VALDOSTA, Ga., April 28, 2008 (PRIME NEWSWIRE) -- On Monday, April 28, 2008, PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, announced its financial results for the three months ended March 31, 2008. The Company reported net income of $1.3 million, or $0.14 per diluted share, for the first quarter of 2008, a 58% decrease compared to net income of $3.1 million, or $0.32 per diluted share, for the first quarter of 2007. The decrease in earnings for the first quarter of 2008 was due primarily to a provision for loan losses of $1.2 million ($780,000 after taxes), and an $845,000 after tax decrease in net interest income. The increase in the provision for loan losses is due to an increase in nonperforming loans during the quarter and continued weakness in residential real estate in the Atlanta MSA. The decline in net interest income is the combined result of a reduction in revenues of approximately $793,000 ($515,000 after taxes) related to our nonperforming assets and the declining interest rate environment. The earnings for the first quarter of 2008 resulted in a return on average assets ("ROA") of 0.44% and a return on average equity ("ROE") of 5.24%, both decreases compared to the 1.11% ROA and 12.75% ROE reported for the first quarter of 2007.
"We continue to work through our problems in residential construction and development lending around Atlanta. Over the past six months, we have seen a decline in real estate valuations in certain areas due to the level of inventory being pushed into distressed sales. Although these valuation declines may eventually prove to be temporary, the damage has been done to many of our borrowers in these areas. The adverse market conditions have hampered the liquidity of their inventories and our collateral, and we are carrying a higher level of nonperforming assets as a result. These conditions, combined with an unfavorable interest rate environment, have had a detrimental impact on our earnings this quarter," stated Company President and CEO M. Burke Welsh, Jr.
"On a positive note, we continue to generate good banking business in South Georgia, where solid economic growth continues. Also, our small business calling campaigns are generating additional commercial banking relationships for loans and deposits in all of our markets. Finally, while many banks in our region are facing regulatory pressures and distractions due to market conditions, we are seeing more opportunities that could have the potential to strengthen our balance sheet, add depth to our banking talent and solidify our market share in and around our franchise's footprint. We are exploring these opportunities, and given our strong capital ratios, we anticipate being in a position to capitalize on those that appear favorable to us," added Welsh.
A summary of pertinent asset quality ratios for the Company follows.
* As of March 31, 2008, the Company reported total nonperforming assets of $33.3 million, or 2.77% of total assets, a $15.5 million increase since the end of 2007. The increase in nonperforming assets during the first quarter of 2008 was due to a net increase of $9.7 million in residential construction and development loans defaulting and being placed on nonaccrual status during the quarter. * The majority of the $33.3 million in nonperforming assets is secured by residential real estate. At March 31, 2008, the underlying real estate collateral consisted of (1) 625 acres of undeveloped land in four parcels zoned for residential development with a total carrying value of $8.5 million, or $13,600 per acre on average, (2) 210 residential lots with a total carrying value of $9.3 million, or $44,300 per lot on average, (3) 58 residential houses with a total carrying value of $6.7 million, or $115,600 per house on average, and (4) 12 commercial properties with a total carrying value of $8.8 million, or $732,700 per property on average. * The Company reported foreclosed assets of $7.2 million, or 0.60% of total assets, at quarter end, an $877,000 increase during the quarter. * The Company reported total loans on nonaccrual status or past due more than 89 days of $26.1 million, or 2.79% of total loans, at quarter end, a $14.7 million increase during the quarter. Approximately 90.8% of the loans on nonaccrual status at quarter end were construction and development loans, and these loans represented approximately 6.5% of the Company's total portfolio of construction and development loans. * The Company reported total loans past due 30-89 days of $9.8 million, or 1.05% of total loans, at quarter end, a $7.9 million decrease during the quarter. These loans are not included in total nonperforming assets at quarter end. Approximately 65.5% of the loans past due 30-89 days at quarter end were construction and development loans, and these loans represented approximately 1.9% of the Company's total portfolio of construction and development loans. * Loan loss provision expense was $1.2 million in the first quarter, compared to $1.8 million for the fourth quarter of 2007 and no provision expense for the first quarter of 2007. * Net charge-offs were approximately $231,000 in the first quarter of 2008, or 0.10% of average loans (annualized), which is comparable to the Company's five-year average net charge-off ratio of 0.10%. * At March 31, 2008, the allowance for loan losses represented approximately 1.48% of total loans.
At March 31, 2008, the Company reported total assets of $1.21 billion, a nominal 0.5% increase from the $1.20 billion reported at December 31, 2007. During the quarter, total loans outstanding increased $13.6 million, or 5.9% annualized, to $934.9 million and total deposits decreased $8.0 million, or 3.3% annualized, to $972.1 million. The decrease in total deposits is the result of the Company's decision to not aggressively compete in its markets for high-priced deposits but to utilize brokered deposits and advances from the Federal Home Loan Bank of Atlanta (the "FHLB"), which were at lower rates, to fund its liquidity needs during the quarter. Total brokered deposits increased $30.2 million during the quarter to $65.8 million, or 6.8% of total deposits and 5.5% of total assets, at March 31, 2008. Total advances from the FHLB increased $17.8 million during the quarter to $104.1 million, or 8.6% of total assets, at March 31, 2008.
For the first quarter of 2008, the Company's net interest margin was 3.41%, a 20 basis point decrease compared to 3.61% in the fourth quarter of 2007 and a 74 basis point decrease compared to 3.89% in the first quarter of 2007. The reduction of interest income due to the nonperforming assets negatively impacted the net interest margin by 28 basis points during the first quarter of 2008, compared to a 13 basis point impact in the fourth quarter of 2007 and a four basis point impact in the first quarter of 2007. The Company's average yield on earning assets for the first quarter of 2008 was 6.89%, a 59 basis point decline compared to the fourth quarter of 2007 and a 102 basis point decline compared to the same period last year. The Company's average rate paid for interest-bearing deposits and other borrowings was 3.91% for the quarter, a 45 basis point decline compared to the fourth quarter of 2007 and a 41 basis point decrease compared to the first quarter of 2007.
Noninterest income increased 11.2% for the first quarter of 2008 compared to the same period in 2007 due to increases in mortgage origination fees, service charges on deposit accounts and ATM and debit card fee income. The Company realized $183,000 in securities gains during the first quarter of 2008, compared to securities gains of $173,000 in the first quarter of 2007. Noninterest expenses increased 4.8% for the first quarter of 2008 compared to the same period in 2007 due to increases in personnel costs and employee benefits, occupancy expenses of premises, telecommunication charges and director fees.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 9:00 AM Eastern on Tuesday, April 29, 2008. The conference call will be broadcast via the Internet using Windows Media Player. The webcast URL is http://www.talkpoint.com/viewer/starthere.asp?Pres=121453. A link to the webcast is posted on the "Investor Relations" section of the Company's website at www.pabbankshares.com. Interested shareholders, industry analysts and members of the news media and the investment community wanting to participate in the live question and answer session following management's presentation may access the conference call by dialing (toll free) 800-860-2442 or (international) 412-858-4600.
Shortly following the call and at any time for at least 30 days thereafter, interested parties may access an archived version of the webcast on the "Investor Relations" section of the Company's website or by dialing (toll free) 877-344-7529 or (International) 412-317-0088. The following replay passcodes will be required for playback access: 418555.
About PAB
The Company is a $1.2 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank operates in 20 branch offices and three loan production offices in 15 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements
Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding our outlook on asset quality, projected growth, business opportunities in our markets and economic conditions, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate", "believe", "intend", "plan", "expect", "estimate", "could", "should", "will" and similar expressions are used, you should consider them as identifying forward-looking statements. These forward-looking statements are not guarantees of future performance, and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements. The following list, which is not intended to be an all-encompassing list of risks and uncertainties affecting the Company, summarizes several factors that could cause the Company's actual results to differ materially from those anticipated or expected in these forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins or the volumes or values of loans made by The Park Avenue Bank; (3) general economic conditions (both generally and in our markets) may continue to be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect the businesses in which we are engaged; (5) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; (6) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (7) adverse changes may occur in the bond and equity markets; (8) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (9) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (10) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (11) the risk factors discussed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2007. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
Period Ended
-----------------------------------------------------------
03/31/08 12/31/07 09/30/07 06/30/07 03/31/07
----------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 19,030 $ 21,013 $ 21,866 $ 21,345 $ 20,451
Interest
expense 9,685 10,956 11,084 10,386 9,783
----------------------------------------------------------------------
Net
interest
income 9,345 10,057 10,782 10,959 10,668
----------------------------------------------------------------------
Provision
for loan
losses 1,200 1,800 400 200 --
Other
income 1,643 1,682 1,471 1,359 1,478
Other
expense 7,829 7,440 7,471 7,209 7,470
----------------------------------------------------------------------
Income
before
income
tax
expense 1,959 2,499 4,382 4,909 4,676
Income tax
expense 662 858 1,523 1,688 1,612
----------------------------------------------------------------------
Net
income $ 1,297 $ 1,641 $ 2,859 $ 3,221 $ 3,064
======================================================================
Net
interest
income on
a tax-
equivalent
basis $ 9,522 $ 10,230 $ 10,948 $ 11,119 $ 10,822
Per Share
Ratios:
Net income
- basic $ 0.14 $ 0.18 $ 0.30 $ 0.34 $ 0.32
Net income
- diluted 0.14 0.18 0.30 0.33 0.32
Dividends
declared
for period 0.145 0.145 0.145 0.145 0.145
Dividend
payout
ratio 102.39% 81.50% 47.14% 42.66% 45.02%
Book value
at end of
period $ 10.80 $ 10.59 $ 10.42 $ 10.16 $ 10.26
Common
Share
Data:
Outstanding
at period
end 9,153,902 9,223,217 9,291,215 9,479,490 9,516,673
Weighted
average
outstan-
ding 9,180,952 9,253,298 9,410,321 9,498,569 9,515,976
Diluted
weighted
average
outstan-
ding 9,239,867 9,342,489 9,541,922 9,661,696 9,691,233
Selected
Average
Balances:
Total
assets $1,194,717 $1,194,703 $1,185,839 $1,155,158 $1,124,534
Earning
assets 1,121,461 1,123,811 1,117,852 1,087,926 1,057,121
Loans 930,049 915,214 905,931 876,982 834,070
Deposits 967,426 977,666 970,515 935,100 910,188
Stock-
holders'
equity 99,557 98,567 97,499 98,678 97,470
Selected
Period
End
Balances:
Total
assets $1,205,041 $1,198,671 $1,195,680 $1,169,967 $1,171,845
Earning
assets 1,129,869 1,116,776 1,127,873 1,097,888 1,106,808
Loans 934,927 921,349 904,082 905,158 854,076
Allowance
for loan
losses 13,875 12,906 11,497 11,342 11,085
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 972,104 980,149 979,792 945,847 954,416
Stock-
holders'
equity 98,866 97,676 96,833 96,290 97,657
Tier 1
regulatory
capital 100,010 100,885 101,647 103,397 102,173
Performance
Ratios:
Return on
average
assets 0.44% 0.54% 0.96% 1.12% 1.11%
Return on
average
stock-
holders'
equity 5.24% 6.61% 11.63% 13.10% 12.75%
Net
interest
margin 3.41% 3.61% 3.89% 4.10% 4.15%
Efficiency
ratio
(excluding
the
following
items): 70.87% 63.46% 60.54% 57.62% 61.54%
Securities
gains
(losses)
included
in other
income $ 183 $ 129 $ 49 $ (38) $ 173
Other
gains
(losses)
included
in other
income (66) 60 28 6 (13)
Selected
Asset
Quality
Factors:
Nonaccrual
loans $ 26,090 $ 11,405 $ 5,185 $ 1,986 $ 4,192
Loans 90
days or
more past
due and
still
accruing 13 37 34 27 69
Other
impaired
loans
(troubled-
debt
restructur-
ings) -- -- -- -- --
Other real
estate and
reposse-
ssions 7,237 6,360 3,676 2,999 362
Asset
Quality
Ratios:
Net charge-
offs to
average
loans
(annualized
YTD) 0.10% 0.06% 0.02% -0.03% -0.04%
Nonperforming
loans to
total
loans 2.79% 1.24% 0.58% 0.22% 0.50%
Nonperforming
assets to
total
assets 2.77% 1.49% 0.74% 0.43% 0.39%
Allowance
for loan
losses to
total
loans 1.48% 1.40% 1.27% 1.25% 1.30%
Allowance
for loan
losses to
nonperfor-
ming loans 53.15% 112.79% 220.30% 563.32% 260.13%
Other
Selected
Ratios and
Nonfinancial
Data:
Average
loans to
average
earning
assets 82.93% 81.44% 81.04% 80.61% 78.90%
Average
loans to
average
deposits 96.14% 93.61% 93.35% 93.78% 91.64%
Average
stock-
holders'
equity to
average
assets 8.33% 8.25% 8.22% 8.54% 8.67%
Full-time
equivalent
employees 321 327 328 322 329
Bank branch
offices 20 20 20 20 20
Bank loan
production
offices 3 3 3 3 3
Bank ATMs 25 25 25 25 25
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
Period Ended
-----------------------------------------------------------
03/31/08 12/31/07 09/30/07 06/30/07 03/31/07
----------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 19,030 $ 84,676 $ 63,663 $ 41,797 $ 20,451
Interest
expense 9,685 42,210 31,253 20,169 9,783
----------------------------------------------------------------------
Net
interest
income 9,345 42,466 32,410 21,628 10,668
----------------------------------------------------------------------
Provision
for loan
losses 1,200 2,400 600 200 --
Other
income 1,643 5,991 4,309 2,838 1,478
Other
expense 7,829 29,590 22,150 14,679 7,470
----------------------------------------------------------------------
Income
before
income
tax
expense 1,959 16,467 13,969 9,587 4,676
Income tax
expense 662 5,681 4,823 3,300 1,612
----------------------------------------------------------------------
Net
income $ 1,297 $ 10,786 $ 9,146 $ 6,287 $ 3,064
======================================================================
Net
interest
income on
a tax-
equivalent
basis $ 9,522 $ 43,120 $ 32,889 $ 21,941 $ 10,822
Per Share
Ratios:
Net income
- basic $ 0.14 $ 1.14 $ 0.96 $ 0.66 $ 0.32
Net income
- diluted 0.14 1.13 0.95 0.65 0.32
Dividends
declared
for the
period 0.145 0.580 0.435 0.290 0.145
Dividend
payout
ratio 102.39% 50.43% 44.85% 43.81% 45.02%
Common
Share
Data:
Weighted
average
outstan-
ding 9,180,952 ,418,796 9,474,568 9,507,224 9,515,976
Diluted
weighted
average
outstan-
ding 9,239,867 9,560,324 9,631,175 9,676,672 9,691,233
Selected
Average
Balances:
Total
assets $1,194,717 $1,165,307 $1,155,401 $1,139,930 $1,124,534
Earning
assets 1,121,461 1,096,918 1,087,855 1,072,608 1,057,121
Loans 930,049 883,334 872,591 855,644 834,070
Deposits 967,426 948,613 938,822 922,713 910,188
Stockh-
olders'
equity 99,557 98,055 97,883 98,077 97,470
Performance
Ratios:
Return on
average
assets 0.44% 0.93% 1.06% 1.11% 1.11%
Return on
average
stock-
holders'
equity 5.24% 11.00% 12.49% 12.93% 12.75%
Net
interest
margin 3.41% 3.93% 4.04% 4.13% 4.15%
Efficiency
ratio
(excluding
the
following
items): 70.87% 60.74% 59.88% 59.55% 61.54%
Securities
gains
(losses)
included
in other
income $ 183 $ 313 $ 184 $ 135 $ 173
Other
gains
(losses)
included
in other
income (66) 81 21 (7) (13)
Other
Selected
Ratios:
Average
loans to
average
earning
assets 82.93% 80.53% 80.21% 79.77% 78.90%
Average
loans to
average
deposits 96.14% 93.12% 92.95% 92.73% 91.64%
Average
stockholders'
equity to
average
assets 8.33% 8.41% 8.47% 8.60% 8.67%
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of March 31, 2008
South North
Georgia Georgia Florida
Market Market Market Treasury Total
-------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 34,139 $ 46,849 $ 2,318 $ 37 $ 83,343
Agricultural
(including loans
secured by farmland) 29,850 4,530 8,193 -- 42,573
Real estate -
construction 83,499 220,893 58,391 609 363,392
Real estate -
commercial 77,251 136,192 23,262 4,460 241,165
Real estate -
residential 134,756 31,678 8,228 4,429 179,091
Installment loans to
individuals and
others 13,629 5,660 160 6,255 25,704
-------------------------------------------------
373,124 445,802 100,552 15,790 935,268
Deferred loan fees
and unearned
interest, net 282 (253) (363) (7) (341)
-------------------------------------------------
Total loans 373,406 445,549 100,189 15,783 934,927
Allowance for loan
losses (4,973) (9,688) (1,341) 2,127 (13,875)
-------------------------------------------------
Net loans $368,433 $435,861 $ 98,848 $ 17,910 $921,052
=================================================
Percent of total 40.0% 47.3% 10.7% 2.0% 100.0%
=================================================
Deposits
Noninterest-bearing
demand $ 73,106 $ 14,447 $ 3,561 $ 5,915 $ 97,029
Interest-bearing
demand and savings 260,368 40,068 30,157 591 331,184
Time less than
$100,000 157,521 50,493 90,629 156 298,799
Time greater than or
equal to $100,000 98,623 37,631 42,962 100 179,316
Brokered -- -- -- 65,776 65,776
-------------------------------------------------
Total deposits $589,618 $142,639 $167,309 $ 72,538 $972,104
=================================================
Percent of total 60.6% 14.7% 17.2% 7.5% 100.0%
=================================================
PAB BANKSHARES, INC.
LOAN PORTFOLIO
SUMMARY
The amount of loans outstanding at the indicated dates is presented in
the following table according to type of loan:
Period Ended
------------------------------------------------
03/31/08 12/31/07 09/30/07 06/30/07 03/31/07
------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 83,343 $ 78,730 $ 78,556 $ 78,048 $ 69,347
Agricultural
(including loans
secured by farmland) 42,573 41,861 42,608 46,973 38,102
Real estate -
construction 363,392 352,732 339,019 328,347 323,837
Real estate -
commercial 241,165 248,272 257,841 270,978 252,654
Real estate -
residential 179,091 174,157 164,967 161,404 153,025
Installment loans to
individuals and
other loans 25,704 26,011 21,691 20,246 17,958
-------- -------- -------- -------- --------
935,268 921,763 904,682 905,996 854,923
Deferred loan fees
and unearned
interest, net (341) (414) (600) (839) (847)
-------- -------- -------- -------- --------
Total loans 934,927 921,349 904,082 905,157 854,076
Allowance for loan
losses (13,875) (12,906) (11,497) (11,342) (11,085)
-------- -------- -------- -------- --------
Net loans $921,052 $908,443 $892,585 $893,815 $842,991
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
------------------------------------------------
03/31/08 12/31/07 09/30/07 06/30/07 03/31/07
------------------------------------------------
Commercial and
financial 8.91% 8.55% 8.69% 8.62% 8.12%
Agricultural
(including loans
secured by farmland) 4.55% 4.54% 4.71% 5.19% 4.46%
Real estate -
construction 38.87% 38.28% 37.50% 36.27% 37.92%
Real estate -
commercial 25.80% 26.95% 28.52% 29.94% 29.58%
Real estate -
residential 19.16% 18.90% 18.25% 17.83% 17.92%
Installment loans to
individuals and
other loans 2.75% 2.82% 2.40% 2.24% 2.10%
-------- -------- -------- -------- --------
100.04% 100.04% 100.07% 100.09% 100.10%
Deferred loan fees
and unearned
interest, net -0.04% -0.04% -0.07% -0.09% -0.10%
-------- -------- -------- -------- --------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for loan
losses -1.48% -1.40% -1.27% -1.25% -1.30%
-------- -------- -------- -------- --------
Net loans 98.52% 98.60% 98.73% 98.75% 98.70%
======== ======== ======== ======== ========
PAB BANKSHARES, INC.
DEPOSIT PORTFOLIO
SUMMARY
The amounts on deposit at the indicated dates are presented in the
following table according to type of deposit account:
Period Ended
------------------------------------------------
03/31/08 12/31/07 09/30/07 06/30/07 03/31/07
------------------------------------------------
(Dollars In Thousands)
Noninterest-bearing
demand $ 97,029 $ 89,423 $ 91,053 $ 98,862 $107,917
Interest-bearing
demand and savings 331,184 354,743 362,079 349,720 371,484
Time less than
$ 100,000 298,799 312,722 315,532 300,856 287,982
Time greater than or
equal to $100,000 179,316 187,662 172,529 163,973 158,464
Brokered 65,776 35,599 38,599 32,436 28,569
-------- -------- -------- -------- --------
Total deposits $972,104 $980,149 $979,792 $945,847 $954,416
======== ======== ======== ======== ========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
------------------------------------------------
03/31/08 12/31/07 09/30/07 06/30/07 03/31/07
Noninterest-bearing
demand 9.98% 9.12% 9.29% 10.45% 11.31%
Interest-bearing
demand and savings 34.07% 36.19% 36.96% 36.98% 38.92%
Time less than
$100,000 30.74% 31.91% 32.20% 31.78% 30.18%
Time greater than or
equal to $100,000 18.44% 19.15% 17.61% 17.36% 16.60%
Brokered 6.77% 3.63% 3.94% 3.43% 2.99%
-------- -------- -------- -------- --------
Total deposits 100.00% 100.00% 100.00% 100.00% 100.00%
======== ======== ======== ======== ========
PAB BANKSHARES, INC.
YIELD ANALYSIS
The following tables detail the average balances of interest-earning
assets and interest-bearing liabilities, the amount of interest earned
and paid, and the average yields and rates for the three months ended
March 31, 2008 and 2007. Federally tax-exempt income is presented on a
taxable-equivalent basis assuming a 35% Federal tax rate. Loan average
balances include loans on nonaccrual status.
For the Three Months
Ended March 31, 2008 2007
-----------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
-----------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning
assets:
Loans $ 930,049 $16,657 7.20% $ 834,070 $17,685 8.60%
Investment
securities:
Taxable 151,172 1,993 5.30% 157,340 2,012 5.19%
Nontaxable 33,143 504 6.12% 29,333 438 6.05%
Other short-term
investments 7,097 53 3.01% 36,378 469 5.23%
------------------------------------------------------
Total
interest-
earning assets $1,121,461 $19,207 6.89% $1,057,121 $20,604 7.91%
------------------------------------------------------
Interest-bearing
liabilities:
Demand deposits $ 305,907 $ 1,927 2.53% $ 297,988 $ 2,590 3.53%
Savings deposits 35,342 76 0.86% 37,587 147 1.59%
Time deposits 533,563 6,415 4.84% 473,550 5,716 4.90%
FHLB advances 92,454 930 4.05% 90,112 1,052 4.73%
Notes payable 10,310 168 6.57% 10,310 180 7.09%
Other short-term
borrowings 18,418 169 3.69% 9,105 98 4.35%
------------------------------------------------------
Total interest-
bearing
liabilities $ 995,994 $ 9,685 3.91% $ 918,652 $ 9,783 4.32%
------------------------------------------------------
Interest rate
spread 2.98% 3.59%
===== =====
Net interest
income $ 9,522 $10,821
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Net interest
margin 3.41% 4.15%
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