GAINESVILLE, Ga., Jan. 18, 2006 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a multi-bank holding company with six community banks in markets surrounding Atlanta, Georgia, reported fiscal year 2005 net income of $12.0 million compared with $9.8 million for 2004, an increase of 21.9 percent. Over the last twelve months, loans and deposits increased 28.7 percent and 28.8 percent, respectively, generating recurring revenue growth of 33.1 percent for 2005 compared with the prior year.
Diluted earnings per share for 2005 were $0.93 compared with $1.04 for the prior-year period. Earnings per share were impacted by the $2.9 million increase in loan loss provision taken in the second quarter of 2005 to reserve for the charge-off of a deteriorated loan inherited with our acquisition of HomeTown Bank of Villa Rica ("HTB"). The additional provision lowered net income by $1.8 million after-tax, or $0.15 per diluted share. Per share results were also impacted by a 36.6 percent increase in average shares to 12,938,000 arising from shares issued in connection with three bank acquisitions over the past 18 months and a public offering of 1,651,680 shares of the Company's common stock completed in the fourth quarter of 2004.
For the fourth quarter of 2005, the Company reported net income of $3.7 million, an increase of 24.0 percent above the $3.0 million reported for the prior-year period. Diluted earnings per share for the fourth quarter of 2005 were $0.28 versus $0.27 for the prior-year period, an increase of 3.7 percent. The per share comparison reflects a 19.1 percent increase in average diluted shares to 13,103,000; the increase arose from shares issued in connection with the acquisition of First National Bank of Gwinnett ("FNBG") and the public offering.
At a meeting held on January 16, 2006, the board of directors of GB&T Bancshares declared a first quarter cash dividend of $0.085 per share on the Company's common stock. The dividend is payable on February 10, 2006, to stockholders of record at the close of business on January 31, 2006.
The returns on average assets ("ROA") and average equity ("ROE") for fiscal 2005 were 0.80 percent and 6.06 percent, respectively, compared with 0.91 percent and 8.32 percent for fiscal 2004. Adjusted to exclude intangibles, the returns on average tangible assets ("ROTA") and average tangible equity ("ROTE") were 0.84 percent and 9.44 percent, respectively, for 2005 compared with 0.95 percent and 12.90 percent for 2004.
Richard A. Hunt, President and CEO, commented, "We are pleased to report another record year of growth, highlighted by strong organic loan and deposit growth, the completed acquisition of the $142 million-asset FNBG Bancshares, Inc. and the sale of Community Loan Company, our consumer finance company in Northern Georgia. We have also recently announced an agreement to acquire the $130 million-asset Mountain Bancshares Inc. and its bank subsidiary, Mountain State Bank. Management believes that the FNBG and Mountain State Bank acquisitions expand our reach into other attractive markets and will prove to increase the value of our franchise. Gwinnett County, home to FNBG, has the high population growth that is a hallmark of the GB&T franchise, as do Dawson and Forsyth Counties, the primary market areas of Mountain State Bank. Both of these acquisitions are expected to be accretive to earnings within twelve months after closing, and FNBG is tracking to that target.
"We are particularly gratified with our loan growth in our highly competitive marketplace," continued Mr. Hunt. "Our revenue growth has been exceptional throughout 2005, far outdistancing growth in expenses. This performance reflects both the strength of our markets and the advantages of a local community banking presence in these markets. Most importantly, our improved operating efficiencies reflect the success of our integration efforts as we grow our portfolio of community banks."
Total revenue, defined as net interest income plus non-interest income, was $68.6 million for the fiscal year 2005, an increase of 31.7 percent over the $52.1 million reported in fiscal 2004. Net interest income increased 41.3 percent from the year-ago period, to $57.0 million, reflecting 38.0 percent growth in average earning assets and a ten basis point improvement in the net interest margin to 4.24 percent. "Our margin has modestly strengthened this year despite the challenge of funding our strong loan growth," added Mr. Hunt. "Our net interest margin has remained within an eleven basis point band as a result of the deposit-gathering initiatives of our community branch network and the success of our ALCO strategies."
Excluding securities gains of $553 thousand and $609 thousand in 2005 and 2004, respectively, non-interest income remained essentially unchanged for the two years, at $11.1 million. Despite increased service charges on deposit accounts, up 4.8 percent in 2005, and mortgage origination fees, up 13.8 percent, overall growth remained flat due to a one-time $371 thousand gain on the sale of land in the fourth quarter of 2004.
For the 2005 fourth quarter, total revenue was $18.0 million compared with $15.0 million for the prior-year fourth quarter, an increase of 20.1 percent. Net interest income increased 32.0 percent to $15.5 million, reflecting 29.4 percent growth in average earning assets and a seven basis point increase in the net interest margin, to 4.26 percent. Non-interest income was $2.5 million for the fourth quarter of 2005 compared with $3.2 million for the prior-year period, again due in part to the one-time gain on the sale of land in 2004.
Non-interest expense remains well-controlled; for fiscal year 2005, non-interest expense was $44.8 million, an increase of 23.9 percent over the $36.2 million reported for the prior-year fiscal period. Salaries and employee benefits expense, the largest component of non-interest expense, increased 25.6 percent. The increase in non-interest expense was also affected by a $306 thousand loss on the sale of Community Loan Company. The efficiency ratio improved to 64.34 percent for fiscal 2005 from 69.46 percent for the prior year.
For the fourth quarter of 2005, non-interest expense was $11.4 million, an increase of 15.2 percent over the $9.9 million reported in the fourth quarter of 2004. Salaries and employee benefits, the largest component of the increase, grew 15.1 percent. The efficiency ratio improved to 60.76 percent from 66.78 percent for the prior-year period.
"The charge we took this last year to resolve a deteriorating legacy loan at HTB was our one disappointment in a year of asset quality improvement," commented Mr. Hunt. An additional $2.9 million provision was made to the Company's loan loss reserves in the second quarter of 2005 as a result of this relationship. Net charge-offs for 2005 were $5.3 million, or 0.47 percent of average loans, of which $3.4 million was attributable to the one loan relationship at HTB. This compares with net charge-offs of $1.1 million, or 0.14 percent of average loans for fiscal 2004. Nonperforming assets plus delinquencies at December 31, 2005, were $10.0 million or 0.63 percent of assets, compared with $11.0 million, or 0.86 percent of assets, twelve months ago. Loan loss reserves at December 31, 2005, were 1.04 percent of total loans.
Total assets were $1.6 billion at December 31, 2005, an increase of $315.3 million, or 24.7 percent over twelve months ago. The FNBG Bancshares, Inc. acquisition, completed in March, 2005, accounted for $141.9 million, or 45.0 percent, of the increase.
Excluding this acquisition, organic growth during this period was $173.4 million or 13.6 percent. Loans increased $274.1 million, or 28.7 percent, to $1.2 billion at December 31, 2005, compared with $955.9 million at December 31, 2004. Growth in construction loans, driven by the strong demographics of GB&T's franchise, accounted for $186.5 million of the $274.1 million increase. Exclusive of the FNBG Bancshares, Inc. acquisition, which accounted for $101.5 million of this increase, loans grew $172.6 million, or 18.1 percent. Total deposits were $1.2 billion, an increase of $267.0 million or 28.8 percent from year-ago levels. Excluding the acquisition, total deposits increased $157.3 million, or 16.9 percent. Core deposits comprise 47.9 percent of total deposits compared with 53.0 percent a year earlier.
Stockholders' equity at December 31, 2005, was $205.5 million, a twelve-month increase of $30.7 million, or 17.6 percent, reflecting the impact of the FNBG Bancshares, Inc. acquisition. Stockholders' equity was 12.9 percent of period-end assets. The Company had 12,784,397 shares of common stock outstanding at December 31, 2005.
About GB&T Bancshares, Inc.
Based in Gainesville, Georgia, GB&T Bancshares, Inc. is a multi-bank holding company operating six community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, First National Bank of the South and First National Bank of Gwinnett. As of December 31, 2005, GB&T Bancshares had assets of $1.6 billion, with 26 full-service banking offices located in eleven Georgia counties. GB&T Bancshares' common stock is listed on the Nasdaq National market under the symbol "GBTB." Visit the Company's website www.gbtbancshares.com for additional information about GB&T.
Forward-Looking Statements
Some of the statements in this press release, including, without limitation, statements regarding projected growth , our proposed acquisitions, our efficiency, loan loss reserves, loan portfolio, net interest margin, revenue growth and other statements regarding our future results of operations are "forward-looking statements" within the meaning of the federal securities laws. In addition, when we use words like "anticipate", "believe", "intend", "expect", "estimate", "could", "should", "will", and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our current beliefs and assumptions. Factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among others, the following possibilities: (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 held or made by us; (3) general economic conditions may be less favorable than expected (both generally and in our markets), resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) economic, governmental or other factors may prevent the projected population and commercial growth in the counties in which we operate; (5) we may be unable to obtain required shareholder or regulatory approval for our proposed acquisitions; (6) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which we are engaged; (7) costs or difficulties related to the integration of our businesses may be greater than expected; (8) deposit attrition, customer loss or revenue loss following the acquisitions may be greater than expected; (9) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; and (10) adverse changes may occur in the equity markets. Many of these factors are beyond our ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements contained in this release.
GB&T Bancshares Inc. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) ---------------------- ---------- ---------- ---------- ---------- (Dollars in thousands except per share 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr amounts) 2005 2005 2005 2005 ---------------------- ---------- ---------- ---------- ---------- EARNINGS Net interest income $ 15,468 14,645 14,120 12,746 Provision for loan loss $ 977 635 3,822 482 Other income $ 2,492 3,476 2,906 2,757 Other expense $ 11,406 11,551 11,273 10,595 Net income $ 3,689 3,903 1,388 3,011 Non-recurring (income) / expense (after- tax) $ 190 0 0 0 Operating income $ 3,879 3,903 1,388 3,011 PER SHARE DATA Basic earnings per share $ 0.29 0.31 0.11 0.25 Diluted earnings per share $ 0.28 0.30 0.11 0.25 Operating diluted earnings per share $ 0.30 0.30 0.11 0.25 Book value per share $ 16.07 15.99 15.81 15.77 Tangible book value per share $ 10.32 10.16 9.97 9.90 Cash dividend per share $ 0.085 0.085 0.085 0.076 PERFORMANCE RATIOS Return on average assets 0.92% 1.00% 0.37% 0.91% Return on average tangible assets 0.96% 1.05% 0.39% 0.95% Return on average equity 7.16% 7.64% 2.76% 6.65% Return on average tangible equity 11.20% 12.07% 4.37% 9.98% Net interest margin 4.26% 4.18% 4.23% 4.29% Other expense/Average assets 2.84% 2.96% 3.02% 3.19% Efficiency Ratio 60.76% 64.69% 65.11% 67.25% Other income/Total operating revenue 13.88% 16.64% 17.07% 17.78% MARKET DATA Market value per share -- Period end $ 21.41 21.23 23.76 21.66 Market as a % of book 1.33 1.33 1.50 1.37 Cash dividend yield 1.59% 1.60% 1.43% 1.40% Common stock dividend payout ratio 30.36% 28.33% 77.27% 30.40% Period-end common shares outstanding (000) 12,784 12,729 12,716 12,641 Common stock market capitalization ($ Millions) $ 273.71 270.24 302.13 273.81 CAPITAL & LIQUIDITY Equity to assets 12.93% 12.62% 13.13% 13.56% Period-end tangible equity to tangible assets 8.71% 8.40% 8.70% 8.97% Total risk-based capital ratio 13.89% 13.72% 14.39% 14.70% Average loans to deposits 100.72% 100.53% 100.57% 101.38% ASSET QUALITY Net charge-offs $ 307 2,949 1,707 346 (Ann.) Net loan charge-offs/ Average loans 0.100% 0.996% 0.607% 0.140% Non-performing loans $ 6,562 5,957 6,811 10,213 OREOs $ 3,431 2,887 2,965 1,451 90-day past dues $ 17 297 126 364 NPAs + 90 day past due/ Total assets 0.63% 0.57% 0.65% 0.82% Allowance for loan losses/ Total loans 1.04% 1.02% 1.26% 1.13% Allowance for loan losses/ NPA's + 90 days past due 127.60% 134.20% 147.25% 103.64% END OF PERIOD BALANCES Total loans, net of unearned fees $1,229,981 1,208,031 1,152,737 1,099,344 Total assets $1,589,413 1,613,806 1,532,935 1,470,574 Deposits $1,195,597 1,233,729 1,159,109 1,096,190 Stockholders' equity $ 205,459 203,597 201,269 199,367 Full-time equivalent employees 452 469 463 457 AVERAGE BALANCES Loans $1,218,896 1,175,083 1,128,442 1,004,588 Interest-earning assets $1,439,033 1,390,897 1,338,276 1,204,489 Total assets $1,593,014 1,546,761 1,498,217 1,347,362 Deposits $1,210,205 1,168,863 1,122,061 990,944 Interest-bearing liabilities $1,195,088 1,176,016 1,131,022 1,015,305 Stockholders' equity $ 204,481 202,586 201,727 183,586 ---------- ---------- ---------- 4th Qtr YTD YTD 2004 2005 2004 ---------- ---------- ---------- EARNINGS Net interest income $ 11,716 56,979 40,322 Provision for loan loss $ 465 5,916 1,406 Other income $ 3,238 11,631 11,778 Other expense $ 9,901 44,825 36,180 Net income $ 2,975 11,991 9,838 Non-recurring (income)/expense (after-tax) $ (230) 190 (103) Operating income $ 2,745 12,181 9,735 PER SHARE DATA Basic earnings per share $ 0.28 0.96 1.05 Diluted earnings per share $ 0.27 0.93 1.04 Operating diluted earnings per share $ 0.25 0.94 1.03 Book value per share $ 14.84 16.07 14.84 Tangible book value per share $ 10.19 10.32 10.19 Cash dividend per share $ 0.076 0.331 0.300 PERFORMANCE RATIOS Return on average assets 0.95% 0.80% 0.91% Return on average tangible assets 0.99% 0.84% 0.95% Return on average equity 7.74% 6.06% 8.32% Return on average tangible equity 12.06% 9.44% 12.90% Net interest margin 4.19% 4.24% 4.14% Other expense / Average assets 3.16% 2.99% 3.34% Efficiency Ratio 66.78% 64.34% 69.46% Other income/Total operating revenue 19.65% 16.28% 21.12% MARKET DATA Market value per share -- Period end $ 24.12 21.41 24.12 Market as a % of book 1.63 1.33 1.63 Cash dividend yield 1.26% 1.55% 1.24% Common stock dividend payout ratio 28.15% 35.59% 28.85% Period-end common shares outstanding (000) 11,772 12,784 11,772 Common stock market capitalization ($ Millions) $ 283.95 273.71 283.95 CAPITAL & LIQUIDITY Equity to assets 13.71% 12.93% 13.71% Period-end tangible equity to tangible assets 9.84% 8.71% 9.84% Total risk-based capital ratio 16.27% 13.89% 16.27% Average loans to deposits 97.99% 100.74% 96.79% ASSET QUALITY Net charge-offs $ 666 5,309 1,146 (Ann.) Net loan charge-offs/ Average loans 0.285% 0.47% 0.14% Non-performing loans $ 10,059 6,562 10,059 OREOs $ 620 3,431 620 90-day past dues $ 328 17 328 NPAs + 90 day past due/ Total assets 0.86% 0.63% 0.86% Allowance for loan losses/ Total loans 1.16% 1.04% 1.16% Allowance for loan losses/NPA's + 90 days past due 100.49% 127.60% 100.49% END OF PERIOD BALANCES Total loans, net of unearned fees $ 955,880 1,229,981 955,880 Total assets $1,274,136 1,589,413 1,274,136 Deposits $ 928,603 1,195,597 928,603 Stockholders' equity $ 174,715 205,459 174,715 Full-time equivalent employees 453 452 453 AVERAGE BALANCES Loans $ 928,935 1,131,883 807,340 Interest-earning assets $1,111,717 1,343,345 973,246 Total assets $1,246,184 1,496,792 1,082,701 Deposits $ 947,975 1,123,577 834,100 Interest-bearing liabilities $ 945,777 1,129,707 844,642 Stockholders' equity $ 152,932 198,004 118,271 The following table provides a detailed analysis of Non-GAAP measures. --------- --------- --------- --------- Reconciliation Table 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr (Dollars in thousands) 2005 2005 2005 2005 ---------------------------- --------- --------- --------- --------- Book value per share $ 16.07 15.99 15.81 15.77 Effect of intangible assets per share $ (5.75) (5.83) (5.84) (5.87) Tangible book value per share $ 10.32 10.16 9.97 9.90 Return on average assets 0.92% 1.00% 0.37% 0.91% Effect of intangible assets 0.04% 0.05% 0.02% 0.04% Return on average tangible assets 0.96% 1.05% 0.39% 0.95% Return on average equity 7.16% 7.64% 2.76% 6.65% Effect of intangible assets 4.04% 4.43% 1.61% 3.33% Return on average tangible equity 11.20% 12.07% 4.37% 9.98% Equity to assets 12.93% 12.62% 13.13% 13.56% Effect of intangible assets -4.22% -4.22% -4.43% -4.59% Period-end tangible equity to tangible assets 8.71% 8.40% 8.70% 8.97% --------- --------- --------- 4th Qtr YTD YTD 2004 2005 2004 --------- --------- --------- Book value per share $ 14.84 16.07 14.84 Effect of intangible assets per share $ (4.65) (5.75) (4.65) Tangible book value per share $ 10.19 10.32 10.19 Return on average assets 0.95% 0.80% 0.91% Effect of intangible assets 0.04% 0.04% 0.04% Return on average tangible assets 0.99% 0.84% 0.95% Return on average equity 7.74% 6.06% 8.32% Effect of intangible assets 4.32% 3.38% 4.58% Return on average tangible equity 12.06% 9.44% 12.90% Equity to assets 13.71% 12.93% 13.71% Effect of intangible assets -3.88% -4.22% -3.87% Period-end tangible equity to tangible assets 9.84% 8.71% 9.84% GB&T Bancshares, Inc. and Subsidiaries Consolidated Statements of Condition 12/31/2005 12/31/2004 Assets (in thousands): (Unaudited) (Audited) Cash and due from banks $ 30,748 $ 20,723 Interest-bearing deposits in banks 728 700 Federal funds sold 568 93 Securities available-for-sale 188,127 190,636 Restricted equity securities, at cost 9,277 7,226 Loans, net of unearned income 1,229,981 955,880 Less allowance for loan losses 12,773 11,061 ----------- ----------- Loans, net 1,217,208 944,819 ----------- ----------- Premises and equipment, net 37,014 31,548 Goodwill 67,912 49,127 Intangible assets 5,586 5,618 Other assets 32,245 23,646 ----------- ----------- Total assets $ 1,589,413 $ 1,274,136 =========== =========== Liabilities and Stockholders' Equity (in thousands): Deposits: Non interest-bearing $ 157,058 $ 125,704 Interest-bearing demand & savings 414,542 367,078 Time deposits 623,997 435,821 ----------- ----------- Total deposits 1,195,597 928,603 Federal funds purchased and securities sold under repurchase agreements 45,510 47,582 Federal Home Loan Bank advances 97,298 80,992 Other borrowings 968 934 Other liabilities 14,683 11,412 Subordinated debt 29,898 29,898 ----------- ----------- Total liabilities 1,383,954 1,099,421 ----------- ----------- Stockholders' equity: Capital stock 164,623 139,207 Retained earnings 43,404 35,550 Accumulated other comprehensive income (2,568) (42) ----------- ----------- Total stockholders' equity 205,459 174,715 ----------- ----------- Total liabilities and stockholders' equity $ 1,589,413 $ 1,274,136 =========== =========== GB&T BANCSHARES, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three months ended Twelve months ended December 31, December 31, 2005 2004 2005 2004 -------------------------------------------- (Dollars in thousands, except per share amounts) Interest income: Loans, including fees $23,725 $15,381 $82,541 $52,642 Taxable securities 1,927 1,431 7,287 4,706 Nontaxable securities 135 182 618 736 Federal funds sold 92 48 327 163 Interest-bearing deposits in banks 7 10 42 27 ------- ------- ------- ------- Total interest income 25,886 17,052 90,815 58,274 ------- ------- ------- ------- Interest expense: Deposits 8,607 4,042 27,153 13,379 Federal funds purchased and securities sold under repurchase agreements 271 98 740 248 Federal Home Loan Bank advances 976 770 3,879 3,131 Other borrowings 564 426 2,064 1,194 ------- ------- ------- ------- Total interest expense 10,418 5,336 33,836 17,952 ------- ------- ------- ------- Net interest income 15,468 11,716 56,979 40,322 Provision for loan losses 977 465 5,916 1,406 ------- ------- ------- ------- Net interest income after provision for loan losses 14,491 11,251 51,063 38,916 ------- ------- ------- ------- Other income: Service charges on deposit accounts 1,590 1,642 6,413 6,121 Mortgage origination fees 519 513 2,263 1,988 Insurance commissions 46 165 488 621 Gain on sale of securities -- -- 553 609 Other operating income 337 918 1,914 2,439 ------- ------- ------- ------- Total other income 2,492 3,238 11,631 11,778 ------- ------- ------- ------- Other expense: Salaries and employee benefits 6,502 5,651 26,248 20,893 Occupancy and equipment expenses, net 1,686 1,381 6,334 5,099 Other operating expenses 3,218 2,869 12,243 10,188 ------- ------- ------- ------- Total other expense 11,406 9,901 44,825 36,180 ------- ------- ------- ------- Income before income taxes 5,577 4,588 17,869 14,514 Income tax expense 1,888 1,613 5,878 4,676 ------- ------- ------- ------- Net income $ 3,689 $ 2,975 $11,991 $ 9,838 ======= ======= ======= ======= Earnings per share: Basic $ 0.29 $ 0.28 $ 0.96 $ 1.05 ======= ======= ======= ======= Diluted $ 0.28 $ 0.27 $ 0.93 $ 1.04 ======= ======= ======= ======= Weighted average shares Basic 12,764 10,784 12,562 9,340 ======= ======= ======= ======= Diluted 13,103 11,004 12,938 9,472 ======= ======= ======= ======= Cash dividends per common share $ 0.085 $ 0.076 $ 0.331 $ 0.300 ======= ======= ======= ======= GB&T Bancshares, Inc. Yield Analysis -- December 31, 2005 For the Twelve Months Ended (Dollars in thousands) December 31, 2005 --------------------------------- Average Yields balances Interest /Rates --------------------------------- Assets Interest earning assets: Taxable securities $ 194,093 $ 7,287 3.75% Nontaxable securities 14,023 618 4.41% Federal funds sold 9,842 327 3.32% Interest bearing deposits in banks 1,077 42 3.90% Loans, net of unearned income 1,124,310 82,541 7.34% ------------------------ Total interest earning assets $ 1,343,345 $ 90,815 6.76% ------------------------ Noninterest earning assets: Unrealized gains (losses) on securities (2,175) Allowance for loan losses (12,499) Nonaccrual loans 7,573 Cash and due from banks 24,996 Other assets 135,552 --------------------------------- Total noninterest earning assets 153,447 --------------------------------- Total assets $ 1,496,792 --------------------------------- Liabilities & Stockholders' Equity Interest bearing liabilities: Interest bearing demand & savings $ 407,551 8,337 2.05% Time 560,786 18,816 3.36% Borrowings 161,370 6,683 4.14% Total interest bearing liabilities 1,129,707 33,836 3.00% ------------------------ Noninterest bearing liabilities & shareholders' equity: Noninterest bearing deposits 155,241 Other liabilities 13,840 Stockholder's equity 198,004 --------------------------------- Total liabilities & stockholders' equity $ 1,496,792 --------------------------------- Interest rate differential 3.76% --------------------------------- Net interest income 56,979 --------------------------------- Net interest margin 4.24% For the Three Months Ended December 31, 2005 --------------------------------- Average Yields balances Interest /Rates --------------------------------- Assets Interest earning assets: Taxable securities $ 203,079 $ 1,927 3.76% Nontaxable securities 12,099 135 4.43% Federal funds sold 10,269 92 3.55% Interest bearing deposits in banks 639 7 4.35% Loans, net of unearned income 1,212,947 23,725 7.76% ------------------------ Total interest earning assets $ 1,439,033 $ 25,886 7.14% ------------------------ Noninterest earning assets: Unrealized gains (losses) on securities (3,414) Allowance for loan losses (12,552) Nonaccrual loans 5,949 Cash and due from banks 21,917 Other assets 142,081 --------------------------------- Total noninterest earning assets 153,981 --------------------------------- Total assets $ 1,593,014 --------------------------------- Liabilities & Stockholders' Equity Interest bearing liabilities: Interest bearing demand & savings $ 414,968 2,479 2.37% Time 617,197 6,128 3.94% Borrowings 162,923 1,811 4.41% ------------------------ Total interest bearing liabilities 1,195,088 10,418 3.46% ------------------------ Noninterest bearing liabilities & shareholders' equity: Noninterest bearing deposits 178,040 Other liabilities 15,405 Stockholder's equity 204,481 --------------------------------- Total liabilities & stockholders' equity $ 1,593,014 --------------------------------- Interest rate differential 3.68% --------------------------------- Net interest income 15,468 --------------------------------- Net interest margin 4.26% ---------------------------------