BLOOMINGTON, Ind., July 27, 2010 (GLOBE NEWSWIRE) -- Monroe Bancorp (the "Company") (Nasdaq:MROE), the independent Bloomington-based holding company for Monroe Bank (the "Bank"), today reported a net loss of $647,000 or $0.104 per diluted common share for the quarter ended June 30, 2010 compared to net income of $776,000 or $0.125 per diluted common share for the same period in 2009. The $1,423,000 decline in earnings between the two periods was largely driven by a $2,300,000 increase in the provision for loan losses.
The net loss for the first six months of 2010 totaled $749,000 or $0.120 per diluted common share compared to net income of $1,882,000 or $0.303 per diluted common share for the same period of 2009. The $2,631,000 decline in earnings between the two periods was largely driven by a $2,900,000 increase in the provision for loan losses.
The chart below summarizes the factors that were the most significant to the decline in earnings between the second quarter of 2010 and the second quarter of 2009 and the year-to-date results for both years.
| 2nd Quarter | 2nd Quarter | YTD | YTD | |||
| 2010 | 2009 | Change | 2010 | 2009 | Change | |
| Net Income (Consolidated) | $ (647,000) | $ 776,000 | $ (1,423,000) | $ (749,000) | $ 1,882,000 | $ (2,631,000) |
| Earnings Per Diluted Share | $ (0.104) | $ 0.125 | $ (0.229) | $ (0.120) | $ 0.303 | $ (0.423) |
| Return on Average Equity (ROAE) | -4.61% | 5.53% | -10.14% | -2.68% | 6.75% | -9.43% |
| Return on Average Assets (ROAA) | -0.31% | 0.38% | -0.69% | -0.18% | 0.46% | -0.64% |
| Pre-Tax Income | $ (1,423,000) | $ 908,000 | $ (2,331,000) | $ (1,754,000) | $ 2,289,000 | $ (4,043,000) |
| Provision | $ (4,500,000) | $ (2,200,000) | $ (2,300,000) | $ (7,700,000) | $ (4,800,000) | $ (2,900,000) |
| Loan Related Expense (e.g., Workout) | (468,000) | (185,000) | (283,000) | (678,000) | (342,000) | (336,000) |
| FDIC Expense | (419,000) | (650,000) | 231,000 | (686,000) | (934,000) | 248,000 |
| Loss on Foreclosed Assets | (333,000) | (102,000) | (231,000) | (271,000) | (113,000) | (158,000) |
| Subordinated Debt Expense | (325,000) | -- | (325,000) | (650,000) | -- | (650,000) |
| Gain on the Sale of AFS Securities | 187,000 | 364,000 | (177,000) | 292,000 | 1,392,000 | (1,100,000) |
| Bank Owned Life Insurance (BOLI) | 681,000 | 163,000 | 518,000 | 841,000 | 314,000 | 527,000 |
| Net Impact: | $ (5,177,000) | $ (2,610,000) | $ (2,567,000) | $ (8,852,000) | $ (4,483,000) | $ (4,369,000) |
| All Other Pre-Tax Income | $ 236,000 | $ 326,000 |
The increases reflected above in the provision, loan related expenses, and losses taken on foreclosed assets are the result of asset quality issues that are discussed in detail later in this release.
The year over year decline in FDIC expense is largely due to a special assessment applied to the banking industry in the second quarter of 2009 that did not reoccur in 2010.
The increase in Bank Owned Life Insurance (BOLI) income is the result of the receipt of the death benefit proceeds under that program. The Company did not purchase additional BOLI during 2010.
The Subordinated Debt expense is the result of the Company issuing $13 million of Subordinated Debt at a rate of 10 percent in July of 2009.
"We are very disappointed by the level to which our problem assets have affected our second quarter and year-to-date performance. The continued weakness in the real estate markets has prolonged our efforts to resolve problem loans and has resulted in significant provision for loan losses," said Mark D. Bradford, President and Chief Executive Officer. "At the same time, we take considerable comfort from the continued strength of our underlying business activities that are being masked by the credit related charges we have had to make over the past two years."
Financial Performance
Net interest income before the provision for loan losses for the second quarter of 2010 decreased by $307,000 or 5.1 percent compared to the same period in 2009. The decrease is attributable to the Subordinated Debt that was added to the Company's balance sheet in July of 2009 and added $325,000 of interest expense to the second quarter of 2010. The Company achieved stability in year over year net interest income before the provision, and net of the impact of the Subordinated Debt, despite a $71,731,000 decrease in total loan balances.
The tax-equivalent net interest margin as a percentage of average earning assets for the quarter ended June 30, 2010 was 2.98 percent, compared to 2.98 percent for the quarter ended March 31, 2010 and 3.21 percent for the second quarter of 2009. Much of the year over year decrease in the tax equivalent net interest margin is related to the impact of the Subordinated Debt and the Bank's decision to maintain elevated levels of liquidity for risk management purposes. See the table titled "Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis" for a reconciliation of GAAP net interest margin to Non-GAAP net interest margin on a tax equivalent basis.
Net interest income before the provision for loan losses, decreased $673,000 or 5.6 percent to $11,314,000 for the six months ended June 30, 2010 compared to $11,987,000 for the same period in 2009. The decline in net interest income before the provision between the two periods is attributable to the addition of the Subordinated Debt in July of 2010. The tax-equivalent net interest margin for the first six months of 2010 was 2.98 percent, compared to 3.20 percent for the first six months of 2009.
Noninterest income totaled $2,792,000 for the second quarter of 2010 compared to $3,186,000 for the same period of 2009. Excluding the effect of the Company's deferred compensation plan, noninterest income totaled $2,928,000 for the second quarter of 2010 compared to $2,964,000 for the same period of 2009, a decrease of $36,000 or 1.2 percent. The decrease in noninterest income was driven by declines in deposit related service charges (declined $106,000), gains on the sale of residential mortgages (declined $170,000), and gains on the sale of available for sale securities (declined $177,000) offset by the previously discussed gain in BOLI income (increased $518,000) and trust fees (increased $74,000). See the table titled "Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan" for a reconciliation of GAAP noninterest income and expense to noninterest income and expense without the financial impact of the deferred compensation plan.
Noninterest income totaled $5,502,000 for the first six months of 2010 compared to $6,448,000 for the same period of 2009. Excluding the effect of the Company's deferred compensation plan, noninterest income totaled $5,574,000 for the first six months of 2010 compared to $6,358,000 for the same period of 2009. The $784,000 or 12.3 percent decrease from the same period of 2009 was primarily the result of a $1,100,000 decrease in gains from the sale of available for sale securities which was partially offset by the year over year increase in BOLI income ($841,000 compared to $314,000).
Noninterest expense was $5,453,000 for the three months ended June 30, 2010, compared to $6,123,000 for the same period of 2009. Noninterest expense, excluding the effect of the Company's deferred compensation plan, was $5,499,000 for the three months ended June 30, 2010, compared to $5,883,000 for the same period of 2009. The $384,000 or 6.5 percent decrease is spread over a variety of categories including personnel expense, FDIC fees, advertising, premises and equipment, most of which reflect Management's efforts to reduce expenses during this period of elevated credit related expenses. The chart below summarizes the results of the efforts to reduce personnel expense.
| 2nd Qtr. | 2nd Qtr. | 1 Year | 2nd Qtr. | 2 Year | |
| 2010 | 2009 | Change | 2008 | Change | |
| Salaries and Wages | 2,006,000 | 2,073,000 | (67,000) | 2,204,000 | (198,000) |
| Commissions, Options, and Incentive Comp. | 351,000 | 458,000 | (107,000) | 417,000 | (66,000) |
| Employee Benefits | 442,000 | 540,000 | (98,000) | 535,000 | (93,000) |
| Total: | 2,799,000 | 3,071,000 | (272,000) | 3,156,000 | (357,000) |
Noninterest expense totaled $10,870,000 for the first six months of 2010 compared to $11,346,000 for the same period of 2009. Noninterest expense, excluding the effect of the Company's deferred compensation plan, was $10,771,000 for the first six months of 2010, compared to $11,220,000 for the same period of 2009. The $449,000, or 4.0 percent decrease is driven largely by decreases in personnel expense (decreased $354,000), FDIC fees (decreased $248,000) offsetting a $336,000 increase in loan related expense (largely workout related).
Asset Quality
Nonperforming assets and 90-day past due loans totaled $38,451,000 (4.55 percent of total assets) at June 30, 2010 compared to $33,825,000 (4.11 percent of total assets) at March 31, 2010 and $22,959,000 (2.79 percent of total assets) at June 30, 2009. The $4,483,000 increase in nonperforming assets since the end of the first quarter is primarily attributable to four troubled debt restructurings which totaled $3,704,000 as of June 30, 2010, the largest of which had a balance of $2,472,000 at June 30, 2010 and was not delinquent.
Net charge-offs for the second quarter of 2010 totaled $2,904,000 or 2.10 percent annualized of total loans compared to $2,559,000 (1.80 percent annualized of total loans) for the first quarter of 2010 and $1,576,000 (1.01 percent annualized of total loans) for the second quarter of 2009.
The Bank employs an internal system called the "Watch List" to bring attention to credits with varying degrees of concern over the prospects of complete repayment, including both principal and all interest. These concerns may be objectively based on the borrower's financial and payment performance or on subjective concerns that Bank management has with the markets and conditions that the borrower operates within. Loans on this list include:
- Loans with well defined weaknesses where the prospect of complete repayment of principal and interest is remote and loans placed on non-accrual where specific reserves and charge-offs are applied as needed, and
- Loans with potential weaknesses (whether borrower specific or due to market/economic considerations) that need to be resolved in order to avoid jeopardizing the complete repayment of principal and interest and the loan is subjected to additional scrutiny and assessment and internal documentation.
Loans on the Watch List tend to be more dependent on collateral if the borrower's repayment capacity is diminished and the Bank devotes additional attention to revaluing the collateral as appropriate in assessing the probability of loss.
| 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | |
| Total Loans (including loans held for sale) $ | 552,287,000 | 569,076,000 | 587,365,000 | 608,667,000 | 624,018,000 |
| Total Watch List Loans $ | 76,751,000 | 76,891,000 | 76,208,000 | 79,571,000 | 76,720,000 |
| Number of Watch List Customers | 81 | 81 | 69 | 73 | 69 |
| Total Watch List $ > 30 Days Past Due | 33,147,000 | 31,846,000 | 32,728,000 | 21,823,000 | 17,368,000 |
| Total Watch List $ Customers Secured by Real Estate | 71,385,000 | 71,939,000 | 71,450,000 | 73,704,000 | 70,697,000 |
| Total Watch List $ Secured by Non R/E | 3,652,000 | 3,313,000 | 3,103,000 | 4,196,000 | 5,855,000 |
| Total Watch List $ Unsecured | 1,714,000 | 1,639,000 | 1,655,000 | 1,671,000 | 168,000 |
| Total Non-Accrual Loans $ | 25,504,000 | 26,363,000 | 20,603,000 | 15,493,000 | 17,076,000 |
As of June 30, 2010, 56.8 percent of the Watch List exposure was less than thirty days past due, compared to 58.6 percent as of March 31, 2010 and 77.4 percent as of June 30, 2009. Of the $76,751,000 of loans on the watch list on June 30, 2010, $60,984,000 (79.5 percent) were originated out of our Central Indiana (greater Indianapolis) offices. The balances on the Watch List as of June 30, 2010 were net of prior loan charge-offs totaling $7,236,000.
The chart that follows provides details of watch list loans by collateral type.
| Total Bank | % on | Total $ | |||
| Owned | Watch | Watch | Non | > 30 Days | |
| Balance | List | List | Accrual | Late | |
| Total Loans at 6/30/10 | 552,287,000 | 76,751,000 | 13.9% | 25,504,000 | 35,535,000 |
| Loans in Process | 772,000 | NA | NA | NA | NA |
| Loans Analyzed Below: | 551,515,000 | 76,751,000 | 13.9% | 25,504,000 | 35,535,000 |
| Secured by Real Estate | |||||
| Construction & Development | |||||
| Spec 1-4 Residential Construction | 10,121,000 | 6,888,000 | 68.1% | 5,953,000 | 5,953,000 |
| Pre Sold 1-4 Residential Construction | 861,000 | 861,000 | 100.0% | 861,000 | 861,000 |
| Land Development Residential | 30,162,000 | 24,245,000 | 80.4% | 6,347,000 | 6,457,000 |
| Multi-Family Construction | 2,986,000 | -- | -- | -- | -- |
| Total 1-4 Residential Construction and Development: | 44,130,000 | 31,994,000 | 72.5% | 13,161,000 | 13,271,000 |
| Other CRE Owner Occupied Construction | 593,000 | -- | -- | -- | -- |
| Other CRE Non-Owner Occupied Construction | 11,123,000 | 4,825,000 | 43.4% | -- | 2,353,000 |
| Land Development Commercial | 1,342,000 | 279,000 | 20.8% | 279,000 | 279,000 |
| Total Commercial Construction and Development: | 13,058,000 | 5,104,000 | 39.1% | 279,000 | 2,632,000 |
| Total Construction and Development: | 57,188,000 | 37,098,000 | 64.9% | 13,440,000 | 15,903,000 |
| 1-4 Family | |||||
| 1-4 Family Owner Occupied | 77,620,000 | 2,573,000 | 3.3% | 445,000 | 692,000 |
| 1-4 Family Non-Owner Occupied (Rental & Other) | 48,454,000 | 3,577,000 | -- | 1,046,000 | 1,660,000 |
| Total 1-4 Family: | 126,074,000 | 6,150,000 | 4.9% | 1,491,000 | 2,352,000 |
| Multi Family - Other than Construction | 76,214,000 | 1,520,000 | 2.0% | 1,400,000 | 1,709,000 |
| Other CRE Owner Occupied - Other Than Construction | 95,593,000 | 13,684,000 | 14.3% | 856,000 | 4,405,000 |
| Other CRE Non-Owner Occupied - Other Than Construction | 104,139,000 | 10,046,000 | 9.6% | 6,793,000 | 7,381,000 |
| Other CRE Non-Development Land - Other Than Construction | 10,062,000 | 2,888,000 | 28.7% | 602,000 | 623,000 |
| Total Other CRE Loans - Other Than Construction: | 209,794,000 | 26,618,000 | 12.7% | 8,251,000 | 12,409,000 |
| Total Secured by Real Estate: | 469,270,000 | 71,386,000 | 15.2% | 24,582,000 | 32,373,000 |
| Other Secured Loans | |||||
| Business Assets | 48,952,000 | 3,608,000 | 7.4% | 879,000 | 2,729,000 |
| Consumer Products | 9,262,000 | 43,000 | 0.5% | 43,000 | 153,000 |
| Financial Assets | 11,067,000 | -- | -- | -- | 238,000 |
| Sub Total: Other Secured Loans: | 69,281,000 | 3,651,000 | 5.3% | 922,000 | 3,120,000 |
| Unsecured Loans | |||||
| Unsecured Loans | 12,964,000 | 1,714,000 | 13.2% | -- | 42,000 |
"While I am pleased that the watch list has stabilized over the past six quarters, I remain disappointed with the Company's overall level of problem assets and the impact that they are having on our income. However, we continue to receive interest from potential purchasers in the assets securing many of the loans on our watch list and in other real estate owned assets. These indications of interest are at levels we believe are supportive of the valuations we have for the respective assets," said Mr. Bradford.
Financial Condition
Total assets grew 2.8 percent from June 30, 2009, reaching $845,731,000 on June 30, 2010. Loans, including loans held for sale, totaled $552,287,000 on June 30, 2010, a decrease of $71,731,000 or 11.5 percent from total loans on June 30, 2009, which were $624,018,000. Deposits increased 1.7 percent to $684,705,000 at June 30, 2010 compared to $672,992,000 a year earlier.
Other News
The Bank has initiated steps to sell underutilized land that it owns in downtown Bloomington. If successful, Management currently anticipates a sale may be closed as soon as late in the fourth quarter of this year or early in 2011 which may result in a gain for the Bank. There can be no assurance, however, as to when, if ever, such sale will occur or if a sale does occur, the price at which the sale will occur.
Over the past month, we have pursued multiple communication methods to reach our existing consumer customer base to notify them about the change in Regulation E that may have an effect on their overdraft service as it relates to everyday debit card transactions and ATM withdrawals beginning on August 15. We will continue to contact our customers to encourage them to make a decision on how their account should be handled after this date. In addition, we have conducted training sessions across the Company to ensure that our employees fully understand the impact of Regulation E and can effectively communicate the overdraft options available to customers. The response of our customers to our communications to date has been positive and we expect the majority of our existing consumer customer base will decide to keep their overdraft services the same as they have always been.
About Monroe Bancorp
Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with Monroe Bank as its wholly owned subsidiary. Monroe Bank was established in Bloomington in 1892, and offers a full range of financial, trust and investment services through its locations in Central and South Central Indiana. The Company's common stock is traded on the NASDAQ® Global Stock Market under the symbol MROE.
The Monroe Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4316
See attachments for additional financial information. For further information, contact: Mark D. Bradford, President and Chief Executive Officer, (812) 331-3455.
Use of Non-GAAP Financial Information
To supplement the Company's consolidated condensed financial statements presented on a GAAP basis, the Company has used the following non-GAAP measures of reporting:
(1) The net interest margin is reported on a tax equivalent basis. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate of 34 percent. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. A table entitled "Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis," included at the end of the attached financial summary, reconciles the non-GAAP financial measure "net interest income (tax-equivalent)" with net interest income calculated and presented in accordance with GAAP. The table also reconciles the non-GAAP financial measure "net interest margin (tax-equivalent)" with net interest margin calculated and presented in accordance with GAAP.
(2) Noninterest income and noninterest expense are reported without the effect of income and expenses related to securities held in a rabbi trust for the deferred compensation plan. A table entitled "Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan", included at the end of the attached financial summary, details all the items included in noninterest income and expense associated with the deferred compensation plan / rabbi trust and reconciles the GAAP numbers to the non-GAAP numbers. The activity in the rabbi trust has no effect on the Company's net income, therefore, management believes a more accurate comparison of current and prior year noninterest income and noninterest expense can be made if items related to the rabbi trust are removed.
The Company believes these adjustments are appropriate to enhance an overall understanding of the Company's past financial performance and also its prospects for the future. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the underlying operational results and trends and the Company's marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with generally accepted accounting principles in the United States.
Forward-Looking Statements
This release contains forward-looking statements about the Company which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. This release contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may" or words of similar meaning. These forward-looking statements, by their nature, are subject to risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) changes in competitive pressures among depository institutions; (2) changes in the interest rate environment; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) changes in general economic conditions, either national or in the markets in which the Company does business; (5) legislative or regulatory changes adversely affecting the business of the Company; (6) changes in real estate values or the real estate markets; and (7) the Company's business development efforts in new markets in and around Hendricks and Hamilton Counties. Further information on other factors which could affect the financial results of the Company is included in the Company's filings with the Securities and Exchange Commission.
| Monroe Bancorp (MROE) | |||||||
| Financial Summary | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 | |
| BALANCE SHEET * | |||||||
| Cash and Short-Term Interest-Earning Deposits | $ 56,019 | $ 35,074 | $ 35,977 | $ 22,447 | $ 25,030 | $ 35,977 | $ 15,058 |
| Interest-Bearing Time Deposits | 7,750 | 7,750 | -- | -- | -- | -- | -- |
| Federal Funds Sold | 44,456 | 33,602 | 14,154 | 44,089 | 30,238 | 14,154 | 8,663 |
| Securities | 140,878 | 134,653 | 121,250 | 108,301 | 102,291 | 121,250 | 121,530 |
| Total Loans | 552,287 | 569,076 | 587,365 | 608,667 | 624,018 | 587,365 | 633,091 |
| Loans Held for Sale | 5,042 | 2,211 | 3,226 | 3,725 | 8,640 | 3,226 | 3,389 |
| Commercial & Industrial | 77,041 | 80,905 | 81,102 | 90,150 | 92,778 | 81,102 | 104,779 |
| Real Estate: | |||||||
| Commercial & Residential | 366,927 | 377,248 | 393,632 | 391,362 | 393,308 | 393,632 | 398,896 |
| Construction & Vacant Land | 57,547 | 63,024 | 62,351 | 76,620 | 82,212 | 62,351 | 80,917 |
| Home Equity | 31,266 | 30,586 | 31,332 | 30,908 | 31,205 | 31,332 | 28,976 |
| Installment Loans | 14,464 | 15,102 | 15,722 | 15,902 | 15,875 | 15,722 | 16,134 |
| Reserve for Loan Losses | 17,494 | 15,898 | 15,256 | 13,181 | 12,960 | 15,256 | 11,172 |
| Bank Premises and Equipment | 19,470 | 19,704 | 19,879 | 20,127 | 20,312 | 19,879 | 20,750 |
| Federal Home Loan Bank Stock | 2,353 | 2,353 | 2,353 | 2,353 | 2,353 | 2,353 | 2,312 |
| Interest Receivable and Other Assets | 40,012 | 37,196 | 36,729 | 31,078 | 31,396 | 36,729 | 29,567 |
| Total Assets | $ 845,731 | $ 823,510 | $ 802,451 | $ 823,881 | $ 822,678 | $ 802,451 | $ 819,799 |
| Total Deposits | $ 684,705 | $ 669,651 | $ 634,254 | $ 654,807 | $ 672,992 | $ 634,254 | $ 665,179 |
| Noninterest Checking | 106,816 | 93,043 | 90,033 | 88,724 | 83,404 | 90,033 | 84,317 |
| Interest Bearing Checking & NOW | 236,728 | 228,230 | 210,542 | 209,937 | 214,998 | 210,542 | 107,124 |
| Regular Savings | 19,489 | 19,535 | 18,451 | 18,381 | 18,404 | 18,451 | 16,619 |
| Money Market Savings | 22,998 | 35,858 | 36,035 | 40,249 | 40,110 | 36,035 | 108,246 |
| CDs & CDARs Less than $100,000 | 124,316 | 130,355 | 137,774 | 141,912 | 142,114 | 137,774 | 155,127 |
| CDARs Greater than $100,000 & Brokered CDs | 73,941 | 56,826 | 49,500 | 49,896 | 65,354 | 49,500 | 67,949 |
| CDs Greater than $100,000 | 105,374 | 105,649 | 91,861 | 105,143 | 108,246 | 91,861 | 125,741 |
| Other Time | (4,957) | 155 | 58 | 565 | 362 | 58 | 56 |
| Total Borrowings | 99,261 | 90,322 | 106,056 | 103,388 | 86,403 | 106,056 | 93,203 |
| Federal Funds Purchased | -- | -- | -- | -- | -- | -- | -- |
| Securities Sold Under Repurchase Agreement | 60,669 | 51,716 | 61,929 | 61,810 | 58,737 | 61,929 | 59,404 |
| FHLB Advances | 17,344 | 17,358 | 17,371 | 17,430 | 17,498 | 17,371 | 25,523 |
| Loans Sold Under Repurchase Agreement & Other Debt | -- | -- | 5,508 | 2,900 | 1,920 | 5,508 | 28 |
| Subordinated Debentures | 13,000 | 13,000 | 13,000 | 13,000 | -- | 13,000 | -- |
| Subordinated Debentures - Trust Preferred | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 |
| Interest Payable and Other Liabilities | 6,125 | 7,471 | 5,939 | 8,465 | 6,828 | 5,939 | 5,496 |
| Total Liabilities | 790,091 | 767,444 | 746,249 | 766,660 | 766,223 | 746,249 | 763,878 |
| Shareholders' Equity | 55,640 | 56,066 | 56,202 | 57,221 | 56,455 | 56,202 | 55,921 |
| Total Liabilities and Shareholders' Equity | $ 845,731 | $ 823,510 | $ 802,451 | $ 823,881 | $ 822,678 | 802,451 | $ 819,799 |
| Book Value Per Share | $ 8.93 | $ 9.00 | $ 9.03 | $ 9.19 | $ 9.07 | $ 9.03 | $ 8.99 |
| End of Period Shares Issued and Outstanding | 6,229,669 | 6,228,547 | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 |
| Less: Unearned ESOP Shares | 1,051 | 1,577 | 2,102 | 3,477 | 4,852 | 2,102 | 7,601 |
| End of Period Shares Used to Calculate Book Value | 6,228,618 | 6,226,971 | 6,225,448 | 6,224,073 | 6,222,699 | 6,225,448 | 6,219,949 |
| * period end numbers | |||||||
| Monroe Bancorp (MROE) | |||||||
| Financial Summary | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| INCOME STATEMENT | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 |
| Interest Income | $ 8,262 | $ 8,284 | $ 8,711 | $ 9,175 | $ 9,177 | $ 36,441 | $ 42,462 |
| Interest Expense | 2,524 | 2,708 | 2,945 | 3,091 | 3,132 | 12,604 | 18,861 |
| Net Interest Income | 5,738 | 5,576 | 5,766 | 6,084 | 6,045 | 23,837 | 23,601 |
| Loan Loss Provision | 4,500 | 3,200 | 4,850 | 2,200 | 2,200 | 11,850 | 8,880 |
| Total Noninterest Income | 2,792 | 2,710 | 3,122 | 2,413 | 3,186 | 11,983 | 10,033 |
| Service Charges on Deposit Accounts | 781 | 744 | 874 | 905 | 887 | 3,477 | 3,796 |
| Trust Fees | 603 | 622 | 620 | 637 | 529 | 2,313 | 2,387 |
| Commission Income | 259 | 225 | 246 | 225 | 230 | 872 | 874 |
| Gains on Sales of Loans | 284 | 249 | 259 | 361 | 454 | 1,364 | 703 |
| Gains on Sales of Available for Sale Securities | 187 | 106 | 490 | 264 | 364 | 2,146 | 951 |
| Gains (Losses) on Sales of Trading Securities Associated with Directors' Deferred Comp Plan | (2) | (1) | -- | (201) | -- | (201) | 13 |
| Unrealized Gains (Losses) on Trading Securities Associated with Directors' Deferred Comp Plan | (134) | 64 | 51 | 377 | 222 | 518 | (843) |
| BOLI Income | 681 | 160 | 164 | 163 | 163 | 641 | 552 |
| Net Gain (Loss) on Foreclosed Assets | (333) | 63 | (33) | (761) | (102) | (906) | (226) |
| Other Operating Income | 466 | 478 | 451 | 443 | 439 | 1,759 | 1,826 |
| Total Noninterest Expense | 5,453 | 5,417 | 5,155 | 5,429 | 6,123 | 21,930 | 20,732 |
| Salaries & Wages | 2,006 | 2,006 | 2,027 | 2,075 | 2,073 | 8,244 | 8,743 |
| Commissions, Options & Incentive Compensation | 351 | 314 | 291 | 311 | 458 | 1,364 | 1,472 |
| Employee Benefits | 442 | 562 | 360 | 463 | 540 | 1,954 | 2,076 |
| Premises & Equipment | 825 | 898 | 895 | 899 | 930 | 3,652 | 3,373 |
| Advertising | 87 | 136 | 109 | 138 | 160 | 536 | 724 |
| Legal Fees | 190 | 164 | 83 | 115 | 111 | 435 | 566 |
| FDIC Expense | 419 | 267 | 272 | 280 | 650 | 1,485 | 481 |
| Appreciation (Depreciation) in Directors' | |||||||
| Deferred Compensation Plan | (48) | 140 | 61 | 184 | 237 | 364 | (707) |
| Other Operating Expenses | 1,181 | 930 | 1,057 | 964 | 964 | 3,896 | 4,004 |
| Income (Loss) Before Income Tax | (1,423) | (331) | (1,117) | 868 | 908 | 2,040 | 4,022 |
| Income Tax Expense (Benefit) | (776) | (229) | (500) | 158 | 132 | 65 | 43 |
| Net Income (Loss) After Tax & Before Extraordinary Items | (647) | (102) | (617) | 710 | 776 | 1,975 | 3,979 |
| Extraordinary Items | -- | -- | -- | -- | -- | -- | -- |
| Net Income (Loss) | $ (647) | $ (102) | $ (617) | $ 710 | $ 776 | $ 1,975 | $ 3,979 |
| Basic Earnings Per Share | $ (0.104) | $ (0.016) | $ (0.099) | $ 0.114 | $ 0.125 | $ 0.317 | $ 0.640 |
| Diluted Earnings Per Share | $ (0.104) | $ (0.016) | $ (0.099) | $ 0.114 | $ 0.125 | $ 0.317 | $ 0.639 |
| Monroe Bancorp (MROE) | |||||||
| Financial Summary | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| ASSET QUALITY | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 |
| Net Charge-Offs (Recoveries) | $ 2,904 | $ 2,559 | $ 2,775 | $ 1,979 | $ 1,576 | $ 7,766 | $ 4,362 |
| OREO Expenses | 287 | (39) | 113 | 795 | 140 | 1,095 | 229 |
| Total Credit Charges | $ 3,191 | $ 2,520 | $ 2,888 | $ 2,774 | $ 1,716 | $ 8,861 | $ 4,591 |
| Non-Accrual Loans | $ 25,504 | $ 26,363 | $ 20,603 | $ 15,493 | $ 17,076 | $ 20,603 | $ 14,329 |
| Troubled Debt Restructurings | 3,705 | -- | -- | 1,500 | 1,500 | -- | -- |
| Nonperforming Loans | 29,209 | 26,363 | 20,603 | 16,993 | 18,576 | 20,603 | 14,329 |
| OREO | 7,161 | 3,810 | 3,768 | 3,225 | 3,979 | 3,768 | 3,257 |
| Nonperforming Assets | 36,370 | 30,173 | 24,371 | 20,218 | 22,555 | 24,371 | 17,586 |
| 90 Day Past Due Loans Net of Nonperforming Loans | 2,081 | 3,652 | 1,053 | 1,404 | 404 | 1,053 | 1,194 |
| Nonperforming Assets + 90 Day Past Due | $ 38,451 | $ 33,825 | $ 25,424 | $ 21,622 | $ 22,959 | $ 25,424 | $ 18,780 |
| RATIO ANALYSIS - CREDIT QUALITY * | |||||||
| NCO/Loans | 2.10% | 1.80% | 1.89% | 1.30% | 1.01% | 1.32% | 0.69% |
| Credit Charges/Loans & OREO | 2.28% | 1.76% | 1.95% | 1.81% | 1.09% | 1.50% | 0.72% |
| Nonperforming Loans/Loans | 5.29% | 4.63% | 3.51% | 2.79% | 2.98% | 3.51% | 2.26% |
| Nonperforming Assets/Loans & OREO | 6.50% | 5.27% | 4.12% | 3.30% | 3.59% | 4.12% | 2.76% |
| Nonperforming Assets/Assets | 4.30% | 3.66% | 3.04% | 2.45% | 2.74% | 3.04% | 2.15% |
| Nonperforming Assets + 90 Day PD/Assets | 4.55% | 4.11% | 3.17% | 2.62% | 2.79% | 3.17% | 2.29% |
| Reserve/Nonperforming Loans | 59.89% | 60.30% | 74.05% | 77.57% | 69.77% | 74.05% | 77.97% |
| Reserve/Total Loans | 3.17% | 2.79% | 2.60% | 2.17% | 2.08% | 2.60% | 1.76% |
| Equity & Reserves/Nonperforming Assets | 201.08% | 238.50% | 293.21% | 348.21% | 307.76% | 293.21% | 381.51% |
| OREO/Nonperforming Assets | 19.69% | 12.63% | 15.46% | 15.95% | 17.64% | 15.46% | 18.52% |
| RATIO ANALYSIS - CAPITAL ADEQUACY * | |||||||
| Equity/Assets | 6.58% | 6.81% | 7.00% | 6.95% | 6.86% | 7.00% | 6.82% |
| Equity/Loans | 10.07% | 9.85% | 9.57% | 9.40% | 9.05% | 9.57% | 8.83% |
| RATIO ANALYSIS - PROFITABILITY | |||||||
| Return on Average Assets | -0.31% | -0.05% | -0.30% | 0.34% | 0.38% | 0.24% | 0.50% |
| Return on Average Equity | -4.61% | -0.74% | -4.29% | 4.95% | 5.53% | 3.49% | 7.11% |
| Net Interest Margin (Tax-Equivalent) (1) | 2.98% | 2.98% | 2.99% | 3.20% | 3.21% | 3.15% | 3.30% |
| * Based on period end numbers | |||||||
| (1) Interest income on tax-exempt securities has been adjusted to a tax-equivalent basis using a marginal income tax rate of 34%. | |||||||
| Monroe Bancorp (MROE) | ||||||||||||||||||||
| Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis | ||||||||||||||||||||
| (dollar amounts in thousands except per share data) | ||||||||||||||||||||
| Quarters Ended | Years Ended | |||||||||||||||||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 | ||||||||||||||
| Net Interest Income | $ 5,738 | $ 5,576 | $ 5,766 | $ 6,084 | $ 6,045 | $ 23,837 | $ 23,601 | |||||||||||||
| Tax Equivalent Adjustment | 12 | 13 | 21 | 48 | 95 | 295 | 717 | |||||||||||||
| Net Interest Income - Tax Equivalent | $ 5,750 | $ 5,589 | $ 5,787 | $ 6,132 | $ 6,140 | $ 24,132 | $ 24,318 | |||||||||||||
| Average Earning Assets | $ 773,724 | $ 761,388 | $ 767,351 | $ 760,949 | $ 767,876 | $ 766,456 | $ 736,903 | |||||||||||||
| Net Interest Margin | 2.97% | 2.97% | 2.98% | 3.17% | 3.16% | 3.11% | 3.20% | |||||||||||||
| Net Interest Margin - Tax Equivalent | 2.98% | 2.98% | 2.99% | 3.20% | 3.21% | 3.15% | 3.30% | |||||||||||||
| Year-to-Date | |||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | |
| Net Interest Income | $ 11,314 | $ 5,576 | $ 23,837 | $ 18,071 | $ 11,987 |
| Tax Equivalent Adjustment | 25 | 13 | 295 | 274 | 227 |
| Net Interest Income - Tax Equivalent | $ 11,339 | $ 5,589 | $ 24,132 | $ 18,345 | $ 12,214 |
| Average Earning Assets | $ 767,590 | $ 761,388 | $ 766,456 | $ 766,154 | $ 768,800 |
| Net Interest Margin | 2.97% | 2.97% | 3.11% | 3.15% | 3.14% |
| Net Interest Margin - Tax Equivalent | 2.98% | 2.98% | 3.15% | 3.20% | 3.20% |
| Monroe Bancorp (MROE) | |||||||
| Financial Impact on Net Income of Deferred Compensation Plan | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 | |
| Interest and Dividend Income | $ 90 | $ 81 | $ 13 | $ 11 | $ 18 | $ 60 | $ 106 |
| Realized and Unrealized Gains (Losses) | (136) | 64 | 51 | 176 | 222 | 317 | (829) |
| Other Income | -- | -- | -- | -- | -- | -- | 30 |
| Total Income (Loss) From Plan: | (46) | 145 | 64 | 187 | 240 | 377 | (693) |
| Change in Deferred Compensation Liability | (48) | 140 | 61 | 184 | 237 | 364 | (707) |
| Trustee Fees | 2 | 5 | 3 | 3 | 3 | 13 | 14 |
| Total Expense of Plan: | (46) | 145 | 64 | 187 | 240 | 377 | (693) |
| Net Impact of Plan: | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- |
| Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 | |
| Total Noninterest Income | $ 2,792 | $ 2,710 | $ 3,122 | $ 2,413 | $ 3,186 | $ 11,983 | $ 10,033 |
| Income of Deferred Comp Plan Included in Noninterest Income | (136) | 64 | 51 | 176 | 222 | 317 | (799) |
| Adjusted Noninterest Income: | 2,928 | 2,646 | 3,071 | 2,237 | 2,964 | 11,666 | 10,832 |
| Total Noninterest Expense | 5,453 | 5,417 | 5,155 | 5,429 | 6,123 | 21,930 | 20,732 |
| Expense of Deferred Compensation Plan | (46) | 145 | 64 | 187 | 240 | 377 | (693) |
| Adjusted Noninterest Expense: | 5,499 | 5,272 | 5,091 | 5,242 | 5,883 | 21,553 | 21,425 |
| Year-to-Date | |||||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | |||
| Total Noninterest Income | $ 5,502 | $ 2,710 | $ 11,983 | $ 8,861 | $ 6,448 | ||
| Income of Deferred Comp Plan Included in Noninterest Income | (72) | 64 | 317 | 266 | 90 | ||
| Adjusted Noninterest Income: | 5,574 | 2,646 | 11,666 | 8,595 | 6,358 | ||
| Total Noninterest Expense | 10,870 | 5,417 | 21,930 | 16,775 | 11,346 | ||
| Expense of Deferred Compensation Plan | 99 | 145 | 377 | 313 | 126 | ||
| Adjusted Noninterest Expense: | 10,771 | 5,272 | 21,553 | 16,462 | 11,220 | ||
| Monroe Bancorp (MROE) | |||||||
| Select Average Balance Sheet Information | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Jun 2009 | Dec 2009 | Dec 2008 | |
| Total Average Loans | $ 558,347 | $ 578,289 | $ 596,948 | $ 616,125 | $ 628,831 | $ 618,590 | $ 601,875 |
| Average Commercial & Industrial | 78,879 | 80,656 | 84,250 | 91,479 | 101,992 | 95,130 | 99,353 |
| Average Real Estate: | 464,833 | 482,359 | 496,913 | 508,690 | 510,759 | 507,519 | 484,841 |
| Average Commercial & Residential | 373,010 | 389,036 | 392,002 | 398,418 | 394,439 | 395,584 | 357,018 |
| Average Construction & Vacant Land | 61,211 | 62,208 | 73,724 | 79,152 | 85,310 | 81,246 | 101,380 |
| Average Home Equity | 30,612 | 31,115 | 31,187 | 31,120 | 31,010 | 30,689 | 26,443 |
| Average Installment Loans | 14,635 | 15,274 | 15,785 | 15,956 | 16,080 | 15,941 | 17,681 |
| Average Federal Funds Sold | 35,172 | 29,079 | 32,372 | 33,927 | 26,975 | 27,388 | 8,754 |
| Average Federal Home Loan Bank Stock | 2,353 | 2,353 | 2,353 | 2,353 | 2,353 | 2,343 | 2,312 |
| Total Average Deposits | $ 669,250 | $ 653,368 | $ 648,825 | $ 650,301 | $ 673,216 | $ 662,565 | $ 649,540 |
| Average Noninterest Checking | 94,299 | 91,126 | 88,702 | 85,037 | 83,321 | 84,108 | 79,503 |
| Average Interest Bearing Checking & NOW | 229,355 | 218,005 | 218,038 | 200,756 | 199,693 | 183,323 | 127,282 |
| Average Regular Savings | 19,454 | 18,879 | 18,447 | 18,558 | 18,538 | 18,173 | 17,618 |
| Average Money Market Savings | 30,888 | 35,442 | 39,834 | 39,977 | 47,434 | 61,181 | 107,723 |
| Average CDs Less than $100,000 | 174,508 | 169,986 | 172,071 | 184,132 | 189,998 | 187,789 | 159,120 |
| Average CDs Greater than $100,000 | 103,200 | 102,542 | 93,952 | 104,817 | 118,057 | 111,300 | 142,126 |
| Average IRAs and Other Time | 17,546 | 17,388 | 17,781 | 17,024 | 16,175 | 16,691 | 16,168 |
| Average Federal Funds Purchased | 271 | 137 | 133 | 43 | 185 | 331 | 3,149 |
| Average Securities Sold Under Repurchase Agreement | 55,772 | 57,367 | 63,743 | 59,341 | 58,783 | 59,046 | 45,686 |
| Average FHLB Advances | 17,375 | 17,367 | 17,387 | 17,484 | 17,506 | 17,929 | 18,698 |