* Pre-tax, pre-provision earnings, absent goodwill impairment charge, up 5% over year ago period * Loans increased $238 million, or 14%, over year ago period; total deposits increased $155 million, or 10%, in same timeframe * $45.4 million non-cash impairment charge eliminates banking goodwill from balance sheet * Accounting charge drives reported net loss of $3.99 per share for the first quarter * Company remains well-capitalized with risk-based capital levels significantly above regulatory standards * Asset quality trends drive increase in loss reserves to 2.02% of portfolio loans
ST. LOUIS, April 27, 2009 (GLOBE NEWSWIRE) -- Enterprise Financial Services Corp. (Nasdaq:EFSC) reported a net loss of $50.6 million, or $3.99 per common diluted share, for the quarter ended March 31, 2009, compared to net income of $3.6 million, or $0.28 per share, for the prior year period. The reported net loss was primarily attributable to a $45.4 million non-cash accounting charge to eliminate goodwill related to the Company's banking segment. The Company also recorded $15.1 million in loan loss provision for the quarter compared to $2.3 million in the first quarter of 2008.
The goodwill impairment charge is a non-cash accounting adjustment that does not reduce the Company's regulatory or tangible capital position, liquidity or cash flow and does not impact the Company's operations.
On a pre-tax, pre-provision basis, absent the goodwill impairment charge, the Company's operating earnings were $7.6 million for the quarter ended March 31, 2009, 5% higher than the comparable figure for the quarter ended March 31, 2008.
Pre-tax, pre-provision operating earnings figures, which are non-GAAP (Generally Accepted Accounting Principles) financial measures, are presented because the Company believes adjusting its results to exclude loan loss provision expenses, impairment charges and extraordinary gains or losses provides shareholders with a more comparable basis for evaluating period-to-period operating results. A schedule reconciling GAAP net (loss) income to pre-tax, pre-provision operating earnings is provided in the attached tables.
Peter Benoist, President and CEO, commented, "Our action to write-off the goodwill associated with our banking segment was driven by the extraordinary market conditions that have depressed bank stocks, including our own. Our valuation analysis after the first quarter indicated goodwill impairment and, given the uncertainty and cynicism about banking asset valuations in general, we eliminated the banking goodwill entirely from our balance sheet. While this accounting charge impacts our reported earnings, it has no effect on the operation of our business or service to our clients. It doesn't reduce our regulatory capital ratios or cash flow."
Benoist continued, "From an operating perspective, during the first quarter, we continued to aggressively bolster our loan loss reserves to 2.02% of loans as a result of the deepening recession impacting the economy, particularly in the real estate segments. Increases in non performing assets primarily relate to credit issues in the Kansas City market, while credit quality in the St. Louis portfolio continues to remain stable. Additionally, we have improved our deposit mix during the quarter and capital ratios remain strong. We expect improvement in credit quality in the second half of the year as we work through the current credit cycle."
Banking Line of Business
Goodwill Impairment Charge
The goodwill impairment charge was driven primarily by the deterioration in the general economic environment and the resulting decline in the Company's share price and market capitalization in the first quarter. After completing the required goodwill impairment testing, the Company recorded a $45.4 million non-cash accounting charge to eliminate banking segment goodwill from the balance sheet. This charge reduced reported earnings for the first quarter, but has no effect on regulatory capital ratios or tangible common equity ratios. The charge has no impact on liquidity, cash flow or the Company's operations.
Deposits and Liquidity
Total deposits at March 31, 2009 rose $155 million, or 10%, from a year ago. Core deposits increased $43 million, or 3%, over the same period. On a linked quarter basis, core deposits increased $31 million, or 2%, while wholesale funding declined slightly. Core deposits typically decline in the first quarter, but a deposit promotional campaign raised approximately $90 million in new funds, offsetting the seasonal deposit losses.
Core deposits include certificates of deposit sold to Bank clients through the CDARS program, totaling $97 million at quarter end versus $60 million at year end 2008. Most of the increase represents new deposits and the rest relates to transfers from existing money market accounts.
Loans
Portfolio loans increased $238 million, or 14%, compared to last year's first quarter. Most of the loan growth was related to commercial and industrial businesses. On a linked quarter basis, net loans were essentially level, with payoffs/paydowns and net charge-offs offsetting loan fundings.
The Company continues to deploy its capital in support of lending activities during this period of financial industry turmoil. From the December 2008 capital investment by the U.S. Treasury through March 31, 2009, the Bank funded over $66 million in new loans and advanced $90 million on existing commitments.
Asset Quality
Non-performing loans, including non-accrual loans, totaled $50.5 million at March 31, 2009, or 2.57% of total loans, compared to $29.7 million, or 1.50% of total loans, at December 31, 2008 and $9.3 million, or 0.54%, at March 31, 2008. Loans 30-90 days past-due, excluding non-performing loans, represented 0.94% of loans at March 31, 2009 compared to 0.70 % at year end 2008.
Non-performing loans comprised the following industry segments at the respective dates (in millions):
March 31, Dec 31,
2009 2008
--------- ---------
Commercial real estate $29.2 $16.1
Residential construction/ Land
Acquisition and Development 16.9 11.8
Commercial and industrial 4.4 1.7
Other -- 0.1
--------- ---------
$50.5 $29.7
The $50.5 million in non-performing loans is comprised of 38 relationships with the largest being a $7.0 million loan secured by a medical office building. Approximately two-thirds of the non-performing loans are located in the Kansas City market. Most of the increase in commercial real estate non-performing loans relates to commercial ground where development activity has slowed.
Other real estate at March 31, 2009 was $13.3 million, a decrease of $617,000 from December 31, 2008 and an increase of $5.5 million from the year ago period. The Company recorded a small gain on the sale of other real estate owned in the first quarter. Residential lots and completed homes represented 89% of other real estate owned at March 31, 2009. All properties are in the Company's St. Louis and Kansas City markets.
Total non-performing assets were $63.8 million, or 2.86% of total assets, at March 31, 2009 compared to 1.92% of total assets at December 31, 2008 and 0.83% at March 31, 2008.
Provision for loan losses was $15.1 million in the first quarter of 2009 compared to $14.1 million in the fourth quarter of 2008 and $2.3 million in the first quarter of 2008. Provision expense covered 222% of net charge offs as the Company continued to build reserves to 2.02% of portfolio loans at March 31, 2009 compared to 1.58% at December 31, 2008 and 1.29% at March 31, 2008. Loan loss provision in the first quarter was driven by higher levels of nonperforming loans, declining real estate values on collateral for certain impaired credits and adverse risk rating changes on performing loans.
Net charge-offs were $6.8 million in the first quarter, representing an annualized rate of 1.39% of average loans. The largest charge-off in the first quarter was a $1.9 million loss on a C&I business that failed. The remaining charge-offs resulted from declining fair value on real estate collateral securing certain impaired loans. By comparison, net charge-offs were $8.5 million, or an annualized rate of 1.73%, in the fourth quarter of 2008 and $1.7 million, or 0.40% annualized, in the first quarter of 2008.
Commenting on asset quality, Steve Marsh, Chairman and CEO of Enterprise Bank & Trust, the Company's principal subsidiary, said, "As we've noted over the past several quarters, we expect non-performing asset levels to remain elevated. Our non-performing credits continue to be relatively concentrated in residential and certain commercial real estate segments, and those areas remain stressed with persistent downward pressure on valuations. At the same time, we are encouraged by early signs of increased residential sales activity, as the extraordinarily low interest rates are starting to attract buyers back into the market."
Marsh continued, "Despite the slumping economy, we haven't seen significant credit weakness spread to other segments of our portfolio. We are staying close to our clients and monitoring the trends carefully."
Net interest income
Net interest income in the banking segment increased $1.0 million, or 6%, in the first quarter of 2009 versus the same quarter in 2008. On a linked quarter basis, net interest income was $227,000, or 1% lower than the fourth quarter of 2008.
Including the effects of holding company debt, the net interest rate margin declined to 3.32 % in the first quarter compared to 3.63% in the year-ago period, due to sharply falling interest rates, higher levels of nonperforming assets and higher levels of more expensive wholesale funding to support loan growth. The net interest rate margin in the first quarter was five basis points lower than in the fourth quarter last year. The margin is stabilizing as a result of improved loan pricing that is largely offsetting the effects of higher non-performing assets and interest costs associated with the recent deposit campaign.
Wealth Management Line of Business
Fee income from the Wealth Management line of business, including results from state tax credit brokerage activities, totaled $3.2 million for the first quarter of 2009, a 10% decline from the same period in 2008.
Trust
Fee income from Trust declined $284,000, or 19%, in the first quarter of 2009 compared to the similar period in 2008. Revenue declines over the past twelve months were largely attributable to lower asset values due to market conditions.
In March, Enterprise Trust appointed Brendan Freeman as President of its Advisory Services Group. Freeman was formerly Senior Vice President at U.S. Trust, Bank of America's wealth management arm.
Millennium Brokerage Group
MBG revenues increased $972,000, or 89%, in the first quarter compared to the same period last year, due to the successful completion of several large insurance cases. For the full year 2009, the Company expects MBG cash earnings to be flat compared to 2008. While market conditions remain difficult, the Company continues to examine strategic alternatives for its wholesale life insurance distribution subsidiary.
State Tax Credit Brokerage
For the first quarter of 2009, the Company recorded a $46,000 loss on state tax credit activities compared to a $1.0 million gain in the first quarter of 2008. During the first quarter, $570,000 in gains from the sale of state tax credits were more than offset by a $533,000 reduction in fair value of the tax credit assets under FAS 159 and an $84,000 reduction in fair value of related interest rate caps. The interest rate caps were purchased in the fourth quarter of 2008 to offset volatility in the value of tax credit assets. The caps have performed generally as expected on a life-to-date basis, but were not effective during the first quarter period.
Other Business Results
Miscellaneous (loss) income for the first quarter of 2009 includes a $530,000 loss on the termination of two cash flow hedges. The fourth quarter of 2008 included $639,000 of gain reclassified from accumulated other comprehensive income to earnings for measured ineffectiveness of these same cash flow hedges. Based on the increased loan pricing available in the current markets and the potential earnings volatility associated with ineffective cash flow hedges, the Company settled the interest rate swaps with the counterparty.
Given the anticipated acceleration in prepayments on mortgage-backed securities and resultant loss in fair value, the Company elected to sell certain securities and generated a pre-tax gain of $316,000 in the first quarter 2009.
Noninterest expenses, absent the impairment charge, for the three months ended March 31, 2009 were $297,000, or 2% higher than the same period of 2008. Employee compensation and benefits declined $1.3 million, or 15%, over the same period due to staff reductions and reduced incentive compensation. These expense reductions were offset by higher legal and other collection expenses associated with nonperforming assets and higher FDIC insurance premiums.
Excluding the impairment charge, the Company's efficiency ratio in the first quarter of 2009 was 65.0% versus 63.8% for the comparable period last year.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis and Kansas City and a loan production office in Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.
Readers should note that in addition to the historical information contained herein, this press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words "expect" and "intend" and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, exposure to local and national economic conditions, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in Enterprise Financial's 2008 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited)
(In thousands, except per share data)
For the Quarter Ended
INCOME Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
STATEMENTS 2009 2008 2008 2008 2008
---------- ---------- ---------- ---------- ----------
NET INTEREST
INCOME
Total
interest
income $ 27,326 $ 29,163 $ 29,289 $ 29,283 $ 30,246
Total
interest
expense 10,475 11,963 12,705 12,481 14,109
---------- ---------- ---------- ---------- ----------
Net
interest
income 16,851 17,200 16,584 16,802 16,137
Provision for
loan losses 15,100 14,125 2,825 3,200 2,325
---------- ---------- ---------- ---------- ----------
Net
interest
income
after
provision
for loan
losses 1,751 3,075 13,759 13,602 13,812
NONINTEREST
INCOME
Wealth
Management
revenue 3,271 2,943 2,640 2,682 2,583
Deposit
service
charges 1,295 1,135 1,102 1,202 937
Sale of other
real estate 59 (31) 242 351 (9)
State tax
credit
activity,
net (46) 2,624 593 (29) 1,012
Sale of
securities 316 88 -- 73 --
Sale of
branch/
charter -- -- 2,840 (19) 579
Other income 1 891 224 184 436
---------- ---------- ---------- ---------- ----------
Total
non-
interest
income 4,896 7,650 7,641 4,444 5,538
NONINTEREST
EXPENSE
Salaries and
benefits 7,090 7,317 7,792 7,575 8,340
Occupancy 1,167 1,086 1,100 977 1,083
Furniture and
equipment 364 405 346 355 364
Impairment
charges 45,377 3,300 5,900 -- --
Other 5,509 5,709 3,995 3,816 4,045
---------- ---------- ---------- ---------- ----------
Total
non-
interest
expense 59,507 17,817 19,133 12,723 13,832
(Loss) income
before
income tax (52,860) (7,092) 2,267 5,323 5,518
Income tax
(benefit)
expense (2,243) (3,140) 948 1,823 1,955
---------- ---------- ---------- ---------- ----------
Net(loss)
income (50,617) (3,952) 1,319 3,500 3,563
Dividends on
preferred
stock (599) (79) -- -- --
---------- ---------- ---------- ---------- ----------
Net income
available
to common
share-
holders $ (51,216) $ (4,031) $ 1,319 $ 3,500 $ 3,563
========== ========== ========== ========== ==========
Basic (loss)
earnings
per
share $ (3.99) $ (0.32) $ 0.10 $ 0.28 $ 0.29
Diluted
(loss)
earnings
per share $ (3.99) $ (0.32) $ 0.10 $ 0.27 $ 0.28
Return on
average
assets (9.13%) (0.71%) 0.24% 0.67% 0.73%
Return on
average
common
equity (113.35%) (8.63%) 2.81% 7.77% 8.13%
Efficiency
ratio 273.63% 71.70% 78.98% 59.88% 63.82%
Noninterest
expense to
average
assets 10.61% 3.15% 3.48% 2.43% 2.82%
YIELDS (fully
tax
equivalent)
Loans 5.41% 5.74% 5.94% 6.30% 6.93%
Securities 4.44% 4.70% 4.75% 4.60% 4.84%
Federal
funds sold 0.64% 1.59% 2.12% 1.85% 3.32%
Yield on
earning
assets 5.33% 5.67% 5.86% 6.17% 6.77%
Interest-
bearing
deposits 2.13% 2.47% 2.72% 2.78% 3.46%
Subordinate
debt 6.43% 6.04% 5.63% 5.66% 6.71%
Borrowed
funds 2.11% 2.67% 2.98% 3.44% 3.82%
Cost of
paying
liabil-
ities 2.33% 2.62% 2.85% 2.97% 3.62%
Net
interest
spread 3.00% 3.05% 3.01% 3.20% 3.15%
Net
interest
rate
margin 3.32% 3.37% 3.34% 3.56% 3.63%
RECONCILATION OF PRE-TAX (LOSS) INCOME TO PRE-TAX OPERATING EARNINGS
BEFORE PROVISION
For the Quarters Ended
Mar 31, Dec 31, Mar 31,
(All amounts, in thousands) 2009 2008 2008
--------------------------- --------- --------- ---------
U.S. GAAP (loss) income before
income tax expense $(52,860) $ (7,092) $ 5,518
Impairment charges 45,377 3,300 --
Sale of Kansas City nonstrategic
branches/charter -- -- (579)
Employee retention agreement -- 875 --
--------- --------- ---------
Operating (loss) earnings before
income taxes (7,483) (2,917) 4,939
Provision for loan losses 15,100 14,125 2,325
--------- --------- ---------
Operating earnings before income
taxes and provision for loan losses $ 7,617 $ 11,208 $ 7,264
========= ========= =========
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)
(In thousands)
BALANCE Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
SHEETS 2009 2008 2008 2008 2008
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due
from banks $ 41,875 $ 25,626 $ 38,641 $ 67,661 $ 64,108
Federal funds
sold 3,310 2,637 1,718 15,630 954
Interest-
bearing
deposits 5,852 14,384 2,178 349 6,435
Debt and
equity
investments 123,773 108,315 113,932 120,072 116,810
Loans held
for sale 2,659 2,632 520 1,666 3,422
Portfolio
loans 1,963,975 1,977,175 1,942,600 1,849,415 1,726,455
Less
allowance
for loan
losses 39,612 31,309 25,662 24,011 22,249
---------- ---------- ---------- ---------- ----------
Net loans 1,924,363 1,945,866 1,916,938 1,825,404 1,704,206
---------- ---------- ---------- ---------- ----------
Other real
estate 13,251 13,868 11,285 9,294 7,736
Premises and
equipment,
net 24,608 25,158 25,166 25,238 24,775
State tax
credits,
held
for sale 43,474 39,142 37,751 37,882 27,309
Goodwill 3,134 48,512 51,312 57,910 58,331
Core deposit
intangible 1,997 2,126 2,256 2,729 2,887
Other
amortizing
intangibles 1,230 1,378 2,090 2,301 2,512
Other assets 41,177 40,530 32,614 31,582 28,393
---------- ---------- ---------- ---------- ----------
Total
assets $2,230,703 $2,270,174 $2,236,401 $2,197,718 $2,047,878
========== ========== ========== ========== ==========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Noninterest-
bearing
deposits $ 238,449 $ 247,361 $ 225,013 $ 240,148 $ 232,121
Interest-
bearing
deposits 1,507,110 1,545,423 1,463,040 1,429,598 1,358,588
---------- ---------- ---------- ---------- ----------
Total
deposits 1,745,559 1,792,784 1,688,053 1,669,746 1,590,709
Subordinated
debentures 85,081 85,081 59,307 56,807 56,807
FHLB advances 119,939 119,957 222,926 203,043 154,405
Federal
funds
purchased 74,400 19,400 36,600 1,081 --
Other
borrowings 31,767 26,760 36,632 71,805 53,508
Other
liabilities 7,073 8,404 7,924 12,335 14,212
---------- ---------- ---------- ---------- ----------
Total
liabil-
ities 2,063,819 2,052,386 2,051,442 2,014,817 1,869,641
Shareholders'
equity 166,884 217,788 184,959 182,901 178,237
---------- ---------- ---------- ---------- ----------
Total
liabil-
ities
and
share-
holders'
equity $2,230,703 $2,270,174 $2,236,401 $2,197,718 $2,047,878
========== ========== ========== ========== ==========
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)
(In thousands, except per share data)
For the Quarter Ended
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2009 2008 2008 2008 2008
---------- ---------- ---------- ---------- ----------
EARNINGS
SUMMARY
Net interest
income $ 16,851 $ 17,200 $ 16,584 $ 16,802 $ 16,137
Provision for
loan losses 15,100 14,125 2,825 3,200 2,325
Wealth
Management
revenue 3,271 2,943 2,640 2,682 2,583
Noninterest
income 1,625 4,707 5,001 1,762 2,955
Noninterest
expense 59,507 17,817 19,133 12,723 13,832
Minority
interest in
net income
of
consolidated
subsidiary -- -- -- -- --
(Loss) income
before
income
tax (52,860) (7,092) 2,267 5,323 5,518
Net (loss)
income (50,617) (3,952) 1,319 3,500 3,563
Diluted
(loss)
earnings per
share $ (3.99) $ (0.32) $ 0.10 $ 0.27 $ 0.28
Return on
average
common
equity (113.35%) (8.63%) 2.81% 7.77% 8.13%
Net interest
rate margin
(fully tax
equivalized) 3.32% 3.37% 3.34% 3.56% 3.63%
Efficiency
ratio 273.63% 71.70% 78.98% 59.88% 63.82%
MARKET DATA
Book value
per
common
share $ 10.28 $ 14.28 $ 14.57 $ 14.45 $ 14.27
Tangible book
value per
common
share $ 9.78 $ 10.22 $ 10.19 $ 9.48 $ 9.17
Market value
per share $ 9.76 $ 15.24 $ 22.56 $ 18.85 $ 25.00
Period end
common
shares
outstanding 12,833 12,801 12,694 12,654 12,487
Average basic
common
shares 12,828 12,702 12,664 12,545 12,441
Average
diluted
common
shares 12,834 12,768 12,817 12,760 12,675
ASSET QUALITY
Net
charge-offs $ 6,797 $ 8,478 $ 1,123 $ 1,439 $ 1,668
Nonperforming
loans $ 50,458 $ 29,662 $ 23,546 $ 13,180 $ 9,307
Nonperforming
loans to
total loans 2.57% 1.50% 1.21% 0.71% 0.54%
Nonperforming
assets to
total assets 2.86% 1.92% 1.56% 1.02% 0.83%
Allowance for
loan losses
to total
loans 2.02% 1.58% 1.32% 1.30% 1.29%
Net charge-
offs to
average
loans
(annualized) 1.39% 1.73% 0.24% 0.32% 0.40%
CAPITAL
Average
common
equity to
average
assets 8.05% 8.28% 8.55% 8.62% 8.92%
Tier 1
capital
to risk-
weighted
assets 8.22% 8.89% 8.83% 8.76% 9.10%
Total
capital
to risk-
weighted
assets 12.75% 12.81% 10.18% 9.96% 10.30%
Tangible
common
equity
to tangible
assets 5.64% 5.90% 5.93% 5.62% 5.77%
AVERAGE
BALANCES
Portfolio
loans $1,980,871 $1,947,690 $1,881,428 $1,790,491 $1,687,316
Earning
assets 2,105,599 2,071,560 2,005,635 1,922,309 1,810,384
Total assets 2,275,196 2,246,772 2,184,804 2,102,582 1,974,590
Deposits 1,716,291 1,739,525 1,645,396 1,600,805 1,530,158
Shareholders'
equity 218,247 190,874 186,848 181,274 176,170
LOAN
PORTFOLIO
Commercial
and
industrial $ 545,110 $ 556,210 $ 539,924 $ 510,377 $ 487,289
Commercial
real estate 815,971 829,476 845,221 835,688 735,087
Construction
real estate 328,594 337,550 313,262 284,556 285,966
Residential
real estate 246,057 228,772 218,642 193,630 189,549
Consumer and
other 28,243 25,167 25,550 25,164 28,564
---------- ---------- ---------- ---------- ----------
Total
loan
port-
folio $1,963,975 $1,977,175 $1,942,599 $1,849,415 $1,726,455
DEPOSIT
PORTFOLIO
Noninterest-
bearing
accounts $ 238,449 $ 247,361 $ 225,013 $ 240,148 $ 232,121
Interest-
bearing
transaction
accounts 129,389 126,644 118,614 134,659 136,009
Money market
and savings
accounts 630,744 710,712 664,436 680,635 724,725
Certificates
of deposit 746,977 708,067 679,990 614,304 497,854
---------- ---------- ---------- ---------- ----------
Total
deposit
port-
folio $1,745,559 $1,792,784 $1,688,053 $1,669,746 $1,590,709
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)
(In thousands)
For the Quarter Ended
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2009 2008 2008 2008 2008
---------- ---------- ---------- ---------- ----------
YIELDS (fully
tax
equivalent)
Loans 5.41% 5.74% 5.94% 6.30% 6.93%
Securities 4.44% 4.70% 4.75% 4.60% 4.84%
Federal funds
sold 0.64% 1.59% 2.12% 1.85% 3.32%
Yield on
earning
assets 5.33% 5.67% 5.86% 6.17% 6.77%
Interest-
bearing
deposits 2.13% 2.47% 2.72% 2.78% 3.46%
Subordinated
debt 6.43% 6.04% 5.63% 5.66% 6.71%
Borrowed
funds 2.11% 2.67% 2.98% 3.44% 3.82%
Cost of
paying
liabilities 2.33% 2.62% 2.85% 2.97% 3.62%
Net interest
spread 3.00% 3.05% 3.01% 3.20% 3.15%
Net interest
rate margin 3.32% 3.37% 3.34% 3.56% 3.63%
WEALTH
MANAGEMENT
Trust Assets
under
management $ 681,839 $ 790,646 $ 930,100 $ 986,717 $1,046,390
Trust Assets
under
admini-
stration 1,084,830 1,220,733 1,453,476 1,532,559 1,633,195