BELLINGHAM, Wash., Jan. 17, 2008 (PRIME NEWSWIRE) -- Horizon Financial Corp. (Nasdaq:HRZB) today reported that it had strong loan growth and solid profits in the third quarter of fiscal 2008, ended December 31, 2007. Horizon reported earnings of $4.7 million, or $0.39 per diluted share, for the quarter ended December 31, 2007, compared to $4.9 million, or $0.40 per share, in the immediate prior quarter of September 30, 2007 and $4.9 million, or $0.39 per diluted share for the third quarter for fiscal 2007. Earnings for the nine months ended December 31, 2007 increased 4% to $14.6 million, or $1.19 per diluted share, compared to $14.1 million, or $1.14 per diluted share for the first nine months of fiscal 2007.
Third Quarter Fiscal 2008 Highlights (for the quarter ended December 31, 2007, compared to December 31, 2006):
* Deposits topped the $1 billion threshold ending the quarter at
$1.01 billion.
* Earnings per share benefitted from an active share repurchase
program.
* Net interest income grew 3% to $13.8 million from $13.4 million.
* Tangible book value per share grew 8% to $10.60 from $9.81.
* Asset quality continues to be acceptable:
o Non-performing assets were just 0.12% of total assets compared
to 0.09% a year ago.
o Loan loss reserves are 1.50% of net loans receivable compared to
1.53% a year ago.
"Our local economy continues to perform very well in terms of employment and population growth, with strength coming from aerospace, software, export trade and services. Although our housing markets showed its first decline in median prices in sixteen years, we are still well ahead of the national trend on the health of our residential real estate," stated V. Lawrence Evans, Chairman. "We cannot, however, be sure that the national trend of slowing home sales and downward pressure on home prices will not weaken the residential development in our region. We remain diligent in monitoring our construction and land development portfolios for signs of credit weakness."
Statewide job growth in December was strong with overall employment growing 2.7% year over year. Washington statewide unemployment in December fell to 4.8% (not seasonally adjusted) from 5.0% a year ago. Bellingham's unemployment was only 4.1%, continuing to reap the benefits of its location between Seattle and Vancouver B.C. Tacoma and Mt. Vernon-Anacortes also are showing excellent job growth, with unemployment remaining at 5.1% in December equal to a year ago. Snohomish County saw unemployment fall to 4.2% from 4.6% and Pierce County saw unemployment inch up to 4.9% from 4.8% a year ago.
Residential mortgage originations increased both in the quarter and year-to-date and account for 13% of the total loan portfolio. "While we do not have any direct exposure to subprime loans, the softness in our real estate markets are undoubtedly affected by fewer buyers being able to qualify for new loans and the psychological impact of the credit squeeze," said Rich Jacobson, Chief Executive Officer. "Construction and land development loans account for 40% of our loan portfolio and have contributed to solid growth in the past few years in our balance sheet. As inventory levels of homes have increased locally, however, we are seeing builders reduce their investments in new projects, and we expect loan growth will slow this year."
Conference Call Information
Management will host a conference call today, January 17, 2008 at 1:30 pm PST (4:30 pm EST) to discuss the third quarter and fiscal 2008 year-to-date results. The live call can be accessed by dialing (303) 262-2130. The replay, which will be available for a month beginning shortly after the call concludes, can be heard at (303) 590-3000 using access code 11104842#.
Review of Operations
In the third quarter of fiscal 2008, net revenues (net interest income plus non-interest income) totaled $15.3 million, up 3% from $14.8 million a year ago and down 2% from the immediate prior quarter. For the first nine months of fiscal 2008, revenues increased 6% to $46.0 million from $43.6 million in the first nine months of fiscal 2007. Interest income grew 7% in the current quarter and 12% year-to-date, while interest expense increased 11% in the current quarter and 21% year-to-date.
Third quarter non-interest income grew 7% to $1.5 million compared to $1.4 million in the third quarter of fiscal 2007, primarily from growth in service fees associated with our increased deposit base. In the first nine months of fiscal 2008, non-interest income grew 12% to $4.8 million from $4.3 million during the comparable period in fiscal 2007. Residential mortgage originations were up 19% in the quarter and 41% year-to-date, providing a solid contribution to revenues as well as contributing to portfolio growth.
Third quarter operating (non-interest) expense grew 5% to $7.4 million from $7.1 million in the third quarter of fiscal 2007. Year-to-date operating expense increased 8% to $22.1 million from $20.5 million in the first nine months of fiscal 2007, reflecting branch expansion and overall growth of the franchise.
The net interest margin was 4.40% in the third quarter of fiscal 2008, a decrease of 23 basis points from the immediate prior quarter and down 30 basis points from the same period a year ago, reflecting the significant cuts in short term rates over the past year. The yield on earning assets was 8.26% in the third quarter of fiscal 2008, a decrease from 8.60% in the preceding quarter and 8.51% in the third quarter of fiscal 2007. In the third quarter of fiscal 2008, the cost of interest-bearing liabilities was 4.00%, down 10 basis points from the preceding quarter and up seven basis points from the year ago quarter. Year-to-date, the net interest margin was 4.54% compared to 4.76% for the nine months ended December 31, 2006.
For the first nine months of fiscal 2008, the yield on interest-earning assets was 8.46% compared to 8.31% for the first nine months of fiscal 2007. Year-to-date, the cost of interest-bearing liabilities was 4.05% compared to 3.67% in the year-ago period. "With 58% of our loan portfolio tied to the prime lending rate, any further reductions in the prime lending rate will continue to impact revenues and net interest margin. Over time, however, as our time deposits renew in this lower interest rate environment, some of the impact of lower yields will be partially offset by an improvement in liability costs. We will see more than $300 million in fixed rate deposits maturing in the next six months," said Dennis Joines, President and COO.
Third quarter return on average equity was 14.72% compared to 15.49% in the immediate prior quarter and 16.35% in the third quarter of fiscal 2007. Return on average assets was 1.38% in the third quarter of fiscal 2008, compared to 1.48% in the preceding quarter and 1.57% in the third quarter of fiscal 2007. Year-to-date, return on average equity was 15.45% and the return on average assets was 1.47%, compared to 16.13% and 1.57% respectively, in the first nine months of fiscal 2007. The efficiency ratio was 48.46% in the third quarter of fiscal 2008 compared to 47.91% in the immediate prior quarter and 47.53% in the third quarter of fiscal 2007. In the first nine months of fiscal 2008, the efficiency ratio was 48.09% compared to 47.01% in the year ago period. "With the opening of the new Puyallup office and a new home loan center this last summer, overhead growth outpaced our modest revenue growth," Joines said.
Balance Sheet Review
Total assets grew 11% to $1.39 billion at December 31, 2007, from $1.25 billion at December 31, 2006. Net loans increased 14% to $1.19 billion at the end of December 2007 compared to $1.04 billion a year earlier. The loan mix continues to reflect the business banking focus of the lending team, with commercial real estate loans representing 69% of net loans, commercial loans representing 14%, residential 13%, and consumer 4% of net loans. "As the demand for residential construction loans declines, we intend to expand our commercial lending emphasis, to better diversify our loan mix," Jacobson noted.
"Our asset quality remains good at December 31, 2007, despite the addition of a $990,000 loan to nonperforming status during the quarter," said Jacobson. "This loan, which is secured by five homes that are completed, or very close to completion, is participated with another institution, so our share is $990,000. We do not anticipate material losses from selling these remaining five homes."
Non-performing loans (NPLs) were $990,000 at December 31, 2007 representing .08% of net loans receivable and non-performing assets (NPAs) totaled $1.6 million or 0.12% of total assets. A year ago, both NPLs and NPAs were $1.1 million, or 0.10% of net loans and 0.09% of total assets.
"We are closely watching our construction and land development loans, and believe there is a potential for significant additions to non-performing loans in the near future," Jacobson said. "Specifically, we are currently monitoring three loans outstanding to a builder in Pierce County secured by single family residential real estate developments. One loan, with a balance of $5.6 million at December 31, 2007, is secured by a project which appears to be progressing in a satisfactory manner, and we anticipate being able to work through the remaining lots and homes to permit repayment. However, the other two loans are secured by developments seeing slower sales activity, and success in these other projects is less certain. These two loans have combined balances outstanding of $6.4 million at December 31, 2007. The possibility exists that if activity does not improve in these developments, these loans may ultimately need to be placed on non-accrual. If this $6.4 million had been on non-accrual at December 31, 2007, our NPAs would have equaled 0.58% of total assets. Based on our most recent analysis, we do not project a material loss of principal from these credits at this time. Further, we believe that the loss potential for all NPAs is properly reserved."
The provision for loan losses was $900,000 in the third quarter of fiscal 2008, $800,000 in the immediate prior quarter, and $450,000 in the third quarter of fiscal 2007. Year-to-date the provision for loan losses totaled $2.1 million compared to $1.9 million a year ago. Net charge-offs were $32,000 in the third quarter of fiscal 2008, $39,000 in the immediate prior quarter of fiscal 2008, and in the third quarter of fiscal 2007, the Company posted a recovery of $8,000. Year-to-date, net charge-offs totaled $98,000 compared to $65,000 a year ago. The reserve for loan losses totaled $17.9 million at December 31, 2007, representing 1.50% of net loans receivable compared to $16.0 million, or 1.53% of net loans receivable at December 31, 2006.
Total deposits increased 6% to $1.01 billion at the end of December 2007, compared to $953 million a year earlier. Transaction accounts decreased 2% to $358 million, compared to $367 million a year ago, and time deposits increased 11% to $652 million at December 31, 2007 compared to $586 million at December 31, 2006.
At December 31, 2007, Horizon's book value was $10.66 per share, compared to $9.87 per share a year earlier, and tangible book value was $10.60 per share at December 31, 2007, up from $9.81 per share a year ago. During the quarter ended December 31, 2007, Horizon repurchased 133,200 shares of its common stock at an average price of $17.32 per share. In the first nine months of fiscal 2008, Horizon repurchased 280,400 shares at an average price of $19.37 per share.
Horizon Financial Corp. is a $1.4 billion, state-chartered bank holding company headquartered in Bellingham, Washington. Its primary subsidiary, Horizon Bank, is a state-chartered commercial bank that operates 19 full-service offices, four commercial loan centers and four real estate loan centers throughout Whatcom, Skagit, Snohomish and Pierce counties, Washington.
Safe Harbor Statement: Except for the historical information in this news release, the matters described herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: the ability to successfully expand existing relationships, deposit pricing and the ability to gather low-cost deposits, success in new markets and expansion plans, expense management and the efficiency ratio, expanding or maintaining the net interest margin, interest rate risk, loan quality and the loss levels expected on non-performing loans, the local and national economic environment, and other risks and uncertainties discussed from time to time in Horizon Financial's SEC filings. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this release. Horizon undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Economic data was derived from reports by the Washington State Employment Security Department, Labor Market and Economic Analysis at www.workforceexplorer.com, Marple's Pacific Northwest Letter at www.marples.com, and other real estate data at www.wcrer.wsu.edu and nwrealestate.com.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited) Quarter Quarter Quarter
(in 000s, Ended Three Ended One Ended
except share Dec 31, Month Sept 30, Year Dec 31,
data) 2007 Change 2007 Change 2006
---------------------------------------------------------------------
Interest income:
Interest on
loans $ 24,917 0% $ 24,881 7% $ 23,277
Interest and
dividends on
securities 992 -2% 1,011 -3% 1,022
----------- ----------- -----------
Total
interest
income 25,909 0% 25,892 7% 24,299
Interest expense:
Interest on
deposits 9,573 -2% 9,818 10% 8,715
Interest on
borrowings 2,536 19% 2,131 17% 2,162
----------- ----------- -----------
Total
interest
expense 12,109 1% 11,949 11% 10,877
----------- ----------- -----------
Net interest
income 13,800 -1% 13,943 3% 13,422
Provision for
loan losses 900 13% 800 100% 450
----------- ----------- -----------
Net interest
income after
provision
for loan
losses 12,900 -2% 13,143 -1% 12,972
Non-interest
income:
Service fees 893 -3% 918 9% 823
Net gain on
sales of
loans -
servicing
released 170 -2% 173 5% 162
Net gain on
sales of
loans -
servicing
retained 1 -80% 5 -93% 14
Other 452 -12% 516 8% 420
----------- ----------- -----------
Total
non-interest
income 1,516 -6% 1,612 7% 1,419
Non-interest
expense:
Compensation
and employee
benefits 4,205 -2% 4,296 1% 4,159
Building
occupancy 1,232 5% 1,177 12% 1,099
Other expenses 1,554 1% 1,532 11% 1,395
Data processing 234 -2% 238 10% 212
Advertising 197 -6% 209 4% 189
----------- ----------- -----------
Total
non-interest
expense 7,422 0% 7,452 5% 7,054
Income before
provision for
income taxes 6,994 -4% 7,303 -5% 7,337
Provision for
income taxes 2,282 -5% 2,390 -7% 2,454
----------- ----------- -----------
Net Income $ 4,712 -4% $ 4,913 -4% $ 4,883
=========== =========== ===========
Earnings per
share:
Basic earnings
per share $ 0.39 -3% $ 0.40 -3% $ 0.40
Diluted
earnings per
share $ 0.39 -3% $ 0.40 0% $ 0.39
Weighted
average shares
outstanding:
Basic 12,064,265 -1% 12,155,532 -2% 12,266,820
Common stock
equivalents 93,200 -8% 101,265 -27% 127,999
----------- ----------- -----------
Diluted 12,157,465 -1% 12,256,797 -2% 12,394,819
=========== =========== ===========
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Nine Months
Ended Ended
(unaudited) (in 000s, Dec 31, Dec 31,
except per share data) 2007 Change 2006
---------------------------------------------------------------------
Interest income:
Interest on loans $ 73,683 13% $ 65,428
Interest and dividends on
securities 3,017 -1% 3,047
----------- -----------
Total interest income 76,700 12% 68,475
Interest expense:
Interest on deposits 28,858 24% 23,239
Interest on borrowings 6,658 11% 5,999
----------- -----------
Total interest expense 35,516 21% 29,238
----------- -----------
Net interest income 41,184 5% 39,237
Provision for loan losses 2,100 14% 1,850
----------- -----------
Net interest income after
provision for loan losses 39,084 5% 37,387
Non-interest income:
Service fees 2,692 9% 2,474
Net gain on sales of loans -
servicing released 657 11% 594
Net gain on sales of loans -
servicing retained 18 -18% 22
Net gain on sales of investment
securities -- -100% 19
Other 1,463 20% 1,221
----------- -----------
Total non-interest income 4,830 12% 4,330
Non-interest expense:
Compensation and employee benefits 12,632 4% 12,133
Building occupancy 3,493 14% 3,068
Other expenses 4,679 14% 4,099
Data processing 713 11% 642
Advertising 612 14% 539
----------- -----------
Total non-interest expense 22,129 8% 20,481
Income before provision for income tax 21,785 3% 21,236
Provision for income tax 7,144 0% 7,121
----------- -----------
Net Income $ 14,641 4% $ 14,115
=========== ===========
Earnings per share:
Basic earnings per share $ 1.21 5% $ 1.15
Diluted EPS $ 1.19 4% $ 1.14
Weighted average shares outstanding:
Basic 12,148,772 -1% 12,297,369
Common stock equivalents 103,548 -14% 120,510
----------- -----------
Diluted 12,252,320 -1% 12,417,879
=========== ===========
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(unaudited)
(in 000s, Three One
except share Dec 31, Month Sept 30, Year Dec 31,
data) 2007 Change 2007 Change 2006
---------------------------------------------------------------------
Assets:
Cash and due
from banks $ 24,807 34% $ 18,457 -17% $ 29,785
Interest-
bearing
deposits 2,785 -59% 6,836 -74% 10,832
Investment
securities -
available
for sale 47,981 -7% 51,652 -14% 55,676
Investment
securities -
held to
maturity -- -100% 370 -100% 370
Mortgage-
backed
securities -
available
for sale 32,404 2% 31,865 21% 26,817
Mortgage-
backed
securities -
held to
maturity 47 -40% 78 -79% 222
Federal Home
Loan Bank
stock 7,247 0% 7,247 0% 7,247
Loans held
for sale 2,561 63% 1,571 -45% 4,639
Gross loans
receivable 1,208,529 4% 1,163,436 14% 1,059,013
Reserve for
loan losses (17,891) 5% (17,023) 12% (15,969)
----------- ----------- -----------
Net loans
receivable 1,190,638 4% 1,146,413 14% 1,043,044
Investment in
real estate
in a joint
venture 17,475 0% 17,406 2% 17,136
Accrued
interest and
dividends
receivable 7,881 2% 7,691 14% 6,894
Property and
equipment, net 28,127 -1% 28,551 4% 27,011
Net deferred
income tax
assets 4,351 18% 3,683 105% 2,124
Income tax
receivable 1,279 61% 794 53% 837
Other real
estate owned 655 -10% 725 NA --
Other assets 23,077 1% 22,792 7% 21,572
----------- ----------- -----------
Total
assets $ 1,391,315 3% $ 1,346,131 11% $ 1,254,206
=========== =========== ===========
Liabilities:
Deposits $ 1,009,940 1% $ 997,555 6% $ 953,143
Other
borrowed
funds 222,555 17% 189,738 49% 149,004
Borrowing
related to
investment in
real estate
in a joint
venture 21,947 2% 21,419 11% 19,771
Accounts
payable and
other
liabilities 6,757 -3% 6,955 -25% 8,996
Advances by
borrowers for
taxes and
insurance 215 -48% 417 -2% 220
Deferred
compensation 1,963 -1% 1,982 0% 1,972
----------- ----------- -----------
Total
liabil-
ities $ 1,263,377 4% $ 1,218,066 11% $ 1,133,106
Stockholders'
equity:
Serial
preferred
stock, $1.00
par value;
10,000,000
shares
authorized;
none issued
or outstanding -- -- --
Common stock,
$1.00 par
value;
30,000,000
shares
authorized;
11,998,978,
12,123,595, and
12,266,629
shares
outstanding $ 11,999 -1% $ 12,124 -2% 12,267
Additional
paid-in
capital 50,839 -1% 51,199 -1% 51,412
Retained
earnings 62,709 2% 61,207 17% 53,752
Accumulated
other
comprehensive
income 2,391 -32% 3,535 -35% 3,669
----------- ----------- -----------
Total
stockholders'
equity 127,938 0% 128,065 6% 121,100
----------- ----------- -----------
Total
liabilities
and
stockholders'
equity $ 1,391,315 3% $ 1,346,131 11% $ 1,254,206
=========== =========== ===========
Intangible
assets:
Goodwill $ 545 0% $ 545 0% $ 545
Mortgage
servicing
asset 227 -3% 233 -12% 259
----------- ----------- -----------
Total
intangible
assets $ 772 -1% $ 778 -4% $ 804
=========== =========== ===========
LOANS
(unaudited)
(in 000s) Dec 31, 2007 Sept 30, 2007 Dec 31, 2006
---------------------------------------------------------------------
1-4 Mortgage
1-4 Family
residential $ 164,933 $ 159,824 $ 150,500
1-4 Family
construction 36,584 34,032 26,220
Participations
sold (49,105) (50,655) (56,541)
---------- ----------- ----------
Subtotal 152,412 143,201 120,179
Construction and
land development 477,908 458,838 390,112
Multi family
residential 45,415 46,631 51,504
Commercial real
estate 312,669 296,453 297,962
Commercial loans 168,120 165,356 145,378
Home equity
secured 44,267 44,971 48,278
Other consumer
loans 7,738 7,986 5,600
---------- ----------- ----------
Subtotal 1,056,117 1,020,235 938,834
---------- ----------- ----------
Subtotal 1,208,529 1,163,436 1,059,013
Less:
Reserve for
loan losses (17,891) (17,023) (15,969)
---------- ----------- ----------
Net loans
receivable $1,190,638 $ 1,146,413 $1,043,044
========== =========== ==========
Net residential
loans $ 151,151 13% $ 142,031 12% 119,164 11%
Net commercial
loans 165,077 14% 162,402 14% 142,695 14%
Net commercial
real estate
loans 823,257 69% 789,882 69% 728,150 70%
Net consumer
loans 51,153 4% 52,098 5% 53,035 5%
--------------- ---------------- ---------------
$1,190,638 100% $ 1,146,413 100% $1,043,044 100%
=============== ================ ===============
DEPOSITS
(unaudited)
(in 000s) Dec 31, 2007 Sept 30, 2007 Dec 31, 2006
---------------------------------------------------------------------
Demand Deposits
Savings $ 18,880 2% $ 19,183 2% $ 22,534 3%
Checking 71,300 7% 77,341 8% 76,513 8%
Checking - non
interest
bearing 81,747 8% 76,260 7% 88,862 9%
Money market 186,402 18% 217,790 22% 179,503 19%
--------------- ---------------- ---------------
Subtotal 358,329 35% 390,574 39% 367,412 39%
Certificates of
Deposit
Under $100,000 280,276 28% 277,848 28% 269,745 28%
$100,000 and
above 273,437 27% 260,534 26% 238,349 25%
Brokered
Certificates
of Deposit 97,898 10% 68,599 7% 77,637 8%
--------------- ---------------- ---------------
Total
Certificates
of Deposit 651,611 65% 606,981 61% 585,731 61%
--------------- ---------------- ---------------
Total $1,009,940 100% $ 997,555 100% $ 953,143 100%
=============== ================ ===============
WEIGHTED AVERAGE INTEREST RATES:
Nine Nine
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
Dec 31, Sept 30, Dec 31, Dec 31, Dec 31,
(unaudited) 2007 2007 2006 2007 2006
------------------------------------------------ -----------------
Yield on loans 8.55% 8.93% 8.86% 8.78% 8.68%
Yield on investments 4.47% 4.47% 4.46% 4.47% 4.36%
----- ----- ----- ----- -----
Yield on interest-
earning assets 8.26% 8.60% 8.51% 8.46% 8.31%
Cost of deposits 3.88% 3.96% 3.74% 3.91% 3.47%
Cost of borrowings 4.52% 4.93% 4.91% 4.77% 4.72%
----- ----- ----- ----- -----
Cost of interest-
bearing liabilities 4.00% 4.10% 3.93% 4.05% 3.67%
AVERAGE BALANCES
Nine Nine
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
(unaudited) Dec 31, Sept 30, Dec 31, Dec 31, Dec 31,
(in 000s) 2007 2007 2006 2007 2006
---------------------------------------------------------------------
Loans $1,165,555 $1,114,386 $1,050,934 $1,118,727 $1,005,299
Investments 88,687 90,469 91,633 90,053 93,096
---------- ---------- ---------- ---------- ----------
Total
interest-
earning
assets 1,254,242 1,204,855 1,142,567 1,208,780 1,098,395
Deposits 987,250 992,531 931,357 983,495 893,761
Borrowings 224,558 172,738 176,135 186,038 169,421
---------- ---------- ---------- ---------- ----------
Total
interest-
bearing
liabil-
ities $1,211,808 $1,165,269 1,107,492 1,169,533 1,063,182
Average
assets $1,368,723 $1,324,836 $1,243,702 $1,327,829 $1,198,728
Average
stockholders'
equity $ 128,002 $ 126,850 $ 119,475 $ 126,373 $ 116,668
CONSOLIDATED FINANCIAL RATIOS
Nine Nine
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
Dec 31, Sept 30, Dec 31, Dec 31, Dec 31,
(unaudited) 2007 2007 2006 2007 2006
---------------------------------------------------------------------
Return on
average
assets 1.38% 1.48% 1.57% 1.47% 1.57%
Return on
average
equity 14.72% 15.49% 16.35% 15.45% 16.13%
Efficiency
ratio 48.46% 47.91% 47.53% 48.09% 47.01%
Net interest
spread 4.27% 4.49% 4.58% 4.41% 4.64%
Net interest
margin 4.40% 4.63% 4.70% 4.54% 4.76%
Equity-to-
assets
ratio 9.20% 9.51% 9.66%
Equity-to-
deposits
ratio 12.67% 12.84% 12.71%
Book value
per share $ 10.66 $ 10.56 $ 9.87
Tangible
book value
per share $ 10.60 $ 10.50 $ 9.81
RESERVE FOR LOAN LOSSES
Nine Nine
Quarter Quarter Quarter Months Months
(unaudited) Ended Ended Ended Ended Ended
(dollars Dec 31, Sept 30, Dec 31, Dec 31, Dec 31,
in 000s) 2007 2007 2006 2007 2006
---------------------------------------------------------------------
Balance at
beginning
of period $ 17,023 $ 16,262 $ 15,511 $ 15,889 $ 14,184
Provision
for loan
losses 900 800 450 2,100 1,850
Charge offs -
net of
recoveries (32) (39) 8 (98) (65)
---------- ---------- ---------- ---------- ----------
Balance at
end of
period $ 17,891 $ 17,023 $ 15,969 $ 17,891 $ 15,969
Reserves/
Loans
Receivable 1.50% 1.48% 1.53%
NON-PERFORMING ASSETS
(unaudited)
(dollars Dec 31, Sept 30, Dec 31,
in 000s) 2007 2007 2006
---------------------------------------------
Accruing
loans -
90 days
past due $ -- $ -- $ 33
Non-accrual
loans 990 6 1,040
Restructured
loans -- -- --
---------- ---------- ----------
Total
non-performing
loans $ 990 $ 6 1,073
Total
non-performing
loans/net
loans 0.08% 0.00% 0.10%
Real estate
owned $ 655 $ 725 --
---------- ---------- ----------
Total
non-performing
assets $ 1,645 $ 731 $ 1,073
Total
non-performing
assets/
total assets 0.12% 0.05% 0.09%