Reports Fiscal Year 2008 Net Income of $4.0 Million or $1.55 Per Share
Fourth Quarter Net Income of $0.5 Million or $0.20 Per Share
Board Declares Dividend of $0.10 Per Share
NEW YORK, May 30, 2008 (PRIME NEWSWIRE) -- Carver Bancorp, Inc. (the "Company") (Nasdaq:CARV), the holding company for Carver Federal Savings Bank ("Carver Federal" or the "Bank"), today announced financial results for its fiscal year ("fiscal 2008") and fourth quarter ended March 31, 2008.
The Company reported net income of $4.0 million and diluted earnings per share of $1.55 for fiscal 2008 compared to net income of $2.6 million and diluted earnings per share of $1.00 for fiscal 2007. For the fourth quarter ended March 31, 2008, the Company reported net income of $0.5 million, or $0.20 per diluted share, compared to net income of $1.3 million, or $0.50 per diluted share, for the prior year period. Fourth quarter net income reflects an operating loss of $0.1 million compared to operating income of $0.8 million for the prior year period.
Commenting on fiscal 2008 and fourth quarter results, Deborah C. Wright, Chairman and Chief Executive Officer, said:
"Fiscal 2008 was a particularly challenging year for Carver, driven in part by the yield curve and disruptions in credit markets, followed by the threat of recession. Nevertheless our business held up well, as the impact of national events has not been as apparent in our core markets. Reported earnings increased 54% from fiscal 2007, but were flat when removing the impact of fiscal 2007's merger and balance sheet restructuring. We are pleased to report that net interest income grew to a record level of over $25 million, following an increase in our net interest margin of 18 basis points to 3.62%. This margin expansion resulted from a 7.8% increase in loans and deposit growth of 6.4%, although consistent with our peers, core deposits are migrating to higher priced CDs. Importantly, credit quality remained strong with non-performing loans at 0.50% of total assets.
"For the fourth quarter, net income was $0.5 million, however, we generated an operating loss, largely based on the substantial expansion of non-interest expense of $1.7 million. The increase in expense falls into three categories: regulatory requirements (preparation for compliance with Sarbanes-Oxley Act Section 404 and recent Inter-Agency Guidance on Allowances for Loan Losses); strengthening our back office, including the accounting, lending and retail operations departments, by adding new staff and providing temporary expertise; and engaging consultants to assist the management team to analyze significant opportunities to improve financial results. For example, we engaged consultants to conduct a rigorous business optimization review to help us identify further improvements in our operations, in part through greater systems integration. While these investments impact near-term results, they are fundamental to building the scale and infrastructure necessary for the Company to grow profitably. During this fiscal year, we will outline specific steps to improve efficiency and return on equity. The first step should occur next quarter when we expect to complete outsourcing of our residential lending department. We expect that this arrangement will expand our product base and improve customer service, while reducing costs to the Company."
Ms. Wright also announced that on May 29, 2008, the Company's Board of Directors declared a cash dividend on its common stock of ten cents ($0.10) per share for the fourth quarter. "This dividend reflects the Board of Directors' continued confidence in Carver's long-term growth and earnings outlook." The dividend will be payable on June 27, 2008, to stockholders of record at the close of business on June 13, 2008.
Fiscal 2008 Results
Net income rose 54.1% over fiscal year 2007 to $4.0 million, and primarily reflects increases in net interest income of $3.0 million and non-interest income of $5.0 million, offset by an increase in non-interest expense of $6.5 million.
Interest income increased 15.3% ($6.4 million) to $48.1 million reflecting an increase in total average balances of interest-earning assets of $49.5 million, which includes an increase in average loan balances of $81.5 million offset by decreases in average balances of mortgage-backed securities of $25.6 million, investment securities of $4.3 million and Federal funds sold of $2.1 million. Yields on interest-earning assets increased 46 basis points, which include increases in yields on loans of 28 basis points, mortgage-backed securities of 85 basis points and investment securities of 138 basis points, offset by a decrease in yields on Federal funds sold of 81 basis points.
Interest expense increased 17.8% ($3.4 million) to $22.7 million reflecting a 28 basis point increase in the average cost of interest-bearing liabilities to 3.49% and growth in the average balance of interest-bearing liabilities of $50.0 million to $648.5 million. The increase in interest expense was primarily the result of growth in the average balance of certificates of deposit of $58.5 million over the prior year period to $370.9 million.
The Bank provided $0.2 million in provision for loan losses for fiscal 2008 compared to $0.3 million for the prior year period. At a 0.43% ratio, the level of non-performing loans to total loans receivable remains within the range the Bank has experienced over the trailing twelve quarters. The Bank's future levels of non-performing loans will be influenced by economic conditions, including the impact of those conditions on the Bank's customers, interest rates and other internal and external factors existing at the time.
Non-interest income increased 174.0% ($5.0 million) over the prior year period to $7.9 million, primarily due to increases in other income of $2.4 million, gain on sale of securities of $1.1 million, write-down for the prior year period of loans held for sale of $0.7 million and an increase in loan fees and service charges of $0.4 million. Other non-interest income primarily consists of a $1.7 million fee generated by a New Markets Tax Credit ("NMTC") transaction. The Bank will receive additional non-interest income over the next eight years from this transaction. Further, as a result of the NMTC transaction, other income increased by $0.2 million reflecting consolidation of income from minority interest. In addition, the prior year period included a $1.3 million charge associated with a balance sheet restructuring implemented to improve margins.
Non-interest expense increased 28.0% ($6.5 million) over the prior year period to $29.9 million, primarily due to increases in employee compensation and benefits of $2.9 million, net occupancy expense of $0.9 million and other expenses of $3.6 million. The increase in employee compensation and benefits is primarily due to the Community Capital Bank acquisition and investments in new talent in the retail, lending and accounting units. The $3.6 million increase in other expense includes consulting assistance on several projects and costs recognized following termination of a potential strategic transaction. The prior year period expense included $1.3 million in merger related expenses.
Income tax benefit increased 7.0% ($0.1 million) over the prior year period to $0.9 million, resulting in a net tax benefit of $0.9 million, which includes a minority interest tax expense of $0.1 million, compared to a net tax benefit of $0.8 million for the prior year period. The increase in tax benefit reflects income before income taxes of $3.2 million for fiscal 2008 compared to $1.8 million for the prior year period. The income tax expense of $1.0 million for fiscal 2008 was offset by the tax benefit generated by the NMTC investment totaling $2.0 million. The Bank's NMTC award received in June 2006 has been fully invested. The Company expects to receive additional NMTC tax benefits of approximately $12.1 million from its $40.0 million investment over approximately six years.
Fourth-Quarter Results
Net income declined 61.4% ($0.8 million) to $0.5 million compared to the prior year period, primarily the result of an increase in non-interest expense of $1.7 million, offset by an increase in non-interest income of $0.8 million and an increase in income tax benefit of $0.2 million. Fourth quarter net income reflects an operating loss of $0.1 million compared to operating income of $0.8 million for the prior year period.
Interest income increased 2.6% ($0.3 million) over the prior year period to $11.8 million, which primarily reflects an increase in interest on loans of $0.5 million, offset by a decrease in interest on investment securities of $0.2 million. These results were primarily driven by an increase in average loan balances. The average loan balance increased by $48.3 million to $658.5 million and yields on loans decreased 21 basis points to 6.63% in the quarter. The increase in the average loan balance primarily reflects an increase in originations of construction and commercial loans.
Interest expense increased 7.3% ($0.4 million) over the prior year period to $5.7 million, primarily the result of a 4 basis point increase in the annualized average cost of interest-bearing liabilities to 3.48%. Additionally, the average balance of interest-bearing liabilities increased 4.9% ($30.9 million) to $659.8 million. The increase in interest expense was primarily the result of growth in the average balance of certificates of deposit of $41.1 million to $397.1 million. Interest paid on certificates of deposit increased 10.2% ($0.4 million) over the prior year period to $4.3 million.
The Bank did not provide additional provision for loan losses for the fourth quarter compared to $0.2 million for the prior year period. On March 31, 2008, non-performing loans totaled $2.9 million, or 0.43% of total loans receivable. The level of non-performing assets to total assets, at 0.50%, remains within the range the Bank has experienced over the trailing twelve quarters.
Total non-interest income increased 61.6% ($0.8 million) over the prior year period to $2.1 million. The increase in non-interest income was primarily due to net gain on sale of securities of $0.3 million, net gain on sale of loans of $0.2 million and other income of $0.4 million. Other income primarily reflects consolidation of income from minority interest of $0.2 million. Depository fees increased $0.1 million primarily due to ATM/Debit-card fees.
Non-interest expense increased 26.7% ($1.7 million) over the prior year period to $8.2 million. The increase in non-interest expense was primarily due to an increase of $0.5 million in employee compensation and benefits to $3.6 million, $0.2 million in net occupancy expense to $0.9 million and $1.1 million in other non-interest expense to $3.2 million. The $0.5 million increase in employee compensation and benefits primarily reflects investments in new talent for the retail, lending and accounting units. The $1.1 million increase in other non-interest expense includes consulting assistance on certain projects.
For the quarter ended March 31, 2008, income tax benefit increased 44.6% ($0.2 million) over the prior year period to $0.7 million. The increase in tax benefit reflects a loss before income taxes of $0.1 million for the quarter ended March 31, 2008 compared to income before income taxes of $0.8 million for the prior year period. The current period income tax benefit of $0.7 million consisted of a tax benefit of $0.2 million related to operating losses and a benefit generated by the NMTC award of $0.6 million.
Financial Condition Highlights
At March 31, 2008, total assets increased 7.6% ($56.5 million) to $796.4 million compared to March 31, 2007, primarily the result of increases in loans receivable and loans held-for-sale of $47.4 million, other assets of $27.4 million and cash and cash equivalents of $10.0 million, partially offset by decreases in investment securities of $28.9 million and Federal Home Loan Bank of New York stock of $1.6 million.
Total loans receivable, including loans held-for-sale, increased 7.8% ($47.4 million) to $656.6 million compared to March 31, 2007, primarily the result of an increase in commercial real estate loans of $35.3 million and an increase in construction loans of $21.8 million, offset by a decrease of multi-family loans of $10.2 million. Other assets increased 191.4% ($27.4 million) to $41.7 million compared to March 31, 2007, primarily due to a $19.0 million NMTC transaction on December 31, 2007, which increased both other assets and minority interest. Additionally, other assets consisted of a settlement receivable of $7.6 million from the sale of certain investments. Cash and cash equivalents increased 57.7% ($10.0 million) to $27.4 million compared to March 31, 2007, primarily due to a $9.2 million increase in Federal funds sold and a $1.3 million increase in cash and due from banks. Office properties and equipment increased on a net basis by 7.9% ($1.2 million) to $15.8 million compared to March 31, 2007, primarily the result of adding new office space to consolidate back-office operations and opening of a new ATM center.
At March 31, 2008, total liabilities increased by 5.1% ($34.7 million) to $723.1 million compared to March 31, 2007, primarily the result of $39.5 million of additional deposits, offset by decreases of $2.5 million in advances and borrowed money and $2.3 million of other liabilities. The increase in deposit balances was largely the result of an increase in certificates of deposit of $52.8 million, which were offset by decreases of $12.1 million in savings and $1.5 million in money market accounts. The decrease in advances and borrowed money was primarily the result of a reduction of $32.5 million in FHLB advances, offset by an increase in repurchase obligations of $30.0 million at March 31, 2008 compared to no repurchase obligations at March 31, 2007. Other liabilities decreased primarily due to a decrease of $1.5 million in retail liabilities. Minority interest of $19.0 million relates to the NMTC transaction, previously described.
At March 31, 2008, total stockholders' equity increased 5.3% ($2.7 million) to $54.4 million compared to March 31, 2007, primarily due to net income for fiscal 2008 of $4.0 million, partially offset by dividends paid of $1.0 million, repurchase of common stock totaling $0.4 million and a favorable pension valuation adjustment of $0.2 million.
Stock Repurchase Program
During the quarter ended March 31, 2008, the Company purchased an additional 6,800 shares of common stock under its stock repurchase program. To date, the Company has purchased 159,474 shares out of a total 231,635 shares approved under the program, at an average price per share of $16.36. The number of shares yet to be repurchased under the program is 72,161 shares.
Asset Quality
At March 31, 2008, non-performing assets totaled $4.0 million, or 0.50% of total assets, compared to $4.5 million, or 0.61% of total assets at March 31, 2007. The ratio of the allowance for loan losses to non-performing loans was 170.9% at March 31, 2008 compared to 119.9% at March 31, 2007. The ratio of the allowance for loan losses to total loans was 0.74% at March 31, 2008 compared to 0.89% at March 31, 2007.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates ten full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. For further information, please visit the Company's website at www.carverbank.com.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks and uncertainties. More information about these factors, risks and uncertainties is contained in our filings with the Securities and Exchange Commission.
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except per share data)
March 31, March 31,
2008 2007
--------- ---------
(Unaudited)
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 15,920 $ 14,619
Federal funds sold 10,500 1,300
Interest earning deposits 948 1,431
--------- ---------
Total cash and cash equivalents 27,368 17,350
Securities:
Available-for-sale, at fair value (including
pledged as collateral of $20,621 and $34,649
at March 31, 2008 and 2007, respectively) 20,865 47,980
Held-to-maturity, at amortized cost (including
pledged as collateral of $16,643 and $18,581
at March 31, 2008 and 2007, respectively;
fair value of $17,493 and $19,005 at March 31,
2008 and 2007, respectively) 17,307 19,137
--------- ---------
Total securities 38,172 67,117
Loans held-for-sale 23,767 23,226
Loans receivable:
Real estate mortgage loans 578,957 533,667
Consumer and commercial business loans 53,837 52,293
Allowance for loan losses (4,878) (5,409)
--------- ---------
Total loans receivable, net 627,916 580,551
Office properties and equipment, net 15,780 14,626
Federal Home Loan Bank of New York stock, at cost 1,625 3,239
Bank owned life insurance 9,141 8,795
Accrued interest receivable 4,063 4,335
Goodwill 6,370 5,716
Core deposit intangibles, net 532 684
Other assets 41,709 14,313
--------- ---------
Total assets $ 796,443 $ 739,952
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 654,663 $ 615,122
Advances from the FHLB-New York and other
borrowed money 58,625 61,093
Other liabilities 9,772 12,110
--------- ---------
Total liabilities 723,060 688,325
Minority interest 19,000 --
Stockholders' equity:
Common stock (par value $0.01 per share:
10,000,000 shares authorized; 2,524,691 shares
issued; 2,481,706 and 2,507,985 shares
outstanding at March 31, 2008 and 2007,
respectively) 25 25
Additional paid-in capital 24,113 23,996
Retained earnings 30,490 27,436
Unamortized awards of common stock under ESOP
and MRP -- (4)
Treasury stock, at cost (42,985 and 16,706
shares at March 31, 2008 and 2007,
respectively) (670) (277)
Accumulated other comprehensive income 425 451
--------- ---------
Total stockholders' equity 54,383 51,627
--------- ---------
Total liabilities and stockholders' equity $ 796,443 $ 739,952
========= =========
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
March 31, March 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Interest Income:
Loans $ 10,920 $ 10,385 $ 44,499 $ 37,277
Mortgage-backed securities 577 547 2,071 2,877
Investment securities 251 500 1,434 1,325
Federal funds sold 19 38 128 261
-------- -------- -------- --------
Total interest income 11,767 11,470 48,132 41,740
Interest expense:
Deposits 4,896 4,568 18,866 15,227
Advances and other borrowed
money 828 769 3,790 4,007
-------- -------- -------- --------
Total interest expense 5,724 5,337 22,656 19,234
-------- -------- -------- --------
Net interest income 6,043 6,133 25,476 22,506
Provision for loan losses -- 156 222 276
-------- -------- -------- --------
Net interest income after
provision for loan losses 6,043 5,977 25,254 22,230
Non-interest income:
Depository fees and charges 687 585 2,669 2,476
Loan fees and service charges 410 542 1,628 1,238
Write-down of loans held for
sale -- -- -- (702)
Gain (loss) on sale of
securities 250 -- 431 (624)
Gain on sale of loans 219 51 323 192
Loss on sale of real estate
owned -- -- -- (108)
Other 527 117 2,810 397
-------- -------- -------- --------
Total non-interest income 2,093 1,295 7,861 2,869
Non-interest expense:
Employee compensation and
benefits 3,592 3,043 13,323 10,470
Net occupancy expense 917 759 3,590 2,667
Equipment, net 520 550 2,451 2,071
Merger related expenses -- -- -- 1,258
Other 3,178 2,127 10,506 6,873
-------- -------- -------- --------
Total non-interest expense 8,207 6,479 29,870 23,339
Income (loss) before income
taxes and minority interest (71) 793 3,245 1,760
Income tax benefit (713) (493) (881) (823)
Minority interest, net of taxes 146 -- 146 --
-------- -------- -------- --------
Net income $ 496 $ 1,286 $ 3,980 $ 2,583
======== ======== ======== ========
Earnings per common share:
Basic $ 0.20 $ 0.51 $ 1.60 $ 1.03
======== ======== ======== ========
Diluted $ 0.20 $ 0.50 $ 1.55 $ 1.00
======== ======== ======== ========
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(In thousands)
(Unaudited)
For the Three Months Ended March 31,
--------------------------------------------------
2008 2007
------------------------- ------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------- ------- ------- -------- -------- -------
Interest Earning
Assets:
Loans(1) $658,455 $10,920 6.63% $610,117 $10,385 6.84%
Mortgage-backed
securities 43,098 577 5.36% 41,694 547 5.25%
Investment
securities(2) 10,449 251 9.63% 34,162 500 5.85%
Fed funds sold 2,882 19 2.64% 2,989 38 5.09%
-------- ------- ----- -------- ------- -----
Total interest-
earning assets 714,884 11,767 6.58% 688,962 11,470 6.69%
Non-interest-earning
assets 72,430 48,373
-------- --------
Total assets $787,314 $737,335
======== ========
Interest Bearing
Liabilities:
Deposits:
Now demand $ 22,718 22 0.39% $ 26,600 29 0.44%
Savings and clubs 126,581 192 0.61% 136,315 250 0.74%
Money market 44,285 341 3.09% 49,461 349 2.86%
Certificates of
deposit 397,129 4,332 4.38% 356,068 3,932 4.48%
Mortgagors deposits 2,386 9 1.51% 2,012 8 1.61%
-------- ------- ----- -------- ------- -----
Total deposits 593,099 4,896 3.31% 570,456 4,568 3.25%
Borrowed money 66,713 828 4.98% 58,430 769 5.34%
-------- ------- ----- -------- ------- -----
Total interest-
bearing
liabilities 659,812 5,724 3.48% 628,886 5,337 3.44%
Non-interest-bearing
liabilities:
Demand 49,111 48,540
Other liabilities 24,856 11,351
-------- --------
Total liabilities 733,779 688,777
Stockholders' equity 53,535 48,558
-------- --------
Total liabilities
& stockholders'
equity $787,314 $737,335
======== ------- ======== -------
Net interest income $ 6,043 $ 6,133
======= =======
Average interest
rate spread 3.10% 3.25%
===== =====
Net interest margin 3.38% 3.56%
===== =====
(1) Includes non-accrual loans
(2) Includes FHLB-NY stock
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(In thousands)
(Unaudited)
For the Year Ended March 31,
--------------------------------------------------
2008 2007
------------------------- ------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------- ------- ------- -------- -------- -------
Interest Earning
Assets:
Loans(1) $639,583 $44,499 6.96% $558,058 $37,278 6.68%
Mortgage-backed
securities 39,079 2,071 5.30% 64,682 2,877 4.45%
Investment
securities(2) 22,902 1,434 6.26% 27,161 1,325 4.88%
Fed funds sold 3,007 128 4.26% 5,145 261 5.07%
-------- ------- ----- -------- ------- -----
Total interest-
earning assets 704,571 48,132 6.83% 655,046 41,741 6.37%
Non-interest-earning
assets 63,440 44,576
-------- --------
Total assets $768,011 $699,622
======== ========
Interest Bearing
Liabilities:
Deposits:
Now demand $ 24,660 138 0.56% $ 25,313 98 0.39%
Savings and clubs 131,627 1,004 0.76% 136,785 931 0.68%
Money market 44,688 1,193 2.67% 43,303 1,133 2.62%
Certificates of
deposit 370,933 16,489 4.45% 312,452 13,036 4.17%
Mortgagors deposits 2,687 42 1.56% 2,154 30 1.39%
-------- ------- ----- -------- ------- -----
Total deposits 574,595 18,866 3.28% 520,007 15,228 2.93%
Borrowed money 73,880 3,790 5.13% 78,853 4,007 5.08%
-------- ------- ----- -------- ------- -----
Total interest-
bearing
liabilities 648,475 22,656 3.49% 598,860 19,235 3.21%
Non-interest-bearing
liabilities:
Demand 51,713 40,677
Other liabilities 12,803 10,739
-------- --------
Total liabilities 712,991 650,276
Stockholders' equity 55,020 49,346
-------- --------
Total liabilities
& stockholders'
equity $768,011 $699,622
======== ------- ======== -------
Net interest income $25,476 $22,506
======= =======
Average interest
rate spread 3.34% 3.16%
===== =====
Net interest margin 3.62% 3.44%
===== =====
(1) Includes non-accrual loans
(2) Includes FHLB-NY stock
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED KEY RATIOS
(Unaudited)
Three Months Ended Year Ended
March 31, March 31,
-------------------- --------------------
Selected Statistical Data: 2008 2007 2008 2007
--------- --------- --------- ---------
Return on average assets(1) 0.25% 0.70% 0.52% 0.37%
Return on average equity(2) 3.71 10.59 7.23 5.23
Net interest margin(3) 3.38 3.56 3.62 3.44
Interest rate spread(4) 3.10 3.25 3.34 3.16
Efficiency ratio(5) 103.79 87.22 90.31 91.98
Operating expenses to
average assets(6) 4.29 3.51 3.92 3.34
Average equity to average
assets(7) 6.80 6.59 7.16 7.05
Average interest-earning
assets to average
interest-bearing
liabilities 1.08x 1.10x 1.09x 1.09x
Net income per share -
basic $0.20 $0.51 $1.60 $1.03
Net income per share -
diluted $0.20 $0.50 $1.55 $1.00
Average shares outstanding
- basic 2,483,414 2,511,978 2,491,970 2,511,226
Average shares outstanding
- diluted 2,543,456 2,566,107 2,561,284 2,567,928
Cash dividends $0.10 $0.09 $0.40 $0.35
Dividend payout ratio(8) 50.60% 17.59% 24.50% 34.04%
March 31,
--------------------
2008 2007
--------- ---------
Capital Ratios:
---------------
Tier I leverage capital
ratio(9) 7.79 7.97
Tier I risk-based capital
ratio(9) 9.53 9.51
Total risk-based capital
ratio(9) 10.28 10.39
Asset Quality Ratios:
---------------------
Non performing assets to
total assets(10) 0.50% 0.61%
Non performing loans to
total loans receivable 0.43 0.74
Allowance for loan losses
to total loans receivable 0.74 0.89
Allowance for loan losses
to non-performing loans 170.89 119.93
(1) Net income, annualized, divided by average total assets.
(2) Net income, annualized, divided by average total equity.
(3) Net interest income, annualized, divided by average
interest-earning assets.
(4) Combined weighted average interest rate earned less combined
weighted average interest rate cost.
(5) Operating expenses divided by sum of net interest income plus
non-interest income.
(6) Non-interest expenses, annualized, divided by average total
assets.
(7) Average equity divided by average assets for the period ended.
(8) Dividends paid on common stock during the period divided by net
income for the period.
(9) These ratios reflect consolidated bank only.
(10) Non performing assets consist of non-accrual loans, loans
accruing 90 days or more past due and real estate owned.