EVERETT, Wash., April 21, 2009 (GLOBE NEWSWIRE) -- Cascade Financial Corporation (Nasdaq:CASB), parent company of Cascade Bank, today reported financial results for the first quarter 2009. During the quarter Cascade increased its provision for loan losses to $13.9 million, and as a result, reported a net loss of $4.8 million. Income available for common shareholders, which adjusts for the dividends to the U.S. Treasury paid on preferred stock, was a loss of $5.3 million or $0.44 per diluted share, in the first quarter of 2009, compared to earnings of $2.6 million, or $0.21 per diluted share in the first quarter a year ago.
"Our underlying business performance for the quarter was strong, with steady loan growth and record checking deposit growth. Total loans grew 8% year over year. Checking deposits were up 83% year over year and 46% from the prior quarter," stated Carol K. Nelson, President and CEO. "Net interest income for the quarter was up 6%, and pre-tax, pre-provision, pre-Other Than Temporary Impairment (OTTI) earnings were up 17% compared to the year ago quarter."
"By increasing our provision for loan losses, we have taken a proactive step to continue to stay ahead of the real estate and credit cycle curves," added Nelson. "Our decision to build reserves is consistent with Cascade's historically strong credit culture and practices." Nonperforming loans (NPLs) represented 4.05% of total loans at March 31, 2009, compared to 3.20% or $40.3 million at the end of the preceding quarter and 1.50% or $17.3 million at March 31, 2008.
The increased provision exceeded net charge-offs of $5.3 million by $8.6 million which allowed Cascade to continue to build its allowance for loan losses. The allowance for loan losses to total loans increased from 1.31% at December 31, 2008, to 2.01% at March 31, 2009.
Items unique in the analysis of first quarter results include:
--------------------------------------------------------------
* Larger than historical provision for loan losses of $13.9 million.
* Fair value gain on Trust Preferred Securities of $1.8 million
that represents the downward mark to market adjustment to value
of Cascade's $10.0 million 11% TPS obligation.
* Washington Public Deposit Protection Commission (WPDPC)
assessment for public deposits of $368,000 arising from the
failure of the Bank of Clark County.
* Increased regular FDIC insurance premiums of $391,000, up 1,500%
from first quarter 2008.
* The further OTTI mark to market of Fannie Mae and Freddie Mac
Preferred Stock of $858,000.
1Q09 Financial Highlights: (compared to 1Q08)
--------------------------
* Increased loan loss provision to $13.9 million.
* Allowance for loan losses to total loans grew to 2.01% at quarter
end.
* Capital ratios remain strong: Tier 1 Capital Ratio at 9.66%; Risk
Based Capital Ratio at 13.02%.
* Total loans increased 8% to $1.25 billion.
* Total deposits grew 7% to $1.02 billion.
* Total checking account balances increased 83%:
* Personal checking account balances grew 100%.
* Business checking account balances grew 70%.
* Total assets increased 10% to $1.66 billion.
Loan Portfolio
Total loans decreased by $7.4 million in the first quarter from the end of the year, but increased 8% or $98.0 million on a year over year basis to $1.25 billion as of March 31, 2009. Cascade has not engaged in the practice of subprime residential lending and the loan portfolio does not contain any such loans.
Cascade continues to work diligently to meet the credit needs of its community. As a participant in the U.S. Treasury's Capital Purchase Program, Cascade has increased its focus on residential lending as it works to strengthen the health of the housing market. For example, Cascade has developed a special lending program to help its builders/developers sell homes by offering low rate, low down payment loans to qualified buyers.
"While the issuance of preferred shares in November has enabled Cascade to increase its lending, total loans were down as payoffs, pay downs and fortfeitures and foreclosures exceeded new loan originations of $29.0 million for the first quarter," said Lars Johnson, Chief Financial Officer. "The slower loan growth is also in response to reduced market demand as borrowers remain hesitant to increase their obligations in the face of turbulent capital markets and a weakening economy."
Construction loans outstanding decreased 17% to $343 million at March 31, 2009, compared to $411 million a year ago. In addition to payoffs, this reduction was due to the completion of projects which were moved to the commercial real estate and multifamily portfolios as well as the transfer of $9.1 million of nonperforming loans to the Real Estate Owned (REO) category. Commercial real estate loans increased 53% to $176 million partially as a result of the reclassifications of $49.0 million from real estate construction as projects were completed and met the required cash flow/debt coverage ratio requirements. Permanent multifamily loans increased substantially from year ago levels to $96.8 million, partly as a result of reclassifications of $14.0 million from real estate construction as projects were completed and met rental goals. Business loans increased 2% over the same period to $477 million. Home equity and consumer loans increased 9% to $30.6 million, while residential loans grew 25% to $127 million.
The following table shows loans in each category: (3/31/09 compared to 12/31/08 and 3/31/08)
LOANS ($ in 000's) March 31, December 31, March 31, One Year
2009 2008 2008 Change
Business $ 477,220 $ 485,060 $ 469,940 2%
R/E Construction 342,796 406,505 411,189 -17%
Commercial R/E 176,356 122,951 115,087 53%
Multifamily 96,758 86,864 26,964 259%
Home equity/consumer 30,567 30,772 28,142 9%
Residential 127,176 126,089 101,768 25%
---------- ---------- ---------- ----------
Total loans $1,250,873 $1,258,241 $1,153,090 8%
Credit Quality
Nonperforming loans (NPLs) increased during the quarter to $50.6 million, which represented 4.05% of total loans at March 31, 2009, compared to 3.20% three months earlier. Additions to nonperforming loans for the quarter were comprised of $23.7 million of construction loans less $9.1 million transferred to REO, a $2.3 million reduction through the partial charge-offs of existing NPLs, and $2.0 million in pay downs. NPLs were $40.3 million at the end of the preceding quarter and $17.3 million at March 31, 2008.
The following table shows nonperforming loans in each category: (3/31/09 compared to 12/31/08 and 3/31/08)
NONPERFORMING LOANS ($ in 000's) March 31, December 31, March 31,
2009 2008 2008
Construction $ 49,713 $ 38,972 $ 16,783
Business 730 1,149 293
Residential 155 155 80
Consumer 4 2 112
---------- ---------- ----------
Total nonperforming loans $ 50,602 $ 40,278 $ 17,268
"As the Puget Sound housing market remains weak and continues to present challenges, we continue to build our allowance for loan losses, with a provision expense of $13.9 million during the first quarter compared to net charge-offs of $5.3 million," said Disotell. Charge-offs during first quarter were comprised of $3.5 million in impairment of the value of real estate collateral on construction and acquisition and development loans; a $1.3 million write-down on property taken into REO; and a $420,000 charge-off on the liquidation of a business loan. Net charge-offs were $506,000 in the previous quarter and $1.5 million in the first quarter a year ago. "We are actively managing our loan portfolio, working with our customers to navigate through this challenging economy," added Disotell. During the first quarter, $7.7 million was transferred to REO (net of charge-offs) resulting in total REO of $9.1 million at March 31, 2009. REO was $1.4 million at December 31, 2008.
Nonperforming assets were 3.60% of total assets at March 31, 2009, compared to 2.55% at the end of the preceding quarter, and 1.16% a year ago. The total allowance for loan losses, which includes an $88,000 allowance for off-balance sheet loan commitments, was $25.1 million at quarter-end, equal to 2.01% of total loans compared to 1.31% at December 31, 2008, and 1.10% as of March 31, 2008.
Loans delinquent 31-90 days totaled $4.1 million, or 0.33% of total loans at March 31, 2009, compared to $9.0 million, or 0.73% of total loans at December 31, 2008 and $2.9 million, or 0.25% of total loans at March 31, 2008. The bank had one loan that was 90 days or more past due and still accruing totaling $1.9 million at March 31, 2009.
Deposit Growth
"We continued to successfully grow our total checking account balances, which were up $86.1 million, or 46% from the prior quarter and up $123.9 million, or 83% compared to a year ago," said Nelson. "This increase in core low-cost deposits keeps our funding costs down and improves our net interest margin. It also demonstrates the effectiveness of our strong sales culture and continued success of our High Performance Checking program." Personal checking account balances grew by 100% or $64.7 million over the last twelve months and business checking balances grew 70% or $59.2 million during the same time period. The growth in business checking balances was the combination of higher business escrow account balances, and the movement of $40.0 million of public funds previously in money market accounts and CDs into insured checking accounts.
The following table shows deposits in each category: (3/31/09 compared to 12/31/08 and 3/31/08)
DEPOSITS ($ in 000's) March 31, December 31, March 31, One Year
2009 2008 2008 Change
Personal checking
accounts $ 129,549 $ 102,123 $ 64,827 100%
Business checking
accounts 143,430 84,720 84,247 70%
---------- ---------- ----------
Total checking accounts 272,979 186,843 149,074 83%
Savings and MMDA 135,917 204,035 358,646 -62%
CDs 606,467 615,904 443,755 37%
---------- ---------- ---------- ----------
Total deposits $1,015,363 $1,006,782 $ 951,475 7%
Total assets grew $22.0 million in the first quarter from the year end and $156 million year over year to $1.66 billion as of March 31, 2009, which is a 10% increase from March 31, 2008. The investment portfolio increased by $28.0 million during the quarter to $285 million. On a year over year basis, the growth in assets resulted from the $98.0 million loan growth, the $21.0 million in investment growth and an increase of $33.0 million in interest bearing deposits.
Capital Management
Cascade remains well capitalized for regulatory purposes with a Tier 1 Capital Ratio of 9.66% and Risk Based Capital Ratio of 13.02% as of March 31, 2009. Book value per common share was $9.86 at quarter-end, compared to $10.27 a year ago and tangible book value was $7.80 per common share at quarter-end, compared to $8.18 a year ago.
In March 2009, Cascade announced a reduction in its first quarter cash dividend to $0.01 per common share. "The decision to conserve capital through a reduction in the dividend will further strengthen our ability to grow profitably and weather this uncertain economic environment," said Nelson.
On November 24, 2008, Cascade completed its $39.0 million capital raise as a participant in the U.S. Treasury Department's Capital Purchase Program. Under the terms of the transaction the company issued 38,970 shares of Series A Fixed-Rate Cumulative Perpetual Preferred Stock, and a warrant to purchase 863,442 shares of the company's common stock at an exercise price of $6.77 per share. The preferred stock carries a 5% coupon for five years, and 9% thereafter.
Operating Results
First quarter net interest income increased 6% to $11.1 million, compared to $10.5 million for the first quarter of 2008. Total other income increased 47% to $3.6 million for the quarter, compared to $2.5 million in the first quarter a year ago, as FAS 159 fair value gains increased 487% from the first quarter a year ago. This fair value gain reflects the mark to market as of March 31, 2009 of the Company's 11% Trust Preferred Securities obligation.
Total other expense was $8.6 million in the first quarter of the year compared to $6.9 million in the first quarter a year ago. The main increases in expense were the $368,000 assessment from the Washington Public Deposit Protection Commission concerning the Bank of Clark County, a $364,000 increase in FDIC premiums and the $858,000 OTTI charge taken during the first quarter of 2009 to position agency preferred securities for potential sale. Compensation and personnel expenses, which included the cost of the new Burlington branch which opened in May 2008, were up $100,000 for the quarter. Salary and bonus expense were down $55,000.
The efficiency ratio excluding the OTTI charge improved to 52.4% in the first quarter of 2009 compared to 55.3% in the previous quarter and 53.6% in the first quarter a year ago.
Net Interest Margin & Interest Rate Risk
Cascade's net interest margin improved to 3.03% for the first quarter of 2009 compared to 3.01% in the immediate prior quarter and 3.02% for the first quarter a year ago. "We made steady progress on reducing our branch cost of deposits and implementing floors on our variable rate loans, which helped our net interest margin during the first quarter," said Johnson. "Our yield on earning assets dropped 24 basis points compared to the previous quarter, and the cost of interest-bearing liabilities decreased by 31 basis points."
The following table depicts Cascade's yield on assets, its cost of funds and the resulting spread and margin:
1Q09 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 2Q07 1Q07
-----------------------------------------------------
Asset yield 5.83% 6.07% 6.67% 6.31% 6.62% 7.20% 7.29% 7.30% 7.17%
Liability cost 3.02% 3.33% 3.44% 3.51% 4.03% 4.32% 4.42% 4.39% 4.38%
Spread 2.81% 2.74% 3.23% 2.80% 2.59% 2.88% 2.87% 2.91% 2.79%
Margin 3.03% 3.01% 3.52% 3.17% 3.02% 3.38% 3.37% 3.37% 3.26%
Conference Call
Cascade's management team will host a conference call on Wednesday, April 22, 2009, at 11:00 a.m. PDT (2:00 p.m. EDT). Interested investors may listen to the call live or via replay at www.cascadebank.com under shareholder information. Investment professionals are invited to dial (800) 218-8862 to participate in the live call. A telephone replay of the call will be available for a month at (303) 590-3000, using passcode 11128046#.
Annual Meeting
Cascade will hold its Annual Meeting of Shareholders at the Everett Golf and Country Club, 1500 52nd Street SE, Everett, Washington, at 6:30 p.m. on Tuesday, April 28, 2009.
About Cascade Financial
Established in 1916, Cascade Bank, the only operating subsidiary of Cascade Financial Corporation, is a state chartered commercial bank headquartered in Everett, Washington. Cascade Bank has proudly served the Puget Sound region for over 90 years and operates 21 full service branches in Everett, Lynnwood, Marysville, Mukilteo, Shoreline, Smokey Point, Issaquah, Clearview, Woodinville, Lake Stevens, Bellevue, Snohomish, North Bend and Burlington, with a new branch in Edmonds slated to open in May 2009.
In April 2009, Cascade was ranked #5 on the Puget Sound Business Journal's list of largest bank companies headquartered in the Puget Sound area. In September 2008, President and CEO Carol K. Nelson was named to U.S. Banker magazine's list of "25 Women to Watch" in its annual ranking of the 25 Most Powerful Women in Banking and Finance. In June 2008, Cascade was ranked #44 on the Seattle Times' Northwest 100, a list of public companies.
Non-GAAP Financial Measures
This news release contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (GAAP). These measures include return on tangible equity and tangible book value per share, efficiency ratio and earnings per share before OTTI. These measures should not be construed as a substitute for GAAP measures; they should be read and used in conjunction with Cascade's GAAP financial information. A reconciliation of the included non-GAAP financial measures to GAAP measures is included elsewhere in this release.
Forward-Looking Statements
Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Reform Act. CASB's actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "intend," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," and "could." These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors' pricing policies, of changes in laws and regulations on competition and of demographic changes on target market populations' savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; the adoption by CASB of an FFIEC policy that provides guidance on the reporting of delinquent consumer loans and the timing of associated credit charge-offs for financial institution subsidiaries; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary and fiscal policies and regulations, which include those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and state regulators, whose policies and regulations could affect CASB's results. These statements are representative only on the date hereof, and CASB undertakes no obligation to update any forward-looking statements made.
BALANCE SHEET
(Dollars in
thousands
except
per share Three One
amounts) March 31, December 31, Month March 31, Year
2009 2008 Change 2008 Change
---------- ---------- -------- ---------- -------
(Unaudited)
ASSETS
Cash and due
from banks $ 10,267 $ 11,859 -13% $ 13,235 -22%
Interest-bearing
deposits/Fed
funds sold 42,166 41,607 1% 9,256 356%
Securities
available-
for-sale 196,391 123,678 59% 117,509 67%
Securities
held-to-
maturity 76,195 120,594 -37% 134,574 -43%
Federal Home
Loan Bank
(FHLB) stock 11,920 11,920 0% 11,920 0%
---------- ---------- ----------
Total securities 284,506 256,192 11% 264,003 8%
---------- ---------- ----------
Loans
Business 477,220 485,060 -2% 469,940 2%
R/E
construction 342,796 406,505 -16% 411,189 -17%
Commercial R/E 176,356 122,951 43% 115,087 53%
Multifamily 96,758 86,864 11% 26,964 259%
Home equity/
consumer 30,567 30,772 -1% 28,142 9%
Residential 127,176 126,089 1% 101,768 25%
---------- ---------- ----------
Total loans 1,250,873 1,258,241 -1% 1,153,090 8%
Deferred
loan fees (2,774) (3,069) -10% (3,722) -25%
Allowance
for loan
losses (25,020) (16,439) 52% (12,544) 99%
---------- ---------- ----------
Loans, net 1,223,079 1,238,733 -1% 1,136,824 8%
---------- ---------- ----------
REO and other
repossessed
assets 9,082 1,446 528% -- NM
Premises and
equipment 15,413 15,463 0% 15,222 1%
Bank owned
life insurance 23,860 23,638 1% 22,890 4%
Deferred tax
asset 11,984 9,828 22% 1,894 533%
Other assets 13,938 13,475 3% 14,624 -5%
Goodwill 24,585 24,585 0% 24,585 0%
Core deposit
intangible, net 458 493 -7% 599 -24%
---------- ---------- ----------
Total assets $1,659,338 $1,637,319 1% $1,503,132 10%
========== ========== ==========
LIABILITIES
AND EQUITY
Liabilities:
Deposits
Personal
checking
accounts $ 129,549 $ 102,123 27% $ 64,827 100%
Business
checking
accounts 143,430 84,720 69% 84,247 70%
---------- ---------- ----------
Total
checking
accounts 272,979 186,843 46% 149,074 83%
Savings and
money market
accounts 135,917 204,035 -33% 358,646 -62%
Certificates
of deposit 606,467 615,904 -2% 443,755 37%
---------- ---------- ----------
Total deposits 1,015,363 1,006,782 1% 951,475 7%
---------- ---------- ----------
FHLB advances 249,000 249,000 0% 249,000 0%
Federal Reserve
borrowings 60,000 40,000 50% 20,000 200%
Securities sold
under agreement
to repurchase 146,495 146,390 0% 120,633 21%
Jr. Sub. Deb
(Trust Preferred
Securities) 15,465 15,465 0% 15,465 0%
Jr. Sub. Deb
(Trust Preferred
Securities),
at fair value 8,720 10,510 -17% 11,117 -22%
Other liabilities 8,129 9,050 -10% 11,732 -31%
---------- ---------- ----------
Total
liabilities 1,503,172 1,477,197 2% 1,379,422 9%
---------- ---------- ----------
Equity:
Senior
preferred
stock 36,721 36,616 0% -- NM
Common
stockholders'
equity:
Common stock
and paid in
capital 41,027 40,901 0% 40,591 1%
Retained
earnings 75,423 80,876 -7% 83,822 -10%
Warrants issued
to U.S. Treasury 2,389 2,389 0% -- NM
Accumulated
other
comprehensive
gain (loss),
net 606 (660) -192% (703) -186%
---------- ---------- ----------
Total common
stockholders'
equity 119,445 123,506 -3% 123,710 -3%
---------- ---------- ----------
Total equity 156,166 160,122 -2% 123,710 26%
---------- ---------- ----------
Total
liabilities
and equity $1,659,338 $1,637,319 1% $1,503,132 10%
========== ========== ==========
INCOME STATEMENT
(Dollars in
thousands Quarter Quarter Quarter
except per Ended Ended Three Ended One
share amounts) March 31, December 31, Month March 31, Year
2009 2008 Change 2008 Change
---------- ---------- -------- ---------- -------
(Unaudited)
Interest income $ 21,410 $ 22,419 -5% $ 23,014 -7%
Interest expense 10,291 11,291 -9% 12,539 -18%
---------- ---------- ----------
Net interest
income 11,119 11,128 0% 10,475 6%
Provision for
loan losses 13,875 2,400 478% 2,390 481%
---------- ---------- ----------
Net interest
income after
provision
for loan
losses (2,756) 8,728 -132% 8,085 -134%
---------- ---------- ----------
Other income
Checking fees 1,112 1,208 -8% 1,036 7%
Service fees 249 266 -6% 231 8%
Bank owned
life
insurance 239 266 -10% 260 -8%
Gain on sale
of securities 118 2 5800% 464 -75%
Gain on sale
of loans 39 9 333% 37 5%
Fair value
gains 1,790 25 7060% 305 487%
Gain/(loss)
on sale of
real estate (54) -- NM -- NM
Other 117 114 3% 121 -3%
---------- ---------- ----------
Total other
income 3,610 1,890 91% 2,454 47%
---------- ---------- ----------
Total income 854 10,618 -92% 10,539 -92%
---------- ---------- ----------
Compensation
expense 3,605 3,505 3% 3,641 -1%
Other operating
expenses 3,351 3,339 0% 3,268 3%
FDIC insurance
and WPDPC
assessment 759 349 117% 26 2819%
OTTI charge 858 -- NM -- NM
---------- ---------- ----------
Total other
expense 8,573 7,193 19% 6,935 24%
---------- ---------- ----------
Net (loss)
income before
(benefit)
provision for
income tax (7,719) 3,425 -325% 3,604 -314%
(Benefit)
provision for
income tax (2,902) 964 -401% 990 -393%
---------- ---------- ----------
Net (loss)
income $(4,817) $ 2,461 -296% $ 2,614 -284%
---------- ---------- ----------
Dividends/senior
preferred stock $ 482 $ 216 123% -- NM
Income available
for common
stock holders $(5,299) $ 2,245 -336% $ 2,614 -303%
========== ========== ==========
EARNINGS
PER SHARE
INFORMATION
Earnings per
share, basic $ (0.44) $ 0.19 -335% $ 0.22 -302%
Earnings per
share,
diluted $ (0.44) $ 0.19 -336% $ 0.21 -304%
Weighted average
number of shares
outstanding
Basic 12,100,584 12,071,032 12,035,806
Diluted 12,100,584 12,119,401 12,206,374
PERFORMANCE Quarter Quarter Quarter
MEASURES AND Ended Ended Ended
RATIOS March 31, December 31, March 31,
2009 2008 2008
---------- ---------- --------
Return on average
common equity -17.01% 7.33% 8.42%
Return on average
tangible common
equity -21.30% 9.22% 10.50%
Return on average
assets -1.20% 0.62% 0.71%
Efficiency ratio* 52.38% 55.25% 53.64%
Net interest
margin 3.03% 3.01% 3.02%
*Excludes OTTI charge
(Dollars in thousands except per share amounts)(Unaudited)
Quarter Ended
Mar. 31, Dec. 31, Mar. 31,
AVERAGE BALANCES 2009 2008 2008
---------- ---------- ----------
Average assets $1,634,314 $1,580,279 $1,472,087
Average earning assets 1,490,698 1,469,312 1,397,180
Average total loans 1,259,331 1,226,143 1,130,012
Average deposits 973,214 979,591 927,501
Average equity (including sr
preferred stock) 161,253 137,164 124,771
Average common equity (excluding
sr. preferred stock) 124,574 122,513 124,771
Average tangible common equity
(excluding sr. preferred stock) 99,511 97,416 99,566
Mar. 31, Dec. 31, Mar. 31,
ASSET QUALITY 2009 2008 2008
---------- ---------- ----------
Nonperforming loans (NPLs) $ 50,602 $ 40,278 $ 17,268
Nonperforming loans/total loans 4.05% 3.20% 1.50%
Real estate/repossessed assets
owned $ 9,082 $ 1,446 $ 154
Nonperforming assets $ 59,684 $ 41,724 $ 17,422
Nonperforming assets/total assets 3.60% 2.55% 1.16%
Net loan charge-offs in the quarter$ 5,299 $ 506 $ 1,506
Net charge-offs in the quarter/
total loans 0.42% 0.04% 0.13%
Allowance for loan losses $ 25,020 $ 16,439 $ 12,544
Plus: Allowance for off-balance
sheet commitments 88 93 135
---------- ---------- ----------
Total allowance for loan losses $ 25,108 $ 16,532 $ 12,679
Total allowance for loan losses/
total loans 2.01% 1.31% 1.10%
Total allowance for loan losses/
nonperforming loans 50% 41% 73%
Mar. 31, Dec. 31, Mar. 31,
EQUITY ANALYSIS 2009 2008 2008
---------- ---------- ----------
Total equity $ 156,166 $ 160,122 $ 123,710
Less: senior preferred stock 36,721 36,616 --
---------- ---------- ----------
Total common equity 119,445 123,506 123,710
Less: goodwill and intangibles 25,043 25,078 25,184
---------- ---------- ----------
Tangible common equity $ 94,402 $ 98,428 $ 98,526
Common stock outstanding 12,110,434 12,071,032 12,047,927
Book value per common share $ 9.86 $ 10.23 $ 10.27
Tangible book value per common
share $ 7.80 $ 8.15 $ 8.18
Capital/asset ratio (inc. jr. sub
deb.) 10.92% 11.31% 10.00%
Capital/asset ratio (Tier 1, inc
jr. sub. deb.) 9.66% 10.30% 8.51%
Tangible cap/asset ratio (ex. jr
sub. deb. and pref. stock) 5.78% 6.11% 6.67%
Risk based capital/risk weighted
asset ratio 13.02% 13.26% 10.45%
Quarter Ended
Mar. 31, Dec. 31, Mar. 31,
INTEREST SPREAD ANALYSIS 2009 2008 2008
---------- ---------- ----------
Yield on total loans 5.87% 6.16% 6.87%
Yield on investments 5.12% 5.35% 5.65%
Yield on earning assets 5.83% 6.07% 6.62%
Cost of deposits 2.07% 2.53% 3.45%
Cost of FHLB advances 4.33% 4.18% 4.28%
Cost of Federal Reserve borrowings 0.28% 1.08% 3.62%
Cost of securities sold under
agreement to repurchase 5.74% 5.01% 4.22%
Cost of jr. sub. debentures 8.28% 8.12% 7.94%
Cost of interest-bearing
liabilities 3.02% 3.33% 4.03%
Net interest spread 2.81% 2.74% 2.59%
Net interest margin 3.03% 3.01% 3.02%