Attached files
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| 8-K - FORM 8-K FILING DOCUMENT - MONROE BANCORP | document.htm |
EXHIBIT 99.1
Monroe Bancorp Reports Earnings of $1,975,000, or $0.317 Per Fully Diluted Share for 2009
BLOOMINGTON, Ind., Jan. 28, 2010 (GLOBE NEWSWIRE) -- Monroe Bancorp (the “Company”) (Nasdaq:MROE), the independent Bloomington-based holding company for Monroe Bank (the “Bank”), reported net income of $1,975,000 or $0.317 per diluted common share for the year ended December 31, 2009, compared to $3,979,000 or $0.639 per diluted common share for the year ended December 31, 2008. This represents a 50.4 percent decrease in both net income and in diluted earnings per share.
As discussed in more detail below, net income was significantly impacted by asset quality related issues, most notably a $2,970,000, or 33.4 percent increase in the provision for loan losses from $8,880,000 in 2008 to $11,850,000 in 2009.
Return on average shareholders’ equity for 2009 was 3.49 percent, compared to 7.11 percent for the year ended December 31, 2008. Return on average assets for the year ended December 31, 2009 was 0.24 percent, compared to 0.50 percent for the year ended December 31, 2008.
“We are very disappointed by the degree to which problem loans, and our need to add to the provision for credit losses, affected our 2009 results. While we see some signs of the strengthening of real estate values in the markets we serve, the overall market remains depressed and we concluded that the elevated provision was warranted. You can be confident that we are working hard to address asset quality issues that have been a drain on our earnings,” said Mark D. Bradford, President and Chief Executive Officer of Monroe Bancorp and Monroe Bank.
Net loss for the fourth quarter of 2009 was $617,000 or $0.099 per diluted common share, compared to a net loss of $209,000 or $0.034 per diluted common share for the fourth quarter of 2008 and net income of $710,000 or $0.114 per diluted common share for the third quarter of 2009. The provision for loan losses was $4,850,000 for the fourth quarter of 2009 compared to $4,150,000 for the same period of 2008.
Financial Performance
Net interest income before the provision for loan losses increased 1.0 percent to $23,837,000 for the year ended December 31, 2009 compared to $23,601,000 for 2008. The tax equivalent net interest margin declined during 2009, decreasing from 3.30 percent for the year ended December 31, 2008, to 3.15 percent for 2009. See the table titled “Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis” for a reconcilement of GAAP net interest margin to Non-GAAP net interest margin on a tax equivalent basis.
A significant factor contributing to the decline in the Company’s net interest margin was the year over year increase in non-accruing loans and other real estate owned (OREO). The average combined balance of non-accruing loans and OREO was $18,413,000 during 2009 compared to $12,229,000 for 2008. Also contributing to the decline in net interest margin was the Company’s decision to maintain a higher level of liquidity during 2009. The Company maintained an average balance of $27,388,000 in Fed Funds sold (funds invested overnight with correspondent banks) during 2009 compared to $8,754,000 during 2008. The average yield on Fed Funds sold for the year was 0.14 percent. The Company maintained an elevated Fed Funds position in 2009 due to uncertainties in the banking industry but anticipates a positive impact when the position is lowered as financial market conditions stabilize.
Noninterest income totaled $11,983,000 for the year ended December 31, 2009, compared to $10,033,000 in 2008. Excluding the effect of the Company’s deferred compensation plan, noninterest income totaled $11,666,000 for 2009 compared to $10,832,000 during 2008. The $834,000 or 7.7 percent increase was driven by a $1,195,000 increase in gains from the sale of available for sale securities from the Company’s investment portfolio. See the table titled “Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan” for a reconcilement of GAAP noninterest income and expense to noninterest income and expense without the financial impact of the deferred compensation plan.
Excluding gains from the sale of securities, the Company’s three largest sources of fee income were (1) deposit related fees ($3,477,000 in 2009, an 8.4 percent decrease from 2008 due to reduced customer overdraft activity), (2) trust fees ($2,313,000 in 2009, a 3.1 percent decrease from 2008 caused by a market driven decrease in asset values under management) and (3) income from the sale of residential mortgages ($1,364,000 in 2009, a 94.0 percent increase over 2008 due to increased mortgage origination volume).
“Having a number of sources of significant fee income is an important part of our business strategy and is particularly important during years like 2009 when there is stress on the Company’s net interest income activities,” said Mr. Bradford.
Total noninterest expense increased 5.8 percent to $21,930,000 for the year ended December 31, 2009, as compared to $20,732,000 for 2008. Noninterest expense, excluding the effect of the Company’s deferred compensation plan, was $21,553,000 for 2009, compared to $21,425,000 for 2008. The $128,000, or 0.6 percent increase is the result of increases in FDIC assessment expenses (year over year increase of $1,004,000 or 208.7 percent). Excluding the FDIC expense increase, all other noninterest expense categories declined by a combined $876,000 or 4.2 percent. Staff reductions and reduced incentive plans contributed to a year over year decline in salaries and wages of $499,000 or 5.7 percent.
Asset Quality
Nonperforming assets and 90-day past due loans totaled $25,424,000 (3.17 percent of total assets) at December 31, 2009 compared to $21,622,000 (2.62 percent of total assets) at September 30, 2009 and $18,780,000 (2.29 percent of total assets) at December 31, 2008.
Net charge-offs for the fourth quarter of 2009 totaled $2,775,000 or 1.89 percent of total loans compared to $1,979,000 (1.30 percent of total loans) for the third quarter of 2009 and $2,375,000 (1.50 percent of total loans) for the fourth quarter of 2008.
The Bank employs an internal system called the “Watch List” to bring attention to credits with varying degrees of concern over the prospects of complete repayment, including both principal and all interest. These concerns may be objectively based on the borrower’s financial and payment performance or on subjective concerns that Bank management has with the markets and conditions that the borrower operates within. Loans on this list include:
-
Loans with well defined weaknesses where the prospect of complete repayment of principal and interest is remote and loans placed on non-accrual where specific reserves and charge-offs are applied as needed, and
- Loans with potential weaknesses (whether borrower specific or due to market/economic considerations) that need to be resolved in order to avoid jeopardizing the complete repayment of principal and interest and the loan is subjected to additional scrutiny and assessment and internal documentation.
Loans on the Watch List tend to be more dependent on collateral if the borrower’s repayment capacity is diminished and the Bank devotes additional attention to revaluing the collateral as appropriate in assessing the probability of loss.
| 12/31/2009 | 9/30/2009 | 6/30/2009 | 03/31/2009 | 12/31/2008 | |
| Total Loans $ | 587,365,000 | 608,667,000 | 624,018,000 | 630,842,000 | 633,091,000 |
| Total Watch List Loans $ | 76,208,000 | 79,571,000 | 76,720,000 | 79,073,000 | 59,172,000 |
| Number of Watch List Customers | 69 | 73 | 69 | 67 | 52 |
| Total Watch List $ > 30 Days Past Due | 32,728,000 | 21,823,000 | 17,368,000 | 22,370,000 | 14,751,000 |
| Total Watch List $ Customers Secured by Real Estate | 71,450,000 | 73,704,000 | 70,697,000 | 72,005,000 | 55,507,000 |
| Total Watch List $ Secured by Non R/E | 3,103,000 | 4,196,000 | 5,855,000 | 6,878,000 | 3,268,000 |
| Total Watch List $ Unsecured | 1,655,000 | 1,671,000 | 168,000 | 190,000 | 397,000 |
| Total Non Performing Loans $ | 20,603,000 | 16,993,000 | 18,576,000 | 13,696,000 | 14,329,000 |
As of December 31, 2009, 57.1 percent of the Watch List exposure was less than thirty days past due, compared to 72.6 percent as of September 30, 2009 and 75.1 percent as of December 31, 2008. Of the $76,208,000 of loans on the watch list on December 31, 2009, $55,303,000 (72.6 percent) were originated out of the Central Indiana (greater Indianapolis) offices.
The chart that follows provides details of watch list loans by collateral type.
|
Total Bank Owned Balance |
Watch List |
% on Watch List |
Non Accrual |
Total $ > 30 Days Late |
|
| Total Loans at 12/31/09 | 587,365,000 | 76,208,000 | 13.0% | 20,603,000 | 38,843,000 |
| Participations Sold and Loans in Process | 5,572,000 | NA | NA | NA | NA |
| Loans Analyzed Below: | 581,793,000 | 76,208,000 | 13.1% | 20,603,000 | 38,843,000 |
| Secured by Real Estate | |||||
| Construction & Development | |||||
| Spec 1-4 Residential Construction | 13,435,000 | 8,414,000 | 62.6% | 2,214,000 | 3,234,000 |
| Pre Sold 1-4 Residential Construction | 1,402,000 | 861,000 | 61.4% | -- | 738,000 |
| Land Development Residential | 32,312,000 | 25,679,000 | 79.5% | 5,453,000 | 5,453,000 |
| Total 1-4 Residential Construction and Development: | 47,149,000 | 34,954,000 | 74.1% | 7,667,000 | 9,425,000 |
| Other CRE Owner Occupied Construction | 1,471,000 | -- | -- | -- | -- |
| Other CRE Non-Owner Occupied Construction | 10,790,000 | -- | -- | -- | -- |
| Land Development Commercial | 1,450,000 | 328,000 | 22.6% | 328,000 | 328,000 |
| Total Commercial Construction and Development: | 13,711,000 | 328,000 | 2.4% | 328,000 | 328,000 |
| Total Construction and Development: | 60,860,000 | 35,282,000 | 58.0% | 7,995,000 | 9,753,000 |
| 1-4 Family | |||||
| 1-4 Family Owner Occupied | 77,596,000 | 1,744,000 | 2.2% | 132,000 | 1,618,000 |
| 1-4 Family Non-Owner Occupied (Rental & Other) | 50,471,000 | 3,711,000 | 7.4% | 602,000 | 3,613,000 |
| Total 1-4 Family: | 128,067,000 | 5,455,000 | 4.3% | 734,000 | 5,231,000 |
| Multi Family - Other than Construction | 87,288,000 | 4,891,000 | 5.6% | 2,902,000 | 4,696,000 |
| Other CRE Owner Occupied - Other Than Construction | 95,591,000 | 11,265,000 | 11.8% | 607,000 | 2,349,000 |
| Other CRE Non-Owner Occupied - Other Than Construction | 111,821,000 | 11,726,000 | 10.5% | 6,934,000 | 11,985,000 |
| Other CRE Non-Development Land - Other Than Construction | 10,894,000 | 2,831,000 | 26.0% | 1,127,000 | 1,208,000 |
| Total Other CRE Loans - Other Than Construction: | 218,306,000 | 25,822,000 | 11.8% | 8,668,000 | 15,542,000 |
| Total Secured by Real Estate: | 494,521,000 | 71,450,000 | 14.4% | 20,299,000 | 35,222,000 |
| Other Secured Loans | |||||
| Business Assets | 51,627,000 | 3,076,000 | 6.0% | 279,000 | 2,798,000 |
| Consumer Products | 10,416,000 | 27,000 | 0.3% | 25,000 | 198,000 |
| Financial Assets | 10,702,000 | -- | 0.0% | -- | 237,000 |
| Sub Total: Other Secured Loans: | 72,745,000 | 3,103,000 | 4.3% | 304,000 | 3,233,000 |
| Unsecured Loans | |||||
| Unsecured Loans | 14,527,000 | 1,655,000 | 11.4% | -- | 388,000 |
“While I am pleased that the watch list has stabilized over the past four quarters, I remain disappointed with the Company’s overall level of problem assets and the impact that they are having on our income. Problem asset resolution remains our number one priority,” said Mr. Bradford.
Financial Condition
Total assets at December 31, 2009 were $802,451,000, a decrease of 2.1 percent from $819,799,000 at December 31, 2008. The decline in total assets was largely driven by a $45,726,000 decline in total loans, which was partially offset by increases in Fed Funds sold, cash and interest-earning deposits. Total loans, including loans held for sale, totaled $587,365,000 on December 31, 2009, a 7.2 percent decrease from total loans on December 31, 2008, which were $633,091,000.
Total deposits at December 31, 2009 were $634,254,000 compared to $665,179,000 at December 31, 2008, a decrease of $30,925,000 or 4.6 percent.
Other Company News
Additional steps were taken to increase the Company’s capital during 2009. On July 17, 2009, Monroe Bancorp raised $13 million of Tier 2 capital through the issuance of subordinated debentures. The net proceeds from the offering provided additional capital to Monroe Bank which better positions the Company to continue as a well capitalized institution during the current economic downturn and pursue lending and growth opportunities as the economy improves.
The Company will hold its Annual Meeting of Shareholders at 10 a.m., Thursday, April 29, 2010 at the Bloomington/Monroe County Convention Center in downtown Bloomington, Indiana.
About Monroe Bancorp
Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with Monroe Bank as its wholly owned subsidiary. Monroe Bank was established in Bloomington in 1892, and offers a full range of financial, trust and investment services through its locations in Central and South Central Indiana. The Company's common stock is traded on the NASDAQ® Global Stock Market under the symbol MROE.
Additional financial information is included with this release. For further information, contact: Mark D. Bradford, President and Chief Executive Officer, (812) 331-3455.
The Monroe Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4316
Use of Non-GAAP Financial Information
To supplement the Company's consolidated condensed financial statements presented on a GAAP basis, the Company has used the following non-GAAP measures of reporting:
(1) The net interest margin is reported on a tax equivalent basis. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate of 34 percent. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. A table entitled “Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis,” included at the end of the attached financial summary, reconciles the non-GAAP financial measure “net interest income (tax-equivalent)” with net interest income calculated and presented in accordance with GAAP. The table also reconciles the non-GAAP financial measure “net interest margin (tax-equivalent)” with net interest margin calculated and presented in accordance with GAAP.
(2) Noninterest income and noninterest expense are reported without the effect of income and expenses related to securities held in a rabbi trust for the deferred compensation plan. A table entitled “Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan”, included at the end of the attached financial summary, details all the items included in noninterest income and expense associated with the deferred compensation plan / rabbi trust and reconciles the GAAP numbers to the non-GAAP numbers. The activity in the rabbi trust has no effect on the Company’s net income, therefore, management believes a more accurate comparison of current and prior year noninterest income and noninterest expense can be made if items related to the rabbi trust are removed.
The Company believes these adjustments are appropriate to enhance an overall understanding of the Company's past financial performance and also its prospects for the future. These adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the underlying operational results and trends and the Company's marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with generally accepted accounting principles in the United States.
Forward-Looking Statements
This release contains forward-looking statements about the Company which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. This release contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may" or words of similar meaning. These forward-looking statements, by their nature, are subject to risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) changes in competitive pressures among depository institutions; (2) changes in the interest rate environment; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) changes in general economic conditions, either national or in the markets in which the Company does business; (5) legislative or regulatory changes adversely affecting the business of the Company; (6) changes in real estate values or the real estate markets; and (7) the Company’s business development efforts in new markets in and around Hendricks and Hamilton Counties. Further information on other factors which could affect the financial results of the Company is included in the Company's filings with the Securities and Exchange Commission.
| Monroe Bancorp (MROE) | ||||||||
| Financial Summary | ||||||||
| (dollar amounts in thousands except per share data) | ||||||||
| Quarters Ended | Years Ended | |||||||
| Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | Dec 2009 | Dec 2008 | ||
| BALANCE SHEET * | ||||||||
| Cash and Interest-Earning Deposits | $35,977 | $22,447 | $25,030 | $28,038 | $15,058 | $35,977 | $15,058 | |
| Federal Funds Sold | 14,154 | 44,089 | 30,238 | 16,150 | 8,663 | 14,154 | 8,663 | |
| Securities | 121,250 | 108,301 | 102,291 | 108,087 | 121,530 | 121,250 | 121,530 | |
| Total Loans | 587,365 | 608,667 | 624,018 | 630,842 | 633,091 | 587,365 | 633,091 | |
| Loans Held for Sale | 3,226 | 3,725 | 8,640 | 4,659 | 3,389 | 3,226 | 3,389 | |
| Commercial & Industrial | 81,102 | 90,150 | 92,778 | 103,306 | 104,779 | 81,102 | 104,779 | |
| Real Estate: | ||||||||
| Commercial & Residential | 393,632 | 391,362 | 393,308 | 392,414 | 398,896 | 393,632 | 398,896 | |
| Construction & Vacant Land | 62,351 | 76,620 | 82,212 | 84,697 | 80,917 | 62,351 | 80,917 | |
| Home Equity | 31,332 | 30,908 | 31,205 | 29,781 | 28,976 | 31,332 | 28,976 | |
| Installment Loans | 15,722 | 15,902 | 15,875 | 15,985 | 16,134 | 15,722 | 16,134 | |
| Reserve for Loan Losses | 15,256 | 13,181 | 12,960 | 12,336 | 11,172 | 15,256 | 11,172 | |
| Bank Premises and Equipment | 19,879 | 20,127 | 20,312 | 20,605 | 20,750 | 19,879 | 20,750 | |
| Federal Home Loan Bank Stock | 2,353 | 2,353 | 2,353 | 2,312 | 2,312 | 2,353 | 2,312 | |
| Interest Receivable and Other Assets | 36,729 | 31,078 | 31,396 | 30,004 | 29,567 | 36,729 | 29,567 | |
| Total Assets | $802,451 | $823,881 | $822,678 | $823,702 | $819,799 | $802,451 | $819,799 | |
| Total Deposits | $634,254 | $654,807 | $672,992 | $676,557 | $665,179 | $634,254 | $665,179 | |
| Noninterest Checking | 90,033 | 88,724 | 83,404 | 78,676 | 84,317 | 90,033 | 84,317 | |
| Interest Bearing Checking & NOW | 210,542 | 209,937 | 214,998 | 118,421 | 107,124 | 210,542 | 107,124 | |
| Regular Savings | 18,451 | 18,381 | 18,404 | 17,990 | 16,619 | 18,451 | 16,619 | |
| Money Market Savings | 36,035 | 40,249 | 40,110 | 122,080 | 108,246 | 36,035 | 108,246 | |
| CDs & CDARs Less than $100,000 | 137,774 | 141,912 | 142,114 | 149,380 | 155,127 | 137,774 | 155,127 | |
| CDARs Greater than $100,000 & Brokered CDs | 49,500 | 49,896 | 65,354 | 70,612 | 67,949 | 49,500 | 67,949 | |
| CDs Greater than $100,000 | 91,861 | 105,143 | 108,246 | 119,298 | 125,741 | 91,861 | 125,741 | |
| Other Time | 58 | 565 | 362 | 101 | 56 | 58 | 56 | |
| Total Borrowings | 106,056 | 103,388 | 86,403 | 85,070 | 93,203 | 106,056 | 93,203 | |
| Federal Funds Purchased | -- | -- | -- | -- | -- | -- | -- | |
| Securities Sold Under Repurchase Agreement | 61,929 | 61,810 | 58,737 | 58,686 | 59,404 | 61,929 | 59,404 | |
| FHLB Advances | 17,371 | 17,430 | 17,498 | 17,511 | 25,523 | 17,371 | 25,523 | |
|
Loans Sold Under Repurchase Agreement & Other Debt |
5,508 | 2,900 | 1,920 | 625 | 28 | 5,508 | 28 | |
| Subordinated Debentures | 13,000 | 13,000 | -- | -- | -- | 13,000 | -- | |
| Subordinated Debentures - Trust Preferred | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | |
| Interest Payable and Other Liabilities | 5,939 | 8,465 | 6,828 | 6,098 | 5,496 | 5,939 | 5,496 | |
| Total Liabilities | 746,249 | 766,660 | 766,223 | 767,725 | 763,878 | 746,249 | 763,878 | |
| Shareholders' Equity | 56,202 | 57,221 | 56,455 | 55,977 | 55,921 | 56,202 | 55,921 | |
| Total Liabilities and Shareholders' Equity | $802,451 | $823,881 | $822,678 | $823,702 | $819,799 | 802,451 | $819,799 | |
| Book Value Per Share | $9.03 | $9.19 | $9.07 | $9.00 | $8.99 | $9.03 | $8.99 | |
| End of Period Shares Issued and Outstanding | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 | |
| Less:Unearned ESOP Shares | 2,102 | 3,477 | 4,852 | 6,226 | 7,601 | 2,102 | 7,601 | |
| End of Period Shares Used to Calculate Book Value | 6,225,448 | 6,224,073 | 6,222,699 | 6,221,324 | 6,219,949 | 6,225,448 | 6,219,949 | |
| * period end numbers | ||||||||
| Monroe Bancorp (MROE) | ||||||||
| Financial Summary | ||||||||
| (dollar amounts in thousands except per share data) | ||||||||
| Quarters Ended | Years Ended | |||||||
|
INCOME STATEMENT |
Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | Dec 2009 | Dec 2008 | |
| Interest Income | $8,711 | $9,175 | $9,177 | $9,378 | $10,141 | $36,441 | $42,462 | |
| Interest Expense | 2,945 | 3,091 | 3,132 | 3,436 | 4,152 | 12,604 | 18,861 | |
| Net Interest Income | 5,766 | 6,084 | 6,045 | 5,942 | 5,989 | 23,837 | 23,601 | |
| Loan Loss Provision | 4,850 | 2,200 | 2,200 | 2,600 | 4,150 | 11,850 | 8,880 | |
| Total Noninterest Income | 3,122 | 2,413 | 3,186 | 3,262 | 2,096 | 11,983 | 10,033 | |
| Service Charges on Deposit Accounts | 874 | 905 | 887 | 811 | 946 | 3,477 | 3,796 | |
| Trust Fees | 620 | 637 | 529 | 527 | 553 | 2,313 | 2,387 | |
| Commission Income | 246 | 225 | 230 | 171 | 201 | 872 | 874 | |
| Gains on Sales of Loans | 259 | 361 | 454 | 290 | 141 | 1,364 | 703 | |
| Gains on Sales of Available for Sale Securities | 490 | 264 | 364 | 1,028 | 176 | 2,146 | 951 | |
|
Gains (Losses) on Sales of Trading Securities Associated with Directors' Deferred Comp Plan |
-- | (201) | -- | -- | (1) | (201) | 13 | |
|
Unrealized Gains (Losses) on Trading Securities Associated with Directors' Deferred Comp Plan |
51 | 377 | 222 | (132) | (354) | 518 | (843) | |
| BOLI Income | 164 | 163 | 163 | 151 | 163 | 641 | 552 | |
| Net Gain (Loss) on Foreclosed Assets | (33) | (761) | (102) | (10) | (160) | (906) | (226) | |
| Other Operating Income | 451 | 443 | 439 | 426 | 431 | 1,759 | 1,826 | |
| Total Noninterest Expense | 5,155 | 5,429 | 6,123 | 5,223 | 4,901 | 21,930 | 20,732 | |
| Salaries & Wages | 2,027 | 2,075 | 2,073 | 2,069 | 2,160 | 8,244 | 8,743 | |
|
Commissions, Options & Incentive Compensation |
291 | 311 | 458 | 304 | 337 | 1,364 | 1,472 | |
| Employee Benefits | 360 | 463 | 540 | 591 | 343 | 1,954 | 2,076 | |
| Premises & Equipment | 895 | 899 | 930 | 928 | 826 | 3,652 | 3,373 | |
| Advertising | 109 | 138 | 160 | 129 | 138 | 536 | 724 | |
| Legal Fees | 83 | 115 | 111 | 126 | 158 | 435 | 566 | |
| FDIC expense | 272 | 280 | 650 | 283 | 138 | 1,485 | 481 | |
|
Appreciation (Depreciation) in Directors' Deferred Compensation Plan |
61 | 184 | 237 | (118) | (317) | 364 | (707) | |
| Other Operating Expenses | 1,057 | 964 | 964 | 911 | 1,118 | 3,896 | 4,004 | |
| Income (Loss) Before Income Tax | (1,117) | 868 | 908 | 1,381 | (966) | 2,040 | 4,022 | |
| Income Tax Expense (Benefit) | (500) | 158 | 132 | 274 | (757) | 65 | 43 | |
|
Net Income (Loss) After Tax & Before Extraordinary Items |
(617) | 710 | 776 | 1,107 | (209) | 1,975 | 3,979 | |
| Extraordinary Items | -- | -- | -- | -- | -- | -- | -- | |
| Net Income (Loss) | $(617) | $710 | $776 | $1,107 | $(209) | $1,975 | $3,979 | |
| Basic Earnings Per Share | $(0.099) | $0.114 | $0.125 | $0.178 | $(0.034) | $0.317 | $0.640 | |
| Diluted Earnings Per Share | $(0.099) | $0.114 | $0.125 | $0.178 | $(0.034) | $0.317 | $0.639 | |
| Monroe Bancorp (MROE) | ||||||||
| Financial Summary | ||||||||
| (dollar amounts in thousands except per share data) | ||||||||
| Quarters Ended | Years Ended | |||||||
|
ASSET QUALITY |
Dec 2009 |
Sep 2009 |
Jun 2009 |
Mar 2009 |
Dec 2008 |
Dec 2009 | Dec 2008 | |
| Net Charge-Offs (Recoveries) | $2,775 | $1,979 | $1,576 | $1,436 | $2,375 | $7,766 | $4,362 | |
| OREO Expenses | 113 | 795 | 140 | 47 | 121 | 1,095 | 229 | |
| Total Credit Charges | $2,888 | $2,774 | $1,716 | $1,483 | $2,496 | $8,861 | $4,591 | |
| Nonperforming Loans | $20,603 | $16,993 | $18,576 | $13,696 | $14,329 | $20,603 | $14,329 | |
| OREO | 3,768 | 3,225 | 3,979 | 3,158 | 3,257 | 3,768 | 3,257 | |
| Nonperforming Assets | 24,371 | 20,218 | 22,555 | 16,854 | 17,586 | 24,371 | 17,586 | |
|
90 Day Past Due Loans Net of Nonperforming Loans |
1,053 | 1,404 | 404 | 435 | 1,194 | 1,053 | 1,194 | |
| Nonperforming Assets + 90 Day Past Due | $25,424 | $21,622 | $22,959 | $17,289 | $18,780 | $25,424 | $18,780 | |
| RATIO ANALYSIS - CREDIT QUALITY * | ||||||||
| NCO/Loans | 1.89% | 1.30% | 1.01% | 0.91% | 1.50% | 1.32% | 0.69% | |
| Credit Charges/Loans & OREO | 1.95% | 1.81% | 1.09% | 0.94% | 1.57% | 1.50% | 0.72% | |
| Nonperforming Loans/Loans | 3.51% | 2.79% | 2.98% | 2.17% | 2.26% | 3.51% | 2.26% | |
| Nonperforming Assets/Loans & OREO | 4.12% | 3.30% | 3.59% | 2.66% | 2.76% | 4.12% | 2.76% | |
| Nonperforming Assets/Assets | 3.04% | 2.45% | 2.74% | 2.05% | 2.15% | 3.04% | 2.15% | |
| Nonperforming Assets + 90 Day PD/Assets | 3.17% | 2.62% | 2.79% | 2.10% | 2.29% | 3.17% | 2.29% | |
| Reserve/Nonperforming Loans | 74.05% | 77.57% | 69.77% | 90.07% | 77.97% | 74.05% | 77.97% | |
| Reserve/Total Loans | 2.60% | 2.17% | 2.08% | 1.96% | 1.76% | 2.60% | 1.76% | |
| Equity & Reserves/Nonperforming Assets | 293.21% | 348.21% | 307.76% | 405.32% | 381.51% | 293.21% | 381.51% | |
| OREO/Nonperforming Assets | 15.46% | 15.95% | 17.64% | 18.74% | 18.52% | 15.46% | 18.52% | |
| RATIO ANALYSIS - CAPITAL ADEQUACY * | ||||||||
| Equity/Assets | 7.00% | 6.95% | 6.86% | 6.80% | 6.82% | 7.00% | 6.82% | |
| Equity/Loans | 9.57% | 9.40% | 9.05% | 8.87% | 8.83% | 9.57% | 8.83% | |
| RATIO ANALYSIS - PROFITABILITY | ||||||||
| Return on Average Assets | -0.30% | 0.34% | 0.38% | 0.54% | -0.10% | 0.24% | 0.50% | |
| Return on Average Equity | -4.29% | 4.95% | 5.53% | 8.00% | -1.49% | 3.49% | 7.11% | |
| Net Interest Margin (Tax-Equivalent) (1) | 2.99% | 3.20% | 3.21% | 3.20% | 3.23% | 3.15% | 3.30% | |
| * Based on period end numbers | ||||||||
|
(1) Interest income on tax-exempt securities has been adjusted to a tax-equivalent basis using a marginal income tax rate of 34%.
|
||||||||
| Monroe Bancorp (MROE) | |||||||||||||||||||
| Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis | |||||||||||||||||||
| (dollar amounts in thousands except per share data) | |||||||||||||||||||
| Quarters Ended | Years Ended | ||||||||||||||||||
|
Dec 2009 |
Sep 2009 |
Jun 2009 |
Mar 2009 |
Dec 2008 |
Dec 2009 |
Dec 2008 |
|||||||||||||
| Net Interest Income | $5,766 | $6,084 | $6,045 | $5,942 | $5,989 | $23,837 | $23,601 | ||||||||||||
| Tax Equivalent Adjustment | 21 | 48 | 95 | 131 | 167 | 295 | 717 | ||||||||||||
| Net Interest Income - Tax Equivalent | $5,787 | $6,132 | $6,140 | $6,073 | $6,156 | $24,132 | $24,318 | ||||||||||||
| Average Earning Assets | $767,351 | $760,949 | $767,876 | $769,735 | $759,173 | $766,456 | $736,903 | ||||||||||||
| Net Interest Margin | 2.98% | 3.17% | 3.16% | 3.13% | 3.14% | 3.11% | 3.20% | ||||||||||||
| Net Interest Margin - Tax Equivalent | 2.99% | 3.20% | 3.21% | 3.20% | 3.23% | 3.15% | 3.30% | ||||||||||||
| Year-to-Date | |||||||||||||||||||
| Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | |||||||||||||||
| Net Interest Income | $23,837 | $18,071 | $11,987 | $5,942 | $23,601 | ||||||||||||||
| Tax Equivalent Adjustment | 295 | 274 | 227 | 131 | 717 | ||||||||||||||
| Net Interest Income - Tax Equivalent | $24,132 | $18,345 | $12,214 | $6,073 | $24,318 | ||||||||||||||
| Average Earning Assets | $766,456 | $766,154 | $768,800 | $769,735 | $736,903 | ||||||||||||||
| Net Interest Margin | 3.11% | 3.15% | 3.14% | 3.13% | 3.20% | ||||||||||||||
| Net Interest Margin - Tax Equivalent | 3.15% | 3.20% | 3.20% | 3.20% | 3.30% | ||||||||||||||
| Monroe Bancorp (MROE) | ||||||||
| Financial Impact on Net Income of Deferred Compensation Plan | ||||||||
| (dollar amounts in thousands except per share data) | ||||||||
| Quarters Ended | Years Ended | |||||||
| Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | Dec 2009 | Dec 2008 | ||
| Interest and Dividend Income | $13 | $11 | $18 | $18 | $29 | $60 | $106 | |
| Realized and Unrealized Gains (Losses) | 51 | 176 | 222 | (132) | (355) | 317 | (829) | |
| Other Income | -- | -- | -- | -- | 12 | -- | 30 | |
| Total Income (Loss) From Plan: | 64 | 187 | 240 | (114) | (314) | 377 | (693) | |
| Change in Deferred Compensation Liability | 61 | 184 | 237 | (118) | (317) | 364 | (707) | |
| Trustee Fees | 3 | 3 | 3 | 4 | 3 | 13 | 14 | |
| Total Expense of Plan: | 64 | 187 | 240 | (114) | (314) | 377 | (693) | |
| Net Impact of Plan: | $-- | $-- | $-- | $-- | $-- | $-- | $-- | |
| Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan | ||||||||
| (dollar amounts in thousands except per share data) | ||||||||
| Quarters Ended | Years Ended | |||||||
| Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | Dec 2009 | Dec 2008 | ||
| Total Noninterest Income | $3,122 | $2,413 | $3,186 | $3,262 | $2,096 | $11,983 | $10,033 | |
| Income of Deferred Comp Plan Incl. in Noninterest Income | 51 | 176 | 222 | (132) | (343) | 317 | (799) | |
| Adjusted Noninterest Income: | 3,071 | 2,237 | 2,964 | 3,394 | 2,439 | 11,666 | 10,832 | |
| Total Noninterest Expense | 5,155 | 5,429 | 6,123 | 5,223 | 4,901 | 21,930 | 20,732 | |
| Expense of Deferred Compensation Plan | 64 | 187 | 240 | (114) | (314) | 377 | (693) | |
| Adjusted Noninterest Expense: | 5,091 | 5,242 | 5,883 | 5,337 | 5,215 | 21,553 | 21,425 | |
| Year-to-Date | ||||||||
| Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | ||||
| Total Noninterest Income | $11,983 | $8,861 | $6,448 | $3,262 | $10,033 | |||
| Income of Deferred Comp Plan Incl. in Noninterest Income | 317 | 266 | 90 | (132) | (799) | |||
| Adjusted Noninterest Income: | 11,666 | 8,595 | 6,358 | 3,394 | 10,832 | |||
| Total Noninterest Expense | 21,930 | 16,775 | 11,346 | 5,223 | 20,732 | |||
| Expense of Deferred Compensation Plan | 377 | 313 | 126 | (114) | (693) | |||
| Adjusted Noninterest Expense: | 21,553 | 16,462 | 11,220 | 5,337 | 21,425 | |||
| Monroe Bancorp (MROE) | ||||||||
| Select Average Balance Sheet Information | ||||||||
| (dollar amounts in thousands except per share data) | ||||||||
| Quarters Ended | Years Ended | |||||||
| Dec 2009 | Sep 2009 | Jun 2009 | Mar 2009 | Dec 2008 | Dec 2009 | Dec 2008 | ||
| Total Average Loans | $596,948 | $616,125 | $628,831 | $632,878 | $624,421 | $618,590 | $601,875 | |
| Average Commercial & Industrial | 84,250 | 91,479 | 101,992 | 103,046 | 101,347 | 95,130 | 99,353 | |
| Average Real Estate: | 496,913 | 508,690 | 510,759 | 513,886 | 506,315 | 507,519 | 484,841 | |
| Average Commercial & Residential | 392,002 | 398,418 | 394,439 | 397,507 | 379,409 | 395,584 | 357,018 | |
| Average Construction & Vacant Land | 73,724 | 79,152 | 85,310 | 86,966 | 98,531 | 81,246 | 101,380 | |
| Average Home Equity | 31,187 | 31,120 | 31,010 | 29,413 | 28,375 | 30,689 | 26,443 | |
| Average Installment Loans | 15,785 | 15,956 | 16,080 | 15,946 | 16,759 | 15,941 | 17,681 | |
| Average Federal Funds Sold | 32,372 | 33,927 | 26,975 | 16,028 | 11,444 | 27,388 | 8,754 | |
| Average Federal Home Loan Bank Stock | 2,353 | 2,353 | 2,353 | 2,312 | 2,312 | 2,343 | 2,312 | |
| Total Average Deposits | $648,825 | $650,301 | $673,216 | $678,377 | $669,074 | $662,565 | $649,540 | |
| Average Noninterest Checking | 88,702 | 85,037 | 83,321 | 79,257 | 81,805 | 84,108 | 79,503 | |
| Average Interest Bearing Checking & NOW | 218,038 | 200,756 | 199,693 | 113,465 | 120,196 | 183,323 | 127,282 | |
| Average Regular Savings | 18,447 | 18,558 | 18,538 | 17,132 | 16,658 | 18,173 | 17,618 | |
| Average Money Market Savings | 39,834 | 39,977 | 47,434 | 118,577 | 104,398 | 61,181 | 107,723 | |
| Average CDs Less than $100,000 | 172,071 | 184,132 | 189,998 | 209,036 | 197,271 | 187,789 | 159,120 | |
| Average CDs Greater than $100,000 | 93,952 | 104,817 | 118,057 | 125,152 | 132,340 | 111,300 | 142,126 | |
| Average IRAs and Other Time | 17,781 | 17,024 | 16,175 | 15,758 | 16,406 | 16,691 | 16,168 | |
| Average Federal Funds Purchased | 133 | 43 | 185 | 974 | 321 | 331 | 3,149 | |
| Average Securities Sold Under Repurchase Agreement | 63,743 | 59,341 | 58,783 | 54,210 | 55,674 | 59,046 | 45,686 | |
| Average FHLB Advances | 17,387 | 17,484 | 17,506 | 19,364 | 19,486 | 17,929 | 18,698 | |
CONTACT: Monroe Bancorp
Mark D. Bradford, President and Chief Executive Officer
(812) 331-3455
(800) 319-2664
Fax: (812) 331-3445
Bradford@monroebank.com
www.monroebank.com