VALDOSTA, Ga., Oct. 29, 2007 (PRIME NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, today announced its financial results for the three months and nine months ended September 30, 2007. The Company reported net income of $2.86 million, or $0.30 per diluted share, for the third quarter of 2007, a 19% decrease compared to net income of $3.53 million, or $0.36 per diluted share, for the third quarter of 2006. The earnings for the third quarter of 2007 generated a return on average equity ("ROE") of 11.63% and a return on average assets ("ROA") of 0.96%, both down from the 15.27% ROE and 1.31% ROA reported for the third quarter of 2006. ""We are pleased to report our financial condition and operating results for the third quarter of 2007. Although our earnings are lower than recent quarters, they are in line with our expectations. With the declining residential housing market and a slowing economy, asset growth and quarterly earnings goals are not as high on our list of priorities as the preservation of our strong capital andmanagement of a healthy balance sheet"," stated Company President and CEO M. Burke Welsh, Jr.
"We have been aggressive in identifying and working through our problem assets. Our risk management philosophy requires a team approach involving everyone from the lending staff to credit administration and collections to help protect our interests. Our team is led by executives that have been through market downturns and workout situations before, and we believe that leadership and experience will help guide us through this current environment," noted Welsh.
For the three months ended September 30, 2007, the impact on earnings from the three de novo branches and the loan production office opened between October 2006 and February 2007 was approximately $385,000, or approximately 4 cents per diluted share. "Excluding charges for loan loss provisions from loan growth, three of the four offices were at or near profitability by the end of the third quarter. We view the initial costs to establish new offices and hire production personnel as investments in the future of our franchise that we expect to pay dividends for us for years to come," stated Welsh.
For the nine months ended September 30, 2007, the Company reported net income of $9.14 million, or $0.95 per diluted share, a 12% decrease compared to $10.4 million, or $1.07 per diluted share, reported for the same period in 2006. The net income for the first nine months of 2007 resulted in a 12.49% ROE and a 1.06% ROA, both declines from the 15.43% ROE and the 1.32% ROA reported for the same period in 2006. For the nine months ended September 30, 2007, the impact on earnings from the three de novo branches and the loan production office opened between October 2006 and February 2007 was approximately $1.1 million, or approximately 12 cents per diluted share.
Asset Quality and Market Conditions
As of September 30, 2007, the Company reported total nonperforming assets of $8.9 million, representing 0.74% of total assets, a $3.9 million, or 31 basis point, increase from June 30, 2007. Total loans past due 30-89 days and not categorized as a nonperforming asset totaled $3.8 million, or 0.42% of total loans at quarter end, a $4.1 million, or 46 basis point, decrease since June 30, 2007 due primarily to a transition of most of those loans through workout situations into nonaccrual status or other real estate. During the third quarter, total loans on nonaccrual status increased $3.2 million, or 161%, to $5.2 million due primarily to the delinquency of four relationships totaling $4.3 million in construction and development loans in the Atlanta and Athens, Georgia MSAs. During the first week of October, the Company foreclosed on $1.6 million of the loans on nonaccrual at the end of the third quarter.
At September 30, 2007, the Company reported a total of 25 residential lots and 27 houses valued at $5.7 million on its balance sheet as nonperforming assets. "We began to see residential real estate activity slow down in certain areas around Atlanta and Jacksonville during the fourth quarter of 2006. These markets have continued to decline into 2007 with inventories rising and valuations declining in several of our markets. The increase in available lot inventories is of the most concern to us as it may take over three years for those lots to be absorbed," stated Welsh.
For the year to date, the Company reported net charge-offs of $109,000, resulting in an annualized 0.02% net charge-offs to average loans ratio. Including these annualized results, the Company has a five-year average net charge-off ratio of 0.09%. During the third quarter of 2007, the Company provided $400,000, or approximately 3 cents per diluted share after taxes, to its allowance for loan losses due to market conditions and specific reserves on certain nonperforming loans. At September 30, 2007, the Company's allowance for loan losses represented 1.27% of total loans and 220.30% of nonperforming loans. "Looking forward, we anticipate having additional losses and more loans to default, but barring unforeseen events or a prolonged downturn in our markets, we do not expect to see a material deterioration in our asset quality," added Welsh.
Balance Sheet Growth
During the third quarter of 2007, the Company's total assets increased $26 million, or 9% on an annualized basis, to $1.2 billion, due primarily to growth in savings and time deposits. Total deposits increased $34 million, or 14% on an annualized basis, to $980 million during the third quarter of 2007. Of the $34 million in deposit growth, $6 million came from an increase in brokered deposits and the remainder came from in-market deposit customers. At September 30, 2007, the Company reported a total of $38.6 million in brokered time deposits, representing 3.9% of total deposits.
Total loans decreased by $1 million to $904 million during the third quarter of 2007 as payoffs outpaced new loan production for the first time since the second quarter of 2003. Since September 30, 2006, total loans increased $97 million, or 12%. "Our loan pipeline remains very active, but we are expecting more payoffs to come in the fourth quarter that will negate much of that new loan volume. We do not expect our new loan production to increase substantially until market conditions stabilize and we see an increase in demand for bankable transactions," stated Welsh.
Net Interest Margin
The Company reported a 3.89% net interest margin for the third quarter of 2007, a 21 basis point decrease from the 4.10% net interest margin for the second quarter of 2007 and a 59 basis point decline from the 4.48% net interest margin for the third quarter of 2006. "Due to a global liquidity crisis stemming from the sub-prime mortgage meltdown, we realized a short-term compression on our margin as the sudden increase in LIBOR caused most of our rate-sensitive funding sources to reprice upward and the subsequent decreases in Treasury rates, Fed Funds and Prime caused most of our rate-sensitive earning assets to reprice downward," stated Company CFO Jay Torbert. Since the second quarter of 2007, the quarterly average rate paid for funds increased 8 basis points from 4.40% to 4.48%, while the quarterly average yield on earning assets decreased 11 basis points from 7.93% to 7.82%. "If short-term interest rates will remain at or below current levels, we believe that our cost of funds may have peaked during the third quarter. During the fourth quarter of 2007, approximately 18% of our time deposits carrying a weighted average rate of 5.13%, all of our demand and savings deposits and all of our other floating rate borrowings are expected to reprice downward. The pressure on our margin in the fourth quarter will likely come from lower yields on our floating rate loans and investments," added Torbert.
Third Quarter Stock Buyback Activity
During the third quarter of 2007, the Company repurchased and cancelled 209,450 shares of its common stock at an average cost of $17.00 per share through the Company's previously announced stock buyback program. At September 30, 2007, there were 90,350 shares remaining in the buyback program for repurchase before May 2008.
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, October 30, 2007. The conference call will be broadcast by Vcall via the Internet using Windows Media Player. The webcast URL is http://www.vcall.com/IC/CEPage.asp?ID=121545. 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) 877-407-0778 or (international) 201-689-8565.
Shortly following the call and at any time for at least 30 days thereafter, interested parties may listen to an archived version of the webcast on the "Investor Relations" section of the Company's website or by dialing (toll free) 877-660-6853 or (International) 201-612-7415. The following replay passcodes will be required for playback access: the account number is 286 and the conference identification number is 257104.
About PABK
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 currently 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, credit losses, loan and deposit growth, interest rates, economic conditions, the effects of our de novo branch expansion, and the anticipated repricing of our deposits and other liabilities, 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 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, 2006. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
(Dollars in thousands except per share and other data)
Period Ended
----------------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
---------------------------------------------------------------------
Summary of
Operations:
Interest
income $ 21,866 $ 21,345 $ 20,451 $ 20,239 $ 20,173
Interest
expense 11,084 10,386 9,783 9,658 8,936
---------------------------------------------------------------------
Net in-
terest
income 10,782 10,959 10,668 10,581 11,237
---------------------------------------------------------------------
Provision for
loan losses 400 200 -- -- --
Other income 1,471 1,359 1,478 1,578 1,204
Other expense 7,471 7,209 7,470 7,230 7,000
---------------------------------------------------------------------
Income be-
fore in-
come tax
expense 4,382 4,909 4,676 4,929 5,441
Income tax
expense 1,523 1,688 1,612 1,632 1,908
---------------------------------------------------------------------
Net
income $ 2,859 $ 3,221 $ 3,064 $ 3,297 $ 3,533
=====================================================================
Net interest
income on
a tax-
equivalent
basis $ 10,948 $ 11,119 $ 10,822 $ 10,732 $ 11,378
Per Share
Ratios:
Net income
- basic $ 0.30 $ 0.34 $ 0.32 $ 0.35 $ 0.37
Net income
- diluted 0.30 0.33 0.32 0.34 0.36
Dividends
declared
for period 0.145 0.145 0.145 0.140 0.140
Dividend
payout ratio 47.14% 42.66% 45.02% 40.35% 37.62%
Book value
at end of
period $ 10.42 $ 10.16 $ 10.26 $ 10.03 $ 9.84
Common Share
Data:
Outstanding
at period
end 9,291,215 9,479,490 9,516,673 9,504,969 9,493,763
Weighted
average out-
standing 9,410,321 9,498,569 9,515,976 9,500,837 9,500,742
Diluted
weighted
average
out-
standing 9,541,922 9,661,696 9,691,233 9,701,593 9,684,451
Selected
Average
Balances:
Total
assets $1,185,839 $1,155,158 $1,124,534 $1,106,404 $1,070,920
Earning
assets 1,117,852 1,087,926 1,057,121 1,041,359 1,007,917
Loans 905,931 876,982 834,070 813,435 805,732
Deposits 970,515 935,100 910,188 887,028 863,212
Stockholders'
equity 97,499 98,678 97,470 95,091 91,821
Selected
Period End
Balances:
Total
assets $1,195,680 $1,169,967 $1,171,845 $1,120,804 $1,095,836
Earning
assets 1,127,873 1,097,888 1,106,808 1,048,239 1,032,261
Loans 904,082 905,158 854,076 820,304 806,636
Allowance
for loan
losses 11,497 11,342 11,085 11,006 10,686
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 979,792 945,847 954,416 908,483 883,701
Stockholders'
equity 96,833 96,290 97,657 95,316 93,440
Tier 1
regulatory
capital 101,647 103,397 102,173 100,330 98,183
Performance
Ratios:
Return on
average
assets 0.96% 1.12% 1.11% 1.18% 1.31%
Return on
average
stockholders'
equity 11.63% 13.10% 12.75% 13.76% 15.27%
Net interest
margin 3.89% 4.10% 4.15% 4.09% 4.48%
Efficiency
ratio (ex-
cluding the
following
items): 60.54% 57.62% 61.54% 59.51% 54.50%
Securities
gains
(losses)
included
in other
income $ 49 $ (38) $ 173 $ 166 $ (278)
Other
gains
(losses)
included
in other
income 28 6 (13) (4) 17
Selected Asset
Quality
Factors:
Nonaccrual
loans $ 5,185 $ 1,986 $ 4,192 $ 4,013 $ 1,928
Loans 90
days or
more past
due and
still
accruing 34 27 69 34 40
Other im-
paired loans
(troubled-
debt restruc-
turings) -- -- -- -- --
Other real
estate and
reposses-
sions 3,676 2,999 362 988 813
Asset Quality
Ratios:
Net charge-
offs to
average
loans (ann-
ualized YTD) 0.02% -0.03% -0.04% 0.01% 0.07%
Nonperforming
loans to
total loans 0.58% 0.22% 0.50% 0.49% 0.24%
Nonperforming
assets to
total assets 0.74% 0.43% 0.39% 0.45% 0.25%
Allowance
for loan
losses to
total loans 1.27% 1.25% 1.30% 1.34% 1.32%
Allowance for
loan losses
to nonper-
forming
loans 220.30% 563.32% 260.13% 271.95% 542.93%
Other Selected
Ratios and
Nonfinancial Data:
Average loans
to average
earning
assets 81.04% 80.61% 78.90% 78.11% 79.94%
Average loans
to average
deposits 93.35% 93.78% 91.64% 91.70% 93.34%
Average stock-
holders'
equity to
average
assets 8.22% 8.54% 8.67% 8.59% 8.57%
Full-time
equivalent
employees 328 322 329 321 309
Bank branch
offices 20 20 20 19 17
Bank loan
production
offices 3 3 3 3 5
Bank ATMs 25 25 25 23 20
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
(Dollars in thousands except per share and other data)
Period Ended
----------------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
---------------------------------------------------------------------
Summary of
Operations:
Interest
income $ 63,663 $ 41,797 $ 20,451 $ 77,566 $ 57,327
Interest
expense 31,253 20,169 9,783 33,555 23,898
---------------------------------------------------------------------
Net inter-
est income 32,410 21,628 10,668 44,011 33,429
---------------------------------------------------------------------
Provision
for loan
losses 600 200 -- -- --
Other income 4,309 2,838 1,478 5,380 3,802
Other expense 22,150 14,679 7,470 28,167 20,937
---------------------------------------------------------------------
Income be-
fore in-
come tax
expense 13,969 9,587 4,676 21,224 16,294
Income tax
expense 4,823 3,300 1,612 7,488 5,856
---------------------------------------------------------------------
Net
income $ 9,146 $ 6,287 $ 3,064 $ 13,736 $ 10,438
=====================================================================
Net interest
income on
a tax-equi-
valent
basis $ 32,889 $ 21,941 $ 10,822 $ 44,507 $ 33,775
Per Share
Ratios:
Net income
- basic $ 0.96 $ 0.66 $ 0.32 $ 1.45 $ 1.10
Net income
- diluted 0.95 0.65 0.32 1.41 1.07
Dividends
declared
for the
period 0.435 0.290 0.145 0.540 0.400
Dividend
payout
ratio 44.85% 43.81% 45.02% 37.36% 36.41%
Common Share
Data:
Weighted
average out-
standing 9,474,568 9,507,224 9,515,976 9,499,434 9,498,962
Diluted
weighted
average out-
standing 9,631,175 9,676,672 9,691,233 9,706,989 9,707,786
Selected
Average
Balances:
Total
assets $1,155,401 $1,139,930 $1,124,534 $1,067,362 $1,054,205
Earning
assets 1,087,855 1,072,608 1,057,121 1,004,981 992,719
Loans 872,591 855,644 834,070 792,278 785,148
Deposits 938,822 922,713 910,188 859,216 849,844
Stockholders'
equity 97,883 98,077 97,470 91,611 90,438
Performance
Ratios:
Return on
average
assets 1.06% 1.11% 1.11% 1.29% 1.32%
Return on
average
stockholders'
equity 12.49% 12.93% 12.75% 14.99% 15.43%
Net interest
margin 4.04% 4.13% 4.15% 4.43% 4.55%
Efficiency
ratio (ex-
cluding the
following
items): 59.88% 59.55% 61.54% 55.88% 54.73%
Securities
gains
(losses)
included
in other
income $ 184 $ 135 $ 173 $ (542) $ (708)
Other
gains
(losses)
included
in other
income 21 (7) (13) 23 27
Other Selected
Ratios:
Average loans
to average
earning
assets 80.21% 79.77% 78.90% 78.84% 79.09%
Average
loans to
average
deposits 92.95% 92.73% 91.64% 92.21% 92.39%
Average
stockholders'
equity to
average
assets 8.47% 8.60% 8.67% 8.58% 8.58%
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of September 30, 2007
South North
Georgia Georgia Florida
Market Market Market Treasury Total
----------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 34,697 $ 42,769 $ 1,051 $ 39 $ 78,556
Agricultural
(including loans
secured by
farmland) 34,597 4,743 3,268 -- 42,608
Real estate -
construction 73,119 219,109 46,346 445 339,019
Real estate -
commercial 88,313 141,969 22,852 4,707 257,841
Real estate -
residential 126,756 26,560 8,681 2,970 164,967
Installment loans
to individuals
and others 14,840 5,030 73 1,748 21,691
----------------------------------------------------
372,322 440,180 82,271 9,909 904,682
Deferred loan fees
and unearned
interest, net 278 (501) (388) 11 (600)
----------------------------------------------------
Total loans 372,600 439,679 81,883 9,920 904,082
Allowance for loan
losses (4,550) (6,332) (963) 348 (11,497)
----------------------------------------------------
Net loans $ 368,050 $ 433,347 $ 80,920 $ 10,268 $ 892,585
====================================================
Percent of total 41.2% 48.5% 9.1% 1.2% 100.0%
====================================================
Deposits
Noninterest-bearing
demand $ 64,384 $ 15,269 $ 5,407 $ 5,993 $ 91,053
Interest-bearing
demand and
savings 274,021 51,515 36,088 455 362,079
Time less than
$100,000 166,805 52,401 95,632 694 315,532
Time greater than
or equal to
$100,000 86,618 42,495 43,216 200 172,529
Brokered -- -- -- 38,599 38,599
----------------------------------------------------
Total deposits $ 591,828 $ 161,680 $ 180,343 $ 45,941 $ 979,792
====================================================
Percent of total 60.4% 16.5% 18.4% 4.7% 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
-----------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
-----------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 78,556 $ 78,048 $ 69,347 $ 66,376 $ 60,413
Agricultural
(including loans
secured by
farmland) 42,608 46,973 38,102 43,302 44,716
Real estate -
construction 339,019 328,347 323,837 295,246 297,026
Real estate -
commercial 257,841 270,978 252,654 255,462 253,586
Real estate -
residential 164,967 161,404 153,025 142,501 133,983
Installment loans
to individuals
and other loans 21,691 20,246 17,958 18,414 18,211
--------- --------- --------- --------- ---------
904,682 905,996 854,923 821,301 807,935
Deferred loan fees
and unearned
interest, net (600) (839) (847) (997) (1,299)
--------- --------- --------- --------- ---------
Total loans 904,082 905,157 854,076 820,304 806,636
Allowance for
loan losses (11,497) (11,342) (11,085) (11,006) (10,686)
--------- --------- --------- --------- ---------
Net loans $ 892,585 $ 893,815 $ 842,991 $ 809,298 $ 795,950
========= ========= ========= ========= =========
The percentage of loans outstanding at the indicated dates is presented
in the following table according to type of loan:
Period Ended
----------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
----------------------------------------------------
Commercial and
financial 8.69% 8.62% 8.12% 8.09% 7.49%
Agricultural
(including loans
secured by
farmland) 4.71% 5.19% 4.46% 5.28% 5.54%
Real estate -
construction 37.50% 36.27% 37.92% 35.99% 36.82%
Real estate -
commercial 28.52% 29.94% 29.58% 31.14% 31.44%
Real estate -
residential 18.25% 17.83% 17.92% 17.37% 16.61%
Installment loans
to individuals
and other loans 2.40% 2.24% 2.10% 2.25% 2.26%
--------- --------- --------- --------- ---------
100.07% 100.09% 100.10% 100.12% 100.16%
Deferred loan fees
and unearned
interest, net -0.07% -0.09% -0.10% -0.12% -0.16%
--------- --------- --------- --------- ---------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -1.27% -1.25% -1.30% -1.34% -1.32%
--------- --------- --------- --------- ---------
Net loans 98.73% 98.75% 98.70% 98.66% 98.68%
========= ========= ========= ========= =========
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
-----------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
-----------------------------------------------------
(Dollars In Thousands)
Noninterest-bearing
demand $ 91,053 $ 98,862 $ 107,917 $ 100,911 $ 100,703
Interest-bearing
demand and
savings 362,079 349,720 371,484 328,828 316,385
Time less than
$100,000 315,532 300,856 287,982 279,936 273,697
Time greater than
or equal to
$100,000 172,529 163,973 158,464 161,054 151,075
Brokered 38,599 32,436 28,569 37,754 41,841
--------- --------- --------- --------- ---------
Total deposits $ 979,792 $ 945,847 $ 954,416 $ 908,483 $ 883,701
========= ========= ========= ========= =========
The percentage of total deposits at the indicated dates is presented in
the following table according to type of deposit account:
Period Ended
-----------------------------------------------------
09/30/07 06/30/07 03/31/07 12/31/06 09/30/06
-----------------------------------------------------
Noninterest-bearing
demand 9.29% 10.45% 11.31% 11.11% 11.40%
Interest-bearing
demand and
savings 36.96% 36.98% 38.92% 36.19% 35.80%
Time less than
$100,000 32.20% 31.78% 30.18% 30.81% 30.97%
Time greater than
or equal to
$100,000 17.61% 17.36% 16.60% 17.73% 17.10%
Brokered 3.94% 3.43% 2.99% 4.16% 4.73%
--------- --------- --------- --------- ---------
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 and nine
months ended September 30, 2007 and 2006. 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
September 30, 2007 2006
-------------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
-------------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning assets:
Loans $ 905,931 $ 19,243 8.43% $ 805,732 $ 17,717 8.72%
Investment securities:
Taxable 159,089 2,052 5.12% 155,807 1,949 4.96%
Nontaxable 31,503 476 5.99% 27,050 402 5.90%
Other short-term
investments 21,329 261 4.86% 19,327 246 5.06%
------------------- --------------------
Total
interest-earning
assets $ 1,117,852 $ 22,032 7.82% $ 1,007,916 $ 20,314 7.99%
------------------- --------------------
Interest-bearing liabilities:
Demand deposits $ 317,651 $ 2,983 3.73% $ 271,228 $ 2,281 3.34%
Savings deposits 37,494 146 1.55% 38,701 143 1.47%
Time deposits 516,895 6,627 5.09% 454,902 5,125 4.47%
FHLB advances 87,333 1,005 4.57% 90,423 1,074 4.71%
Notes payable 10,310 184 7.09% 10,310 240 9.25%
Other short-term
borrowings 12,826 139 4.31% 7,240 73 3.99%
------------------- --------------------
Total
interest-bearing
liabilities $ 982,509 $ 11,084 4.48% $ 872,804 $ 8,936 4.06%
------------------- --------------------
Interest rate spread 3.34% 3.93%
===== =====
Net interest income $ 10,948 $ 11,378
======== ========
Net interest margin 3.89% 4.48%
===== =====
For the Nine Months Ended
September 30, 2007 2006
-------------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
-------------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning assets:
Loans $ 872,591 $ 55,640 8.53% $ 785,148 $ 49,941 8.50%
Investment securities:
Taxable 159,758 6,150 5.15% 153,208 5,621 4.91%
Nontaxable 30,410 1,371 6.03% 22,481 989 5.88%
Other short-term
investments 25,096 981 5.23% 31,882 1,122 4.71%
------------------- --------------------
Total
interest-earning
assets $ 1,087,855 $ 64,142 7.88% $ 992,719 $ 57,673 7.77%
------------------- ---------------------
Interest-bearing liabilities:
Demand deposits $ 308,984 $ 8,393 3.63% $ 264,187 $ 5,912 2.99%
Savings deposits 37,689 444 1.57% 39,991 384 1.29%
Time deposits 491,710 18,399 5.00% 444,502 13,998 4.21%
FHLB advances 89,309 3,094 4.63% 90,062 2,767 4.11%
Notes payable 10,310 546 7.08% 10,310 686 8.90%
Other short-term
borrowings 11,727 377 4.30% 6,445 151 3.12%
------------------- --------------------
Total
interest-bearing
liabilities $ 949,729 $ 31,253 4.40% $ 855,497 $ 23,898 3.74%
-------------------- ---------------------
Interest rate spread 3.48% 4.03%
===== =====
Net interest income $ 32,889 $ 33,775
======== ========
Net interest margin 4.04% 4.55%
===== =====