BELLINGHAM, Wash., April 24, 2008 (PRIME NEWSWIRE) -- Horizon Financial Corp. (Nasdaq:HRZB) today reported strong loan growth contributed to near record profits in its fiscal year ended March 31, 2008. Horizon reported earnings of $18.4 million, or $1.51 per diluted share, in fiscal 2008, compared to record earnings of $19.0 million, or $1.53 per diluted share, posted a year ago. Fiscal fourth quarter earnings were $3.8 million, or $0.31 per diluted share, compared to $4.9 million, or $0.40 per diluted share for the fourth quarter of fiscal 2007.
Fiscal 2008 Highlights (for the year ended March 31, 2008 compared to March 31, 2007):
* Deposits grew 7% year-over-year and totaled $1.04 billion at fiscal
year end.
* Earnings per share benefited from an active share repurchase
program.
* Net loans grew 13% to $1.19 billion from $1.05 billion a year ago.
* Non-performing assets rose due to two large Snohomish county
construction projects placed on nonaccrual status.
-- Non-performing assets were $12.3 million, or 0.88% of total
assets, up from $951,000 or 0.07% a year ago.
-- The $2 million provision for loan losses in the fourth quarter
more than doubled the full year provision to $4.1 million up
from $1.9 million in fiscal 2007.
-- Loan loss reserves totaled $19.1 million, or 1.60% of net loans
receivable compared to $15.9 million, or 1.51% a year ago.
-- Net charge offs were a modest $875,000, or 0.08% of average
loans, in fiscal 2008.
* Tangible book value per share grew 7% to $10.72 from $10.04 a year
ago.
* Capital ratios remain strong with equity to assets of 9.22% and
risk-based capital of 11.02%.
"Our local economy continues to perform better than the national averages on most metrics, although we are well below last year's robust levels," stated V. Lawrence Evans, Chairman. "Housing sales activity ticked up in March and, as a result, the number of months of inventory figures declined in most of our markets. However, inventories remain at elevated levels, so we need to see this increased sales activity continue before we can become more optimistic about the outlook for the housing market."
Non-performing assets grew significantly in the final quarter of our fiscal year. Two lending relationships contributed to the majority of the increase in our non-accrual figures, including a residential developer in Snohomish County with inventory consisting of 17 homes (4 of which are in escrow with sales pending), 8 residential building lots; and one commercial development project for a 7.4 acre site in Monroe, Washington. Horizon charged off over $700,000 in the quarter for these projects and the loan balances on its books are now in line with current market values.
Statewide employment growth continued to be strong with 84,700 jobs added to the resident labor force compared to a year ago. The state's labor force also grew, resulting in higher unemployment levels in March compared to a year ago. Washington statewide unemployment in March increased to 5.3% (seasonally adjusted) from 4.7% a year ago. Bellingham's unemployment was at 5.1%, up from 4.1% last year. Tacoma and Mt. Vernon-Anacortes also rose with unemployment at 5.9% in March compared to 4.7% in both markets a year ago. Snohomish County saw unemployment fall to 4.3% from 4.4%.
Conference Call and Investor Conference Information
Management will host a conference call today, April 24, 2008, at 1:30 pm PDT (4:30 pm EDT) to discuss fourth quarter and fiscal 2008 results. 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 11110237#. In addition, Horizon Financial's management team is scheduled to present at the D.A. Davidson 10th Annual Financial Services Conference on May 7, 2008 at 4:45 p.m. PDT.
Review of Operations
In fiscal 2008, net revenues (net interest income plus non-interest income) increased 4% to $60.6 million from $58.3 million in fiscal 2007. In the fourth quarter of fiscal 2008, net revenues were flat compared to the same period in 2007 at $14.7 million and down slightly from $15.3 million from the immediate prior quarter. Interest income fell 2% in the current quarter and increased 8% for the year, while interest expense increased 2% in the current quarter and 16% for the year.
"With 48% of our loan portfolio tied to prime with rates above any applicable floors, the continuing rate cuts by the Federal Reserve significantly impacted revenues and net interest margin this year," said Rich Jacobson, CEO. "During the quarter ended March 31, 2008, we took the opportunity to reposition some of our higher cost deposits and reduce costs on the liabilities side of the ledger. We accomplished this by calling $29 million in callable brokered CDs which averaged 5.29% and replaced them with CDs with an average rate of 3.29%. Additionally, the reversal of accrued interest on nonperforming loans negatively impacted net interest margin during the quarter. The effect of calling the brokered CDs, combined with the interest income lost from the loans placed on non-accrual, adversely impacted net interest margin by 14 basis points during the quarter and shaved 5 basis points from the full year net interest margin."
In fiscal 2008, the net interest margin was 4.37% compared to 4.73% for fiscal 2007. In fiscal 2008, the yield on interest-earning assets was 8.17% compared to 8.35% in fiscal 2007. For fiscal 2008, the cost of interest-bearing liabilities was 3.93% compared to 3.74% in the year-ago period.
The net interest margin was 3.88% in the fourth quarter of fiscal 2008, a decrease of 52 basis points from the immediate prior quarter and down 75 basis points from the same period a year ago, reflecting the recent significant cuts in short term rates. The yield on earning assets was 7.36% in the fourth quarter of fiscal 2008, a decrease from 8.26% in the preceding quarter and 8.45% in the fourth quarter of fiscal 2007. In the fourth quarter of fiscal 2008, the cost of interest-bearing liabilities was 3.60%, down 40 basis points from the preceding quarter and down 36 basis points from the year ago quarter.
In fiscal 2008, non-interest income grew 21% to $7.0 million from $5.8 million during the comparable period in fiscal 2007. Fourth quarter non-interest income grew 46% to $2.2 million compared to $1.5 million in the fourth quarter of fiscal 2007, boosted by gains from sale of loans and investments. Residential mortgage originations were up 20% for the year, providing a solid contribution to revenues as well as contributing to portfolio growth.
For the full year, operating expense increased 5% to $29.2 million from $27.9 million in fiscal 2007, reflecting branch expansion and overall growth of the franchise. Fourth quarter operating (non-interest) expense fell 4% to $7.1 million from $7.4 million in the fourth quarter of fiscal 2007.
In 2008, Horizon's return on average equity was 14.53% and the return on average assets was 1.37%, compared to 16.11% and 1.57%, respectively, in fiscal 2007. Fourth quarter return on average equity was 11.77% compared to 14.72% in the immediate prior quarter and 16.05% in the fourth quarter of fiscal 2007. Return on average assets was 1.08% in the fourth quarter of fiscal 2008, compared to 1.38% in the preceding quarter and 1.56% in the fourth quarter of fiscal 2007. In fiscal 2008, the efficiency ratio was 48.12% compared to 47.79% in fiscal 2007. The efficiency ratio was 48.21% in the fourth quarter of fiscal 2008 compared to 48.46% in the immediate prior quarter and 50.08% in the fourth quarter of fiscal 2007.
Balance Sheet Review
Total assets grew 10% to $1.39 billion at March 31, 2008 from $1.27 billion at March 31, 2007. Net loans increased 13% to $1.19 billion at the end of March 2008 compared to $1.05 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 15%, residential 12%, and consumer 4% of net loans. "We are continuing to shift our focus from construction to commercial lending, to better diversify our loan mix," said Dennis Joines, President and COO.
Non-performing loans (NPLs) were $11.6 million at March 31, 2008 representing 0.97% of net loans receivable and non-performing assets (NPAs) totaled $12.3 million or 0.88% of total assets. For fiscal 2007, NPLs were $226,000, or 0.02% of net loans and NPAs were $951,000, or 0.07% of total assets.
"Despite the addition of $10.6 million to nonperforming status at the end of the year, our asset quality remains slightly better than that of banks our size in the nation. As of December 31, 2007, the SNL index of banks with assets of $1 billion to $5 billions shows NPA/Assets for this group was 0.93% and NPL/loans was 1.04%," said Joines. "Asset quality has always been a primary focus for us, and we are working closely with our borrowers to work through the current challenging environment."
"Regarding the three loans in Pierce County that we discussed last quarter, I am happy to report that the developers have made progress on these projects and the loans are current at this time. We remain cautiously optimistic that these borrowers will be able to maintain their loans in good standing as we move into the summer season," Jacobson added.
In fiscal 2008, the provision for loan losses totaled $4.1 million compared to $1.9 million a year ago. The provision for loan losses was $2.0 million in the fourth quarter of fiscal 2008, $900,000 in the immediate prior quarter, and none in the fourth quarter of fiscal 2007. In fiscal 2008, net charge-offs totaled $875,000, or 0.08% of average loans, compared to $145,000, or 0.01% of average loans at March 31, 2007. Net charge-offs were $777,000 in the fourth quarter of fiscal 2008, $32,000 in the immediate prior quarter of fiscal 2008, and $80,000 in the fourth quarter of fiscal 2007. The reserve for loan losses totaled $19.1 million at March 31, 2008, representing 1.60% of net loans receivable compared to $15.9 million, or 1.51% of net loans receivable at March 31, 2007.
Total deposits increased 7% to $1.04 billion at March 31, 2008, compared to $975 million a year earlier. Transaction accounts decreased 9% to $344 million compared to $380 million a year ago, and time deposits increased 16.6% to $695 million at March 31, 2008, compared to $596 million at March 31, 2007.
At March 31, 2008, Horizon's book value was $10.79 per share compared to $10.11 per share a year earlier, and tangible book value was $10.72 per share at March 31, 2008, up from $10.04 per share a year ago. During fiscal 2008, Horizon repurchased 399,700 shares of its common stock at an average price of $17.62 per share, of which 119,300 was purchased in the fourth quarter at an average price of $13.51 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
Quarter Quarter Quarter
(unaudited) Ended Three Ended One Ended
(in 000s, except Mar 31, Month Dec 31, Year Mar 31,
share data) 2008 Change 2007 Change 2007
---------------------------------------------------------------------
Interest income:
Interest
on loans $ 22,637 -9% $ 24,917 -2% $ 23,160
Interest
and
dividends
on
securities 906 -9% 992 -6% 965
----------- ----------- -----------
Total
interest
income 23,543 -9% 25,909 -2% 24,125
Interest expense:
Interest on
deposits 9,215 -4% 9,573 2% 9,012
Interest on
borrowings 1,914 -25% 2,536 2% 1,883
----------- ----------- -----------
Total
interest
expense 11,129 -8% 12,109 2% 10,895
----------- ----------- -----------
Net interest
income 12,414 -10% 13,800 -6% 13,230
Provision for
loan losses 2,000 122% 900 N/A --
----------- ----------- -----------
Net interest
income after
provision
for loan
losses 10,414 -19% 12,900 -21% 13,230
Non-interest income:
Service fees 909 2% 893 14% 800
Net gain on
sales of loans -
servicing
released 191 12% 170 -18% 233
Net gain on
sales of loans -
servicing
retained 158 N/A 1 N/A 1
Net gain (loss)
on sales of
investment
securities 480 N/A -- N/A (29)
Other 475 5% 452 -6% 503
----------- ----------- -----------
Total non-
interest
income 2,213 46% 1,516 47% 1,508
Non-interest
expense:
Compensation
and employee
benefits 3,962 -6% 4,205 -6% 4,195
Building
occupancy 1,205 -2% 1,232 -1% 1,212
Other expenses 1,440 -7% 1,554 -7% 1,542
Data processing 244 4% 234 11% 220
Advertising 200 2% 197 -6% 212
----------- ----------- -----------
Total non-
interest
expense 7,051 -5% 7,422 -4% 7,381
Income before
provision
for income taxes 5,576 -20% 6,994 -24% 7,357
Provision for
income taxes 1,804 -21% 2,282 -26% 2,444
----------- ----------- -----------
Net Income $ 3,772 -20% $ 4,712 -23% $ 4,913
=========== =========== ===========
Earnings per
share:
Basic earnings
per share $ 0.32 -18% $ 0.39 -20% $ 0.40
Diluted
earnings
per share $ 0.31 -21% $ 0.39 -23% $ 0.40
Weighted average
shares
outstanding:
Basic 11,943,021 -1% 12,064,265 -3% 12,258,580
Common stock
equivalents 81,437 -13% 93,200 -33% 121,981
----------- ----------- -----------
Diluted 12,024,458 -1% 12,157,465 -3% 12,380,561
=========== =========== ===========
CONSOLIDATED STATEMENTS OF INCOME
Twelve Months Twelve Months
Ended Ended
(unaudited) March 31, March 31,
(in 000s, except per share data) 2008 Change 2007
---------------------------------------------------------------------
Interest income:
Interest on loans $ 96,320 9% $ 88,589
Interest and dividends on
securities 3,923 -2% 4,011
----------- -----------
Total interest income 100,243 8% 92,600
Interest expense:
Interest on deposits 38,073 18% 32,251
Interest on borrowings 8,572 9% 7,882
----------- -----------
Total interest expense 46,645 16% 40,133
----------- -----------
Net interest income 53,598 2% 52,467
Provision for loan losses 4,100 122% 1,850
----------- -----------
Net interest income after
provision for loan losses 49,498 -2% 50,617
Non-interest income:
Service fees 3,601 10% 3,274
Net gain on sales of loans -
servicing released 848 3% 827
Net gain on sales of loans -
servicing retained 176 665% 23
Net gain (loss) on sales of
investment securities 480 N/A (10)
Other 1,939 12% 1,724
----------- -----------
Total non-interest income 7,044 21% 5,838
Non-interest expense:
Compensation and employee
benefits 16,595 2% 16,328
Building occupancy 4,698 10% 4,280
Other expenses 6,118 8% 5,640
Data processing 957 11% 862
Advertising 812 8% 751
----------- -----------
Total non-interest expense 29,180 5% 27,861
Income before provision for
income tax 27,362 -4% 28,594
Provision for income tax 8,949 -6% 9,566
----------- -----------
Net Income $ 18,413 -3% $ 19,028
=========== ===========
Earnings per share :
Basic earnings per share $ 1.52 -2% $ 1.55
Diluted EPS $ 1.51 -1% $ 1.53
Weighted average shares
outstanding:
Basic 12,097,615 -2% 12,287,805
Common stock equivalents 99,168 -18% 121,287
----------- -----------
Diluted 12,196,783 -2% 12,409,092
=========== ===========
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(unaudited) (in 000s, except share data)
Three One
March 31, Month Dec 31, Year March 31,
2008 Change 2007 Change 2007
----------------------------------------------------------------------
Assets:
Cash
and due
from banks $ 22,412 -10% $ 24,807 -45% $ 40,833
Interest-
bearing
deposits 2,912 5% 2,785 -46% 5,379
Investment
securities-
available
for sale 41,241 -14% 47,981 -22% 52,865
Investment
securities-
held to
maturity -- 0% -- -100% 370
Mortgage-
backed
securities-
available
for sale 39,100 21% 32,404 49% 26,233
Mortgage-
backed
securities-
held to
maturity 30 -36% 47 -80% 148
Federal Home
Loan Bank
stock 8,867 22% 7,247 22% 7,247
Loans held
for sale 2,644 3% 2,561 -41% 4,493
Gross loans
receivable 1,210,592 0% 1,208,529 13% 1,070,759
Reserve for
loan losses (19,114) 7% (17,891) 20% (15,889)
------------ ----------- ----------
Net loans
receivable 1,191,478 0% 1,190,638 13% 1,054,870
Investment
in real
estate
in a joint
venture 17,567 1% 17,475 2% 17,169
Accrued
interest
and
dividends
receivable 7,916 0% 7,881 19% 6,626
Property
and
equipment,
net 27,778 -1% 28,127 1% 27,631
Net
deferred
income tax
assets 6,253 44% 4,351 68% 3,733
Income tax
receivable -- -100% 1,279 0% --
Other real
estate
owned 655 0% 655 -10% 725
Other assets 23,325 1% 23,077 6% 22,005
------------ ----------- ----------
Total
assets $ 1,392,178 0% $ 1,391,315 10% $1,270,327
============ =========== ==========
Liabilities:
Deposits $ 1,038,792 3% $ 1,009,940 7% $ 975,295
Other
borrowed
funds 192,343 -14% 222,555 39% 138,715
Borrowing
related
to
investment
in real
estate in
a joint
venture 22,448 2% 21,947 11% 20,243
Accounts
payable and
other
liabilities 5,746 -15% 6,757 -40% 9,508
Advances by
borrowers for
taxes and
insurance 414 93% 215 -9% 454
Deferred
compensation 1,944 -1% 1,963 -4% 2,020
Income tax
payable 2,174 N/A -- 817% 237
------------ ----------- ----------
Total
lia-
bilities $ 1,263,861 0% $ 1,263,377 10% $1,146,472
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;
11,892,208,
11,998,978,
and
12,254,476
shares
outstanding $ 11,892 -1% $ 11,999 -3% $ 12,254
Additional
paid-in
capital 50,597 0% 50,839 -2% 51,489
Retained
earnings 63,906 2% 62,709 13% 56,770
Accumulated
other
comprehensive
income 1,922 -20% 2,391 -42% 3,342
------------ ----------- ----------
Total
stock-
holders'
equity 128,317 0% 127,938 4% 123,855
------------ ----------- ----------
Total
liabilities
and
stock-
holders'
equity $ 1,392,178 0% $ 1,391,315 10% $1,270,327
=========== =========== ==========
Intangible
assets:
Goodwill $ 545 0% $ 545 0% $ 545
Mortgage
servicing
asset 254 12% 227 2% 250
------------ ----------- ----------
Total
intangible
assets $ 799 3% $ 772 1% $ 795
=========== =========== ==========
LOANS
(unaudited)(in 000s)
March 31, Dec 31, March 31,
2008 2007 2007
--------------------------------------------------------------------
1-4 Mortgage
1-4 Family
residential $ 165,824 $ 164,933 $ 149,885
1-4 Family
construction 35,303 36,584 28,576
Participations
sold (54,269) (49,105) (54,592)
---------- ---------- ----------
Subtotal 146,858 152,412 123,869
Construction
and land
development 486,535 477,908 405,348
Multi
family
residential 45,049 45,415 52,727
Commercial
real estate 300,109 312,669 292,212
Commercial
loans 177,685 168,120 146,265
Home equity
secured 47,351 44,267 45,307
Other
consumer
loans 7,005 7,738 5,031
---------- ---------- ----------
Subtotal 1,063,734 1,056,117 946,890
---------- ---------- ----------
Subtotal 1,210,592 1,208,529 1,070,759
Less:
Reserve
for loan
losses (19,114) (17,891) (15,889)
---------- ---------- ----------
Net
loans
receivable $1,191,478 $1,190,638 $1,054,870
========== ========== ==========
Net
residential
loans $ 145,565 12% $ 151,151 13% 122,839 12%
Net
commercial
loans 174,263 15% 165,077 14% 143,604 13%
Net
commercial
real estate
loans 818,215 69% 823,257 69% 738,861 70%
Net consumer
loans 53,435 4% 51,153 4% 49,566 5%
--------------- --------------- ---------------
$1,191,478 100% $1,190,638 100% $1,054,870 100%
=============== =============== ===============
DEPOSITS
(unaudited)(in 000s)
March 31, Dec 31, March 31,
2008 2007 2007
---------------------------------------------------------------------
Demand
Deposits
Savings $ 17,933 2% $ 18,880 2% $ 21,628 2%
Checking 72,434 7% 71,300 7% 78,294 8%
Checking -
non interest
bearing 70,438 7% 81,747 8% 91,703 10%
Money
market 183,063 17% 186,402 18% 187,912 19%
---------------- ---------------- ----------------
Subtotal 343,868 33% 358,329 35% 379,537 39%
Certificates
of Deposit
Under
$100,000 286,657 27% 280,276 28% 273,022 28%
$100,000
and above 287,281 28% 273,437 27% 243,346 25%
Brokered
Certificates
of Deposit 120,986 12% 97,898 10% 79,390 8%
---------------- ---------------- ----------------
Total
Certificates
of
Deposit 694,924 67% 651,611 65% 595,758 61%
---------------- ---------------- ----------------
Total $1,038,792 100% $1,009,940 100% $ 975,295 100%
================ ================ ================
WEIGHTED AVERAGE INTEREST RATES:
(unaudited)
Twelve Twelve
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
March 31, Dec 31, March 31, March 31, March 31,
2008 2007 2007 2008 2007
---------------------------------------------------------------------
Yield on loans 7.60% 8.55% 8.79% 8.47% 8.71%
Yield on
investments 4.16% 4.47% 4.36% 4.39% 4.36%
----- ----- ----- ----- -----
Yield on interest
earning assets 7.36% 8.26% 8.45% 8.17% 8.35%
Cost of deposits 3.61% 3.88% 3.82% 3.83% 3.56%
Cost of borrowings 3.56% 4.52% 4.80% 4.44% 4.74%
----- ----- ----- ----- -----
Cost of
interest-bearing
liabilities 3.60% 4.00% 3.96% 3.93% 3.74%
AVERAGE BALANCES
(unaudited) (in 000s)
Twelve Twelve
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
March 31, Dec 31, March 31, March 31, March 31,
2008 2007 2007 2008 2007
---------------------------------------------------------------------
Loans $1,192,023 $1,165,555 $1,053,947 $1,137,051 $1,017,461
Investments 87,138 88,687 88,532 89,324 91,955
---------- ---------- ---------- ---------- ----------
Total
interest-
earning
assets 1,279,161 1,254,242 1,142,479 1,226,375 1,109,416
Deposits 1,020,979 987,250 942,906 992,866 906,047
Borrowings 214,973 224,558 156,840 193,272 166,276
---------- ---------- ---------- ---------- ----------
Total
interest-
bearing
liabili-
ties $1,235,952 $1,211,808 $1,099,746 $1,186,138 $1,072,323
Average
assets $1,391,746 $1,368,723 $1,262,266 $1,340,698 $1,213,048
Average
stock-
holders'
equity $ 128,128 $ 128,002 $ 122,477 $ 126,762 $ 118,105
CONSOLIDATED
FINANCIAL RATIOS
(unaudited)
Twelve Twelve
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
March 31, Dec 31, March 31, March 31, March 31,
2008 2007 2007 2008 2007
---------------------------------------------------------------------
Return on
average
assets 1.08% 1.38% 1.56% 1.37% 1.57%
Return on
average
equity 11.77% 14.72% 16.05% 14.53% 16.11%
Efficiency
ratio 48.21% 48.46% 50.08% 48.12% 47.79%
Net
interest
spread 3.76% 4.27% 4.48% 4.24% 4.60%
Net
interest
margin 3.88% 4.40% 4.63% 4.37% 4.73%
Equity-
to-assets
ratio 9.22% 9.20% 9.75%
Equity-to
-deposits
ratio 12.35% 12.67% 12.70%
Book
value
per share $ 10.79 $ 10.66 $ 10.11
Tangible
book
value
per share $ 10.72 $ 10.60 $ 10.04
RESERVE FOR
LOAN LOSSES
(unaudited)(dollars in 000s)
Twelve Twelve
Quarter Quarter Quarter Months Months
Ended Ended Ended Ended Ended
March 31, Dec 31, March 31, March 31, March 31,
2008 2007 2007 2008 2007
---------------------------------------------------------------------
Balance
at
beginning
of period $ 17,891 $ 17,023 $ 15,969 $ 15,889 $ 14,184
Provision
for loan
losses 2,000 900 -- 4,100 1,850
Charge
offs -
net of
recoveries (777) (32) (80) (875) (145)
---------- ---------- ---------- ---------- ----------
Balance
at end
of
period $ 19,114 $ 17,891 $ 15,889 $ 19,114 $ 15,889
Reserves/
Loans
Receivable 1.60% 1.50% 1.51%
NON-PERFORMING ASSETS
(unaudited)(dollars in 000s)
March 31, Dec 31, March 31,
2008 2007 2007
-----------------------------------------------
Accruing
loans -
90 days
past due $ -- $ -- $ --
Non-
accrual
loans 11,608 990 226
Restructured
loans -- -- --
---------- ---------- ----------
Total
non-
performing
loans $ 11,608 $ 990 $ 226
Total
non-
performing
loans/
net
loans 0.97% 0.08% 0.02%
Real estate
owned $ 655 $ 655 $ 725
---------- ---------- ----------
Total
non-
performing
assets $ 12,263 $ 1,645 $ 951
Total
non-
performing
assets/
total
assets 0.88% 0.12% 0.07%