FORT WAYNE, Ind., Oct. 30, 2009 (GLOBE NEWSWIRE) -- Tower Financial Corporation (Nasdaq:TOFC) reported an increase of $2.6 million in capital during the third quarter of 2009 despite a loss of $721,000, or $0.18 per diluted share, compared with net income of $330,000, or $0.08 per share, reported for the third quarter 2008. This brings the year to date net loss to $4.4 million, or $1.08 per diluted share, compared to year to date net income of $1.4 million, or $0.34 per share at September 30, 2008.
The main causes of the quarterly loss were:
* Significant deterioration of collateral on four credits already identified as non-performing in previous quarters * Non cash other-than-temporary impairment (OTTI) charge on an available for sale security * Letter of credit claim on a borrower who was previously liquidated
"While the loss for the quarter was a disappointment, the mark to market accounting issue or OTTI charge did not impact capital, and the loan loss provision does not reflect any deterioration in our overall loan portfolio. Unfortunately, values of collateral in some markets continue to fall, and we added appropriate reserves relating to these four previously identified non-performing loans," stated President and CEO, Mike Cahill. "Our core business continues to improve, and we were able to show a significant increase in capital. Tower has always believed our capital position is strong enough to support our operations, and that has definitely not changed. This is why we choose not to take any TARP capital from the government like so many of our competitors did earlier this year. We are still poised to service our customers' needs and look forward to adding new relationships."
Third quarter highlights include:
* Capital increased to $48.5 million from $45.7 million at June 30, 2009. The Company's regulatory capital ratios continue to remain above "well-capitalized" levels. * Net interest income increased by $255,000, or 5.3 percent. This was due to a 22 basis point increase in our net interest margin to 3.25 percent. * Trust and brokerage assets under management grew to $722.4 million as of September 30, 2009, an increase of $59.0 million or 8.89 percent during the third quarter. Year to date growth is $87.1 million, or 13.72 percent. * Core deposits grew to $454.4 million as of September 30, 2009, an increase of $10.1 million for the third quarter and $47.7 million year to date. This represents annualized core deposit growth of 9.1 percent for the third quarter and 15.6 percent for the first half of the year. * Loan loss reserves were continued to be built, resulting in an Allowance for Loan Losses of 2.78 percent of total loans, compared to 2.53 percent at June 30, 2009, and 1.90 percent at December 31, 2008.
Capital
Total capital increased to $48.5 million as of September 30, 2009, compared to $45.9 million at June 30, 2009. The increase of $2.6 million was made up of a $1.8 million capital raise from the sale of Series A Convertible Preferred Stock as previously disclosed in our Form 8k filing on September 28, 2009, and an increase of $1.5 million in unrealized gains, net of tax, on securities available for sale. The increase was offset by our $721,000 net loss recorded for the third quarter 2009.
The Company's regulatory capital ratios continue to remain above the "well-capitalized" levels of 6 percent for tier 1 capital and 10 percent for risked-based capital. Tier 1 capital at September 30, 2009, was 11.0 percent, compared to 11.7 percent at December 31, 2008. Total risked-based capital at September 30, 2009, was 12.5 percent, compared to 13.0 percent at December 31, 2008. Leverage capital was 9.0 percent at September 30, 2009, well above the regulatory requirement of 5 percent to be considered "well-capitalized". The year to date reduction in capital ratios are the direct result of large loan loss provisions, the write down of a foreclosed land development, and the impairment charge on a security, offset by a reduction in total assets as well as capital raised during the third quarter.
The following table shows our current Capital position as of September 30, 2009 in both dollars and percentages, compared to the minimum amounts required per regulatory standards for "well-capitalized" institutions.
Minimum Dollar Requirements
--------------------------- Regulatory
Minimum Tower
(Well- Capitalized) 9/30/09 Excess
------------------- ------- -------
Tier 1 Capital / Risk Assets $33,866 $62,089 $28,223
Total Risk Based Capital /
Risk Assets $56,444 $70,719 $14,275
Tier 1 Capital / Average
Assets (Leverage) $34,338 $62,089 $27,751
Minimum Percentage
Requirements Regulatory
------------------ Minimum Tower
(Well- Capitalized) 9/30/09
------------------- -------
Tier 1 Capital / Risk Assets 6% or more 11.00%
Total Risk Based Capital /
Risk Assets 10% or more 12.53%
Tier 1 Capital / Quarterly
Average Assets 5% or more 9.04%
Asset Quality
Nonperforming assets plus delinquencies were $25.8 million, or 3.80 percent of total assets as of September 30, 2009. This compares with $25.8 million, or 3.75 percent of assets at June 30, 2009 and $19.7 million, or 2.81 percent of assets at December 31, 2008. Net charge-offs were $2.0 million for the quarter compared with net charge-offs of $3.1 million for the second quarter and $117,000 in the first quarter of 2009. The current and historical breakdown of our non-performing assets is as follows:
($000's omitted) 9/30/09 6/30/09 3/31/09 12/31/08 9/30/08
---------------- ------- ------- ------- -------- -------
Non-Accrual loans
Commercial 8,644 5,907 1,246 1,658 598
Acquisition &
Development 9,812 9,882 9,801 13,221 15,020
Commercial Real Estate 682 2,675 437 449 1,341
Residential Real Estate 1,081 552 224 347 107
--------------------------------------------
Total Non-accrual loans 20,219 19,016 11,708 15,675 17,066
Trouble-debt restructured 163 184 191 198 366
OREO 3,990 4,060 5,080 2,660 2,432
Delinquencies greater
than 90 days 1,477 2,509 1,304 1,020 982
--------------------------------------------
Total Non-Performing
Assets 25,849 25,769 18,283 19,553 20,846
============================================
The Commercial non-accrual category grew by $2.7 million, as ten relationships were added totaling $4.6 million offset by a $1.9 million reduction in previously identified relationships. Of the total $8.6 million of non-accrual loans in the commercial category, $7.9 million are comprised within seven lending relationships. The Acquisition and Development category is comprised of four lending relationships and remained unchanged during the quarter. The Commercial Real Estate category was reduced by about $2.0 million, as resolution was brought to two of the four relationships encompassing this category.
Our allowance for loan losses increased $4.2 million during the first nine months of 2009 and was 2.78 percent of total loans at September 30, 2009, an increase from 2.53 percent and 1.90 percent at June 30, 2009, and December 31, 2008, respectively. The year to date increase was the net result of a reduction in loan outstandings of $24.9 million, net charge-offs of $5.3 million, and loan loss provision of $9.5 million. This increased provisioning was primarily driven by a deliberate focus by management on reserve building, recognition of valuation changes in the marketplace related to underperforming assets and the collateral value backing these assets, and current economic factors in our markets.
"We have a small number of relationships that comprise a significant dollar amount of the non-performing assets," stated Mr. Cahill. "We will not be pleased until we significantly reduce the level of non-performing assets, the speed of identification and resolution has increased due to our ability to recognize the loss in value on non-performing assets and our ability to support this with our strong capital position."
Balance Sheet
Company assets were $679.4 million at September 30, 2009, a decrease of $17.1 million, or 2.5 percent from December 31, 2008. The decrease in assets was primarily attributable to decreases in cash and cash equivalents of $1.6 million and loans of $24.9 million, along with an increase in our allowance for loan losses of $4.3 million. These changes were offset by an increase in long term investments of $8.1 million and loans held for sale of $1.2 million.
Cash and cash equivalents decreased primarily due to the net paydown of $23.0 million in borrowings from the Federal Home Loan Bank (FHLB) and the Federal Reserve Bank (FRB) Discount Window in an effort to recognize more limited lending opportunities in the short term, and the goal of improving our net interest margin. FHLB and FRB Discount Window borrowings at September 30, 2009 were $16.2 million, compared to $39.2 million at December 31, 2008.
Total loans at September 30, 2009 were $536.1 million, compared to $561.0 million at December 31, 2008. The planned decrease in loans came in primarily in our Commercial and Residential Real estate categories. Commercial real estate loans decreased by $13.5 million from December 31, 2008, while Residential real estate loans decreased by $10.1 million during that same time frame. The decrease in commercial real estate was due to continued amortization and payoffs in the portfolio combined with limited new activity. The decrease in the residential portfolio was due to increased refinancing activity during the first nine months of 2009 combined with the Company's desire to sell these mortgages rather than hold them for both interest rate risk and fee income purposes.
Long term investments increased by $8.1 million to $89.9 million, as we continue to expand our investment portfolio to enhance liquidity and yield opportunities in light of the planned reduction in our loan portfolio and recognition of fewer lending opportunities in the local economy. This is a continued purposeful change in asset allocation driven by profitability and liquidity targets, current economic conditions, and capital management guidelines.
Total deposits at September 30, 2009 were $592.7 million compared to $586.2 million at December 31, 2008, an increase of $6.5 million, or 1.5 percent annualized. Core deposit growth of $47.7 million, or 15.6 percent annualized, was led by $16.8 million of growth in our non-interest bearing checking accounts, $34.2 million in money-market accounts, and $7.9 million in interest bearing checking accounts. This growth was offset by a $39.4 million decrease in certificates of deposit and a $13.5 million decrease in brokered deposits. Core deposits, which totaled $454.4 million at September 30, 2009, now comprise 76.7 percent of the entire deposits of the Company compared to 69.4 percent at December 31, 2008.
Shareholders' equity was $48.5 million at September 30, 2009, a decrease of 2.2 percent from the $49.6 million reported at December 31, 2008. Affecting the decrease in stockholders' equity was a net loss of $4.4 million, $55,000 of additional paid in capital from the FAS123R accounting treatment for stock options, an increase of $1.5 million in unrealized gains, net of tax, on securities available for sale, and $1.8 million in convertible preferred stock sold to insiders and previously disclosed in our 8k filing of September 28, 2009. Period-end common shares outstanding were 4,090,432.
Operating Statement
Total revenue, consisting of net interest income and noninterest income, was $6.3 million for the third quarter 2009, a decrease of $134,000 from the second quarter 2009 and a decrease of $43,000 from the first quarter 2009. Third quarter 2009 net interest income was $5.1 million an increase of $255,000, or 5.3 percent from the second quarter 2009 and an increase of $536,000, or 11.8 percent compared to the first quarter 2009. The increase in net interest income was the result of a 23 basis point improvement in our net interest margin. Net interest margin for the third quarter 2009 was 3.25%, compared to 3.02% for the second quarter 2009 and 2.85% in the first quarter 2009.
Noninterest income accounted for approximately 19.2 percent of total revenue. For the third quarter, noninterest income was $1.2 million, down from the $1.6 million reported in the second quarter of 2009, and down from the $1.8 million reported in the first quarter 2009. The decrease relates primarily to a $477,000 other-than-temporary-impairment (OTTI) charge on an available for sale security during the third quarter. Trust and brokerage fees were $819,000, an increase of 1.6 percent from the second quarter 2009. Looking forward, our fees are positively impacted by the growth in assets under management. Currently, Tower Private Advisors manages $722.4 million in combined trust and brokerage assets, an increase of 8.9 percent from the $663.4 million of combined assets reported for June 30, 2009. Service charges for the Bank were $287,000, a 1.4 percent increase from the second quarter 2009. Loan broker fees were $219,000, a 12.3 percent increase from the second quarter 2009, due to increased refinancing activity being experienced throughout the country. Other fee income remained relatively flat from the previous quarter.
Third quarter noninterest expense decreased $991,000, or 18.1 percent from the second quarter 2009. Approximately $1.3 million of the decrease was due to an industry-wide imposed special FDIC assessment of $315,000 and the write-down of the value of a foreclosed property of $950,000 that occurred during the second quarter. The remaining $274,000 increase was the result of a claim on an outstanding letter of credit in the amount of $325,000 that was accrued as a contingent liability during the third quarter. Outside of these extraordinary items, typical operating expenses decreased by $51,000 during the third quarter.
The non-interest expense for the first nine months of 2009 versus the same period in 2008 are down by $1.3 million (excluding the increase in FDIC premiums, the $950,000 write down of REO, and the $325,000 letter of credit claim in 2009). This reflects management's continuing diligence in reducing operating costs of the Company. This has been and will continue to receive significant attention and action by management. We expect the significant impact of these efforts be seen in our operating results in the first quarter of 2010.
ABOUT THE COMPANY
Headquartered in Fort Wayne, Indiana, Tower Financial Corporation is a financial services holding company with two subsidiaries: Tower Bank & Trust Company, a community bank headquartered in Fort Wayne; and Tower Trust Company, a state-chartered wealth services firm doing business as Tower Private Advisors. Tower Bank provides a wide variety of financial services to businesses and consumers through its six full-service financial centers in Fort Wayne, and one in Warsaw, Indiana. Tower Financial Corporation's common stock is listed on the NASDAQ Global Market under the symbol "TOFC." For further information, visit Tower's web site at www.towerbank.net.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and about the Corporation and the Bank.
These forward-looking statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Actual results and outcomes may differ materially from what may be expressed or forecasted in the forward-looking statements. Future factors include changes in banking regulation; governmental and regulatory policy changes; changes in the national and local economy; changes in interest rates and interest-rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in tax laws; changes in prices; the impact of technological advances; the outcomes of contingencies, trends in customer behavior and their ability to repay loans; changes in local real estate values; and other factors, including various risk factors identified and described in the Corporation's Annual Report on Form 10-K, quarterly reports of Form 10-Q and in other periodic reports we file from time to time with the Securities and Exchange Commission. These reports are available on the Commission's website at www.sec.gov, as well as on our website at www.towerbank.net
Tower Financial Corporation
Consolidated Balance Sheets
At September 30, 2009 and December 31, 2008
(unaudited) (unaudited)
September 30 December 31
2009 2008
--------------------------------------------------------------------
ASSETS
Cash and due from banks $ 23,597,889 $ 19,418,905
Short-term investments and interest-
earning deposits 3,253,798 9,525,414
Federal funds sold 3,088,130 2,632,054
--------------------------
Total cash and cash equivalents 29,939,817 31,576,373
Securities available for sale, at fair
value 81,277,417 77,792,255
Securities held to maturity, at cost 4,628,873 --
FHLBI and FRB stock 4,032,446 4,032,446
Loans Held for Sale 1,387,958 151,614
Loans 536,073,868 561,011,675
Allowance for loan losses (14,905,393) (10,654,879)
--------------------------
Net loans 521,168,475 550,356,796
Premises and equipment, net 8,000,452 8,010,596
Accrued interest receivable 2,511,735 2,615,260
Bank Owned Life Insurance 12,927,275 12,589,699
Other Real Estate Owned 3,990,126 2,660,310
Other assets 9,529,328 6,798,774
--------------------------
Total assets $679,393,902 $696,584,123
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 98,858,989 $ 82,107,483
Interest-bearing 493,871,633 504,129,631
--------------------------
Total deposits 592,730,622 586,237,114
Short-term Borrowings -- --
Federal Home Loan Bank advances 16,200,000 39,200,000
Junior subordinated debt 17,527,000 17,527,000
Accrued interest payable 501,328 658,956
Other liabilities 3,893,457 3,342,913
--------------------------
Total liabilities 630,852,407 646,965,983
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 4,000,000
shares authorized; 18,300 shares issued
and outstanding 1,780,000 --
Common stock and paid-in-capital, no par
value, 6,000,000 shares authorized;
4,155,432 and 4,149,432 shares issued;
and 4,090,432 and 4,084,432 shares
outstanding at September 30, 2009 and
December 31, 2008 39,821,770 39,766,742
Treasury stock, at cost, 65,000 shares at
September 30, 2009 and December 31, 2008 (884,376) (884,376)
Retained earnings 6,488,315 10,895,724
Accumulated other comprehensive income
(loss), net of tax of $688,132 at
September 30, 2009 and ($82,399) at
December 31, 2008 1,335,786 (159,950)
--------------------------
Total stockholders' equity 48,541,495 49,618,140
--------------------------
Total liabilities and stockholders'
equity $679,393,902 $696,584,123
==========================
Tower Financial Corporation
Consolidated Statements of Operations
For the six and three months ended September 30, 2009 and 2008
(unaudited)
For the Three Months For the Nine Months
Ended Ended
September 30 September 30
------------------------ ------------------------
2009 2008 2009 2008
------------------ ------------------------ ------------------------
Interest income:
Loans, including
fees $ 6,959,860 $ 8,303,686 $21,107,524 $25,919,244
Securities -
taxable 824,234 734,502 2,240,516 1,997,272
Securities -
tax exempt 242,924 220,715 710,768 658,061
Other interest
income 1,951 59,938 11,504 331,924
------------------------ ------------------------
Total interest
income 8,028,969 9,318,841 24,070,312 28,906,501
Interest expense:
Deposits 2,491,713 3,322,465 8,138,297 11,397,623
Fed Funds
Purchased 583 2,776 1,573 2,776
FHLB advances 176,749 284,982 643,777 857,759
Trust preferred
securities 283,072 283,071 846,369 847,791
------------------------ ------------------------
Total interest
expense 2,952,117 3,893,294 9,630,016 13,105,949
------------------------ ------------------------
Net interest
income 5,076,852 5,425,547 14,440,296 15,800,552
Provision for
loan losses 1,995,000 1,999,000 9,505,000 3,174,000
------------------------ ------------------------
Net interest
income after
provision for
loan losses 3,081,852 3,426,547 4,935,296 12,626,552
Noninterest
income:
Trust and
brokerage fees 818,838 936,689 2,492,794 2,769,715
Service charges 285,662 288,186 826,978 923,540
Loan broker fees 218,870 65,075 552,551 192,945
Gain/(Loss) on
sale of
securities 14,880 6,004 209,892 65,841
Impairment on
AFS securities (477,344) -- (525,000) --
Other fees 348,939 516,267 1,040,881 969,423
------------------------ ------------------------
Total
noninterest
income 1,209,845 1,812,221 4,598,096 4,921,464
Noninterest
expense:
Salaries and
benefits 2,651,713 2,813,399 8,019,122 8,951,643
Occupancy and
equipment 779,044 719,498 2,170,446 2,209,401
Marketing 87,660 131,147 366,532 505,363
Data processing 257,974 246,198 879,426 747,128
Loan and
professional
costs 445,546 326,588 1,140,686 956,656
Office supplies
and postage 87,003 92,452 257,549 288,431
Courier service 58,048 64,858 177,955 229,393
Business
Development 87,842 140,317 354,604 469,149
Communication
Expense 43,219 90,856 131,458 242,579
FDIC Insurance
Premiums 357,138 180,036 1,315,936 547,791
Write-down of
other real
estate owned -- -- 950,000 --
Other expense 612,700 237,450 1,155,325 994,474
------------------------ ------------------------
Total
noninterest
expense 5,467,887 5,042,799 16,919,039 16,142,008
------------------------ ------------------------
Income/(loss)
before income
taxes/ (benefit) (1,176,190) 195,969 (7,385,647) 1,406,008
Income taxes
expense/
(benefit) (455,615) (133,632) (2,979,817) 22,528
------------------------ ------------------------
Net income/(loss) $ (720,575) $ 329,601 $(4,405,830) $ 1,383,480
======================== ========================
Basic earnings/
(loss) per
common share $ (0.18) $ 0.08 $ (1.08) $ 0.34
Diluted earnings/
(loss) per
common share $ (0.18) $ 0.08 $ (1.08) $ 0.34
Average common
shares
outstanding 4,090,432 4,084,432 4,090,432 4,072,762
Average common
shares and
dilutive
potential
common
shares
outstanding 4,090,432 4,086,757 4,090,432 4,081,441
Dividends
declared per
common share $ -- $ -- $ -- $ 0.044
Tower Financial Corporation
Consolidated Financial Highlights
Third Quarter 2009
(unaudited)
Quarterly
($ in thousands ------------------------------------------------
except for share 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
data) 2009 2009 2009 2008
----------- -----------------------------------
EARNINGS
Net interest income $ 5,077 4,822 4,541 5,172
Provision for loan
loss $ 1,995 6,550 960 1,225
NonInterest income $ 1,210 1,599 1,789 1,381
NonInterest expense $ 5,468 6,458 4,993 4,846
Net income/(loss) $ (721) (4,095) 410 506
Basic earnings per
share $ (0.18) (1.00) 0.10 0.12
Diluted earnings
per share $ (0.18) (1.00) 0.10 0.12
Average shares
outstanding 4,090,432 4,090,432 4,090,365 4,075,696
Average diluted
shares outstanding 4,090,432 4,090,432 4,090,365 4,079,438
PERFORMANCE RATIOS
Return on average
assets * -0.42% -2.32% 0.24% 0.29%
Return on average
common equity * -6.13% -32.65% 3.33% 4.15%
Net interest margin
(fully-tax
equivalent) * 3.24% 3.02% 2.85% 3.28%
Efficiency ratio 86.97% 100.58% 78.88% 73.95%
Full-time
equivalent
employees 159.25 172.75 176.50 173.75
CAPITAL
Equity to assets 7.14% 6.70% 7.03% 7.12%
Regulatory leverage
ratio 9.04% 8.56% 9.52% 9.69%
Tier 1 capital
ratio 11.00% 10.38% 11.47% 11.66%
Total risk-based
capital ratio 12.53% 11.96% 12.77% 12.99%
Book value per
share $ 11.87 11.24 12.29 12.15
Cash dividend per
share $ 0.000 0.000 0.000 0.00
ASSET QUALITY
Net charge-offs $ 2,045 3,092 117 (27)
Net charge-offs to
average loans * 1.49% 2.21% 0.08% -0.02%
Allowance for loan
losses $ 14,905 14,105 11,498 10,655
Allowance for loan
losses to total
loans 2.78% 2.53% 2.06% 1.90%
Other real estate
owned (OREO) $ 3,990 4,060 5,080 2,660
Non-accrual Loans $ 20,219 19,016 11,708 15,675
90+ Day
delinquencies $ 1,477 2,509 1,304 1,020
Restructured Loans $ 163 184 191 198
Total Nonperforming
Loans 21,859 21,709 13,203 16,893
Total Nonperforming
Assets 25,849 25,769 18,283 19,553
NPLs to Total loans 4.08% 3.89% 2.37% 3.01%
NPAs (w/o 90+) to
Total assets 3.59% 3.39% 2.37% 2.66%
NPAs+90 to Total
assets 3.80% 3.75% 2.55% 2.81%
END OF PERIOD
BALANCES
Total assets $ 679,394 686,307 715,634 696,584
Total earning
assets $ 633,742 651,946 681,688 655,145
Total loans $ 536,074 557,530 558,148 561,012
Total deposits $ 592,731 594,594 618,705 586,237
Stockholders'
equity $ 48,541 45,962 50,280 49,618
AVERAGE BALANCES
Total assets $ 686,752 708,282 696,431 684,669
Total earning
assets $ 636,503 657,539 662,712 642,213
Total loans $ 542,921 561,828 559,607 555,558
Total deposits $ 597,792 612,649 598,807 566,193
Stockholders'
equity $ 46,678 50,303 49,942 48,540
Quarterly
-----------------------------------
($ in thousands except for 3rd Qtr 2nd Qtr 1st Qtr
share data) 2008 2008 2008
----------- ----------- -----------
EARNINGS
Net interest income $ 5,426 5,295 5,080
Provision for loan loss $ 1,999 875 300
NonInterest income $ 1,812 1,469 1,641
NonInterest expense $ 5,043 5,620 5,479
Net income/(loss) $ 330 342 711
Basic earnings per share $ 0.08 0.08 0.18
Diluted earnings per share $ 0.08 0.08 0.17
Average shares outstanding 4,084,432 4,078,934 4,062,145
Average diluted shares
outstanding 4,086,757 4,081,245 4,088,684
PERFORMANCE RATIOS
Return on average assets * 0.19% 0.20% 0.41%
Return on average common
equity * 2.69% 2.79% 5.91%
Net interest margin (fully-tax
equivalent) * 3.43% 3.36% 3.15%
Efficiency ratio 69.67% 83.09% 81.52%
Full-time equivalent employees 176.50 181.25 184.25
CAPITAL
Equity to assets 6.96% 7.01% 7.15%
Regulatory leverage ratio 9.62% 9.52% 9.33%
Tier 1 capital ratio 11.69% 11.55% 11.35%
Total risk-based capital ratio 13.04% 12.92% 12.51%
Book value per share $ 11.86 11.92 12.18
Cash dividend per share $ 0.00 0.00 0.044
ASSET QUALITY
Net charge-offs $ 1,570 936 (527)
Net charge-offs to average
loans * 1.13% 0.67% -0.37%
Allowance for loan losses $ 9,278 8,974 9,035
Allowance for loan losses to
total loans 1.67% 1.62% 1.61%
Other real estate owned (OREO) $ 2,432 2,500 1,527
Non-accrual Loans $ 17,066 19,412 19,726
90+ Day delinquencies $ 982 1,840 547
Restructured Loans $ 366 624 633
Total Nonperforming Loans 18,414 21,876 20,906
Total Nonperforming Assets 20,846 24,376 22,433
NPLs to Total loans 3.32% 3.95% 3.72%
NPAs (w/o 90+) to Total assets 2.85% 3.24% 3.17%
NPAs+90 to Total assets 2.99% 3.51% 3.25%
END OF PERIOD BALANCES
Total assets $ 696,061 695,427 691,208
Total earning assets $ 658,963 648,345 653,906
Total loans $ 554,760 553,843 562,235
Total deposits $ 573,221 600,118 587,735
Stockholders' equity $ 48,449 48,753 49,405
AVERAGE BALANCES
Total assets $ 682,958 685,547 701,423
Total earning assets $ 642,852 646,745 663,522
Total loans $ 551,407 562,165 570,010
Total deposits $ 580,589 580,563 607,402
Stockholders' equity $ 48,875 49,252 48,427
Year-To-Date
-----------------------
($ in thousands except for share data) 2009 2008
----------- -----------
EARNINGS
Net interest income $ 14,440 15,801
Provision for loan loss $ 9,505 3,174
NonInterest income $ 4,598 4,922
NonInterest expense $ 16,919 16,142
Net income/(loss) $ (4,406) 1,383
Basic earnings per share $ (1.08) 0.34
Diluted earnings per share $ (1.08) 0.33
Average shares outstanding 4,090,432 4,084,432
Average diluted shares outstanding 4,090,432 4,086,757
PERFORMANCE RATIOS
Return on average assets * -0.84% 0.27%
Return on average common equity * -12.03% 3.78%
Net interest margin (fully-tax equivalent) * 3.04% 3.31%
Efficiency ratio 88.87% 77.89%
Full-time equivalent employees 159.25 176.50
CAPITAL
Equity to assets 7.14% 6.96%
Regulatory leverage ratio 9.04% 9.62%
Tier 1 capital ratio 11.00% 11.69%
Total risk-based capital ratio 12.53% 13.04%
Book value per share $ 11.87 11.86
Cash dividend per share $ 0.000 0.000
ASSET QUALITY
Net charge-offs $ 5,254 1,979
Net charge-offs to average loans * 1.27% 0.47%
Allowance for loan losses $ 14,905 9,278
Allowance for loan losses to total loans 2.78% 1.67%
Other real estate owned (OREO) $ 3,990 2,432
Non-accrual Loans $ 20,219 17,066
90+ Day delinquencies $ 1,477 982
Restructured Loans $ 163 366
Total Nonperforming Loans 21,859 18,414
Total Nonperforming Assets 25,849 20,846
NPLs to Total loans 4.08% 3.32%
NPAs (w/o 90+) to Total assets 3.59% 2.85%
NPAs+90 to Total assets 3.80% 2.99%
END OF PERIOD BALANCES
Total assets $ 679,394 696,061
Total earning assets $ 633,742 658,963
Total loans $ 536,074 554,760
Total deposits $ 592,731 573,221
Stockholders' equity $ 48,541 48,449
AVERAGE BALANCES
Total assets $ 697,155 689,975
Total earning assets $ 650,900 651,306
Total loans $ 554,781 561,205
Total deposits $ 603,083 589,517
Stockholders' equity $ 48,974 49,057
* annualized for quarterly data