ROCKLAND, Mass., July 25, 2008 (PRIME NEWSWIRE) -- Independent Bank Corp. (Nasdaq:INDB), the parent of Rockland Trust Company, announced that the Company has recognized a non-cash, pre-tax charge of approximately $1.9 million as of June 30, 2008 for the other-than-temporary impairment of two investment securities. This non-cash charge will reduce previously announced earnings for the quarter ending June 30, 2008 as described more fully below and as set forth in the financial statements below.
The two investments for which the impairment charge has been recognized are trust preferred pooled securities issued by banks and insurers which were rated investment grade (BBB) at inception, currently remain rated investment grade (BBB), and are classified as available for sale. The Company has not incurred any loss on either security, and the Company has the ability and intention to continue to hold them until a recovery of fair value, which may be until maturity.
There are ninety-three (93) issuers in one of the trust preferred pooled securities, and seventy-three (73) issuers in the other. No issuer in either of the two trust preferred pooled securities has issued more than five percent (5%) of the aggregate amount of the pool. Two (2) of the ninety-three (93) pooled issuers for one security and one (1) of the seventy-three (73) pooled issuers for the other have invoked their original contractual right to defer interest payments. There have been no defaults in either security, and the tranche of the securities held by the Company continues to pay as agreed.
As previously announced, as of June 30, 2008 the Company had approximately $3.4 billion in total assets. The $1.9 million non-cash impairment charge amounts to less than one-half of one percent (0.50%) of the Company's $488.6 million overall securities portfolio as of June 30, 2008.
On Tuesday, July 22, 2008 KPMG LLP, the Company's independent registered public accounting firm, advised the Company that it was KPMG's opinion that the accounting guidance known as EITF 99-20 might require the Company to recognize, as of June 30, 2008, a non-cash securities impairment charge of approximately $1.9 million in the aggregate, comprised of a $1.45 million impairment for one security with a par value of $3.5 million and a $400,000 impairment for the another security with a par value of $1 million. Although the analysis originally conducted by the Company did not suggest that an impairment charge as of June 30, 2008 was required, Management has - after further consultation with KPMG -- recognized the impairment charge.
The recognition of this impairment charge has only a minor impact on the Company's equity position as of June 30, 2008, decreasing equity from $301.1 million to $301.0 million, because the securities had already been marked to market. Recognition of the impairment charge as of June 30, 2008, however, decreases net income for the quarter ending June 30, 2008 from the previously announced $8.1 million and diluted earnings per share of $0.50 to net income of $6.8 million and diluted earnings per share of $0.42. The financial statements which accompany this press release set forth any other impacts arising from the recognition of this non-cash impairment charge.
As a consequence of the $.08 per share impact of this non-cash impairment charge, the Company has revised the operating earnings guidance provided for the remainder of 2008 by Management during the earnings call on Friday July 18, 2008 from a range of $2.14 to $2.18 per share to a range of $2.06 to $2.10 per share. Management does not believe that the recognition of this non-cash impairment charge has any other implications for the Company's business fundamentals or its outlook.
Independent Bank Corp.'s sole bank subsidiary, Rockland Trust Company, currently has approximately $3.4 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 June 30, December 31, $ %
2008 2007 Variance Change
---- ---- -------- ------
------------------------------------------------------------------
Assets
Cash and Due From
Banks $ 89,719 $ 67,416 22,303 33.08%
Fed Funds Sold and
Short Term
Investments 100 -- -- --
Securities
Trading Assets 3,185 1,687 1,498 88.80%
Securities Available
for Sale 426,894 444,258 (17,364) -3.91%
Securities Held to
Maturity 33,895 45,265 (11,370) -25.12%
Federal Home Loan Bank
Stock 24,603 16,260 8,343 51.31%
------------------------------------------
Total Securities 488,577 507,470 (18,893) -3.72%
------------------------------------------
Loans
Commercial and
Industrial 261,384 190,522 70,862 37.19%
Commercial Real Estate 1,062,902 797,416 265,486 33.29%
Commercial
Construction 170,373 133,372 37,001 27.74%
Business Banking 86,430 69,977 16,453 23.51%
Residential Real
Estate 417,304 323,847 93,457 28.86%
Residential
Construction 9,292 6,115 3,177 51.95%
Residential Loans Held
for Sale 9,171 11,128 (1,957) -17.59%
Consumer - Home Equity 374,580 308,744 65,836 21.32%
Consumer - Auto 141,046 156,006 (14,960) -9.59%
Consumer - Other 42,783 45,825 (3,042) -6.64%
------------------------------------------
Total Loans 2,575,265 2,042,952 532,313 26.06%
Less - Allowance for
Loan Losses (33,231) (26,831) (6,400) 23.85%
------------------------------------------
Net Loans 2,542,034 2,016,121 525,913 26.09%
------------------------------------------
Bank Premises and
Equipment 34,749 39,085 (4,336) -11.09%
Goodwill and Core
Deposit Intangible 126,914 60,411 66,503 110.08%
Other Assets 104,886 77,910 26,976 34.62%
------------------------------------------
Total Assets $3,386,979 $2,768,413 618,566 22.34%
==========================================
Liabilities and
Stockholders' Equity
Deposits
Demand Deposits $ 564,060 $ 471,164 92,896 19.72%
Savings and Interest
Checking Accounts 696,457 587,474 108,983 18.55%
Money Market 478,852 435,792 43,060 9.88%
Time Certificates of
Deposit 734,792 532,180 202,612 38.07%
------------------------------------------
Total Deposits 2,474,161 2,026,610 447,551 22.08%
------------------------------------------
Borrowings
Federal Home Loan
Bank Borrowings 357,949 311,125 46,824 15.05%
Fed Funds Purchased
and Assets Sold Under
Repurchase Agreements 157,114 138,603 18,511 13.36%
Junior Subordinated
Debentures 61,857 51,547 10,310 20.00%
Other Borrowings 495 3,069 (2,574) -83.87%
------------------------------------------
Total Borrowings 577,415 504,344 73,071 14.49%
------------------------------------------
Total Deposits and
Borrowings 3,051,576 2,530,954 520,622 20.57%
Other Liabilities 34,381 16,994 17,387 102.31%
Stockholders' Equity 301,022 220,465 80,557 36.54%
------------------------------------------
Total Liabilities and
Stockholders' Equity $3,386,979 $2,768,413 618,566 22.34%
==========================================
----------------------------------
March 31,
2008 vs.
June 30,
March 31, 2008 %
2008 Variance Change
---- -------- ------
----------------------------------
Assets
Cash and Due From Banks $ 80,598 $ 9,121 11.32%
Fed Funds Sold and Short Term
Investments -- 100 n/a
Securities
Trading Assets 3,305 (120) -3.63%
Securities Available for Sale 419,491 7,403 1.76%
Securities Held to Maturity 39,335 (5,440) -13.83%
Federal Home Loan Bank Stock 24,603 -- 0.00%
----------- ---------------------
Total Securities 486,734 1,843 0.38%
----------- ---------------------
Loans
Commercial and Industrial 259,430 1,954 0.75%
Commercial Real Estate 1,030,085 32,817 3.19%
Commercial Construction 163,785 6,588 4.02%
Business Banking 73,853 12,577 17.03%
Residential Real Estate 426,674 (9,370) -2.20%
Residential Construction 7,622 1,670 21.91%
Residential Loans Held for Sale 15,577 (6,406) -41.12%
Consumer - Home Equity 355,367 19,213 5.41%
Consumer - Auto 147,232 (6,186) -4.20%
Consumer - Other 44,317 (1,534) -3.46%
----------- ---------------------
Total Loans 2,523,942 51,323 2.03%
Less - Allowance for Loan
Losses (32,609) (622) 1.91%
----------- ---------------------
Net Loans 2,491,333 50,701 2.04%
----------- ---------------------
Bank Premises and Equipment 51,559 (16,810) -32.60%
Goodwill and Core Deposit
Intangible 127,391 (477) -0.37%
Other Assets 92,616 12,270 13.25%
----------- ---------------------
Total Assets $ 3,330,231 $ 56,748 1.70%
=========== =====================
Liabilities and Stockholders'
Equity
Deposits
Demand Deposits $ 549,581 $ 14,479 2.63%
Savings and Interest Checking
Accounts 686,808 9,649 1.40%
Money Market 484,634 (5,782) -1.19%
Time Certificates of Deposit 735,922 (1,130) -0.15%
----------- ---------------------
Total Deposits 2,456,945 17,216 0.70%
----------- ---------------------
Borrowings
Federal Home Loan Bank
Borrowings 332,105 25,844 7.78%
Fed Funds Purchased and Assets
Sold Under Repurchase Agreements 138,633 18,481 13.33%
Junior Subordinated Debentures 61,857 -- 0.00%
Other Borrowings 10,516 (10,021) -95.29%
----------- ---------------------
Total Borrowings 543,111 34,304 6.32%
----------- ---------------------
Total Deposits and Borrowings 3,000,056 51,520 1.72%
Other Liabilities 29,518 4,863 16.47%
Stockholders' Equity 300,657 365 0.12%
----------- ---------------------
Total Liabilities and
Stockholders' Equity $ 3,330,231 $ 56,748 1.70%
=========== =====================
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------
(Unaudited - Dollars in Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
---------------------------------------------
June 30, $ %
2008 2007 Variance Change
---- ---- -------- ------
------------------------------------------------------------------
INTEREST INCOME
Interest on Fed Funds
Sold and Short Term
Investments $ 15 $ 289 $ (274) -94.81%
Interest and
Dividends on
Securities 5,883 5,526 357 6.46%
Interest on Loans 38,657 33,788 4,869 14.41%
---------------------------------------------
Total Interest
Income 44,555 39,603 4,952 12.50%
---------------------------------------------
INTEREST EXPENSE
Interest on Deposits 9,539 10,816 (1,277) -11.81%
Interest on
Borrowed Funds 4,929 5,354 (425) -7.94%
---------------------------------------------
Total Interest
Expense 14,468 16,170 (1,702) -10.53%
---------------------------------------------
Net Interest Income 30,087 23,433 6,654 28.40%
Less - Provision
for Loan Losses 1,902 584 1,318 225.68%
---------------------------------------------
Net Interest Income
after Provision for
Loan Losses 28,185 22,849 5,336 23.35%
---------------------------------------------
NON-INTEREST INCOME
Service Charges on
Deposit Accounts 3,963 3,531 432 12.23%
Wealth Management 3,114 2,180 934 42.84%
Mortgage Banking
Income 960 820 140 17.07%
BOLI Income 637 427 210 49.18%
Net Loss on Sale of
Securities -- -- -- n/a
Loss on Write-Down of
Investments to Fair
Value (1,850) -- (1,850) n/a
Other Non-Interest
Income 838 1,081 (243) -22.48%
---------------------------------------------
Total Non-Interest
Income 7,662 8,039 (377) -4.69%
---------------------------------------------
NON-INTEREST EXPENSE
Salaries and Employee
Benefits 14,945 13,013 1,932 14.85%
Occupancy and
Equipment Expenses 3,235 2,607 628 24.09%
Data Processing and
Facilities Management 1,421 1,202 219 18.22%
Merger & Acquisition
Expense 376 -- 376 n/a
WorldCom Bond Loss
Recovery -- -- -- --
Other Non-Interest
Expense 6,585 6,444 141 2.19%
---------------------------------------------
Total Non-Interest
Expense 26,562 23,266 3,296 14.17%
---------------------------------------------
INCOME BEFORE
INCOME TAXES 9,285 7,622 1,663 21.82%
---------------------------------------------
PROVISION FOR
INCOME TAXES 2,444 1,908 536 28.09%
---------------------------------------------
NET INCOME $ 6,841 $ 5,714 $ 1,127 19.72%
=============================================
BASIC EARNINGS PER
SHARE $ 0.42 $ 0.41 2.44%
DILUTED EARNINGS
PER SHARE $ 0.42 $ 0.40 5.00%
BASIC AVERAGE SHARES 16,268,009 14,101,468 15.36%
DILUTED AVERAGE
SHARES 16,346,749 14,231,264 14.87%
PERFORMANCE RATIOS:
-------------------
Net Interest Margin
(FTE) 4.01% 3.85% 4.16%
Return on Average
Assets 0.82% 0.85% 3.53%
Return on Average
Equity 9.02% 10.44% -13.60%
RECONCILIATION TABLE -
NON-GAAP FINANCIAL
INFORMATION
---------------------
NET INCOME (GAAP) $ 6,841 $ 5,714 $ 1,127 19.72%
Net Interest Income
Components
Add - Write-Off of
Debt Issuance Cost,
net of tax -- 590 (590)
Non-Interest Income
Components
Add - Net Loss on Sale
of Securities, net of
tax -- -- --
Non-Interest Expense
Components
Add - Executive Early
Retirement Costs, net
of tax -- -- --
Add - Merger and
Acquisition Expenses,
net of tax 244 -- 244
Add - Litigation
Reserve, net of tax -- 885 (885)
Less - WorldCom Bond
Loss Recovery, net
of tax -- -- --
----------- ----------- -----------
NET OPERATING
EARNINGS $ 7,085 $ 7,189 $ (104) -1.44%
=========== =========== ===========
----------- ----------- -----------
Diluted Earnings
Per Share, on an
Operating Basis $ 0.43 $ 0.51 $ (0.08) -15.69%
=========== =========== ===========
Six Months Ended
---------------------------------------------
June 30, $ %
2008 2007 Variance Change
---- ---- -------- ------
------------------------------------------------------------------
INTEREST INCOME
Interest on Fed Funds
Sold and Short
Term Investments $ 35 $ 733 $ (698) -95.23%
Interest and
Dividends on
Securities 11,775 11,506 269 2.34%
Interest on Loans 73,825 67,487 6,338 9.39%
---------------------------------------------
Total Interest
Income 85,635 79,726 5,909 7.41%
---------------------------------------------
INTEREST EXPENSE
Interest on Deposits 19,854 21,910 (2,056) -9.38%
Interest on
Borrowed Funds 9,928 10,395 (467) -4.49%
---------------------------------------------
Total Interest
Expense 29,782 32,305 (2,523) -7.81%
---------------------------------------------
Net Interest Income 55,853 47,421 8,432 17.78%
Less - Provision
for Loan Losses 3,245 1,475 1,770 120.00%
---------------------------------------------
Net Interest Income
after Provision
for Loan Losses 52,608 45,946 6,662 14.50%
---------------------------------------------
NON-INTEREST INCOME
Service Charges on
Deposit Accounts 7,598 6,941 657 9.47%
Wealth Management 5,790 3,994 1,796 44.97%
Mortgage Banking
Income 2,073 1,594 479 30.05%
BOLI Income 1,158 915 243 26.56%
Net Loss on Sale of
Securities (609) -- (609) n/a
Loss on Write-Down
of Investments to
Fair Value (1,850) -- (1,850) n/a
Other Non-Interest
Income 1,740 2,388 (648) -27.14%
---------------------------------------------
Total Non-Interest
Income 15,900 15,832 68 0.43%
---------------------------------------------
NON-INTEREST EXPENSE
Salaries and Employee
Benefits 29,088 26,166 2,922 11.17%
Occupancy and
Equipment Expenses 6,138 5,161 977 18.93%
Data Processing and
Facilities
Management 2,705 2,290 415 18.12%
Merger & Acquisition
Expense 1,120 -- 1,120 n/a
WorldCom Bond Loss
Recovery (418) -- (418) n/a
Other Non-Interest
Expense 11,961 11,102 859 7.74%
---------------------------------------------
Total Non-Interest
Expense 50,594 44,719 5,875 13.14%
---------------------------------------------
INCOME BEFORE INCOME
TAXES 17,914 17,059 855 5.01%
---------------------------------------------
PROVISION FOR INCOME
TAXES 4,766 4,720 46 0.97%
---------------------------------------------
NET INCOME $ 13,148 $ 12,339 $ 809 6.56%
=============================================
BASIC EARNINGS PER
SHARE $ 0.87 $ 0.86 1.16%
DILUTED EARNINGS
PER SHARE $ 0.86 $ 0.86 0.00%
BASIC AVERAGE SHARES 15,193,327 14,282,226 6.38%
DILUTED AVERAGE
SHARES 15,269,941 14,428,323 5.83%
PERFORMANCE RATIOS:
-------------------
Net Interest Margin
(FTE) 3.96% 3.84% 3.13%
Return on Average
Assets 0.84% 0.91% -7.69%
Return on Average
Equity 9.47% 11.09% -14.61%
RECONCILIATION TABLE
- NON-GAAP FINANCIAL
INFORMATION
---------------------
NET INCOME (GAAP)
Net Interest Income
Components $ 13,148 $ 12,339 $ 809 6.56%
Add - Write-Off of
Debt Issuance Cost,
net of tax 590 (590)
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 728 -- 728
Add - Litigation
Reserve, net of tax 885 (885)
Less - WorldCom
Bond Loss Recovery,
net of tax (272) -- (272)
----------- ----------- -----------
NET OPERATING
EARNINGS $ 14,000 $ 14,078 $ (78) -0.55%
=========== =========== ===========
----------- ----------- -----------
Diluted Earnings Per
Share, on an
Operating Basis $ 0.92 $ 0.98 $ (0.06) -6.12%
=========== =========== ===========
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited - Dollars in Thousands)
Three Months Ended June 30,
---------------------------
2008
---------------------------
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
-------------------------------------------------------------------
Interest-Earning Assets:
Federal Funds Sold and
Short Term Investments $ 100 $ 754 $ 15 7.96%
Securities:
Trading Assets 3,185 3,446 39 4.53%
Taxable Investment
Securities 446,303 444,807 5,370 4.83%
Non-taxable Investment
Securities(1) 39,089 41,722 730 7.00%
---------- ---------- -----------------
Total Securities: 488,577 489,975 6,139 5.01%
---------- ---------- -----------------
Loans (1) 2,575,265 2,550,066 38,768 6.08%
Total Interest-Earning
Assets $3,063,942 $3,040,795 $ 44,922 5.91%
---------- ---------- -----------------
Cash and Due from Banks 89,719 67,974
Other Assets 233,318 228,547
---------- ----------
Total Assets $3,386,979 $3,337,316
========== ==========
Interest-bearing
Liabilities:
Deposits:
Savings and Interest
Checking Accounts $ 696,457 $ 691,150 $ 1,493 0.86%
Money Market 478,852 482,638 2,124 1.76%
Time Deposits 734,792 739,389 5,922 3.20%
---------- ---------- -----------------
Total interest-bearing
deposits: 1,910,101 1,913,177 9,539 1.99%
Borrowings:
Federal Home Loan Bank
Borrowings $ 357,949 $ 330,881 $ 2,762 3.34%
Federal Funds Purchased
and Assets Sold Under
Repurchase Agreement 157,114 144,012 1,116 3.10%
Junior Subordinated
Debentures 61,857 61,857 989 6.40%
Other Borrowings 495 10,757 62 2.31%
---------- ---------- -----------------
Total Borrowings: 577,415 547,507 4,929 3.60%
---------- ---------- -----------------
Total Interest-Bearing
Liabilities $2,487,516 $2,460,684 $ 14,468 2.35%
---------- ---------- -----------------
Demand Deposits 564,060 547,048
Other Liabilities 34,381 26,098
---------- ----------
Total Liabilities $3,085,957 $3,033,830
Stockholders' Equity 301,022 303,486
---------- ----------
Total Liabilities and
Stockholders' Equity $3,386,979 $3,337,316
========== ==========
Net Interest Income $ 30,454
==========
Interest Rate Spread (2) 3.56%
=====
Net Interest Margin (3) 4.01%
=====
Supplemental Information:
Total Deposits, including
Demand Deposits $2,474,161 $2,460,225 $ 9,539
Cost of Total Deposits 1.55%
Total Funding
Liabilities, including
Demand Deposits $3,051,576 $3,007,732 $ 14,468
Cost of Total Funding
Liabilities 1.92%
Three Months Ended June 30,
-----------------------------------
2007
-----------------------------------
Interest
Average Earned/ Yield/
Balance Paid Rate
-----------------------------------------------------------------
Interest-Earning Assets:
Federal Funds Sold and
Short Term Investments $ 20,962 $ 289 5.51%
Securities:
Trading Assets 1,647 9 2.19%
Taxable Investment
Securities 418,893 4,975 4.75%
Non-taxable Investment
Securities (1) 51,893 834 6.43%
---------- --------------------
Total Securities: 472,433 5,818 4.93%
---------- --------------------
Loans (1) 1,987,156 33,911 6.83%
Total Interest-Earning Assets $2,480,551 $ 40,018 6.45%
---------------------------------
Cash and Due from Banks 60,949
Other Assets 148,885
----------
Total Assets $2,690,385
==========
Interest-bearing Liabilities:
Deposits:
Savings and Interest
Checking Accounts $ 580,449 $ 1,994 1.37%
Money Market 467,846 3,509 3.00%
Time Deposits 522,282 5,313 4.07%
---------------------------------
Total interest-bearing
deposits: 1,570,577 10,816 2.75%
Borrowings:
Federal Home Loan Bank
Borrowings $ 238,246 $ 2,668 4.48%
Federal Funds Purchased and
Assets Sold Under
Repurchase Agreement 99,300 733 2.95%
Junior Subordinated
Debentures 59,760 1,935 12.95%
Other Borrowings 997 18 7.22%
---------------------------------
Total Borrowings: 398,303 5,354 5.38%
---------------------------------
Total Interest-Bearing
Liabilities $1,968,880 $ 16,170 3.29%
---------------------------------
Demand Deposits 488,571
Other Liabilities 13,908
----------
Total Liabilities $2,471,359
Stockholders' Equity 219,026
----------
Total Liabilities and
Stockholders' Equity $2,690,385
==========
Net Interest Income $ 23,848
==========
Interest Rate Spread (2) 3.16%
=====
Net Interest Margin (3) 3.85%
=====
Supplemental Information:
Total Deposits, including
Demand Deposits $2,059,148 $ 10,816
Cost of Total Deposits 2.10%
Total Funding Liabilities,
including Demand Deposits $2,457,451 $ 16,170
Cost of Total Funding
Liabilities 2.63%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $367 and $415 for the
three months ended June 30, 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 average interest-earning assets.
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA
(Unaudited - Dollars in Thousands)
Six Months Ended June 30,
---------------------------
2008
---------------------------
Interest
Ending Average Earned/ Yield/
Balance Balance Paid Rate
----------------------------------------------------------------------
Interest-Earning Assets:
Federal Funds Sold and Short
Term Investments $ 100 $ 689 $ 35 10.16%
Securities:
Trading Assets 3,185 3,012 66 4.38%
Taxable Investment Securities 446,303 434,295 10,756 4.95%
Non-taxable Investment
Securities(1) 39,089 43,778 1,466 6.70%
---------- ---------------------------
Total Securities: 488,577 481,085 12,288 5.11%
Loans (1) 2,575,265 2,378,702 74,053 6.23%
---------- ---------------------------
Total Interest-Earning Assets $3,063,942 $2,860,476 $86,376 6.04%
---------- ---------------------------
Cash and Due from Banks 89,719 64,286
Other Assets 233,318 199,437
---------- ----------
Total Assets $3,386,979 $3,124,199
========== ==========
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking
Accounts $ 696,457 $ 643,469 $ 3,084 0.96%
Money Market 478,852 474,349 4,702 1.98%
Time Deposits 734,792 673,394 12,068 3.58%
---------- ---------------------------
Total interest-bearing
deposits: 1,910,101 1,791,212 19,854 2.22%
Borrowings:
Federal Home Loan Bank
Borrowings $ 357,949 $ 315,730 5,704 3.61%
Federal Funds Purchased and
Assets Sold Under Repurchase
Agreement 157,114 141,644 2,270 3.21%
Junior Subordinated Debentures 61,857 58,458 1,848 6.32%
Other Borrowings 495 7,597 106 2.79%
---------- ---------------------------
Total Borrowings: 577,415 523,429 9,928 3.79%
---------- ---------------------------
Total Interest-Bearing
Liabilities $2,487,516 $2,314,641 $29,782 2.57%
---------- ---------------------------
Demand Deposits 564,060 511,033
Other Liabilities 34,381 20,785
---------- ----------
Total Liabilities $3,085,957 $2,846,459
Stockholders' Equity 301,022 277,740
---------- ----------
Total Liabilities and
Stockholders' Equity $3,386,979 $3,124,199
========== ==========
Net Interest Income $56,594
=======
Interest Rate Spread(2) 3.47%
======
Net Interest Margin(3) 3.96%
=====
Supplemental Information:
Total Deposits, including
Demand Deposits $2,474,161 $2,302,245 $19,854
Cost of Total Deposits 1.72%
Total Funding Liabilities,
including Demand Deposits $3,051,576 $2,825,674 $29,782
Cost of Total Funding
Liabilities 2.11%
Six Months Ended June 30,
---------------------------
2007
---------------------------
Interest
Average Earned/ Yield/
Balance Paid Rate
---------------------------------------------------------------------
Interest-Earning Assets:
Federal Funds Sold and Short Term
Investments $ 27,265 $ 733 5.38%
Securities:
Trading Assets 1,669 23 2.76%
Taxable Investment Securities 433,625 10,377 4.79%
Non-taxable Investment Securities(1) 52,722 1,701 6.45%
---------------------------
Total Securities: 488,016 12,101 4.96%
Loans(1) 1,995,143 67,727 6.79%
---------------------------
Total Interest-Earning Assets $2,510,424 $80,561 6.42%
---------------------------
Cash and Due from Banks 60,142
Other Assets 148,565
----------
Total Assets $2,719,131
==========
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking Accounts $ 576,067 $ 3,794 1.32%
Money Market 468,603 7,049 3.01%
Time Deposits 540,289 11,067 4.10%
---------- ---------------
Total interest-bearing deposits: 1,584,959 21,910 2.76%
Borrowings:
Federal Home Loan Bank Borrowings $ 245,471 $ 5,459 4.45%
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement 102,483 1,585 3.09%
Junior Subordinated Debentures 68,492 3,326 9.71%
Other Borrowings 792 25 6.31%
---------- ---------------
Total Borrowings: 417,238 10,395 4.98%
---------- ---------------
Total Interest-Bearing Liabilities $2,002,197 $32,305 3.23%
---------- ---------------
Demand Deposits 480,671
Other Liabilities 13,831
----------
Total Liabilities $2,496,699
Stockholders' Equity 222,432
----------
Total Liabilities and Stockholders'
Equity $2,719,131
==========
Net Interest Income $48,256
=======
Interest Rate Spread(2) 3.19%
=====
Net Interest Margin (3) 3.84%
=====
Supplemental Information:
Total Deposits, including Demand Deposits $2,065,630 $21,910
Cost of Total Deposits 2.12%
Total Funding Liabilities, including
Demand Deposits $2,482,868 $32,305
Cost of Total Funding Liabilities 2.60%
(1) The total amount of adjustment to present interest income and
yield on a fully tax-equivalent basis is $741 for the six months
ended June 30, 2008 and $835 for the six months ended June 30,
2007.
(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 average interest-earning assets.
As Of
June 30, Dec. 31, June 30,
2008 2007 2007
---- ---- ----
--------------------- ---------
Asset Quality (Dollars in Thousands,
------------- Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans $ 403 $ 306 $ 301
Business Banking Loans 935 439 343
Commercial Real Estate Loans 2,263 2,568 2,013
Residential Real Estate Loans 4,460 2,380 1,927
Installment Loans - Home Equity 1,380 872 373
Installment Loans - Auto 934 833 810
Installment Loans - Other 290 246 91
---------- --------- ---------
Total Nonperforming Loans 10,665 7,644 5,858
---------- --------- ---------
Other Real Estate Owned 1,393 681 305
Nonperforming Assets $ 12,058 $ 8,325 $ 6,163
========== ========= =========
Net charge-offs (year to date) $ 2,369 $ 3,114 $ 1,639
Net charge-offs to average
loans (annualized) 0.19% 0.16% 0.16%
Nonperforming Loans/Gross Loans 0.41% 0.37% 0.30%
Allowance for Loan
Losses/Nonperforming Loans 311.59% 351.01% 454.93%
Loans/Total Deposits 104.09% 100.81% 96.53%
Allowance for Loan Losses/Total
Loans 1.29% 1.31% 1.35%
Financial Ratios
----------------
Book Value per Share $ 18.50 $ 16.04 $ 15.25
Tangible Capital/Tangible Asset 5.34% 5.91% 5.91%
Tangible Capital/Tangible Asset
(proforma to include the
deductibility of goodwill) 5.79% 6.45% 6.47%
Tangible Book Value per Share $ 10.70 $ 11.64 $ 11.05
Tangible Book Value per Share
(proforma to include the
deductibility of goodwill) $ 11.59 $ 12.70 $ 12.09
Capital Adequacy
----------------
Tier one leverage capital ratio
(1) 7.66% 8.02% 7.94%
(1) Estimated number for June 30, 2008
Certain amounts in prior year financial statement have been
reclassified to conform to the current year's presentation.