Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BANCORP RHODE ISLAND INC | form8k72111.htm |
Exhibit 99.1Contacts: Linda H. Simmons Debbie Mandeville
Chief Financial Officer Investor Relations Officer
(401) 574-1652 (401) 574-1547
lsimmons@bankri.com dmandeville@bankri.com
BancorpRI Announces Second Quarter 2011 Results
Strong Operating Performance
Core Revenue Growth Led by Higher Net Interest Margin
Providence, R.I. – July 21, 2011 – Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of Bank Rhode Island, today reported net income of $1.8 million, or $0.38 diluted earnings per share (EPS), for the quarter ended June 30, 2011. These results reflect expenses of $1.5 million (after-tax), or $0.32 per share, related to the pending merger with Brookline Bancorp, which include compensation expense attributable to the accelerated vesting of restricted stock awards. Net income for the second quarter 2010 was $2.7 million, or $0.57 per share, and net income for the first quarter 2011 was $2.3 million, or $0.49 per share.
For the six month period ended June 30, 2011, the Company reported net income of $4.1 million, or $0.87 diluted EPS, compared to net income of $4.9 million, or $1.05 diluted EPS, for the same period in 2010. The six month results for the period ended June 30, 2011 included the above referenced expenses of $1.5 million (after-tax) or $0.32 per share related to the pending merger.
The Company’s commercial loan and lease portfolio grew to $786.7 million as of June 30, 2011. This represented increases of $6.4 million from year-end 2010 and $22.3 million, or 2.9 percent, from June 30, 2010. Consumer loans were $208.6 million at June 30, 2011, down $1.8 million compared to December 31, 2010 and up $1.2 million from a year ago. Residential mortgage loans were $157.4 million as of June 30, 2011, down 4.5 percent from year-end 2010.
Core deposit (demand deposits, NOW, money market and savings accounts) growth continued with a 3.8 percent increase from year-end 2010 and a 3.4 percent increase from March 31, 2011. The growth over the prior periods was driven primarily by money market and demand deposit accounts, partly offset by the continued and expected decline in higher-cost certificates of deposit. At the end of the second quarter, core deposits rose to 73.2 percent of total deposits compared to 69.0 percent at year-end 2010 and 69.3 percent a year ago. Total deposits were $1.1 billion at June 30, 2011, down from a year ago. The decline was primarily due to a temporary inflow of approximately $53.0 million in demand deposits as of
BancorpRI Q2 Results
Page Two
June 2010, attributable to the settlement of personal injury litigation to which the Bank was not a party.
Net interest income for the second quarter 2011 increased to $14.0 million from $13.6 million in the second quarter 2010 and $13.5 million in the first quarter 2011. Net interest margin for the second quarter 2011 rose to 3.69 percent, representing an improvement of 11 basis points from the first quarter 2011 and 2 basis points from the second quarter 2010. On a year-to-date basis, net interest income was $27.5 million, an increase of $800,000, or 3.0 percent, from 2010, and the net interest margin was 3.64 percent, an increase of 5 basis points from the prior period.
Noninterest income was $2.3 million for the second quarter 2011, unchanged from the second quarter 2010 and from the first quarter 2011. On a year-to-date basis, noninterest income was $4.6 million, flat compared to 2010.
Noninterest expense was $12.6 million in the second quarter 2011, up $2.2 million compared to the second quarter 2010 and up $1.3 million from the first quarter 2011. The second quarter 2011 noninterest expense reflects $2.1 million of pre-tax merger-related expenses, which include $610,000 of compensation expense attributable to the accelerated vesting of restricted stock awards due to the increase in the market price of the Company's stock following the announcement of the Brookline merger. Excluding the pre-tax merger-related expenses, noninterest expenses were up slightly compared to the second quarter 2010 and below first quarter 2011 levels. On a year-to-date basis, noninterest expense was $23.9 million, an increase of $3.0 million over the same period in 2010. The increase in the year-to-date comparison was primarily driven by merger-related expenses and an accrual related to a judgment issued with respect to a previously disclosed jury verdict against the Bank recorded in the first quarter 2011, partially offset by a reduction in loan workout and other real estate owned related expenses.
Nonperforming assets at June 30, 2011 totaled $19.4 million or 1.20 percent of total assets. This represented an increase from $17.5 million, or 1.09 percent of total assets, at March 31, 2011. Net charge-offs were $1.0 million, or 0.34 percent of average loans and leases, for the second quarter 2011, up slightly from $779,000, or 0.28 percent of average loans and leases, in the second quarter 2010, but down from $1.6 million, or 0.55 percent of average loans and leases, in the first quarter 2011. On a year-to-date basis, net charge-offs were $2.5 million, or 0.45 percent of average loans and leases, an increase of $256,000 over the same period in 2010.
The provision for loan and lease losses was $850,000 for the second quarter 2011, compared to $1.6 million in the second quarter 2010 and $1.1 million in the first quarter 2011. On a year-to-date basis, the provision was $2.0 million, a decrease of $1.2 million from the same period in 2010.
BancorpRI Q2 Results
Page Three
The allowance for loan and lease losses was $18.1 million at June 30, 2011 compared to $18.7 million at December 31, 2010. The allowance for loan and lease losses as a percent of total loans and leases was 1.57 percent at June 30, 2011 compared to 1.61 percent at December 31, 2010.
Total assets at June 30, 2011 were $1.6 billion, representing slight increases from both the first quarter 2011 and from year-end 2010.
At June 30, 2011, the Company’s tier 1 capital ratio was approximately 8.20 percent and its total risk-based capital ratio was approximately 12.80 percent.
The Company’s Board of Directors approved a dividend of $0.19 per share. The dividend will be paid on August 31, 2011, to shareholders of record on August 10, 2011.
About BancorpRI
Bancorp Rhode Island, Inc. is the parent company of Bank Rhode Island, a full-service, FDIC-insured, state-chartered financial institution. The Bank, headquartered in Providence, Rhode Island, operates 17 branches and more than 60 ATMs throughout Providence, Kent and Washington Counties. As of June 30, 2011, BankRI had $1.6 billion in assets and $1.1 billion in deposits. For more information, visit www.bankri.com.
This release may contain “forward-looking statements” within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic conditions and changing competition which could cause actual future results to differ materially from those indicated herein. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission.
On April 19, 2011, the Company entered into a merger agreement with Brookline Bancorp, Inc. (“Brookline Bancorp”) pursuant to which the Company will merge with and into Brookline Bancorp, whereupon the separate corporate existence of the Company will cease and its subsidiary, Bank Rhode Island will become a wholly owned subsidiary of Brookline Bancorp. In connection with the merger, Brookline Bancorp has filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4, which includes a proxy statement of the Company and a prospectus of Brookline Bancorp, as well as other relevant materials concerning the merger. A definitive proxy statement/prospectus will be mailed to shareholders of the Company after the registration statement is declared effective. The registration statement has not yet become effective. Shareholders of the Company are urged to read the proxy statement/prospectus and the other relevant materials when they become available because they will contain important
BancorpRI Q2 Results
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information about Brookline Bancorp, the Company and the proposed transaction. The proxy statement/prospectus and other relevant materials, and any and all documents filed by Brookline Bancorp or the Company with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, investors may obtain free copies of the documents filed by Brookline Bancorp with the SEC by directing a written request to Paul R. Bechet, Chief Financial Officer, Brookline Bancorp, 160 Washington Street, Brookline, MA 02445. Investors may obtain free copies of the documents filed by the Company with the SEC by directing a written request to Linda H. Simmons, Chief Financial Officer, One Turks Head Place, Providence, Rhode Island 02903. The Company and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of the Company in connection with the merger. Information about the directors and executive officers of the Company is set forth in the proxy statement for the Company’s 2011 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on April 15, 2011. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement regarding the merger.
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BANCORP RHODE ISLAND, INC.
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Selected Financial Highlights (unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2011
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2010
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2011
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2010
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(In thousands, except per share data)
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FINANCIAL DATA:
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Net interest income
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$ | 13,999 | $ | 13,626 | $ | 27,514 | $ | 26,714 | ||||||||||||
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Provision for loan and lease losses
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850 | 1,550 | 1,975 | 3,150 | ||||||||||||||||
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Noninterest income
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2,272 | 2,285 | 4,604 | 4,600 | ||||||||||||||||
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Noninterest expense
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12,618 | 10,430 | 23,887 | 20,918 | ||||||||||||||||
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Net income
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1,819 | 2,681 | 4,126 | 4,900 | ||||||||||||||||
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FINANCIAL PERFORMANCE RATIOS:
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Return on assets (3) (6)
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0.46 | % | 0.68 | % | 0.52 | % | 0.63 | % | ||||||||||||
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Return on equity (4) (6)
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5.54 | % | 8.54 | % | 6.38 | % | 7.93 | % | ||||||||||||
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Net interest margin (2) (6)
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3.69 | % | 3.67 | % | 3.64 | % | 3.59 | % | ||||||||||||
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Efficiency ratio (5) (6)
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77.55 | % | 65.55 | % | 74.37 | % | 66.80 | % | ||||||||||||
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PER SHARE DATA:
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Earnings per share - basic
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$ | 0.39 | $ | 0.57 | $ | 0.88 | $ | 1.05 | ||||||||||||
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Earnings per share - diluted
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0.38 | 0.57 | 0.87 | 1.05 | ||||||||||||||||
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Book value per share of common stock
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28.51 | 27.63 | 28.51 | 27.63 | ||||||||||||||||
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Tangible book value per share of common stock
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25.89 | 25.00 | 25.89 | 25.00 | ||||||||||||||||
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Market value (at period end)
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45.32 | 26.20 | 45.32 | 26.20 | ||||||||||||||||
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Dividends per share
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0.19 | 0.17 | 0.38 | 0.34 | ||||||||||||||||
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CAPITAL RATIOS:
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Tier 1 capital ratio (7)
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8.20 | % | 7.91 | % | ||||||||||||||||
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Total risk-based capital ratio (7)
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12.80 | % | 12.20 | % | ||||||||||||||||
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Tangible common equity ratio (1) (6)
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7.55 | % | 7.30 | % | ||||||||||||||||
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Three Months Ended
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Jun 30, 2011
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Mar 31, 2011
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Dec 31, 2010
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Sep 30, 2010
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Jun 30, 2010
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(In thousands)
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BALANCE SHEET:
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Total assets
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$ | 1,618,756 | $ | 1,606,508 | $ | 1,603,759 | $ | 1,573,323 | $ | 1,613,520 | ||||||||||
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Total loans and leases
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1,152,677 | 1,154,448 | 1,155,489 | 1,135,227 | 1,136,524 | |||||||||||||||
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Total deposits
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1,095,845 | 1,101,661 | 1,120,166 | 1,115,683 | 1,174,020 | |||||||||||||||
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Shareholders' equity
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133,531 | 130,192 | 128,678 | 130,769 | 129,127 | |||||||||||||||
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ASSET QUALITY:
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Total nonperforming assets
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$ | 19,447 | $ | 17,473 | $ | 17,643 | $ | 15,152 | $ | 16,759 | ||||||||||
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Nonperforming assets / total assets
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1.20 | % | 1.09 | % | 1.10 | % | 0.96 | % | 1.04 | % | ||||||||||
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Allowance for loans and leases
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$ | 18,083 | $ | 18,222 | $ | 18,654 | $ | 18,212 | $ | 17,396 | ||||||||||
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Allowance to total loans and leases
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1.57 | % | 1.58 | % | 1.61 | % | 1.60 | % | 1.53 | % | ||||||||||
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Net charge-offs
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$ | 989 | $ | 1,557 | $ | 1,993 | $ | 459 | $ | 779 | ||||||||||
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Net charge-offs to average loans and leases
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0.34 | % | 0.55 | % | 0.69 | % | 0.16 | % | 0.28 | % | ||||||||||
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Selected Financial Highlights (unaudited)
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Jun 30, 2011
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Mar 31, 2011
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Dec 31, 2010
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Sep 30, 2010
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Jun 30, 2010
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(in thousands)
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LOAN AND LEASE PORTFOLIO:
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Commercial loans and leases:
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Commercial real estate - non-owner occupied
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$ | 210,888 | $ | 196,353 | $ | 200,809 | $ | 202,342 | $ | 191,345 | |||||||||||
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Commercial real estate - owner occupied
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176,059 | 183,111 | 179,766 | 177,526 | 179,109 | ||||||||||||||||
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Commercial & industrial
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159,512 | 161,004 | 157,879 | 156,042 | 163,088 | ||||||||||||||||
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Multifamily
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86,387 | 84,772 | 79,934 | 73,375 | 67,588 | ||||||||||||||||
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Small business
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60,141 | 62,233 | 62,841 | 59,756 | 59,833 | ||||||||||||||||
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Construction
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27,071 | 28,273 | 30,349 | 31,035 | 30,675 | ||||||||||||||||
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Leases and other
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70,777 | 72,156 | 73,054 | 76,417 | 77,688 | ||||||||||||||||
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Subtotal
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790,835 | 787,902 | 784,632 | 776,493 | 769,326 | ||||||||||||||||
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Unearned lease income
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(5,828 | ) | (5,962 | ) | (6,159 | ) | (6,516 | ) | (6,777 | ) | |||||||||||
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Net deferred loan origination costs
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1,697 | 1,756 | 1,791 | 1,777 | 1,825 | ||||||||||||||||
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Total commercial loans and leases
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786,704 | 783,696 | 780,264 | 771,754 | 764,374 | ||||||||||||||||
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Residential mortgages
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157,415 | 160,658 | 164,877 | 161,106 | 164,750 | ||||||||||||||||
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Consumer loans
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208,558 | 210,094 | 210,348 | 202,367 | 207,400 | ||||||||||||||||
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Total loans and leases
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$ | 1,152,677 | $ | 1,154,448 | $ | 1,155,489 | $ | 1,135,227 | $ | 1,136,524 | |||||||||||
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(1)
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Calculated by dividing common shareholders’ equity less goodwill by total assets less goodwill.
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(2)
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Calculated by dividing annualized net interest income by average interest-earning assets.
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(3)
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Calculated by dividing annualized net income by average total assets.
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(4)
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Calculated by dividing annualized net income applicable to common shares by average common shareholders’ equity.
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(5)
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Calculated by dividing noninterest expense by net interest income plus noninterest income.
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(6)
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Non-GAAP performance measure.
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(7)
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Tier 1 capital and total risk-based capital ratio are estimated for June 30, 2011.
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Consolidated Balance Sheet (unaudited)
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June 30,
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December 31,
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2011
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2010
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(In thousands)
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ASSETS:
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Cash and due from banks
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$ | 29,444 | $ | 14,384 | ||||
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Overnight investments
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1,296 | 395 | ||||||
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Total cash and cash equivalents
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30,740 | 14,779 | ||||||
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Available for sale securities (amortized cost of $347,505 and
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$357,402, respectively)
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352,695 | 360,025 | ||||||
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Stock in Federal Home Loan Bank of Boston
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16,274 | 16,274 | ||||||
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Loans and leases receivable:
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Commercial loans and leases
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786,704 | 780,264 | ||||||
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Residential mortgage loans
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157,415 | 164,877 | ||||||
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Consumer and other loans
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208,558 | 210,348 | ||||||
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Total loans and leases receivable
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1,152,677 | 1,155,489 | ||||||
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Allowance for loan and lease losses
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(18,083 | ) | (18,654 | ) | ||||
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Net loans and leases receivable
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1,134,594 | 1,136,835 | ||||||
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Premises and equipment, net
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11,514 | 11,889 | ||||||
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Goodwill
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12,262 | 12,262 | ||||||
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Accrued interest receivable
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4,380 | 4,842 | ||||||
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Investment in bank-owned life insurance
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31,886 | 31,277 | ||||||
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Prepaid expenses and other assets
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24,411 | 15,576 | ||||||
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Total assets
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$ | 1,618,756 | $ | 1,603,759 | ||||
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LIABILITIES:
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Deposits:
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Demand deposit accounts
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$ | 282,068 | $ | 264,274 | ||||
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NOW accounts
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66,093 | 70,327 | ||||||
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Money market accounts
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123,843 | 96,285 | ||||||
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Savings accounts
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330,054 | 341,667 | ||||||
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Certificates of deposit accounts
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293,787 | 347,613 | ||||||
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Total deposits
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1,095,845 | 1,120,166 | ||||||
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Overnight and short-term borrowings
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35,955 | 40,997 | ||||||
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Wholesale repurchase agreements
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20,000 | 20,000 | ||||||
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Federal Home Loan Bank of Boston borrowings
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293,277 | 260,889 | ||||||
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Subordinated deferrable interest debentures
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13,403 | 13,403 | ||||||
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Other liabilities
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26,745 | 19,626 | ||||||
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Total liabilities
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1,485,225 | 1,475,081 | ||||||
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SHAREHOLDERS’ EQUITY:
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Common stock, par value $0.01 per share, authorized 11,000,000 shares:
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Issued: (5,080,941 shares and 5,047,942 shares, respectively)
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50 | 50 | ||||||
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Additional paid-in capital
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75,556 | 73,866 | ||||||
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Treasury stock, at cost (396,986 shares and 373,850 shares, respectively)
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(13,378 | ) | (12,527 | ) | ||||
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Retained earnings
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67,929 | 65,584 | ||||||
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Accumulated other comprehensive income, net
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3,374 | 1,705 | ||||||
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Total shareholders’ equity
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133,531 | 128,678 | ||||||
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Total liabilities and shareholders’ equity
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$ | 1,618,756 | $ | 1,603,759 | ||||
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Consolidated Statements of Operations (unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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|
2011
|
2010
|
2011
|
2010
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(In thousands, except per share data)
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Interest and dividend income:
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Overnight investments
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$ | 1 | $ | - | $ | 1 | $ | 5 | ||||||||
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Mortgage-backed securities
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2,606 | 3,041 | 5,231 | 6,270 | ||||||||||||
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Investment securities
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371 | 490 | 768 | 1,040 | ||||||||||||
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Federal Home Loan Bank of Boston stock dividends
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13 | - | ||||||||||||||
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Loans and leases
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14,505 | 15,105 | 29,055 | 29,673 | ||||||||||||
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Total interest and dividend income
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17,496 | 18,636 | 35,080 | 36,988 | ||||||||||||
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Interest expense:
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Deposits
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1,248 | 2,164 | 2,707 | 4,442 | ||||||||||||
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Overnight and short-term borrowings
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9 | 19 | 19 | 37 | ||||||||||||
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Wholesale repurchase agreements
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142 | 143 | 281 | 282 | ||||||||||||
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Federal Home Loan Bank of Boston borrowings
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1,931 | 2,518 | 4,227 | 5,183 | ||||||||||||
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Subordinated deferrable interest debentures
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167 | 166 | 332 | 330 | ||||||||||||
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Total interest expense
|
3,497 | 5,010 | 7,566 | 10,274 | ||||||||||||
|
Net interest income
|
13,999 | 13,626 | 27,514 | 26,714 | ||||||||||||
|
Provision for loan and lease losses
|
850 | 1,550 | 1,975 | 3,150 | ||||||||||||
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Net interest income after provision for loan and lease losses
|
13,149 | 12,076 | 25,539 | 23,564 | ||||||||||||
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Noninterest income:
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Total other-than-temporary impairment losses on
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available for sale securities
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- | (49 | ) | - | 49 | |||||||||||
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Non-credit component of other-than-temporary impairment losses
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recognized in other comprehensive income
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- | 5 | - | (664 | ) | |||||||||||
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Credit component of other-than-temporary impairment losses on
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available for sale securities
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- | (44 | ) | - | (615 | ) | ||||||||||
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Service charges on deposit accounts
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1,215 | 1,348 | 2,355 | 2,612 | ||||||||||||
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Commissions on nondeposit investment products
|
356 | 148 | 550 | 385 | ||||||||||||
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Income from bank-owned life insurance
|
306 | 318 | 609 | 633 | ||||||||||||
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Loan related fees
|
131 | 133 | 351 | 322 | ||||||||||||
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Net gain on lease sales and commissions on loans
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originated for others
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64 | 6 | 60 | 42 | ||||||||||||
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Gain on sale of available for sale securities
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- | 103 | 212 | 578 | ||||||||||||
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Other income
|
200 | 273 | 467 | 643 | ||||||||||||
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Total noninterest income
|
2,272 | 2,285 | 4,604 | 4,600 | ||||||||||||
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Noninterest expense:
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Salaries and employee benefits
|
6,655 | 5,746 | 12,589 | 11,589 | ||||||||||||
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Professional services
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2,132 | 537 | 2,738 | 1,169 | ||||||||||||
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Occupancy
|
846 | 829 | 1,753 | 1,690 | ||||||||||||
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Data processing
|
687 | 654 | 1,368 | 1,308 | ||||||||||||
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FDIC insurance
|
442 | 475 | 919 | 950 | ||||||||||||
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Operating
|
428 | 467 | 882 | 929 | ||||||||||||
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Marketing
|
378 | 383 | 731 | 641 | ||||||||||||
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Equipment
|
256 | 255 | 532 | 510 | ||||||||||||
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Loan workout and other real estate owned
|
161 | 337 | 367 | 673 | ||||||||||||
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Loan servicing
|
135 | 171 | 279 | 347 | ||||||||||||
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Other expenses
|
498 | 576 | 1,729 | 1,112 | ||||||||||||
|
Total noninterest expense
|
12,618 | 10,430 | 23,887 | 20,918 | ||||||||||||
|
Income before income taxes
|
2,803 | 3,931 | 6,256 | 7,246 | ||||||||||||
|
Income tax expense
|
984 | 1,250 | 2,130 | 2,346 | ||||||||||||
|
Net income
|
$ | 1,819 | $ | 2,681 | $ | 4,126 | $ | 4,900 | ||||||||
|
Per share data:
|
||||||||||||||||
|
Basic earnings per common share
|
$ | 0.39 | $ | 0.57 | $ | 0.88 | 1.05 | |||||||||
|
Diluted earnings per common share
|
$ | 0.38 | $ | 0.57 | $ | 0.87 | $ | 1.05 | ||||||||
|
Cash dividends declared per common share
|
$ | 0.19 | $ | 0.17 | $ | 0.38 | $ | 0.34 | ||||||||
|
Weighted average common shares outstanding – basic
|
4,689 | 4,664 | 4,686 | 4,643 | ||||||||||||
|
Weighted average common shares outstanding – diluted
|
4,768 | 4,690 | 4,734 | 4,670 | ||||||||||||
|
Asset Quality Analysis (unaudited)
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
Jun 30, 2011
|
Mar 31, 2011
|
Dec 31, 2010
|
Sep 30, 2010
|
Jun 30, 2010
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
|
NONPERFORMING ASSETS:
|
||||||||||||||||||||
|
Nonperforming loans & leases:
|
||||||||||||||||||||
|
Commercial real estate
|
$ | 5,432 | $ | 4,792 | $ | 5,273 | $ | 5,384 | $ | 5,131 | ||||||||||
|
Commercial & industrial
|
2,362 | 2,255 | 2,462 | 1,455 | 1,155 | |||||||||||||||
|
Multifamily
|
1,568 | 1,050 | 717 | - | - | |||||||||||||||
|
Small business
|
817 | 1,059 | 1,090 | 1,158 | 986 | |||||||||||||||
|
Construction
|
45 | 232 | 469 | 469 | 469 | |||||||||||||||
|
Leases
|
1,713 | 591 | 581 | 1,115 | 2,252 | |||||||||||||||
|
Residential mortgage
|
5,722 | 4,926 | 5,045 | 3,570 | 3,737 | |||||||||||||||
|
Consumer
|
1,038 | 993 | 876 | 871 | 1,081 | |||||||||||||||
|
Total nonperforming loans & leases
|
18,697 | 15,898 | 16,513 | 14,022 | 14,811 | |||||||||||||||
|
Other real estate owned
|
750 | 1,575 | 1,130 | 1,130 | 1,948 | |||||||||||||||
|
Total nonperforming assets
|
$ | 19,447 | $ | 17,473 | $ | 17,643 | $ | 15,152 | $ | 16,759 | ||||||||||
|
Total nonperforming loans & leases / total loans & leases
|
1.62 | % | 1.38 | % | 1.43 | % | 1.24 | % | 1.30 | % | ||||||||||
|
Total nonperforming assets / total assets
|
1.20 | % | 1.09 | % | 1.10 | % | 0.96 | % | 1.04 | % | ||||||||||
|
PROVISION AND ALLOWANCE FOR LOAN LOSSES:
|
||||||||||||||||||||
|
Balance at beginning of period
|
$ | 18,222 | $ | 18,654 | $ | 18,212 | $ | 17,396 | $ | 16,625 | ||||||||||
|
Charged-off loans & leases
|
(1,137 | ) | (1,686 | ) | (2,154 | ) | (487 | ) | (909 | ) | ||||||||||
|
Recoveries on charged-off loans & leases
|
148 | 129 | 161 | 28 | 130 | |||||||||||||||
|
Net loans & leases charged-off
|
(989 | ) | (1,557 | ) | (1,993 | ) | (459 | ) | (779 | ) | ||||||||||
|
Provision for loan and lease losses
|
850 | 1,125 | 2,435 | 1,275 | 1,550 | |||||||||||||||
|
Balance at end of period
|
$ | 18,083 | $ | 18,222 | $ | 18,654 | $ | 18,212 | $ | 17,396 | ||||||||||
|
Allowance to nonperforming loans & leases
|
96.72 | % | 114.62 | % | 112.97 | % | 129.88 | % | 117.45 | % | ||||||||||
|
Allowance to total loans & leases
|
1.57 | % | 1.58 | % | 1.61 | % | 1.60 | % | 1.53 | % | ||||||||||
|
NET CHARGE-OFFS:
|
||||||||||||||||||||
|
Commercial real estate
|
$ | - | $ | 532 | $ | 726 | $ | - | $ | (100 | ) | |||||||||
|
Commercial & industrial
|
(47 | ) | - | 487 | (5 | ) | (4 | ) | ||||||||||||
|
Construction
|
62 | 237 | - | - | - | |||||||||||||||
|
Other commercial loans & leases
|
427 | 397 | 565 | 226 | 387 | |||||||||||||||
|
Residential mortgages
|
515 | 379 | 141 | 89 | 490 | |||||||||||||||
|
Consumer
|
32 | 12 | 74 | 149 | 6 | |||||||||||||||
|
Total net charge-offs
|
$ | 989 | $ | 1,557 | $ | 1,993 | $ | 459 | $ | 779 | ||||||||||
|
Net charge-offs to average loans & leases
|
0.34 | % | 0.55 | % | 0.69 | % | 0.16 | % | 0.28 | % | ||||||||||
|
DELINQUENCIES AND NON-ACCRUING LOANS AND LEASES AS % OF TOTAL LOANS:
|
||||||||||||||||||||
|
Loans & leases 30-59 days past due
|
0.37 | % | 0.83 | % | 0.56 | % | 0.47 | % | 0.90 | % | ||||||||||
|
Loans & leases 60-89 days past due
|
0.16 | % | 0.28 | % | 0.21 | % | 0.22 | % | 0.21 | % | ||||||||||
|
Loans & leases 90+ days past due and still accruing
|
0.01 | % | 0.06 | % | - | - | 0.08 | % | ||||||||||||
|
Total accruing past due loans & leases
|
0.54 | % | 1.17 | % | 0.77 | % | 0.69 | % | 1.19 | % | ||||||||||
|
Non-accrual loans & leases
|
1.61 | % | 1.32 | % | 1.43 | % | 1.24 | % | 1.22 | % | ||||||||||
|
Total delinquent and nonaccrual loans & leases
|
2.15 | % | 2.49 | % | 2.20 | % | 1.93 | % | 2.41 | % | ||||||||||
|
Consolidated Average Balances, Yields and Costs (unaudited)
|
||||||||||||||||||||||||
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
2011
|
2010
|
||||||||||||||||||||||
|
Average Balance
|
Interest Earned/Paid
|
Average Yield
|
Average Balance
|
Interest Earned/Paid
|
Average Yield
|
|||||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||||||
|
Earning assets:
|
||||||||||||||||||||||||
|
Overnight investments
|
$ | 654 | $ | 1 | 0.14 | % | $ | 2,009 | $ | - | 0.09 | % | ||||||||||||
|
Available for sale securities
|
350,396 | 2,977 | 3.40 | % | 346,907 | 3,531 | 4.08 | % | ||||||||||||||||
|
Stock in the FHLB
|
16,274 | 13 | 0.31 | % | 16,274 | - | 0.00 | % | ||||||||||||||||
|
Loans and leases receivable:
|
||||||||||||||||||||||||
|
Commercial loans and leases
|
784,284 | 10,552 | 5.39 | % | 757,664 | 10,943 | 5.79 | % | ||||||||||||||||
|
Residential mortgages loans
|
160,332 | 1,743 | 4.35 | % | 167,289 | 1,939 | 4.64 | % | ||||||||||||||||
|
Consumer and other loans
|
209,659 | 2,210 | 4.23 | % | 204,235 | 2,223 | 4.36 | % | ||||||||||||||||
|
Total earning assets
|
1,521,599 | 17,496 | 4.61 | % | 1,494,378 | 18,636 | 5.00 | % | ||||||||||||||||
|
Cash and due from banks
|
15,974 | 18,798 | ||||||||||||||||||||||
|
Allowance for loans and leases
|
(18,469 | ) | (17,034 | ) | ||||||||||||||||||||
|
Premises and equipment
|
11,614 | 12,244 | ||||||||||||||||||||||
|
Goodwill, net
|
12,262 | 12,262 | ||||||||||||||||||||||
|
Accrued interest receivable
|
3,994 | 4,252 | ||||||||||||||||||||||
|
Bank-owned life insurance
|
31,686 | 30,435 | ||||||||||||||||||||||
|
Prepaid expenses and other assets
|
17,368 | 16,898 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,596,028 | $ | 1,572,233 | ||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
NOW accounts
|
$ | 68,824 | $ | 9 | 0.05 | % | $ | 69,378 | $ | 12 | 0.07 | % | ||||||||||||
|
Money market accounts
|
120,216 | 201 | 0.67 | % | 81,271 | 165 | 0.81 | % | ||||||||||||||||
|
Savings accounts
|
338,168 | 264 | 0.31 | % | 373,225 | 506 | 0.54 | % | ||||||||||||||||
|
Certificate of deposit accounts
|
313,930 | 774 | 0.99 | % | 374,935 | 1,481 | 1.58 | % | ||||||||||||||||
|
Overnight and short-term borrowings
|
36,138 | 9 | 0.10 | % | 37,011 | 19 | 0.20 | % | ||||||||||||||||
|
Wholesale repurchase agreements
|
19,560 | 142 | 2.88 | % | 20,000 | 143 | 2.82 | % | ||||||||||||||||
|
FHLB borrowings
|
276,173 | 1,931 | 2.76 | % | 247,720 | 2,518 | 4.02 | % | ||||||||||||||||
|
Subordinated deferrable interest debentures
|
13,403 | 167 | 4.94 | % | 13,403 | 166 | 4.93 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
1,186,412 | 3,497 | 1.17 | % | 1,216,943 | 5,010 | 1.65 | % | ||||||||||||||||
|
Noninterest-bearing deposits
|
260,813 | 219,136 | ||||||||||||||||||||||
|
Other liabilities
|
17,016 | 10,168 | ||||||||||||||||||||||
|
Total liabilities
|
1,464,241 | 1,446,247 | ||||||||||||||||||||||
|
Shareholders' equity:
|
131,787 | 125,986 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 1,596,028 | $ | 1,572,233 | ||||||||||||||||||||
|
Net interest income
|
$ | 13,999 | $ | 13,626 | ||||||||||||||||||||
|
Net interest spread
|
3.44 | % | 3.35 | % | ||||||||||||||||||||
|
Net interest margin
|
3.69 | % | 3.67 | % | ||||||||||||||||||||
|
Consolidated Average Balances, Yields and Costs (unaudited)
|
||||||||||||||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
2011
|
2010
|
||||||||||||||||||||||
|
Average Balance
|
Interest Earned/Paid
|
Average Yield
|
Average Balance
|
Interest Earned/Paid
|
Average Yield
|
|||||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||||||
|
Earning assets:
|
||||||||||||||||||||||||
|
Overnight investments
|
$ | 731 | $ | 1 | 0.17 | % | $ | 2,150 | 5 | 0.50 | % | |||||||||||||
|
Available for sale securities
|
352,886 | 5,999 | 3.40 | % | 359,640 | 7,310 | 4.10 | % | ||||||||||||||||
|
Stock in the FHLB
|
16,274 | 25 | 0.31 | % | 16,274 | - | 0.00 | % | ||||||||||||||||
|
Loans and leases receivable:
|
||||||||||||||||||||||||
|
Commercial loans and leases
|
781,001 | 21,208 | 5.47 | % | 744,825 | 21,254 | 5.74 | % | ||||||||||||||||
|
Residential mortgages loans
|
161,977 | 3,442 | 4.25 | % | 169,834 | 3,968 | 4.67 | % | ||||||||||||||||
|
Consumer and other loans
|
210,101 | 4,405 | 4.23 | % | 204,039 | 4,451 | 4.40 | % | ||||||||||||||||
|
Total earning assets
|
1,522,970 | 35,080 | 4.63 | % | 1,496,762 | 36,988 | 4.97 | % | ||||||||||||||||
|
Cash and due from banks
|
16,543 | 16,139 | ||||||||||||||||||||||
|
Allowance for loans and leases
|
(18,498 | ) | (17,129 | ) | ||||||||||||||||||||
|
Premises and equipment
|
11,705 | 12,301 | ||||||||||||||||||||||
|
Goodwill, net
|
12,262 | 12,221 | ||||||||||||||||||||||
|
Accrued interest receivable
|
4,131 | 4,312 | ||||||||||||||||||||||
|
Bank-owned life insurance
|
31,538 | 30,277 | ||||||||||||||||||||||
|
Prepaid expenses and other assets
|
16,509 | 16,232 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,597,160 | $ | 1,571,115 | ||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
NOW accounts
|
$ | 68,440 | $ | 55 | 0.16 | % | $ | 69,025 | $ | 27 | 0.08 | % | ||||||||||||
|
Money market accounts
|
112,794 | 373 | 0.67 | % | 76,356 | 314 | 0.83 | % | ||||||||||||||||
|
Savings accounts
|
340,753 | 534 | 0.32 | % | 371,497 | 1,037 | 0.56 | % | ||||||||||||||||
|
Certificate of deposit accounts
|
324,524 | 1,745 | 1.08 | % | 380,237 | 3,064 | 1.62 | % | ||||||||||||||||
|
Overnight and short-term borrowings
|
37,916 | 19 | 0.10 | % | 38,080 | 37 | 0.20 | % | ||||||||||||||||
|
Wholesale repurchase agreements
|
19,801 | 281 | 2.82 | % | 19,116 | 282 | 2.93 | % | ||||||||||||||||
|
FHLB borrowings
|
274,722 | 4,227 | 3.06 | % | 259,665 | 5,183 | 3.97 | % | ||||||||||||||||
|
Subordinated deferrable interest debentures
|
13,403 | 332 | 4.94 | % | 13,403 | 330 | 4.95 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
1,192,353 | 7,566 | 1.27 | % | 1,227,379 | 10,274 | 1.69 | % | ||||||||||||||||
|
Noninterest-bearing deposits
|
258,092 | 209,489 | ||||||||||||||||||||||
|
Other liabilities
|
16,258 | 9,652 | ||||||||||||||||||||||
|
Total liabilities
|
1,466,703 | 1,446,520 | ||||||||||||||||||||||
|
Shareholders' equity:
|
130,457 | 124,595 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 1,597,160 | $ | 1,571,115 | ||||||||||||||||||||
|
Net interest income
|
$ | 27,514 | $ | 26,714 | ||||||||||||||||||||
|
Net interest spread
|
3.36 | % | 3.28 | % | ||||||||||||||||||||
|
Net interest margin
|
3.64 | % | 3.59 | % | ||||||||||||||||||||