VALDOSTA, Ga., July 29, 2008 (PRIME NEWSWIRE) -- On Tuesday, July 29, 2008, PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, announced its financial results for the three months ended June 30, 2008. The Company reported net income of $1.5 million, or $0.15 per diluted share(1), for the second quarter of 2008, a 13% increase compared to net income of $1.3 million, or $0.14 per diluted share(1), for the first quarter of 2008, but a 55% decrease compared to net income of $3.2 million, or $0.33 per diluted share(1), for the second quarter of 2007. "Despite the difficult operating environment and the significant level of resources that we have had to deploy to address problem real estate loans, we continue to run a profitable, well-capitalized bank," stated Company President and CEO M. Burke Welsh, Jr.
At June 30, 2008, the total risk-based capital of The Park Avenue Bank was $113 million, or 11.1% of the bank's total risk-weighted assets, which exceeded the regulatory threshold to be considered adequately-capitalized by over $37 million and to be considered well-capitalized by over $20 million. "As we continue to workout or liquidate our problem assets, our focus will remain on preserving our strong capital position to enable us to pursue potential strategic opportunities within our markets once economic conditions improve. We reduced our cash dividend by 35% during the quarter in order to better balance our dividend payout to earnings and to maintain our capital position. Although we do not consider it necessary today, we are prepared to further reduce our dividend or increase our capital position via qualifying debt or equity issuances," stated Welsh.
The increase in earnings for the second quarter of 2008, compared to the first quarter of 2008, was due primarily to an 8% decrease in noninterest expenses offset by a 5% decrease in net interest income. The decrease in noninterest expenses is due to a reduction of overhead expenses such as personnel costs, advertising and business development expenses and courier fees offset by increases in legal and collection expenses and expenses related to other real estate owned. The decrease in earnings for the second quarter of 2008, compared to the second quarter of 2007, was due primarily to a 19% decrease in net interest income and a 425% increase in the provision for loan losses. Compared to both the first quarter of 2008 and the second quarter of 2007, the decline in net interest income is the combined result of a reduction in revenues related to our nonperforming assets and the impact of operating an asset-sensitive balance sheet in a declining interest rate environment. The increase in the provision for loan losses is due to an increase in nonperforming loans during the quarter and continued weakness in residential real estate in the Atlanta MSA. The earnings for the second quarter of 2008 resulted in a return on average assets ("ROA") of 0.49% and a return on average equity ("ROE") of 5.96%, both increases compared to the 0.44% ROA and 5.24% ROE reported for the first quarter of 2008, but decreases compared to the 1.12% ROA and 13.10% ROE reported for the second quarter of 2007.
"Adverse market conditions have continued to negatively impact our borrowers, and as a result, we have had to carry an increasingly higher level of nonperforming assets. We have set aside reserves to reflect realizable market values of the underlying collateral on these nonperforming assets. We have a plan in place to be more aggressive over the next three to four quarters to significantly reduce our level of nonperforming assets. We have reserved for these estimated losses, and we are prepared to move forward with quick liquidations when possible. However, if we attempt to aggressively liquidate this collateral in an unfavorable market, further losses may be realized. There are select pieces of real estate that we may continue to hold as an investment until the market recovers," added Welsh.
A summary of pertinent asset quality ratios for the Company follows.
* As of June 30, 2008, the Company reported total nonperforming assets of $59.4 million, or 4.86% of total assets, a $26.1 million increase during the quarter. The increase in nonperforming assets during the second quarter of 2008 was due primarily to a net increase of $14.4 million in residential construction and development loans defaulting and being placed on nonaccrual status during the quarter and another $9.8 million in residential construction and development loans being restructured and classified as troubled-debt restructurings during the quarter. * The majority of the $59.4 million in nonperforming assets is secured by residential real estate. Of the total, $8.8 million are in foreclosed assets and have been written down to the lower of cost or net realizable value. On the remaining $50.6 million, the Company has recorded $6.9 million as specific reserves within the allowance for loan losses and an additional $7.4 million in allocated general reserves for estimated losses. * At June 30, 2008, the underlying real estate collateral of our nonperforming assets consisted of (a) nine parcels of undeveloped land totaling 1,111 acres zoned for residential development with a total carrying value of $13.1 million, or an $11,800 per acre average, (b) 675 residential lots with a total carrying value of $21.1 million, or a $31,300 per lot average, (c) 83 residential houses with a total carrying value of $12.9 million, or a $155,400 per house average, and (d) 26 commercial properties with a total carrying value of $11.5 million, or a $442,300 per property average. * Loans to three real estate developers for various residential construction and development projects in Georgia and Florida represent $25.1 million, or 42%, of total nonperforming assets at quarter end. A total of $3.05 million in specific reserves has been established on these impaired assets. * The Company reported total loans on nonaccrual status or past due more than 89 days of $40.8 million, or 4.23% of total loans, at quarter end, a $14.7 million increase during the quarter. Approximately 84.1% of the loans on nonaccrual status at quarter end were construction and development loans, and these loans represented approximately 10.0% of the Company's total portfolio of construction and development loans. * The Company reported total loans past due 30-89 days of $6.0 million, or 0.63% of total loans, at quarter end, a $3.8 million decrease during the quarter. These loans are not included in total nonperforming assets at quarter end. Approximately 46.3% of the loans past due 30-89 days at quarter end were construction and development loans, and these loans represented approximately 0.8% of the Company's total portfolio of construction and development loans. * Loan loss provision expense was $1.05 million in the second quarter of 2008, compared to $1.2 million in the first quarter of 2008 and $200,000 in the second quarter of 2007. * Net charge-offs were approximately $622,000 in the second quarter of 2008, or 0.27% of average loans (annualized). * At June 30, 2008, the allowance for loan losses represented approximately 1.48% of total loans.
At June 30, 2008, the Company reported total assets of $1.22 billion, a nominal 2% increase from the $1.20 billion reported at December 31, 2007. For the year to date, total loans outstanding have increased $42 million, or 9% annualized, to $963 million, and total deposits have increased $16 million, or 3% annualized, to $997 million at June 30, 2008.
For the second quarter of 2008, the Company's net interest margin was 3.20%, a 21 basis point decrease compared to 3.41% in the first quarter of 2008 and a 90 basis point decrease compared to 4.10% in the second quarter of 2007. During the second quarter of 2008, the Company's nonperforming assets reduced interest income by approximately $804,000 and negatively impacted the net interest margin by 28 basis points, which was consistent with the 28 basis point impact in the first quarter of 2008, but was significantly higher than the three basis point impact in the second quarter of 2007. The Company's average yield on earning assets for the second quarter of 2008 was 6.24%, a 65 basis point decline compared to the first quarter of 2008 and a 169 basis point decline compared to the same period last year. The Company's average rate paid for interest-bearing deposits and other borrowings was 3.43% for the quarter, a 48 basis point decline compared to the first quarter of 2008 and a 97 basis point decrease compared to the second quarter of 2007.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 11:00 AM Eastern on Wednesday, July 30, 2008. The conference call will be broadcast via the Internet using Windows Media Player. The webcast URL is http://www.talkpoint.com/viewer/starthere.asp?Pres=122445. A link to the webcast is posted on the "Investor Relations" section of the Company's website at www.pabbankshares.com. Interested shareholders, industry analysts and members of the news media and the investment community wanting to participate in the live question and answer session following management's presentation may access the conference call by dialing (toll free) 800-860-2442 or (international) 412-858-4600.
Shortly following the call and at any time for at least 30 days thereafter, interested parties may access an archived version of the webcast on the "Investor Relations" section of the Company's website or by dialing (toll free) 877-344-7529 or (International) 412-317-0088. The following replay passcodes will be required for playback access: 421143.
About PAB
The Company is a $1.2 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank operates in 20 branch offices and three loan production offices in 15 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements
Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding our outlook on asset quality, projected growth, capital position, our plans regarding our nonperforming assets, business opportunities in our markets and economic conditions, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate", "believe", "intend", "plan", "expect", "estimate", "could", "should", "will" and similar expressions are used, you should consider them as identifying forward-looking statements. These forward-looking statements are not guarantees of future performance, and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements. The following list, which is not intended to be an all-encompassing list of risks and uncertainties affecting the Company, summarizes several factors that could cause the Company's actual results to differ materially from those anticipated or expected in these forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins or the volumes or values of loans made by The Park Avenue Bank; (3) general economic conditions (both generally and in our markets) may continue to be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect the businesses in which we are engaged; (5) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; (6) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (7) adverse changes may occur in the bond and equity markets; (8) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (9) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (10) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (11) the risk factors discussed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2007. The Company undertakes no obligation to revise these statements following the date of this press release.
(1) Adjusted for 2% stock dividend paid on July 15, 2008.
PAB BANKSHARES, INC. SELECTED QUARTERLY FINANCIAL DATA Period Ended ------------------------------------------------------ 06/30/08 03/31/08 12/31/07 09/30/07 06/30/07 --------------------------------------------------------------------- (Dollars in thousands except per share and other data) Summary of Operations: Interest income $ 17,460 $ 19,030 $ 21,013 $ 21,866 $ 21,345 Interest expense 8,598 9,685 10,956 11,084 10,386 --------------------------------------------------------------------- Net interest income 8,862 9,345 10,057 10,782 10,959 --------------------------------------------------------------------- Provision for loan losses 1,050 1,200 1,800 400 200 Other income 1,572 1,643 1,682 1,471 1,359 Other expense 7,191 7,829 7,440 7,471 7,209 --------------------------------------------------------------------- Income before income tax expense 2,193 1,959 2,499 4,382 4,909 Income tax expense 730 662 858 1,523 1,688 --------------------------------------------------------------------- Net income $ 1,463 $ 1,297 $ 1,641 $ 2,859 $ 3,221 ===================================================================== Net interest income on a tax- equivalent basis $ 9,043 $ 9,522 $ 10,230 $ 10,948 $ 11,119 Per Share Ratios: Net income - basic ** $ 0.16 $ 0.14 $ 0.17 $ 0.30 $ 0.33 Net income - diluted ** 0.15 0.14 0.17 0.29 0.33 Dividends declared for period 0.095 0.145 0.145 0.145 0.145 Dividend payout ratio 59.33% 102.39% 81.50% 47.14% 42.66% Book value at end of period ** $ 10.26 $ 10.59 $ 10.38 $ 10.22 $ 9.96 Common Share Data: Outstanding at period end ** 9,324,407 9,337,641 9,406,956 9,474,954 9,663,229 Weighted average outstand- ing ** 9,328,241 9,364,691 9,437,037 9,594,060 9,682,308 Diluted weighted average outstand- ing ** 9,376,186 9,423,606 9,526,228 9,725,661 9,845,435 Selected Average Balances: Total assets $1,210,454 $1,194,717 $1,194,703 $1,185,839 $1,155,158 Earning assets 1,137,101 1,121,461 1,123,811 1,117,852 1,087,926 Loans 943,391 930,049 915,214 905,931 876,982 Deposits 984,114 967,426 977,666 970,515 935,100 Stockholders' equity 98,757 99,557 98,567 97,499 98,678 Selected Period End Balances: Total assets $1,222,368 $1,205,041 $1,198,671 $1,195,680 $1,169,967 Earning assets 1,144,718 1,129,869 1,116,776 1,127,873 1,097,888 Loans 963,500 934,927 921,349 904,082 905,158 Allowance for loan losses 14,303 13,875 12,906 11,497 11,342 Goodwill 5,985 5,985 5,985 5,985 5,985 Deposits 996,595 972,104 980,149 979,792 945,847 Stockholders' equity 95,677 98,866 97,676 96,833 96,290 Tier 1 regulatory capital 100,492 100,010 100,885 101,647 103,397 Performance Ratios: Return on average assets 0.49% 0.44% 0.54% 0.96% 1.12% Return on average stock- holders' equity 5.96% 5.24% 6.61% 11.63% 13.10% Net interest margin 3.20% 3.41% 3.61% 3.89% 4.10% Efficiency ratio (excluding the following items): 67.58% 70.87% 63.46% 60.54% 57.62% Securities gains (losses) included in other income $ 17 $ 183 $ 129 $ 49 $ (38) Other gains (losses) included in other income (42) (66) 60 28 6 Selected Asset Quality Factors: Nonaccrual loans $ 40,464 $ 26,090 $ 11,405 $ 5,185 $ 1,986 Loans 90 days or more past due and still accruing 331 13 37 34 27 Other impaired loans (troubled- debt restructur- ings) 9,808 -- -- -- -- Other real estate and repossess- ions 8,792 7,237 6,360 3,676 2,999 Asset Quality Ratios: Net charge- offs to average loans (annualized YTD) 0.18% 0.10% 0.06% 0.02% -0.03% Nonperforming loans to total loans 5.25% 2.79% 1.24% 0.58% 0.22% Nonperforming assets to total assets 4.86% 2.77% 1.49% 0.74% 0.43% Allowance for loan losses to total loans 1.48% 1.48% 1.40% 1.27% 1.25% Allowance for loan losses to nonperforming loans 28.26% 53.15% 112.79% 220.30% 563.32% Other Selected Ratios and Nonfinancial Data: Average loans to average earning assets 82.96% 82.93% 81.44% 81.04% 80.61% Average loans to average deposits 95.86% 96.14% 93.61% 93.35% 93.78% Average stockholders' equity to average assets 8.16% 8.33% 8.25% 8.22% 8.54% Full-time equivalent employees 320 321 327 328 322 Bank branch offices 20 20 20 20 20 Bank loan production offices 3 3 3 3 3 Bank ATMs 26 25 25 25 25 ** Adjusted for 2% Stock Dividend Payable July 15, 2008 PAB BANKSHARES, INC. SELECTED YEAR-TO-DATE FINANCIAL DATA Period Ended ------------------------------------------------------ 06/30/08 03/31/08 12/31/07 09/30/07 06/30/07 --------------------------------------------------------------------- (Dollars in thousands except per share and other data) Summary of Operations: Interest income $ 36,491 $ 19,030 $ 84,676 $ 63,663 $ 41,797 Interest expense 18,283 9,685 42,210 31,253 20,169 --------------------------------------------------------------------- Net interest income 18,208 9,345 42,466 32,410 21,628 --------------------------------------------------------------------- Provision for loan losses 2,250 1,200 2,400 600 200 Other income 3,215 1,643 5,991 4,309 2,838 Other expense 15,020 7,829 29,590 22,150 14,679 --------------------------------------------------------------------- Income before income tax expense 4,153 1,959 16,467 13,969 9,587 Income tax expense 1,392 662 5,681 4,823 3,300 --------------------------------------------------------------------- Net income $ 2,761 $ 1,297 $ 10,786 $ 9,146 $ 6,287 ===================================================================== Net interest income on a tax- equivalent basis $ 18,565 $ 9,522 $ 43,120 $ 32,889 $ 21,941 Per Share Ratios: Net income - basic ** $ 0.30 $ 0.14 $ 1.12 $ 0.95 $ 0.65 Net income - diluted ** 0.29 0.14 1.11 0.93 0.64 Dividends declared for the period 0.240 0.145 0.580 0.435 0.290 Dividend payout ratio 79.57% 102.39% 50.43% 44.85% 43.81% Common Share Data: Weighted average outstand- ing ** 9,346,466 9,364,691 9,602,535 9,658,307 9,690,963 Diluted weighted average outstand- ing ** 9,400,712 9,423,606 9,744,063 9,814,914 9,860,411 Selected Average Balances: Total assets $1,202,585 $1,194,717 $1,165,307 $1,155,401 $1,139,930 Earning assets 1,129,281 1,121,461 1,096,918 1,087,855 1,072,608 Loans 936,720 930,049 883,334 872,591 855,644 Deposits 975,770 967,426 948,613 938,822 922,713 Stockholders' equity 99,157 99,557 98,055 97,883 98,077 Performance Ratios: Return on average assets 0.46% 0.44% 0.93% 1.06% 1.11% Return on average stockholders' equity 5.60% 5.24% 11.00% 12.49% 12.93% Net interest margin 3.31% 3.41% 3.93% 4.04% 4.13% Efficiency ratio (excluding the following items): 69.26% 70.87% 60.74% 59.88% 59.55% Securities gains (losses) included in other income $ 200 $ 183 $ 313 $ 184 $ 135 Other gains (losses) included in other income (108) (66) 81 21 (7) Other Selected Ratios: Average loans to average earning assets 82.95% 82.93% 80.53% 80.21% 79.77% Average loans to average deposits 96.00% 96.14% 93.12% 92.95% 92.73% Average stockholders' equity to average assets 8.25% 8.33% 8.41% 8.47% 8.60% ** Adjusted for 2% Stock Dividend Payable July 15, 2008 PAB BANKSHARES, INC. LOAN AND DEPOSIT PORTFOLIO BY MARKET South North As of June 30, Georgia Georgia Florida 2008 Market Market Market Treasury Total ------------------------------------------------ (Dollars in Thousands) Loans Commercial and financial $ 32,339 $ 47,450 $ 2,262 $ 36 $ 82,087 Agricultural (including loans secured by farmland) 36,145 4,691 6,055 -- 46,891 Real estate - construction 80,317 205,864 57,542 670 344,393 Real estate - commercial 91,899 154,474 25,208 4,381 275,962 Real estate - residential 131,317 36,116 8,934 4,802 181,169 Installment loans to individuals and others 13,635 5,831 179 13,592 33,237 ------------------------------------------------ 385,652 454,426 100,180 23,481 963,739 Deferred loan fees and unearned interest, net 270 (184) (305) (20) (239) ------------------------------------------------ Total loans 385,922 454,242 99,875 23,461 963,500 Allowance for loan losses (3,004) (9,524) (1,514) (261) (14,303) ------------------------------------------------ Net loans $382,918 $444,718 $ 98,361 $ 23,200 $949,197 ================================================ Percent of total 40.3% 46.9% 10.4% 2.4% 100.0% ================================================ Deposits Noninterest- bearing demand $ 75,624 $ 16,309 $ 3,820 $ 7,156 $102,909 Interest-bearing demand and savings 259,652 45,635 30,431 641 336,359 Time less than $100,000 161,271 42,628 88,462 620 292,981 Time greater than or equal to $100,000 99,544 32,849 43,421 100 175,914 Brokered -- -- -- 88,432 88,432 ------------------------------------------------ Total deposits $596,091 $137,421 $166,134 $ 96,949 $996,595 ================================================ Percent of total 59.8% 13.8% 16.7% 9.7% 100.0% ================================================ PAB BANKSHARES, INC. LOAN PORTFOLIO SUMMARY The amount of loans outstanding at the indicated dates is presented in the following table according to type of loan: Period Ended ------------------------------------------------- 6/30/08 3/31/08 12/31/07 9/30/07 6/30/07 ------------------------------------------------- (Dollars In Thousands) Commercial and financial $ 82,087 $ 83,343 $ 78,730 $ 78,556 $ 78,048 Agricultural (including loans secured by farmland) 46,891 42,573 41,861 42,608 46,973 Real estate - construction 344,393 363,392 352,732 339,019 328,347 Real estate - commercial 275,962 241,165 248,272 257,841 270,978 Real estate - residential 181,169 179,091 174,157 164,967 161,404 Installment loans to individuals and other loans 33,237 25,704 26,011 21,691 20,246 -------- -------- -------- -------- -------- 963,739 935,268 921,763 904,682 905,996 Deferred loan fees and unearned interest, net (239) (341) (414) (600) (839) -------- -------- -------- -------- -------- Total loans 963,500 934,927 921,349 904,082 905,157 Allowance for loan losses (14,303) (13,875) (12,906) (11,497) (11,342) -------- -------- -------- -------- -------- Net loans $949,197 $921,052 $908,443 $892,585 $893,815 ======== ======== ======== ======== ======== The percentage of loans outstanding at the indicated dates is presented in the following table according to type of loan: Period Ended ------------------------------------------- 6/30/08 3/31/08 12/31/07 9/30/07 6/30/07 ------------------------------------------- Commercial and financial 8.52% 8.91% 8.55% 8.69% 8.62% Agricultural (including loans secured by farmland) 4.87% 4.55% 4.54% 4.71% 5.19% Real estate - construction 35.74% 38.87% 38.28% 37.50% 36.27% Real estate - commercial 28.64% 25.80% 26.95% 28.52% 29.94% Real estate - residential 18.80% 19.16% 18.90% 18.25% 17.83% Installment loans to individuals and other loans 3.45% 2.75% 2.82% 2.40% 2.24% ------ ------ ------ ------ ------ 100.02% 100.04% 100.04% 100.07% 100.09% Deferred loan fees and unearned interest, net -0.02% -0.04% -0.04% -0.07% -0.09% ------ ------ ------ ------ ------ Total loans 100.00% 100.00% 100.00% 100.00% 100.00% Allowance for loan losses -1.48% -1.48% -1.40% -1.27% -1.25% ------ ------ ------ ------ ------ Net loans 98.52% 98.52% 98.60% 98.73% 98.75% ====== ====== ====== ====== ====== PAB BANKSHARES, INC. DEPOSIT PORTFOLIO SUMMARY The amounts on deposit at the indicated dates are presented in the following table according to type of deposit account: Period Ended ------------------------------------------------ 06/30/08 03/31/08 12/31/07 09/30/07 06/30/07 -------- -------- -------- -------- -------- (Dollars In Thousands) Noninterest-bearing demand $102,909 $ 97,029 $ 89,423 $ 91,053 $ 98,862 Interest-bearing demand and savings 336,359 331,184 354,743 362,079 349,720 Time less than $100,000 292,981 298,799 312,722 315,532 300,856 Time greater than or equal to $100,000 175,914 179,316 187,662 172,529 163,973 Brokered 88,432 65,776 35,599 38,599 32,436 -------- -------- -------- -------- -------- Total deposits $996,595 $972,104 $980,149 $979,792 $945,847 ======== ======== ======== ======== ======== The percentage of total deposits at the indicated dates is presented in the following table according to type of deposit account: Period Ended -------------------------------------------- 06/30/08 03/31/08 12/31/07 09/30/07 06/30/07 -------- -------- -------- -------- -------- Noninterest-bearing demand 10.33% 9.98% 9.12% 9.29% 10.45% Interest-bearing demand and savings 33.75% 34.07% 36.19% 36.96% 36.98% Time less than $100,000 29.40% 30.74% 31.91% 32.20% 31.78% Time greater than or equal to $100,000 17.65% 18.44% 19.15% 17.61% 17.36% Brokered 8.87% 6.77% 3.63% 3.94% 3.43% ------ ------ ------ ------ ------ Total deposits 100.00% 100.00% 100.00% 100.00% 100.00% ====== ====== ====== ====== ====== PAB BANKSHARES, INC. YIELD ANALYSIS The following tables detail the average balances of interest-earning assets and interest-bearing liabilities, the amount of interest earned and paid, and the average yields and rates for the three months and six months ended June 30, 2008 and 2007. Federally tax-exempt income is presented on a taxable-equivalent basis assuming a 35% Federal tax rate. Loan average balances include loans on nonaccrual status. For the Three Months Ended June 30, 2008 --------------------------------------------------------------------- Interest Average Average Income/ Yield/ Balance Expense Rate --------------------------------------------------------------------- (Dollars In Thousands) Interest-earning assets: Loans $ 943,391 $ 15,140 6.45% Investment securities: Taxable 143,982 1,902 5.31% Nontaxable 33,882 516 6.13% Other short-term investments 15,845 83 2.10% ---------- ---------- Total interest-earning assets $1,137,100 $ 17,641 6.24% ---------- ---------- Interest-bearing liabilities: Demand deposits $ 292,848 $ 1,339 1.84% Savings deposits 36,168 53 0.59% Time deposits 556,630 6,070 4.39% FHLB advances 97,511 928 3.83% Notes payable 10,310 113 4.40% Other short-term borrowings 14,205 95 2.69% ---------- ---------- Total interest-bearing liabilities $1,007,672 $ 8,598 3.43% ---------- ---------- Interest rate spread 2.81% ========== Net interest income $ 9,043 ========== Net interest margin 3.20% ========== For the Three Months Ended June 30, 2007 --------------------------------------------------------------------- Interest Average Average Income/ Yield/ Balance Expense Rate --------------------------------------------------------------------- (Dollars In Thousands) Interest-earning assets: Loans $ 876,982 $ 18,712 8.56% Investment securities: Taxable 162,827 2,085 5.14% Nontaxable 30,370 457 6.04% Other short-term investments 17,747 251 5.67% ---------- ---------- Total interest-earning assets $1,087,926 $ 21,505 7.93% ---------- ---------- Interest-bearing liabilities: Demand deposits $ 311,097 $ 2,819 3.63% Savings deposits 37,986 150 1.59% Time deposits 484,208 6,057 5.02% FHLB advances 90,512 1,038 4.60% Notes payable 10,310 182 7.08% Other short-term borrowings 13,208 140 4.26% ---------- ---------- Total interest-bearing liabilities $ 947,321 $ 10,386 4.40% ---------- ---------- Interest rate spread 3.53% ========== Net interest income $ 11,119 ========== Net interest margin 4.10% ========== For the Six Months Ended June 30, 2008 --------------------------------------------------------------------- Interest Average Average Income/ Yield/ Balance Expense Rate --------------------------------------------------------------------- (Dollars In Thousands) Interest-earning assets: Loans $ 936,720 $ 31,797 6.83% Investment securities: Taxable 147,577 3,895 5.31% Nontaxable 33,513 1,020 6.12% Other short-term investments 11,471 136 2.38% ---------- ---------- Total interest-earning assets $1,129,281 $ 36,848 6.56% ---------- ---------- Interest-bearing liabilities: Demand deposits $ 299,377 $ 3,265 2.19% Savings deposits 35,755 129 0.72% Time deposits 545,096 12,485 4.61% FHLB advances 94,983 1,859 3.93% Notes payable 10,310 281 5.48% Other short-term borrowings 16,311 264 3.26% ---------- ---------- Total interest-bearing liabilities $1,001,832 $ 18,283 3.67% ---------- ---------- Interest rate spread 2.89% ========== Net interest income $ 18,565 ========== Net interest margin 3.31% ========== For the Six Months Ended June 30, 2007 --------------------------------------------------------------------- Interest Average Average Income/ Yield/ Balance Expense Rate --------------------------------------------------------------------- (Dollars In Thousands) Interest-earning assets: Loans $ 855,644 $ 36,396 8.58% Investment securities: Taxable 160,099 4,098 5.16% Nontaxable 29,855 895 6.05% Other short-term investments 27,011 721 5.38% ---------- ---------- Total interest-earning assets $1,072,609 $ 42,110 7.92% ---------- ---------- Interest-bearing liabilities: Demand deposits $ 304,578 $ 5,409 3.58% Savings deposits 37,788 298 1.59% Time deposits 478,909 11,773 4.96% FHLB advances 90,313 2,089 4.67% Notes payable 10,310 362 7.08% Other short-term borrowings 11,168 238 4.29% ---------- ---------- Total interest-bearing $ 933,066 $ 20,169 4.36% liabilities ---------- ---------- 3.56% Interest rate spread ========== $ 21,941 Net interest income ========== 4.13% Net interest margin ==========