ROCKLAND, Mass., May 5, 2008 (PRIME NEWSWIRE) -- Independent Bank Corp., (Nasdaq:INDB), parent of Rockland Trust Company, today announced net income of $6.3 million and diluted earnings per share of $0.44 for the quarter ending March 31, 2008. This represents a decrease of $0.01, or (2.2%), on a per share basis, from the $0.45 diluted earnings per share recorded in the same quarter a year ago. Net income for the quarter decreased $318,000 as compared to the same period last year.
Certain non-core items are included in the computation of earnings in accordance with United States of America generally accepted accounting principles ("GAAP") in both 2008 and 2007 as indicated by the table below. In an effort to provide investors with information regarding the Company's results, the Company has disclosed certain non-GAAP information, which management believes provides useful information to the investor. This information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies.
Dollars in Thousands, Except Per Share Data Three Months Ending March 31, ---------------------------------------- RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION 2008 2007 $ Variance % Variance ------- ------- ---------- ----------- NET INCOME (GAAP) $ 6,308 $ 6,626 $ (318) -4.80% Non-Interest Income Components Add - Net Loss on Sale of Securities, net of tax 396 -- 396 n/a Non-Interest Expense Components Add - Executive Early Retirement Costs, net of tax -- 264 (264) n/a Add - Merger & Acquisition Expenses, net of tax 484 -- 484 n/a Less - WorldCom Bond Loss Recovery, net of tax (272) -- (272) n/a ---------------------------- ----------- NET OPERATING EARNINGS (NON-GAAP) $ 6,916 $ 6,890 $ 26 0.38% ============================ =========== Diluted Operating Earnings Per Share $ 0.48 $ 0.47 $ 0.01 2.13% ============================ ===========
Net operating earnings were $6.9 million, or $0.48 on a per diluted share basis for the three months ending March 31, 2008, compared to net operating earnings and diluted earnings per share for the three months ending March 31, 2007 of $6.9 million and $0.47, respectively, which represents an increase of $26,000, or $0.01 per diluted share.
Comparing the three months ending March 31, 2008 to the same period last year, net interest income increased $1.8 million, or 7.4%, from the year ago period due to the continued strategic repositioning of the Company's balance sheet and the acquisition of Slade's Ferry Bancorp. in the first quarter of this year.
The net interest margin for the three month period ending March 31, 2008 was 3.90% as compared to 3.84% for the three month period ending March 31, 2007.
The Company's allowance for loan losses as a percentage of loans was 1.29% and 1.34% at March 31, 2008 and March 31, 2007, respectively. The provision for loan losses was $1.3 million for the quarter ended March 31, 2008 compared to $891,000 for the year ago comparative period. Net charge-offs were $1.1 million for the first three months of 2008 as compared to $891,000 for the first three months of 2007.
Non-interest income increased by $446,000, or 5.7%, during the three months ended March 31, 2008, as compared to the same period in the prior year. Excluding the net losses on sale of securities during the first quarter of 2008, non-interest income grew by $1.1 million, or 13.5%, in the three-month period ending March 31, 2008, when compared to 2007. See the table below for a reconciliation of non-interest income as adjusted.
Three Months Ended March 31, 2008 2007 $ Variance % Variance --------------- ---------- ---------- (Dollars in Thousands) Non-Interest Income GAAP $8,238 $7,792 $ 446 5.72% Add - Net Loss on Sale of Securities 609 -- $ 609 n/a --------------- ---------- ---------- Non-Interest Income as Adjusted $8,847 $7,792 $1,055 13.54% =============== ========== ==========
The change is attributable to the following:
-- Service charges on deposit accounts increased by $226,000, or 6.6%, for the three months ended March 31, 2008, as compared to the same period in 2007, primarily due to increased overdraft fees. -- Wealth management revenue increased by $862,000, or 47.5%, for the three months ended March 31, 2008, as compared to the same period in 2007. Investment management revenue increased by $942,000, or 60.9%, for the three months ended March 31, 2008 as compared to the three months ended March 31, 2007. Assets under management at March 31, 2008 were $1.3 billion, an increase of $448.9 million, or 53.0%, as compared to March 31, 2007. On November 1, 2007 Rockland Trust completed its acquisition of assets from the Lincoln, Rhode Island-based O'Connell Investment Services, Inc. The closing of this transaction added approximately $200 million to assets under management. Retail wealth management revenue decreased by $80,000, or (30.0%), for the three months ended March 31, 2008, as compared to the three months ended March 31, 2007. -- Mortgage banking income increased by $340,000, or 43.9%, for the three months ended March 31, 2008, as compared to the same period in 2007. The balance of the mortgage servicing asset was $2.0 million and loans serviced amounted to $265.6 million as of March 31, 2008, as compared to a mortgage servicing asset balance of $2.3 million and loans serviced amounting to $281.7 million at March 31, 2007. -- There was a net loss on the sale of securities of $609,000 during the first quarter of 2008. Of this loss, $742,000 is associated with the sale of the majority of the Slade's Ferry Bancorp. securities portfolio, which was offset by gains on agency securities recorded in the quarter. There were no gains or losses on the sale of securities during the first quarter of 2007. -- Other non-interest income decreased by $405,000, or (31.0%), for the three months ended March 31, 2008, as compared to the same period in 2007. The decrease is primarily attributable to declines in 1031 exchange income of $294,000, due to the slowdown in national commercial real estate markets, and declines in trading revenue of $68,000.
Non-interest expense increased by $2.6 million, or 12.0%, for the three months ended March 31, 2008, as compared to the same periods in 2007. Excluding executive early retirement costs in 2007 and merger & acquisition expenses and the WorldCom Bond loss recovery in 2008, non-interest expense increased $2.5 million, or 11.4%, for the three months ending March 31, 2008, as compared to the same period in 2007. See the table below for a reconciliation of non-interest expense as adjusted.
Three Months Ended ------------------ March 31, 2008 2007 $ Variance % Variance ----------------- ---------- ---------- (Dollars in Thousands) Non-Interest Expense GAAP $24,032 $21,452 $2,580 12.03% Add - Executive Early Retirement Costs -- 406 (406) n/a Add - Merger & Acquisition Expenses 744 -- 744 n/a Less - WorldCom Bond Loss Recovery (418) -- (418) n/a ----------------- ---------- ---------- Non-Interest Expense as Adjusted $24,358 $21,858 $2,500 11.44% ================= ========== ========== -- Salaries and employee benefits increased by $1.0 million, or 7.5%, for the three months ended March 31, 2008, as compared to the same period in 2007. The increase in salaries and benefits is attributable to the Slade's Ferry Bancorp. acquisition, annual merit increases, incentive programs, and the O'Connell acquisition in the fourth quarter of 2007. -- Occupancy and equipment expense increased by $349,000, or 13.7%, for the three-month period ending March 31, 2008, as compared to the same period in 2007 mainly due to increases in rent expense of $136,000 due to new locations, $78,000 for increased cost for snow removal and sanding, and the effects of the Slade's Ferry Bancorp. acquisition. -- Data processing and facilities management expense increased by $196,000, or 18.0%, for the three-month period ending March 31, 2008, as compared to the same period in 2007. The increase is partially a result of new functionality as well as an increase in volume. -- Due to the Slade's Ferry Bancorp. acquisition, there was $744,000 of merger and acquisition expenses in the first quarter of 2008. -- Other non-interest expense increased by $300,000, or 6.4%, for the three-month period ending March 31, 2008, as compared to the same period in 2007. The increase in the three-month period is primarily attributable to advertising expenses of $208,000, consulting fees of $197,000 and intangible amortization of $170,000, partially offset by a recovery on the WorldCom bond loss of $418,000.
The Company's effective tax rate was 27% and 30% in the first quarter periods ended March 31, 2008 and 2007, respectively. The reduction in the effective tax rate is a result of the impact of the Company's New Markets Tax Credit program.
Total assets increased by $561.8 million, or 20.3%, to $3.3 billion in total assets at March 31, 2008 as compared to March 31, 2007. This increase is primarily a result of the closing of the acquisition of Slade's Ferry Bancorp. during the first quarter of 2008.
-- Securities decreased by $20.7 million, or (4.1%), during the three months ended March 31, 2008, due to the sale of $50.0 million in agency securities resulting in a gain of $133,000 in January 2008. In addition, associated with the Slade's Ferry Bancorp. acquisition, the Company sold the majority of Slades investment portfolio incurring a loss of $742,000. The ratio of securities to total assets as of March 31, 2008 was 14.6%, compared to 18.3% at December 31, 2007. -- Total loans grew by $481.0 million, or 23.5%, in the first quarter of 2008 as compared to December 31, 2007. The acquisition of Slade's Ferry Bancorp. added $471.2 million in growth, as shown in the table below. ------------------------------------------------ March 31, December 31, Slade's Organic 2008 2007 Acquisition Growth -------------------------------------- --------- (Dollars in Thousands) Loans Commercial and Commercial Real Estate Loans $ 1,453,300 $ 1,121,310 $ 316,081 $ 15,909 Business Banking 73,853 69,977 -- 3,876 Residential Real Estate 449,873 341,090 114,432 (5,649) Consumer - Home Equity 355,367 308,744 38,723 7,900 Consumer - Other 191,549 201,831 2,009 (12,291) ----------- ----------- ---------- --------- Total Loans $ 2,523,942 $ 2,042,952 $ 471,245 $ 9,745 ============ =========== ========== =========
Excluding the Slade's Ferry Bancorp. acquisition, organic growth achieved amounted to $9.7 million, or 1.9% on an annualized basis, and was concentrated in the business and home equity lending categories while the residential real estate and consumer (primarily indirect automobile lending) categories were reduced. Total commercial loans (including business banking) following the Slade's Ferry Bancorp. acquisition now represents 60.5% of the total loan portfolio.
-- Total deposits of $2.5 billion increased 21.2% at March 31, 2008 compared to $2.0 billion at December 31, 2007. Of the increase, $410.8 million is a result of the Slades acquisition. Excluding the impact of the acquisition, deposits grew at an annualized rate of 3.9%. See the table below for the deposits that transferred from Slade's Ferry Bancorp. ------------------------------------------------ March 31, December 31, Slade's Organic 2008 2007 Acquisition Growth -------------------------------------- --------- (Dollars in Thousands) Deposits Demand Deposits $ 549,581 $ 471,164 $ 74,584 $ 3,833 Savings and Interest Checking Accounts 686,808 587,474 119,908 (20,574) Money Market 484,634 435,792 38,668 10,174 Time Certificates of Deposit 735,922 532,180 177,609 26,133 ----------- ----------- ---------- --------- Total Deposits $ 2,456,945 $ 2,026,610 $ 410,769 $ 19,566 =========== =========== ========== ========= -- Borrowings increased by $38.8 million, or 7.7%, during the three months ending March 31, 2008, compared to December 31, 2007, due to retaining a portion of the borrowings acquired from Slade's Ferry Bancorp., $10.3 million of which are junior subordinated debentures.
The Company reported return on average assets and return on average equity in the first quarter of 2008 of 0.87% and 10.01%, respectively, as compared to 0.96% and 11.73% for the same period in 2007. Operating return on average assets and return on average equity in the first quarter of 2008 was 0.95% and 10.98%, respectively, as compared to 1.00% and 12.20% for the same period in 2007.
Stockholders' equity at March 31, 2008 totaled $300.7 million, as compared to $220.5 million at December 31, 2007. The Tier 1 leverage capital ratio at March 31, 2008 was 8.55%, maintaining the Company's well-capitalized position.
At March 31, 2008 the balance of goodwill was $116.6 million and other intangible assets, primarily core deposit intangibles, were $10.8 million. The amount of goodwill and core deposit intangible assets that were due to the Slade's Ferry Bancorp. acquisition was $58.1 million and $9.0 million, respectively.
The allowance for loan losses was $32.6 million at March 31, 2008 and $26.8 million at December 31, 2007. The majority of the increase in allowance for loan losses is due to the Slade's Ferry Bancorp. acquisition which closed in the first quarter of 2008. Nonperforming assets totaled $11.9 million at March 31, 2008, or 0.36% of total assets, as compared to $8.3 million reported at December 31, 2007, or 0.30% of total assets.
Christopher Oddleifson, President and Chief Executive Officer, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp. and Rockland Trust Company, will host a conference call to discuss first quarter earnings at 4:30 p.m. Eastern Time on Monday, May 5, 2008. Internet access to the call is available on the Company's website at http://www.RocklandTrust.com or by telephonic access by dial-in at 1-800-860-2442 reference: INDB. A replay of the call will be available by calling 1-877-344-7529, Replay Passcode: 416741. The web cast replay will be available until May 5, 2009 and the telephone replay will be available until May 12, 2008.
Independent Bank Corp.'s sole bank subsidiary, Rockland Trust Company, currently has approximately $3.3 billion in assets. Rockland Trust offers commercial banking, retail banking, investment management, and insurance sales services from: 63 retail branches, 9 commercial lending centers, and 5 mortgage origination offices located throughout southeastern Massachusetts and on Cape Cod; and, from 4 investment management offices located throughout southeastern Massachusetts, on Cape Cod, and in Rhode Island. To find out more about the products and services available at Rockland Trust, please visit https://www.RocklandTrust.com.
This press release contains certain "forward-looking statements" with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities losses. Because these gains and losses and their impact on the Company's performance are difficult to predict, management believes that presentations of adjusted financial measures excluding the impact of these gains and losses provide useful information that is essential to a proper understanding of the operating results of the Company. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
INDEPENDENT BANK CORP. FINANCIAL SUMMARY ---------------------------------------- (Unaudited - Dollars in Thousands) CONSOLIDATED BALANCE --------------------------------------- SHEETS March 31, Dec. 31, $ % 2008 2007 Variance Change --------------------------------------------------------------------- Assets Cash and Due From Banks 80,598 $ 67,416 13,182 19.55% Fed Funds Sold and Short Term Investments -- -- -- -- Securities Trading Assets 3,305 1,687 1,618 95.91% Securities Available for Sale 419,491 444,258 (24,767) -5.57% Securities Held to Maturity 39,335 45,265 (5,930) -13.10% Federal Home Loan Bank Stock 24,603 16,260 8,343 51.31% --------------------------------------- Total Securities 486,734 507,470 (20,736) -4.09% --------------------------------------- Loans Commercial and Industrial 259,430 190,522 68,908 36.17% Commercial Real Estate 1,030,085 797,416 232,669 29.18% Commercial Construction 163,785 133,372 30,413 22.80% Business Banking 73,853 69,977 3,876 5.54% Residential Real Estate 426,674 323,847 102,827 31.75% Residential Construction 7,622 6,115 1,507 24.64% Residential Loans Held for Sale 15,577 11,128 4,449 39.98% Consumer - Home Equity 355,367 308,744 46,623 15.10% Consumer - Auto 147,232 156,006 (8,774) -5.62% Consumer - Other 44,317 45,825 (1,508) -3.29% --------------------------------------- Total Loans 2,523,942 2,042,952 480,990 23.54% Less - Allowance for Loan Losses (32,609) (26,831) (5,778) 21.53% --------------------------------------- Net Loans 2,491,333 2,016,121 475,212 23.57% --------------------------------------- Bank Premises and Equipment 51,559 39,085 12,474 31.92% Goodwill and Core Deposit Intangible 127,391 60,411 66,980 110.87% Other Assets 92,616 77,910 14,706 18.88% --------------------------------------- Total Assets 3,330,231 $2,768,413 561,818 20.29% ======================================= Liabilities and Stockholders' Equity Deposits Demand Deposits 549,581 $ 471,164 78,417 16.64% Savings and Interest Checking Accounts 686,808 587,474 99,334 16.91% Money Market 484,634 435,792 48,842 11.21% Time Certificates of Deposit 735,922 532,180 203,742 38.28% --------------------------------------- Total Deposits 2,456,945 2,026,610 430,335 21.23% --------------------------------------- Borrowings Federal Home Loan Bank Borrowings 332,105 311,125 20,980 6.74% Fed Funds Purchased and Assets Sold Under Repurchase Agreements 138,633 138,603 30 0.02% Junior Subordinated Debentures 61,857 51,547 10,310 20.00% Other Borrowings 10,516 3,069 7,447 242.65% --------------------------------------- Total Borrowings 543,111 504,344 38,767 7.69% --------------------------------------- Total Deposits and Borrowings 3,000,056 2,530,954 469,102 18.53% Other Liabilities 29,518 16,994 12,524 73.70% Stockholders' Equity 300,657 220,465 80,192 36.37% --------------------------------------- Total Liabilities and Stockholders' Equity $3,330,231 $2,768,413 561,818 20.29% ======================================= -------------------------------------- March 31, 2008 March 31, vs. March 31, 2007 % 2007 Variance Change --------------------------------------------------------------------- Assets Cash and Due From Banks $ 63,382 $ 17,216 27.16% Fed Funds Sold and Short Term Investments 41,000 (41,000) -100.00% Securities Trading Assets 1,646 1,659 100.79% Securities Available for Sale 405,866 13,625 3.36% Securities Held to Maturity 61,973 (22,638) -36.53% Federal Home Loan Bank Stock 16,260 8,343 51.31% ----------- ----------------------- Total Securities 485,745 989 0.20% ----------- ----------------------- Loans Commercial and Industrial 171,650 87,780 51.14% Commercial Real Estate 740,591 289,494 39.09% Commercial Construction 114,183 49,602 43.44% Business Banking 64,568 9,285 14.38% Residential Real Estate 362,644 64,030 17.66% Residential Construction 5,838 1,784 30.56% Residential Loans Held for Sale 12,298 3,279 26.66% Consumer - Home Equity 285,381 69,986 24.52% Consumer - Auto 192,064 (44,832) -23.34% Consumer - Other 47,999 (3,682) -7.67% ----------- ----------------------- Total Loans 1,997,216 526,726 26.37% Less - Allowance for Loan Losses (26,815) (5,794) 21.61% ----------- ----------------------- Net Loans 1,970,401 520,932 26.44% ----------- ----------------------- Bank Premises and Equipment 38,454 13,105 34.08% Goodwill and Core Deposit Intangible 58,533 68,858 117.64% Other Assets 82,431 10,185 12.36% ----------- ----------------------- Total Assets $ 2,739,946 $ 590,285 21.54% =========== ======================= Liabilities and Stockholders' Equity Deposits Demand Deposits $ 478,330 $ 71,251 14.90% Savings and Interest Checking Accounts 590,920 95,888 16.23% Money Market 474,386 10,248 2.16% Time Certificates of Deposit 539,318 196,604 36.45% ----------- ----------------------- Total Deposits 2,082,954 373,991 17.95% ----------- ----------------------- Borrowings Federal Home Loan Bank Borrowings 231,215 100,890 43.63% Fed Funds Purchased and Assets Sold Under Repurchase Agreements 108,737 29,896 27.49% Junior Subordinated Debentures 77,320 (15,463) -20.00% Other Borrowings 67 10,449 15595.52% ----------- ----------------------- Total Borrowings 417,339 125,772 30.14% ----------- ----------------------- Total Deposits and Borrowings 2,500,293 499,763 19.99% Other Liabilities 18,157 11,361 62.57% Stockholders' Equity 221,496 79,161 35.74% ----------- ----------------------- Total Liabilities and Stockholders' Equity $ 2,739,946 $ 590,285 21.54% =========== ======================== INDEPENDENT BANK CORP. FINANCIAL SUMMARY ---------------------------------------- (Unaudited - Dollars in Thousands, Except Per Share Data) CONSOLIDATED STATEMENTS OF INCOME Three Months Ended -------------------------------- March 31, $ % 2008 2007 Variance Change --------------------------------------------------------------------- INTEREST INCOME Interest on Fed Funds Sold and Short Term Investments $ 19 $ 444 $ (425) -95.72% Interest and Dividends on Securities 5,892 5,980 (88) -1.47% Interest on Loans 35,168 33,700 1,468 4.36% ------------------------------------------ Total Interest Income 41,079 40,124 955 2.38% ------------------------------------------ INTEREST EXPENSE Interest on Deposits 10,315 11,094 (779) -7.02% Interest on Borrowed Funds 4,999 5,041 (42) -0.83% ------------------------------------------ Total Interest Expense 15,314 16,135 (821) -5.09% ------------------------------------------ Net Interest Income 25,765 23,989 1,776 7.40% Less - Provision for Loan Losses 1,342 891 451 50.62% ------------------------------------------ Net Interest Income after Provision for Loan Losses 24,423 23,098 1,325 5.74% ------------------------------------------ NON-INTEREST INCOME Service Charges on Deposit Accounts 3,635 3,409 226 6.63% Wealth Management 2,676 1,814 862 47.52% Mortgage Banking Income 1,114 774 340 43.93% BOLI Income 520 488 32 6.56% Net Loss on Sale of Securities (609) -- (609) -100.00% Other Non-Interest Income 902 1,307 (405) -30.99% ------------------------------------------ Total Non-Interest Income 8,238 7,792 446 5.72% ------------------------------------------ NON-INTEREST EXPENSE Salaries and Employee Benefits 14,143 13,152 991 7.53% Occupancy and Equipment Expenses 2,903 2,554 349 13.66% Data Processing and Facilities Management 1,284 1,088 196 18.01% Merger & Acquisition Expense 744 -- 744 100.00% WorldCom Bond Loss Recovery (418) -- (418) -100.00% Other Non-Interest Expense 5,376 4,658 718 15.41% ------------------------------------------ Total Non-Interest Expense 24,032 21,452 2,580 12.03% ------------------------------------------ INCOME BEFORE INCOME TAXES 8,629 9,438 (809) -8.57% ------------------------------------------ PROVISION FOR INCOME TAXES 2,321 2,812 (491) -17.46% ------------------------------------------ NET INCOME $ 6,308 $ 6,626 $ (318) -4.80% ========================================== BASIC EARNINGS PER SHARE $ 0.44 $ 0.46 -4.35% DILUTED EARNINGS PER SHARE $ 0.44 $ 0.45 -2.22% BASIC AVERAGE SHARES 14,386,845 14,466,489 -0.55% DILUTED AVERAGE SHARES 14,459,978 14,630,473 -1.17% PERFORMANCE RATIOS: Net Interest Margin (FTE) 3.90% 3.84% 1.56% Return on Average Assets 0.87% 0.96% -9.38% Return on Average Equity 10.01% 11.73% -14.66% RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION NET INCOME (GAAP) $ 6,308 $ 6,626 $ (318) -4.80% Non-Interest Income Components Add - Net Loss on Sale of Securities, net of tax 396 -- 396 Non-Interest Expense Components Add - Executive Early Retirement Costs, net of tax -- 264 (264) Add - Merger and Acquisition Expenses, net of tax 484 -- 484 Less - WorldCom Bond Loss Recovery, net of tax (272) (272) ----------- ----------- ------ NET OPERATING EARNINGS $ 6,916 $ 6,890 $ 26 0.38% =========== =========== ====== Diluted Earnings Per Share, on an Operating Basis $ 0.48 $ 0.47 $ 0.01 2.13% =========== =========== ====== INDEPENDENT BANK CORP. SUPPLEMENTAL FINANCIAL INFORMATION CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA (Unaudited - Dollars in Thousands) Three Months Ended March 31, ----------------------------------------------- 2008 ----------------------------------------------- Interest Ending Average Earned/ Yield/ Balance Balance Paid Rate --------------------------------------------------------------------- Interest-Earning Assets: Federal Funds Sold and Short Term Investments $ -- $ 624 $ 19 12.18% Securities: Trading Assets 3,305 2,579 28 4.34% Taxable Investment Securities 439,724 423,783 5,386 5.08% Non-taxable Investment Securities (1) 43,705 45,833 735 6.41% ---------- ---------- ---------------------- Total Securities: 486,734 472,195 6,149 5.21% ---------- ---------- ---------------------- Loans (1) 2,523,942 2,207,337 35,285 6.39% Total Interest-Earning Assets $3,010,676 $2,680,156 $ 41,453 6.19% ---------- ---------------------------------- Cash and Due from Banks 80,598 60,598 Other Assets 238,957 170,328 ---------- ---------- Total Assets $3,330,231 $2,911,082 ========== ========== Interest-bearing Liabilities: Deposits: Savings and Interest Checking Accounts $ 686,808 $ 607,387 $ 1,591 1.05% Money Market 484,634 454,460 2,578 2.27% Time Deposits 735,922 607,399 6,146 4.05% ---------- ---------------------------------- Total interest-bearing deposits: 1,907,364 1,669,246 10,315 2.47% Borrowings: Federal Home Loan Bank Borrowings $ 332,105 $ 300,577 $ 2,942 3.92% Federal Funds Purchased and Assets Sold Under Repurchase Agreement 138,633 139,276 1,153 3.31% Junior Subordinated Debentures 61,857 55,059 860 6.25% Other Borrowings 10,516 4,439 44 3.96% ---------- ---------------------------------- Total Borrowings: 543,111 499,351 4,999 4.00% ---------- ---------------------------------- Total Interest-Bearing Liabilities $2,450,475 $2,168,597 $ 15,314 2.82% ---------- ---------------------------------- Demand Deposits 549,581 475,020 Other Liabilities 29,518 15,471 ---------- ---------- Total Liabilities $3,029,574 $2,659,088 Stockholders' Equity 300,657 251,994 ---------- ---------- Total Liabilities and Stockholders' Equity $3,330,231 $2,911,082 ========== ========== Net Interest Income $ 26,139 ========== Interest Rate Spread (2) 3.37% ====== Net Interest Margin (3) 3.90% ====== Supplemental Information: Total Deposits, including Demand Deposits $2,456,945 $2,144,266 $ 10,315 $2,072,184 Cost of Total Deposits 1.92% Total Funding Liabilities, including Demand Deposits $3,000,056 $2,643,617 $ 15,314 $2,508,567 Cost of Total Funding Liabilities 2.32% Three Months Ended March 31, ----------------------------------------------- 2007 ----------------------------------------------- Interest Average Earned/ Yield/ Balance Paid Rate --------------------------------------------------------------------- Interest-Earning Assets: Federal Funds Sold and Short Term Investments $ 33,638 $ 444 5.28% Securities: Trading Assets 1,691 14 3.31% Taxable Investment Securities 448,521 5,402 4.82% Non-taxable Investment Securities (1) 53,560 868 6.48% ---------- ---------------------- Total Securities: 503,772 6,284 4.99% ---------- ---------------------- Loans (1) 2,003,218 33,816 6.75% Total Interest-Earning Assets $2,540,628 $ 40,544 6.38% ---------- ---------------------- Cash and Due from Banks 59,326 Other Assets 148,243 ---------- Total Assets $2,748,197 ========== Interest-bearing Liabilities: Deposits: Savings and Interest Checking Accounts $ 571,638 $ 1,800 1.26% Money Market 469,367 3,541 3.02% Time Deposits 558,497 5,753 4.12% ---------- ---------------------- Total interest-bearing deposits: 1,599,502 11,094 2.77% Borrowings: Federal Home Loan Bank Borrowings $ 252,777 $ 2,791 4.42% Federal Funds Purchased and Assets Sold Under Repurchase Agreement 105,701 852 3.22% Junior Subordinated Debentures 77,320 1,390 7.19% Other Borrowings 585 8 5.47% ---------- ---------------------- Total Borrowings: 436,383 5,041 4.62% ---------- ---------------------- Total Interest-Bearing Liabilities $2,035,885 $ 16,135 3.17% ---------- ---------------------- Demand Deposits 472,682 Other Liabilities 13,754 ---------- Total Liabilities $2,522,321 Stockholders' Equity 225,876 ---------- Total Liabilities and Stockholders' Equity $2,748,197 ========== Net Interest Income $ 24,409 ========== Interest Rate Spread (2) 3.21% ====== Net Interest Margin (3) 3.84% ====== Supplemental Information: Total Deposits, including Demand Deposits $2,072,184 $ 11,094 Cost of Total Deposits 2.14% Total Funding Liabilities, including Demand Deposits $2,508,567 $ 16,135 Cost of Total Funding Liabilities 2.57% (1) The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $374 and $420 for the three months ended March 31, 2008 and 2007, respectively. (2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (3) Net interest margin represents annualized net interest income as a percentage of 10 average interest-earning assets. As Of March 31, Dec. 31, March 31, 2008 2007 2007 ----------------- ---------- Asset Quality (Dollars in Thousands, ------------- Except Per Share Data) Nonperforming Loans Commercial & Industrial Loans $ 516 $ 306 $ 685 Business Banking Loans 584 439 328 Commercial Real Estate Loans 3,578 2,568 3,261 Residential Real Estate Loans 3,733 2,380 2,055 Installment Loans - Home Equity 1,208 872 343 Installment Loans - Auto 933 833 552 Installment Loans - Other 346 246 130 ------- ------- ------- Total Nonperforming Loans 10,898 7,644 7,354 ------- ------- ------- Other Real Estate Owned 1,019 681 -- Nonperforming Assets $11,917 $ 8,325 $ 7,354 ======= ======= ======= Net charge-offs (year to date) $ 1,089 $ 3,114 $ 891 Net charge-offs to average loans (annualized) 0.20% 0.16% 0.18% Nonperforming Loans/Gross Loans 0.43% 0.37% 0.37% Allowance for Loan Losses/Nonperforming Loans 299.22% 351.01% 364.63% Loans/Total Deposits 102.73% 100.81% 95.88% Allowance for Loan Losses/Total Loans 1.29% 1.31% 1.34% Financial Ratios Book Value per Share $18.48 $16.04 $15.49 Tangible Capital/Tangible Asset 5.41% 5.91% 6.08% Tangible Capital/Tangible Asset (proforma to include the deductibility of goodwill) 5.86% 6.59% 6.62% Tangible Book Value per Share $10.65 $11.64 $11.40 Tangible Book Value per Share (proforma to include the deductibility of goodwill) $11.54 $12.70 $12.41 Capital Adequacy Tier one leverage capital ratio (1) 8.55% 8.02% 8.08% (1) Estimated number for March 31, 2008 Certain amounts in prior year financial statement have been reclassified to conform to the current year's presentation.