VALDOSTA, Ga., July 30, 2007 (PRIME NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, today announced its financial results for the second quarter of 2007. The Company reported net income of $3.2 million, or $0.33 per diluted share, for the quarter ended June 30, 2007. The earnings for the quarter generated a return on average equity ("ROE") of 13.10% and a return on average assets ("ROA") of 1.12%. The net earnings for the second quarter represented a one cent increase compared to the $0.32 per diluted share earned in the first quarter of 2007 and a four cent decrease compared to the $0.37 per diluted share earned in the second quarter of 2006.
"Our net earnings for the second quarter improved slightly compared to the first quarter of 2007. However, over the past year the notable slowdown in residential construction and development activity, the persistence of an unfavorable interest rate environment and the dilutive effects of our recent de novo branching have resulted in a lower level of profitability for the Company," stated Company President and CEO M. Burke Welsh, Jr. "We expect our recent branching efforts to generate positive returns within a year, and we believe our long-term outlook continues to be promising given the strong demographic trends within our franchise footprint," added Welsh.
For the six months ended June 30, 2007, the Company reported net income of $6.3 million, or $0.65 per diluted share, a 9% decrease compared to $6.9 million, or $0.71 per diluted share, reported for the same period in 2006. The net income for the first six months of 2007 resulted in a 1.11% ROA and a 12.93% ROE, both declines from the 1.33% ROA and 15.51% ROE reported for the same period in 2006.
Stronger Than Expected Loan Growth
At June 30, 2007, the Company reported $1.17 billion in total assets, a $49 million, or 9% annualized, increase since December 31, 2006. For the year to date, total loans outstanding have increased $85 million, or 21% annualized, to $905 million, and total deposits have increased $37 million, or 8% annualized, to $946 million. Since June 30, 2006, total assets have increased $110 million, or 10%, total loans have increased $102 million, or 13%, and total deposits have increased $89 million, or 10%. "We expect the pace of loan growth to slow in the second half of 2007, but loan growth is not currently our primary objective. Our efforts have shifted to focusing on preserving our asset quality and on protecting our net interest margin through core deposit growth. Although core deposit growth has been challenging, our bankers and branch personnel are committed to achieving our retail banking goals," noted Welsh.
Focus on Asset Quality and Real Estate Lending
"Everyone is concerned with the condition of the residential real estate market and additional attention has been given to financial institutions with concentrations in residential construction and development lending on their balance sheets. Approximately 22% of our loan portfolio is in residential construction and development lending. We understand the risks involved, and we have established conservative underwriting criteria and internal controls to protect our interests. However, we are not immune to credit risk and we expect to incur some losses. We are proactive in recognizing our problems, and we intend to minimize our losses whenever possible as those problems arise," stated Welsh.
As of June 30, 2007, the Company reported total nonperforming assets of $5.0 million, or 0.43% of total assets, a four basis point increase from March 31, 2007 due to delays in the liquidation of other real estate foreclosed on during the quarter. The largest problem asset relationship amounted to $2.1 million, or 42% of total nonperforming assets at quarter end. During the second quarter, total loans on nonaccrual status decreased $2.2 million, or 53%, to $2.0 million due primarily to the foreclosure and transfer to other real estate of $1.7 million on the large problem asset noted above. Total loans past due 30-89 days and not categorized as a nonperforming asset amounted to $7.9 million, or 0.88% of total loans at quarter end, a 67 basis point increase since March 31, 2007. The increase in this category is due primarily to the delinquency of two development projects totaling $3.8 million. As of June 30, 2007, a specific reserve of $245,000 was allocated to these potential problem assets.
For the year to date, the Company reported recoveries in excess of losses of $136,000, resulting in an annualized 0.03% net recoveries to average loans ratio. Including these annualized results, the Company has a five-year average net charge-off ratio of 0.08%. During the second quarter of 2007, the Company increased its allowance for loan losses by $200,000 due to recent loan growth and specific reserves on rated loans. At June 30, 2007, the Company's allowance for loan losses represented 1.25% of total loans and 563.32% of nonperforming loans.
Net Interest Margin Squeezed but Stabilizing
The Company reported a 4.10% net interest margin for the second quarter of 2007, a five basis point decrease compared to the 4.15% net interest margin for the first quarter of 2007, but a 51 basis point decline from the 4.61% net interest margin for the second quarter of 2006. "The lack of movement in short-term interest rates over the past twelve months has allowed our interest-bearing liabilities to reprice upwards without much opportunity to reprice our earning assets upwards," stated Company CFO Jay Torbert. Since the second quarter of 2006, the quarterly average rate paid for funds has risen 66 basis points from 3.74% to 4.40%, while the quarterly average yield on earning assets has only increased nine basis points from 7.84% to 7.93%. "Absent a change in short-term interest rates, we anticipate our net interest margin to stabilize between 4.00% and 4.15% during the second half of 2007," added Torbert.
The Company's net interest margin for the first six months of 2007 was 4.13%, a 46 basis point decrease compared to the 4.59% net interest margin for the same period in 2006.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 9:00 AM Eastern on Tuesday, July 31, 2007. The conference call will be broadcast by Vcall via the Internet using Windows Media Player. The webcast URL is http://www.vcall.com/IC/CEPage.asp?ID=118613. A link to the webcast is posted on the "Investor Relations" section of the Company's website at www.pabbankshares.com. Interested shareholders, industry analysts and members of the news media and the investment community wanting to participate in the live question and answer session following management's presentation may access the conference call by dialing (toll free) 877-407-8033 or (international) 201-689-8033.
Shortly following the call and at any time for at least 30 days thereafter, interested parties may access an archived version of the webcast on the "Investor Relations" section of the Company's website or by dialing (toll free) 877-660-6853 or (International) 201-612-7415. The following replay passcodes will be required for playback access: the account number is 286 and the conference identification number is 247998.
About PAB
The Company's sole operating subsidiary is The Park Avenue Bank. Both the Company and the Bank are headquartered in Valdosta, Georgia. The Bank was established in 1956 by Mr. James L. Dewar, Sr. in a small office at the corner of Park Avenue and Ashley Street in Valdosta. The Bank operates in 20 branch offices and three loan production offices in 15 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. Prior to November 1, 2005, the Company's common stock was listed on the American Stock Exchange under the symbol PAB. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements
Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding our outlook on asset quality, credit losses, loan and deposit growth, interest rates, economic conditions, the effects of our de novo branch expansion, and the anticipated stabilization of our net interest margin, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate," "believe," "intend," "plan," "expect," "estimate," "could," "should," "will" and similar expressions are used, you should consider them as identifying forward-looking statements. These forward-looking statements are not guarantees of future performance, and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements. The following list, which is not intended to be an all-encompassing list of risks and uncertainties affecting the Company, summarizes several factors that could cause the Company's actual results to differ materially from those anticipated or expected in these forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins or the volumes or values of loans made by The Park Avenue Bank; (3) general economic conditions (both generally and in our markets) may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect the businesses in which we are engaged; (5) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; (6) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (7) adverse changes may occur in the bond and equity markets; (8) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (9) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (10) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (11) the risk factors discussed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2006. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
Period Ended
-------------------------------------------------------------
06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of
Operations:
Interest
income $ 21,345 $ 20,451 $ 20,239 $ 20,173 $ 19,306
Interest
expense 10,386 9,783 9,658 8,936 8,006
---------------------------------------------------------------------
Net
interest
income 10,959 10,668 10,581 11,237 11,300
---------------------------------------------------------------------
Provision
for loan
losses 200 - - - -
Other
income 1,359 1,478 1,578 1,204 1,557
Other
expense 7,209 7,470 7,230 7,000 7,182
---------------------------------------------------------------------
Income
before
income
tax
expense 4,909 4,676 4,929 5,441 5,675
Income
tax
expense 1,688 1,612 1,632 1,908 2,083
---------------------------------------------------------------------
Net
income $ 3,221 $ 3,064 $ 3,297 $ 3,533 $ 3,592
=====================================================================
Net
interest
income
on a tax-
equi-
valent
basis $ 11,119 $ 10,822 $ 10,732 $ 11,378 $ 11,422
Per Share
Ratios:
Net
income
- basic $ 0.34 $ 0.32 $ 0.35 $ 0.37 $ 0.38
Net
income
- diluted 0.33 0.32 0.34 0.36 0.37
Dividends
declared
for
period 0.145 0.145 0.140 0.140 0.135
Dividend
payout
ratio 42.66% 45.02% 40.35% 37.62% 35.70%
Book
value at
end of
period $ 10.16 $ 10.26 $ 10.03 $ 9.84 $ 9.36
Common
Share
Data:
Out-
standing
at
period
end 9,479,490 9,516,673 9,504,969 9,493,763 9,498,026
Weighted
average
out-
standing 9,498,569 9,515,976 9,500,837 9,500,742 9,511,395
Diluted
weighted
average
out-
standing 9,661,696 9,691,233 9,701,593 9,684,451 9,722,097
Selected
Average
Balances:
Total
assets $1,155,158 $1,124,534 $1,106,404 $1,070,920 $1,055,955
Earning
assets 1,087,926 1,057,121 1,041,359 1,007,917 994,173
Loans 876,982 834,070 813,435 805,732 787,332
Deposits 935,100 910,188 887,028 863,212 851,937
Stock-
holders'
equity 98,678 97,470 95,091 91,821 90,433
Selected
Period
End
Balances:
Total
assets $ 1,169,967 $1,171,845 $1,120,804 $1,095,836 $1,060,046
Earning
assets 1,097,888 1,106,808 1,048,239 1,032,261 994,386
Loans 905,158 854,076 820,304 806,636 803,035
Allowance
for loan
losses 11,342 11,085 11,006 10,686 10,903
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 945,847 954,416 908,483 883,701 856,778
Stock-
holders'
equity 96,290 97,657 95,316 93,440 88,917
Tier 1
regula-
tory
capital 103,397 102,173 100,330 98,183 96,398
Per-
formance
Ratios:
Return on
average
assets 1.12% 1.11% 1.18% 1.31% 1.36%
Return on
average
stock-
holders'
equity 13.10% 12.75% 13.76% 15.27% 15.93%
Net
interest
margin 4.10% 4.15% 4.09% 4.48% 4.61%
Efficiency
ratio
(exclud-
ing the
following
items): 57.62% 61.54% 59.51% 54.50% 55.37%
Securi-
ties
gains
(losses)
included
in
other
income $ (38) $ 173 $ 166 $ (278) $ (1)
Other
gains
(losses)
included
in
other
income 6 (13) (4) 17 8
Selected
Asset
Quality
Factors:
Nonaccrual
loans $ 1,986 $ 4,192 $ 4,013 $ 1,928 $ 412
Loans 90
days or
more
past due
and
still
accruing 27 69 34 40 23
Other
impaired
loans
(troubled-
debt
restruct-
urings) - - - - -
Other
real
estate
and re-
possess-
ions 2,999 362 988 813 976
Asset
Quality
Ratios:
Net
charge-
offs to
average
loans
(annual-
ized YTD) -0.03% -0.04% 0.01% 0.07% 0.05%
Nonper-
forming
loans to
total
loans 0.22% 0.50% 0.49% 0.24% 0.05%
Nonper-
forming
assets
to total
assets 0.43% 0.39% 0.45% 0.25% 0.13%
Allowance
for loan
losses
to total
loans 1.25% 1.30% 1.34% 1.32% 1.36%
Allowance
for loan
losses
to non-
perform-
ing
loans 563.32% 260.13% 271.95% 542.93% 2510.11%
Other
Selected
Ratios
and Non-
financial
Data:
Average
loans to
average
earning
assets 80.61% 78.90% 78.11% 79.94% 79.19%
Average
loans to
average
deposits 93.78% 91.64% 91.70% 93.34% 92.42%
Average
stock-
holders'
equity
to
average
assets 8.54% 8.67% 8.59% 8.57% 8.56%
Full-time
equi-
valent
employees 322 329 321 309 314
Bank
branch
offices 20 20 19 17 17
Bank loan
pro-
duction
offices 3 3 3 5 5
Bank ATMs 25 25 23 20 20
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
Period Ended
-------------------------------------------------------------
06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of
Operations:
Interest
income $ 41,797 $ 20,451 $ 77,566 $ 57,327 $ 37,154
Interest
expense 20,169 9,783 33,555 23,898 14,962
---------------------------------------------------------------------
Net
interest
income 21,628 10,668 44,011 33,429 22,192
---------------------------------------------------------------------
Provision
for loan
losses 200 - - - -
Other
income 2,838 1,478 5,380 3,802 2,598
Other
expense 14,679 7,470 28,167 20,937 13,938
---------------------------------------------------------------------
Income
before
income
tax
expense 9,587 4,676 21,224 16,294 10,852
Income
tax
expense 3,300 1,612 7,488 5,856 3,948
---------------------------------------------------------------------
Net
income $ 6,287 $ 3,064 $ 13,736 $ 10,438 $ 6,904
=====================================================================
Net
interest
income
on a tax-
equi-
valent
basis $ 21,941 $ 10,822 $ 44,507 $ 33,775 $ 22,397
Per Share
Ratios:
Net
income
- basic $ 0.66 $ 0.32 $ 1.45 $ 1.10 $ 0.73
Net
income
- diluted 0.65 0.32 1.41 1.07 0.71
Dividends
declared
for the
period 0.290 0.145 0.540 0.400 0.260
Dividend
payout
ratio 43.81% 45.02% 37.36% 36.41% 35.80%
Common
Share
Data:
Weighted
average
out-
standing 9,507,224 9,515,976 9,499,434 9,498,962 9,498,057
Diluted
weighted
average
out-
standing 9,676,672 9,691,233 9,706,989 9,707,786 9,719,638
Selected
Average
Balances:
Total
assets $1,139,930 $1,124,534 $1,067,362 $1,054,205 $1,045,708
Earning
assets 1,072,608 1,057,121 1,004,981 992,719 984,994
Loans 855,644 834,070 792,278 785,148 774,686
Deposits 922,713 910,188 859,216 849,844 843,049
Stock-
holders'
equity 98,077 97,470 91,611 90,438 89,735
Per-
formance
Ratios:
Return on
average
assets 1.11% 1.11% 1.29% 1.32% 1.33%
Return on
average
stock-
holders'
equity 12.93% 12.75% 14.99% 15.43% 15.51%
Net
interest
margin 4.13% 4.15% 4.43% 4.55% 4.59%
Efficiency
ratio
(excluding
the
following
items): 59.55% 61.54% 55.88% 54.73% 54.84%
Securi-
ties
gains
(losses)
included
in
other
income $ 135 $ 173 $ (542) $ (708) $ (430)
Other
gains
(losses)
included
in
other
income (7) (13) 23 27 10
Other
Selected
Ratios:
Average
loans to
average
earning
assets 79.77% 78.90% 78.84% 79.09% 78.65%
Average
loans to
average
deposits 92.73% 91.64% 92.21% 92.39% 91.89%
Average
stock-
holders'
equity
to
average
assets 8.60% 8.67% 8.58% 8.58% 8.58%
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of June 30, 2007
South North
Georgia Georgia Florida
Market Market Market Treasury Total
-------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 32,228 $ 44,676 $ 1,104 $ 40 $ 78,048
Agricultural
(including loans
secured by
farmland) 39,561 4,376 3,036 -- 46,973
Real estate -
construction 71,923 213,460 42,517 447 328,347
Real estate -
commercial 85,414 148,091 32,683 4,790 270,978
Real estate -
residential 123,825 26,488 8,173 2,918 161,404
Installment loans
to individuals
and others 14,284 3,711 45 2,206 20,246
-------------------------------------------------
367,235 440,802 87,558 10,401 905,996
Deferred loan fees
and unearned
interest, net 204 (557) (498) 12 (839)
-------------------------------------------------
Total loans 367,439 440,245 87,060 10,413 905,157
Allowance for
loan losses (4,457) (5,739) (957) (189) (11,342)
-------------------------------------------------
Net loans $362,982 $434,506 $ 86,103 $ 10,224 $893,815
=================================================
Percent of total 40.6% 48.6% 9.6% 1.2% 100.0%
=================================================
Deposits
Noninterest-bearing
demand $ 70,250 $ 14,275 $ 6,752 $ 7,585 $ 98,862
Interest-bearing
demand and
savings 264,804 51,273 33,187 456 349,720
Time less than
$100,000 163,578 47,773 89,393 112 300,856
Time greater than
or equal to
$100,000 86,690 39,613 37,470 200 163,973
Brokered -- -- -- 32,436 32,436
-------------------------------------------------
Total deposits $585,322 $152,934 $166,802 $ 40,789 $ 945,847
=================================================
Percent of total 61.9% 16.2% 17.6% 4.3% 100.0%
=================================================
PAB BANKSHARES, INC.
LOAN PORTFOLIO
SUMMARY
The amount of loans outstanding at the indicated dates is presented
in the following table according to type of loan:
Period Ended
-------------------------------------------------
06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
-------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 78,048 $ 69,347 $ 66,376 $ 60,413 $ 53,185
Agricultural
(including loans
secured by
farmland) 46,973 38,102 43,302 44,716 47,754
Real estate -
construction 328,347 323,837 295,246 297,026 304,387
Real estate -
commercial 270,978 252,654 255,462 253,586 251,966
Real estate -
residential 161,404 153,025 142,501 133,983 127,020
Installment loans to
individuals and
other loans 20,246 17,958 18,414 18,211 19,966
-------- -------- -------- -------- --------
905,996 854,923 821,301 807,935 804,278
Deferred loan fees
and unearned
interest, net (839) (847) (997) (1,299) (1,243)
-------- -------- -------- -------- --------
Total loans 905,157 854,076 820,304 806,636 803,035
Allowance for loan
losses (11,342) (11,085) (11,006) (10,686) (10,903)
-------- -------- -------- -------- --------
Net loans $893,815 $842,991 $809,298 $795,950 $792,132
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
-----------------------------------------------
06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
-----------------------------------------------
Commercial and
financial 8.62% 8.12% 8.09% 7.49% 6.62%
Agricultural
(including loans
secured by farmland) 5.19% 4.46% 5.28% 5.54% 5.95%
Real estate -
construction 36.27% 37.92% 35.99% 36.82% 37.89%
Real estate -
commercial 29.94% 29.58% 31.14% 31.44% 31.38%
Real estate -
residential 17.83% 17.92% 17.37% 16.61% 15.82%
Installment loans to
individuals and
other loans 2.24% 2.10% 2.25% 2.26% 2.49%
------- ------- ------- ------- -------
100.09% 100.10% 100.12% 100.16% 100.15%
Deferred loan fees and
unearned interest,
net -0.09% -0.10% -0.12% -0.16% -0.15%
------- ------- ------- ------- -------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for loan
losses -1.25% -1.30% -1.34% -1.32% -1.36%
------- ------- ------- ------- -------
Net loans 98.75% 98.70% 98.66% 98.68% 98.64%
======= ======= ======= ======= =======
PAB BANKSHARES, INC.
DEPOSIT PORTFOLIO
SUMMARY
The amounts on deposit at the indicated dates are presented in the
following table according to type of deposit account:
Period Ended
------------------------------------------------------
06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
------------------------------------------------------
(Dollars In Thousands)
Noninterest-
bearing demand $ 98,862 $107,917 $100,911 $100,703 $ 95,458
Interest-
bearing demand
and savings 349,720 371,484 328,828 316,385 315,492
Time less
than $100,000 300,856 287,982 279,936 273,697 264,552
Time greater
than or equal
to $100,000 163,973 158,464 161,054 151,075 145,002
Brokered 32,436 28,569 37,754 41,841 36,274
-------- -------- -------- -------- --------
Total deposits $945,847 $954,416 $908,483 $883,701 $856,778
======== ======== ======== ======== ========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
------------------------------------------------------
06/30/07 03/31/07 12/31/06 09/30/06 06/30/06
------------------------------------------------------
Noninterest-
bearing demand 10.45% 11.31% 11.11% 11.40% 11.14%
Interest-
bearing demand
and savings 36.98% 38.92% 36.19% 35.80% 36.82%
Time less than
$100,000 31.78% 30.18% 30.81% 30.97% 30.88%
Time greater
than or equal
to $100,000 17.36% 16.60% 17.73% 17.10% 16.93%
Brokered 3.43% 2.99% 4.16% 4.73% 4.23%
-------- -------- -------- -------- --------
Total deposits 100.00% 100.00% 100.00% 100.00% 100.00%
======== ======== ======== ======== ========
PAB BANKSHARES, INC.
YIELD ANALYSIS
The following tables detail the average balances of interest-earning
assets and interest-bearing liabilities, the amount of interest
earned and paid, and the average yields and rates for the three
months and six months ended June 30, 2007 and 2006. Federally
tax-exempt income is presented on a taxable-equivalent basis
assuming a 35% Federal tax rate. Loan average balances include loans
on nonaccrual status.
For the Three Months
Ended June 30, 2007 2006
---------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-
earning
assets:
Loans $ 876,982 $ 18,712 8.56% $ 787,332 $ 16,824 8.57%
Investment
securities:
Taxable 162,827 2,085 5.14% 154,347 1,902 4.94%
Nontaxable 30,370 457 6.04% 23,685 348 5.90%
Other short-
term
investments 17,747 251 5.67% 28,809 354 4.93%
--------------------- ---------------------
Total
interest-
earning
assets $1,087,926 $ 21,505 7.93% $ 994,173 $ 19,428 7.84%
--------------------- ---------------------
Interest-
bearing
liabilities:
Demand
deposits $ 311,097 $ 2,819 3.63% $ 267,483 $ 2,037 3.05%
Savings
deposits 37,986 150 1.59% 40,675 129 1.27%
Time
deposits 484,208 6,057 5.02% 443,350 4,647 4.20%
FHLB
advances 90,512 1,038 4.60% 90,612 920 4.07%
Notes
payable 10,310 182 7.08% 10,310 226 8.81%
Other short-
term
borrowings 13,208 140 4.26% 5,781 47 3.24%
--------------------- ---------------------
Total
interest-
bearing
liabil-
ities $ 947,321 $ 10,386 4.40% $ 858,211 $ 8,006 3.74%
--------------------- ---------------------
Interest
rate
spread 3.53% 4.10%
===== =====
Net interest
income $ 11,119 $ 11,422
========== ==========
Net interest
margin 4.10% 4.61%
===== =====
For the Three Months
Ended June 30, 2007 2006
---------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-
earning
assets:
Loans $ 855,644 $ 36,396 8.58% $ 774,686 $ 32,224 8.39%
Investment
securities:
Taxable 160,099 4,098 5.16% 151,887 3,672 4.88%
Nontaxable 29,855 895 6.05% 20,158 587 5.87%
Other short-
term
investments 27,011 721 5.38% 38,263 876 4.62%
--------------------- ---------------------
Total
interest-
earning
assets $1,072,609 $ 42,110 7.92% $ 984,994 $ 37,359 7.65%
--------------------- ---------------------
Interest-
bearing
liabilities:
Demand
deposits $ 304,578 $ 5,409 3.25% $ 260,608 $ 3,632 2.81%
Savings
deposits 37,788 298 1.59% 40,646 241 1.20%
Time
deposits 478,909 11,773 4.96% 439,216 8,873 4.07%
FHLB
advances 90,313 2,089 4.67% 89,879 1,692 3.80%
Notes
payable 10,310 362 7.08% 10,310 446 8.72%
Other short-
term
borrowings 11,168 238 4.29% 6,041 78 2.59%
--------------------- ---------------------
Total
interest-
bearing
liabil-
ities $ 933,066 $ 20,169 4.36% $ 846,700 $ 14,962 3.56%
--------------------- ---------------------
Interest
rate spread 3.56% 4.09%
===== =====
Net interest
income $ 21,941 $ 22,397
========== ==========
Net interest
margin 4.13% 4.59%
===== =====