation) identification no.) TEN NORTH DEARBORN 60602 CHICAGO, ILLINOIS (Zip Code) (Address of principal executive offices)
Registrant's telephone number, including area code: (312) 683-7100 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): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On April 18, 2005, PrivateBancorp, Inc. (the "Company") announced its earnings results for the quarter ended March 31, 2005. Attached as Exhibit 99.1 is a copy of the press release relating to the Company's earnings results, which is incorporated herein by reference. Certain supplemental information relating to non-GAAP financial measures reported in the attached press release is included on page 8 of Exhibit 99.1. 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. PRIVATEBANCORP, INC. Date: April 18, 2005 By:/s/ Ralph B. Mandell ----------------------------------- Ralph B. Mandell Chairman of the Board and Chief Executive Officer EXHIBIT INDEX NUMBER DESCRIPTION ------ ----------- Exhibit 99.1 Press Release dated April 18, 2005. EX-99.1 2 ex99-1_041405.txt PRESS RELEASE DATED APRIL 18, 2005 EXHIBIT 99.1 [LOGO] FOR FURTHER INFORMATION: Dennis Klaeser, CFO PrivateBancorp, Inc. 312-683-7100 For Immediate Release PRIVATEBANCORP REPORTS RECORD FIRST QUARTER EARNINGS Earnings per share up 28 percent over first quarter 2004 Chicago, IL, April 18, 2005--- PrivateBancorp, Inc. (NASDAQ: PVTB) today reported that earnings per share increased 28 percent to $0.37 per diluted share for the first quarter 2005 compared to first quarter 2004 earnings per diluted share of $0.29. Net income for the first quarter ended March 31, 2005 was $7.8 million, an increase of 31 percent over first quarter 2004 net income of $6.0 million. All per share amounts have been adjusted to reflect the two-for-one stock split that occurred on May 31, 2004. "Our continued earnings growth reflects strong financial performance throughout the Company as well as the expansion of our unique brand of private banking into select Midwestern metropolitan markets," said Ralph B. Mandell, Chairman, President and CEO. "Increases in our asset base have led to net interest income growth, despite some anticipated compression in net interest margin. Core deposits were up 35 percent over the prior year's quarter. Our overall credit quality remains strong and the underlying trends continue to be positive. St. Louis experienced strong loan growth, the Gold Coast branch was opened during the quarter in our core Chicago market, and The PrivateBank - Wisconsin is now open in temporary space as we complete the renovation of our permanent space, which we expect will be completed in the third quarter 2005." "We are very excited about our recently announced entry into Michigan's affluent Bloomfield Hills, Rochester and Grosse Pointe markets through the planned acquisition of Bloomfield Hills Bancorp. Inc., and its banking subsidiary, The Private Bank," added Mandell. "Their business model, strong management team and client-centered culture are a perfect fit to our private banking approach, and the acquisition furthers our selective growth strategy." Net interest income totaled $19.7 million in the first quarter 2005, an increase of 22 percent over first quarter 2004 net interest income of $16.2 million. Growth in average earning assets offset a lower net interest margin compared to the year earlier period. Average earning assets during the period were $2.4 billion, compared to $1.9 billion in the prior year quarter, an increase of 26 percent. Compared to the fourth quarter 2004, average earning assets increased by $131.9 million, or 6 percent compared to $2.3 billion at December 31, 2004. Net interest margin (on a tax equivalent basis) was 3.57 percent in the first quarter 2005, down from 3.80 percent in the prior year's first quarter and down from 3.63 percent in fourth quarter 2004. During the first quarter 2005, total cost of funds increased by 32 basis points from fourth quarter 2004. The increase in cost of funds during the quarter resulted from extending the duration of wholesale funding and increases in money market deposit rates, some of which are tied to the prime rate of interest. Yield on interest earning assets increased by 23 basis points during the quarter, due primarily to the increases in the prime rate. Approximately 70 percent of the loan portfolio is indexed to the prime rate of interest or otherwise adjusts with other short-term interest rates. During the first quarter 2005, the yield on the stock dividend we received from the Federal Home Loan Bank of Chicago ("FHLB Chicago") was reduced from 6.0 percent to 5.5 percent, which negatively impacted net interest margin by approximately 4 basis points. Due to continued strong loan growth and to take advantage of opportunities in other earning assets, on April 14, 2005, the Company redeemed $20.0 million of its FHLB Chicago stock, reducing this investment to $167.0 million. The provision for loan losses was $902,000 for the first quarter 2005, compared to $1.3 million in the prior year first quarter and $1.5 million in the fourth quarter 2004. Net recoveries totaled $60,000 in the quarter ended March 31, 2005 versus $103,000 in the prior year quarter and net charge-offs of $263,000 in fourth quarter 2004. The 2 allowance for loan losses as a percentage of total loans was 1.15 percent as of March 31, 2005 compared to 1.23 percent at March 31, 2004 and unchanged from 1.15 percent at December 31, 2004. Management believes overall credit quality remains strong. Non-interest income was $4.3 million in the first quarter 2005, reflecting an increase of approximately $1.4 million or 48 percent from the first quarter 2004. For the first quarter 2005, a $479,000 gain from an interest rate swap combined with security losses of $105,000, resulted in a $374,000 net gain. For the first quarter 2004, a $1.1 million loss from the interest rate swap combined with $998,000 of securities gains resulted in a $68,000 net loss. Wealth management fee income was $2.3 million during the quarter as compared to $2.0 million in the prior year quarter and $2.1 million in the fourth quarter 2004. Wealth management assets under management increased 10 percent to $1.74 billion at March 31, 2005 compared to $1.58 billion at March 31, 2004. At December 31, 2004, wealth management assets under management totaled $1.73 billion. Residential mortgage fee income was $742,000 for the first quarter 2005 compared to $464,000 in the first quarter 2004 and down from $834,000 in the fourth quarter 2004. Income from Bank owned life insurance ("BOLI") increased to $326,000 from $124,000 in the first quarter 2004 and up from $275,000 in the fourth quarter 2004. The increase in BOLI revenue results from an additional $22.0 million of BOLI insurance, purchased in the second quarter 2004. Non-interest expense increased to $12.6 million in the first quarter 2005 from $10.5 million in the first quarter 2004. The 19 percent increase in non-interest expense between periods is attributable to increases in costs associated with the Company's growth. The Company has continued to add qualified, experienced managing directors to its team to ensure the continued growth of the organization. The number of Managing Directors increased to 84 as of March 31, 2005 from 64 at March 31, 2004, and full-time equivalent employees increased to 278 at the end of the first quarter 2005, from 226 at the prior period end. The efficiency ratio improved to 48.3 percent in the first quarter 3 2005 from 49.1 percent in the prior year's first quarter, and remained unchanged from the fourth quarter 2004. Loans outstanding increased to $1.73 billion at March 31, 2005, reflecting growth of 29 percent over the $1.34 billion in loans outstanding at March 31, 2004. Loans outstanding as of March 31, 2005 increased by 5 percent from December 31, 2004 loans outstanding of $1.65 billion. At March 31, 2005, nonperforming loans as a percentage of total loans were 0.16 percent, versus 0.15 percent at December 31, 2004 and 0.06 percent at March 31, 2004. At March 31, 2005, nonaccrual loans as a percentage of total loans were 0.08 percent, versus 0.07 percent at December 31, 2004 and 0.01 percent at March 31, 2004. Deposits increased by 23 percent to $2.0 billion at March 31, 2005 as compared to total deposits of $1.6 billion at March 31, 2004. Core deposits, defined as total deposits less brokered deposits, increased 35 percent to $1.6 billion compared to $1.2 billion at March 31, 2004, and increased 11 percent from $1.4 billion at December 31, 2004. Brokered deposits were $387.4 million at March 31, 2005, a decrease of 9 percent, or $38.7 million, from $426.0 million at March 31, 2004, and a decrease of 8 percent, or $35.8 million, from $423.1 million at December 31, 2004. Brokered deposits as a percentage of total deposits declined to 19 percent as of March 31, 2005 compared to 26 percent at March 31, 2004 and 23 percent at the end of 2004. Funds borrowed, which include Federal Home Loan Bank advances, increased 15 percent to $340.7 million at March 31, 2005 from $297.5 million at March 31, 2004, and decreased from $414.5 million at December 31, 2004. 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, 4 Lodestar Investment Counsel, LLC. The Company, which had assets of $2.6 billion at March 31, 2005, currently has banking offices in downtown Chicago, Chicago's Gold Coast, Wilmette, Oak Brook, St. Charles, Lake Forest, Winnetka, and Geneva, Illinois, and in St. Louis, Missouri and Milwaukee, Wisconsin. 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 and Trust Company. On April 14, 2005, the Company announced that it had agreed to acquire Bloomfield Hills Bancorp. Inc., which had assets of $338 million at March 31, 2005, and operates a single bank subsidiary, The Private Bank, with locations in Bloomfield Hills, Rochester and Grosse Pointe, Michigan, in a transaction that is expected to close early in the third quarter 2005. 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, unforeseen delays in completing the anticipated acquisition of Bloomfield Hills Bancorp. Inc., slower than anticipated growth of its business or unanticipated business declines, unforeseen difficulties in integrating the acquisition or higher than expected operational costs, unexpected difficulties in the continued integration of or in operating our mortgage banking business, unanticipated construction or other delays relating to our new office to be located 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. ### 5 [LOGO] CONSOLIDATED STATEMENTS OF INCOME (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, 2005 2004 ----------- ----------- UNAUDITED UNAUDITED INTEREST INCOME Interest and fees on loans $ 25,591 $ 17,680 Interest on investment securities 9,213 7,929 Interest on short-term investments 34 6 ----------- ----------- TOTAL INTEREST INCOME 34,838 25,615 ----------- ----------- INTEREST EXPENSE Interest on deposits 11,252 6,093 Interest on borrowings 2,474 1,486 Interest on long-term debt - trust preferred securities 485 485 ----------- ----------- TOTAL INTEREST EXPENSE 14,211 8,064 ----------- ----------- NET INTEREST INCOME 20,627 17,551 Provision for loan losses 902 1,326 ----------- ----------- NET INTEREST INCOME AFTER PROVISION 19,725 16,225 ----------- ----------- NON INTEREST INCOME Wealth management income 2,316 1,957 Mortgage banking income 742 464 Other income 865 559 Net securities (losses) gains (105) 998 Gains (losses) on interest rate swap 479 (1,066) ----------- ----------- TOTAL NON INTEREST INCOME 4,297 2,912 ----------- ----------- NON INTEREST EXPENSE Salaries and benefits 7,018 6,035 Occupancy expense 1,738 1,360 Professional fees 1,333 1,114 Marketing 614 495 Data processing 582 446 Amortization of intangibles 42 42 Insurance 263 215 Other operating expenses 993 832 ----------- ----------- TOTAL NON INTEREST EXPENSE 12,583 10,539 ----------- ----------- Minority interest expense 76 67 ----------- ----------- INCOME BEFORE INCOME TAXES 11,363 8,531 ----------- ----------- Income tax expense 3,557 2,581 ----------- ----------- NET INCOME $ 7,806 $5,950 =========== =========== WEIGHTED AVERAGE SHARES OUTSTANDING 19,973,853 19,461,134 DILUTED AVERAGE SHARES OUTSTANDING 20,998,095 20,614,694 EARNINGS PER SHARE Basic $ 0.39 $ 0.31 Diluted $ 0.37 $ 0.29
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 6 [LOGO] CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
03/31/05 12/31/04 03/31/04 ------------ ------------ ----------- UNAUDITED AUDITED UNAUDITED ASSETS Cash and due from banks $ 29,943 $ 49,534 $ 60,047 Short-term investments 5,047 1,120 1,224 Investment securities: available-for-sale 764,917 763,985 692,678 Loans held for sale 8,678 7,200 4,133 Loans 1,729,882 1,653,363 1,344,706 Allowance for loan losses (19,948) (18,986) (16,529) ---------- ---------- ---------- Net loans 1,709,934 1,634,377 1,328,177 Premises and equipment, net 6,990 6,486 5,924 Goodwill 20,547 20,547 19,242 Other assets 55,634 52,568 27,669 ---------- ---------- ---------- TOTAL ASSETS $2,601,690 $2,535,817 $2,139,094 ========== ========== ========== LIABILITIES Non-interest bearing deposits $ 173,558 $ 165,170 $ 153,197 Interest bearing deposits 1,829,681 1,707,465 1,469,702 ---------- ---------- ---------- Total deposits 2,003,239 1,872,635 1,622,899 ---------- ---------- ---------- Funds borrowed 340,737 414,519 297,537 Long-term debt - trust preferred securities 20,000 20,000 20,000 Other liabilities 37,342 34,590 24,617 ---------- ---------- ---------- TOTAL LIABILITIES 2,401,318 2,341,744 1,965,053 ---------- ---------- ---------- STOCKHOLDERS' EQUITY Common stock and additional paid-in-capital less Treasury stock 118,850 118,284 114,633 Retained earnings 80,735 73,789 51,545 Accumulated other comprehensive income 5,712 7,056 10,770 Deferred compensation (4,925) (5,056) (2,907) ---------- ---------- ---------- TOTAL STOCKHOLDERS' EQUITY 200,372 194,073 174,041 ---------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,601,690 $2,535,817 $2,139,094 ========== ========== ========== BOOK VALUE PER SHARE $ 9.79 $ 9.51 $ 8.72
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 7 [LOGO] KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
1Q05 4Q04 3Q04 2Q04 1Q04 -------- -------- -------- -------- -------- KEY STATISTICS Net income $7,806 $7,526 $7,063 $6,456 $5,950 Basic earnings per share $ 0.39 $ 0.38 $ 0.35 $ 0.33 $ 0.31 Diluted earnings per share $ 0.37 $ 0.36 $ 0.34 $ 0.31 $ 0.29 Return on average total assets 1.24% 1.24% 1.23% 1.20% 1.17% Return on average total equity 15.81% 15.65% 15.29% 14.86% 13.87% Dividend payout ratio 11.77% 8.11% 8.63% 9.42% 10.03% Fee revenue as a percent of total revenue (1) 15.98% 16.03% 17.41% 16.69% 14.51% Non-interest income to average assets 0.68% 0.61% 0.71% 0.67% 0.57% Non-interest expense to average assets 2.01% 1.98% 2.08% 2.08% 2.08% Net overhead ratio (2) 1.32% 1.37% 1.37% 1.41% 1.51% Efficiency ratio (3) 48.3% 48.3% 50.0% 50.8% 49.1% Net interest margin (4) 3.57% 3.63% 3.58% 3.51% 3.80% Yield on average earning assets 5.93% 5.70% 5.46% 5.27% 5.46% Cost of average interest-bearing liabilities 2.68% 2.36% 2.14% 2.03% 1.89% Net interest spread (5) 3.25% 3.34% 3.32% 3.24% 3.57% Tax equivalent adjustment to net interest income (6) $1,107 $1,040 $1,224 $1,100 $1,017 (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
1Q05 4Q04 3Q04 2Q04 1Q04 ------- ------- ------- ------- ------- Net interest income $20,627 $20,172 $18,485 $17,334 $17,551 Tax equivalent adjustment to net interest income 1,107 1,040 1,224 1,100 1,017 ------- ------- ------- ------- ------- Net interest income, tax equivalent basis $21,734 $21,212 $19,709 $18,434 $18,568 ------- ------- ------- ------- -------
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 8 [LOGO] KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
1Q05 4Q04 3Q04 2Q04 1Q04 ------------ ------------ ------------ ------------ ------------ BALANCE SHEET RATIOS Loans to Deposits (period end) 86.35% 88.29% 81.34% 84.12% 82.86% Average interest-earning assets to average interest-bearing liabilities 113.5 114.1 114.0 114.9 113.5 PER SHARE DATA Dividends $0.045 $ 0.03 $ 0.03 $ 0.03 $ 0.03 Book value (period end) $ 9.79 $ 9.51 $ 9.19 $ 8.54 $ 8.72 Tangible book value (period end) (1) $ 8.68 $ 8.40 $ 8.07 $ 7.41 $ 7.64 SHARE PRICE DATA (PERIOD END) Closing Price $31.41 $32.23 $26.96 $27.48 $25.80 Diluted earnings multiple (2) 20.93 x 22.57 x 19.99 x 22.10 x 22.53 x Book value multiple 3.21 x 3.39 x 2.93 x 3.22 x 2.96 x COMMON STOCK INFORMATION Outstanding shares at end of period 20,467,143 20,400,103 20,346,303 20,344,073 19,954,848 NUMBER OF SHARES USED TO COMPUTE: Basic earnings per share 19,973,853 19,911,662 19,921,465 19,706,993 19,461,134 Diluted earnings per share 20,998,095 20,992,893 20,947,078 20,708,906 20,614,694 CAPITAL RATIOS (PERIOD END) (3): Total equity to total assets 7.70% 7.65% 7.95% 7.90% 8.14% Total risk-based capital ratio 11.08% 11.29% 11.59% 12.14% 12.14% Tier-1 risk-based capital ratio 10.04% 10.24% 10.52% 11.00% 11.01% Leverage ratio 7.60% 7.71% 7.74% 7.82% 8.03% (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
9 [LOGO] KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS)
1Q05 4Q04 3Q04 2Q04 1Q04 -------- -------- -------- -------- -------- SUMMARY INCOME STATEMENT INTEREST INCOME Interest and fees on loans $25,591 $22,802 $20,315 $18,702 $17,680 Interest on investment securities 9,213 9,386 8,436 7,820 7,929 Interest on short-term investments 34 12 18 4 6 ------- ------- ------- ------- ------- TOTAL INTEREST INCOME 34,838 32,200 28,769 26,526 25,615 INTEREST EXPENSE 14,211 12,028 10,284 9,192 8,064 ------- ------- ------- ------- ------- NET INTEREST INCOME 20,627 20,172 18,485 17,334 17,551 Provision for loan losses 902 1,498 851 724 1,326 ------- ------- ------- ------- ------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 19,725 18,674 17,634 16,610 16,225 ------- ------- ------- ------- ------- NON INTEREST INCOME Wealth management income 2,316 2,113 2,117 2,129 1,957 Mortgage banking income 742 834 776 782 464 Other income 865 903 1,006 561 559 Net securities (losses) gains (105) (123) 1,259 (1,166) 998 Gains (losses) on interest rate swap 479 (11) (1,118) 1,325 (1,066) ------- ------- ------- ------- ------- TOTAL NON INTEREST INCOME 4,297 3,716 4,040 3,631 2,912 ------- ------- ------- ------- ------- NON INTEREST EXPENSE Salaries and benefits 7,018 7,124 6,811 6,057 6,035 Occupancy expense 1,738 1,567 1,394 1,350 1,360 Professional fees 1,333 1,082 1,407 1,451 1,114 Marketing 614 695 628 703 495 Data processing 582 529 520 513 446 Insurance 263 276 221 207 215 Amortization of intangibles 42 42 42 42 42 Other operating expenses 993 717 860 897 832 ------- ------- ------- ------- ------- TOTAL NON INTEREST EXPENSE 12,583 12,032 11,883 11,220 10,539 ------- ------- ------- ------- ------- Minority interest expense 76 64 74 65 67 ------- ------- ------- ------- ------- INCOME BEFORE INCOME TAXES 11,363 10,294 9,717 8,956 8,531 Income tax expense 3,557 2,768 2,654 2,500 2,581 ------- ------- ------- ------- ------- NET INCOME $ 7,806 $ 7,526 $ 7,063 $ 6,456 $ 5,950 ======= ======= ======= ======= =======
10 [LOGO] KEY FINANCIAL DATA UNAUDITED (DOLLARS IN THOUSANDS)
1Q05 4Q04 3Q04 2Q04 1Q04 --------- -------- ------- --------- --------- CREDIT QUALITY KEY RATIOS Net charge-offs (recoveries) to average loans -0.01% 0.07% 0.11% -0.01% -0.03% Total non-performing loans to total loans 0.16% 0.15% 0.17% 0.06% 0.06% Total non-performing assets to total assets 0.11% 0.10% 0.10% 0.04% 0.04% Nonaccrual loans to: total loans 0.08% 0.07% 0.05% 0.01% 0.01% total assets 0.06% 0.04% 0.03% 0.01% 0.01% Allowance for loan losses to: total loans 1.15% 1.15% 1.21% 1.23% 1.23% non-performing loans 717% 751% 729% 2175% 1954% nonaccrual loans 1377% 1742% 2228% 11422% 12626% NON-PERFORMING ASSETS: Loans delinquent over 90 days $ 1,335 $ 1,438 $ 1,638 $ 644 $ 715 Nonaccrual loans 1,448 1,090 797 151 131 ------- ------- ------- ------- ------- Total non-performing assets $ 2,783 $ 2,528 $ 2,435 $ 795 $ 846 ======= ======= ======= ======= ======= NET LOAN CHARGE-OFFS (RECOVERIES): Loans charged off $ 3 $ 330 $ 831 $ 0 $ 5 (Recoveries) (63) (67) (427) (51) (108) ------- ------- ------- ------- ------- Net charge-offs (recoveries) $ (60) $263 $ 404 $ (51) $ (103) ======= ======= ======= ======= ======= PROVISION FOR LOAN LOSSES $ 902 $1,498 $ 851 $ 724 $ 1,326 ======= ======= ======= ======= ======= ALLOWANCE FOR LOAN LOSSES SUMMARY Balance at beginning of period $18,986 $17,751 $17,304 $16,529 $15,100 Provision 902 1,498 851 724 1,326 Net charge-offs (recoveries) (60) 263 404 (51) (103) ------- ------- ------- ------- ------- Balance at end of period $19,948 $18,986 $17,751 $17,304 $16,529 ======= ======= ======= ======= ======= NET LOAN CHARGE-OFFS (RECOVERIES): Commercial real estate - - - - - Residential real estate - - - - - Commercial $ (60) $ 184 $ (314) $ (49) $ (105) Personal - 79 718 (2) 2 Home equity - - - - - Construction - - - - - ------- ------- ------- ------- ------- Total net loan charge-offs (recoveries) $ (60) $ 263 $404 $ (51) $ (103) ======= ======= ======= ======= =======
11 [LOGO] BALANCE SHEETS (DOLLARS IN THOUSANDS)
UNAUDITED AUDITED UNAUDITED UNAUDITED UNAUDITED 03/31/05 12/31/04 09/30/04 06/30/04 03/31/04 ----------- ----------- ----------- ----------- ----------- ASSETS Cash and due from banks $ 29,943 $ 49,534 $ 44,814 $ 22,414 $ 60,047 Short-term investments 5,047 1,120 11,004 1,779 1,224 Investment securities: available-for-sale 764,917 763,985 759,328 722,582 692,678 Loans held for sale 8,678 7,200 8,014 6,419 4,133 Loans 1,729,882 1,653,363 1,471,083 1,407,586 1,344,706 Less: Allowance for loan losses (19,948) (18,986) (17,751) (17,304) (16,529) ---------- ---------- ---------- ---------- ---------- Net loans 1,709,934 1,634,377 1,453,332 1,390,282 1,328,177 ---------- ---------- ---------- ---------- ---------- Premises and equipment, net 6,990 6,486 6,013 5,711 5,924 Goodwill 20,547 20,547 20,547 20,547 19,242 Other assets 55,634 52,568 49,314 29,436 27,669 ---------- ---------- ---------- ---------- ---------- Total Assets $2,601,690 $2,535,817 $2,352,366 $2,199,170 $2,139,094 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 173,558 $ 165,170 $ 170,315 $ 163,543 $ 153,197 Interest bearing demand deposits 100,598 106,846 89,538 89,810 79,453 Savings and money market deposits 1,016,876 854,163 864,794 683,205 646,838 Time deposits 712,207 746,456 683,885 736,846 743,411 ---------- ---------- ---------- ---------- ---------- Total deposits 2,003,239 1,872,635 1,808,532 1,673,404 1,622,899 Funds borrowed 340,737 414,519 301,558 306,447 297,537 Long-term debt - Trust Preferred Securities 20,000 20,000 20,000 20,000 20,000 Other liabilities 37,342 34,590 35,241 25,650 24,617 ---------- ---------- ---------- ---------- ---------- Total liabilities 2,401,318 2,341,744 2,165,331 2,025,501 1,965,053 Stockholders' equity 200,372 194,073 187,035 173,669 174,041 ---------- ---------- ---------- ---------- ---------- Total Liabilities and Stockholders' Equity $2,601,690 $2,535,817 $2,352,366 $2,199,170 $2,139,094 ========== ========== ========== ========== ==========
12 [LOGO] AVERAGE QUARTERLY BALANCE SHEETS (UNAUDITED, DOLLARS IN THOUSANDS)
03/31/05 12/31/04 09/30/04 06/30/04 03/31/04 ----------- ----------- ----------- ----------- ------------ ASSETS Cash and due from banks $ 32,559 $ 27,459 $ 26,706 $ 31,788 $ 35,533 Short-term investments 4,245 1,878 3,949 1,944 1,648 Investment securities: available-for-sale 752,794 775,602 744,446 713,099 690,826 Loans held for sale 7,339 6,324 4,704 10,335 3,640 Loans 1,686,713 1,535,642 1,432,003 1,370,030 1,263,047 Less: Allowance for loan losses (19,360) (18,167) (17,781) (16,838) (15,544) ---------- ---------- ---------- ---------- ---------- Net loans 1,667,353 1,517,475 1,414,222 1,353,192 1,247,503 ---------- ---------- ---------- ---------- ---------- Premises and equipment, net 6,966 6,251 5,788 5,854 6,153 Goodwill 20,547 20,547 20,547 19,242 21,338 Other assets 53,770 52,493 51,115 28,874 25,179 ---------- ---------- ---------- ---------- ---------- Total Assets $2,545,573 $2,408,029 $2,271,477 $2,164,328 $2,031,820 ========== ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 171,845 $ 168,942 $ 157,312 $ 152,817 $ 127,635 Interest bearing demand deposits 100,843 99,758 89,754 88,982 84,975 Savings and money market deposits 918,113 867,787 780,746 660,324 580,663 Time deposits 748,909 688,156 719,528 724,794 717,282 ---------- ---------- ---------- ---------- ---------- Total deposits 1,939,710 1,824,643 1,747,340 1,626,917 1,510,555 Funds borrowed 357,712 342,184 293,942 320,766 305,930 Long-term debt - Trust Preferred Securities 20,000 20,000 20,000 20,000 20,000 Other liabilities 28,046 30,412 26,901 22,469 23,301 ---------- ---------- ---------- ---------- ---------- Total liabilities 2,345,468 2,217,239 2,088,183 1,990,152 1,859,786 Stockholders' equity 200,105 190,790 183,294 174,176 172,034 ---------- ---------- ---------- ---------- ---------- Total Liabilities and Stockholders' Equity $2,545,573 $2,408,029 $2,271,477 $2,164,328 $2,031,820 ========== ========== ========== ========== ==========
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