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8-K - 8-K - Fox Chase Bancorp Inca14-18169_18k.htm

Exhibit 99.1

 

FOX CHASE BANCORP, INC.

2nd QUARTER EARNINGS 2014

 

 

4390 Davisville Road, Hatboro, PA 19040 Phone (215) 682-7400 Fax (215) 682-4144

NEWS RELEASE

 

For Immediate Release

 

Date:

July 30, 2014

Contact:

Roger S. Deacon

 

Chief Financial Officer

Phone:

(215) 775-1435

 

FOX CHASE BANCORP, INC. ANNOUNCES 122% INCREASE

IN EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2014

(Increases Dividend; Announces Additional 5% Stock Repurchase Plan)

 

HATBORO, PA. July 30, 2014 — Fox Chase Bancorp, Inc. (the “Company”) (NASDAQ GM: FXCB), the holding company for Fox Chase Bank (the “Bank”), today announced net income of $2.3 million, or $0.20 per diluted share, and $4.3 million, or $0.37 per diluted share, for the three and six months ended June 30, 2014, respectively, compared to net income of $1.0 million, or $0.09 per diluted share, and $2.9 million, or $0.25 per diluted share, for the three and six months ended June 30, 2013, respectively.

 

Commenting on the performance for the quarter, Thomas M. Petro, President and Chief Executive Officer said, “We are pleased to report a 122% increase in earnings for the three months ended June 30, 2014, as compared to the same period in 2013.  The improved earnings were driven by solid growth in our commercial lending portfolio, increased net interest margin and continued reductions in credit-related costs.  The continued improvement in credit quality reflects the strength of our balance sheet as our ratio for the allowance for losses to total loans remained at 1.57% at June 30, 2014 and December 31, 2013.  Our business strategy of building long-term commercial relationships continues to increase profitability. Finally, we are excited to

 

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once again increase our quarterly dividend to $0.12 per share and announce another stock repurchase program, as we continue to look for opportunities to enhance shareholder value.”

 

Highlights for the three and six months ended June 30, 2014 included:

 

·                  Total assets were $1.11 billion at June 30, 2014 compared to $1.12 billion at December 31, 2013.  Total loans were $724.5 million at June 30, 2014, an increase of $31.1 million, or 4.5%, from $693.4 million at March 31, 2014, and an increase of $4.0 million, or 0.6%, from $720.5 million at December 31, 2013. Total commercial loans increased $37.4 million, or 6.7%, from $559.6 million at March 31, 2014 to $597.0 million at June 30, 2014 primarily due to increases of $26.3 million in multi-family and commercial real estate loans and $10.1 million in commercial construction loans.

 

·                  Total average assets were $1.09 billion for the six months ended June 30, 2014 as compared to $1.08 billion for the six months ended June 30, 2013.  Total average commercial loans increased by $57.7 million, or 11.3%, to $568.6 million for the six months ended June 30, 2014, compared to $510.9 million for the six months ended June 30, 2013.

 

·                  Nonperforming assets totaled $6.2 million, or 0.56% of total assets, at June 30, 2014 compared to $8.6 million, or 0.79% of total assets, at March 31, 2014 and $15.0 million, or 1.35% of total assets, at December 31, 2013.

 

·                  Return on assets was 0.85% and 0.78% for the three and six months ended June 30, 2014, respectively, compared to 0.38% and 0.53% for the three and six months ended June 30, 2013, respectively.

 

·                  Net interest income increased $962,000, or 6.1%, to $16.7 million for the six months ended June 30, 2014, compared to $15.8 million for the six months ended June 30, 2013 and increased $558,000, or 7.1%, to $8.4 million for the three months ended June 30, 2014, compared to $7.9 million for the three months ended June 30, 2013. The net interest margin was 3.20% for the three months ended June 30, 2014, compared to 3.17% for the three months ended March 31, 2014 and 3.01% for the three months ended June 30, 2013.

 

·                  Credit related costs, which include (i) provision or credit for loan losses, (ii) valuation adjustments on assets acquired through foreclosure, adjusted by (iii) net gain (loss) on sale of assets acquired through foreclosure, totaled $221,000 and $503,000 for the three

 

2



 

and six months ended June 30, 2014, respectively, compared to $1.8 million and $2.7 million, respectively, for the three month and six months ended June 30, 2013.  Net loan (recoveries)/charge-offs totaled $(37,000) and $56,000 for the three and six months ended June 30, 2014, respectively, compared to $322,000 and $529,000 for the three and six months ended June 30, 2013.  There were no commercial loan charge-offs during the three months ended June 30, 2014.

 

·                  Delinquent loans totaled $536,000 at June 30, 2014, compared to $1.0 million at March 31, 2014 and $418,000 at December 31, 2013.  There were no delinquent commercial loans at June 30, 2014.

 

·                  Noninterest income decreased $1.2 million to $973,000 for the six months ended June 30, 2014 compared to $2.2 million for the six months ended June 30, 2013 primarily due to a gain on sale of investment securities of $532,000 in 2013, a decrease of $301,000 in equity in earnings of affiliates due to lower mortgage volumes and a decrease of $302,000 in gain (loss) on sale of an asset acquired through foreclosure due to a gain of $181,000 recorded in 2013 and a loss of $121,000 recorded in 2014.

 

·                  Noninterest expense decreased $2.6 million, or 18.4%, to $11.4 million for the six months ended June 30, 2014, compared to $14.0 million for the six months ended June 30, 2013. This decrease was primarily due to a decrease of $2.7 million in assets acquired through foreclosure expense as the Company recorded $282,000 in valuation adjustments on assets acquired through foreclosure during the six months ended June 30, 2014 compared to $3.0 million for the six months ended June 30, 2013.

 

·                  Excluding the previously mentioned decrease of $2.7 million in valuation adjustments on assets acquired through foreclosure, noninterest expense increased $139,000, or 1.3%, to $11.1 million for the six months ended June 30, 2014 from $11.0 million for the six months ended June 30, 2013.  The efficiency ratio was 59.8% and 62.4% for the three and six months ended June 30, 2014, respectively, compared to 64.2% and 63.7% for the three and six months ended June 30, 2013, respectively.

 

The Company also announced that its Board of Directors approved an increased cash dividend of $0.12 per outstanding share of common stock. The dividend will be paid on or about August 28, 2014 to stockholders of record as of the close of business on August 14, 2014.  Finally, on July 30, 2014, the Board of Directors approved an additional 5% stock repurchase plan (the “July

 

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2014 Plan”).  Subject to market conditions and other factors, repurchases related to the July 2014 Plan will begin subsequent to completion of repurchases under the Company’s existing repurchase plan, which was approved in April 2012.  During the three months ended June 30, 2014, the Company repurchased 70,000 shares of common stock and, as of June 30, 2014, had 238,529 shares remaining under the April 2012 Plan.

 

Fox Chase Bancorp, Inc. will host a conference call to discuss second quarter 2014 results on Thursday, July 31, 2014 at 9:00 am EDT.  The general public can access the call by dialing (877) 507-3275.  A replay of the conference call will be available through September 15, 2014 by dialing (877) 344-7529; use Conference ID: 10049489.

 

Fox Chase Bancorp, Inc. is the stock holding company of Fox Chase Bank. The Bank is a Pennsylvania state-chartered savings bank originally established in 1867.  The Bank offers traditional banking services and products from its main office in Hatboro, Pennsylvania and nine branch offices in Bucks, Montgomery, Chester and Philadelphia Counties in Pennsylvania and Atlantic and Cape May Counties in New Jersey.  For more information, please visit the Bank’s website at www.foxchasebank.com.

 

This news release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”  Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results.  These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein.  These risks and uncertainties involve general economic trends, changes in interest rates, loss of deposits and loan demand to other financial institutions, substantial changes in financial markets; changes in real estate value and the real estate market, regulatory changes, possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, the outcome of pending litigation, and market disruptions and other effects of terrorist activities.  The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the Securities and Exchange Commission.

 

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CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

(Unaudited)

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

8,130

 

$

8,016

 

$

16,240

 

$

16,078

 

Interest on mortgage related securities

 

1,774

 

1,751

 

3,602

 

3,489

 

Interest on investment securities

 

173

 

58

 

293

 

129

 

Other interest income

 

1

 

 

1

 

1

 

Total Interest Income

 

10,078

 

9,825

 

20,136

 

19,697

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

797

 

1,141

 

1,695

 

2,318

 

Short-term borrowings

 

30

 

17

 

55

 

49

 

Federal Home Loan Bank advances

 

576

 

549

 

1,146

 

1,051

 

Other borrowed funds

 

250

 

251

 

498

 

499

 

Total Interest Expense

 

1,653

 

1,958

 

3,394

 

3,917

 

Net Interest Income

 

8,425

 

7,867

 

16,742

 

15,780

 

Provision for loan losses

 

100

 

(783

)

100

 

(143

)

Net Interest Income after Provision for Loan Losses

 

8,325

 

8,650

 

16,642

 

15,923

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

Service charges and other fee income

 

424

 

462

 

776

 

823

 

Net (loss) gain on sale of assets acquired through foreclosure

 

(121

)

185

 

(121

)

181

 

Income on bank-owned life insurance

 

120

 

117

 

237

 

233

 

Equity in earnings of affiliate

 

67

 

165

 

34

 

335

 

Net gain on sale of investment securities

 

 

171

 

 

532

 

Other

 

24

 

39

 

47

 

89

 

 

 

 

 

 

 

 

 

 

 

Total Noninterest Income

 

514

 

1,139

 

973

 

2,193

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries, benefits and other compensation

 

3,519

 

3,480

 

7,160

 

6,985

 

Occupancy expense

 

418

 

393

 

914

 

840

 

Furniture and equipment expense

 

96

 

117

 

207

 

241

 

Data processing costs

 

377

 

367

 

762

 

765

 

Professional fees

 

337

 

488

 

815

 

776

 

Marketing expense

 

61

 

78

 

102

 

108

 

FDIC premiums

 

150

 

165

 

315

 

350

 

Assets acquired through foreclosure expense

 

72

 

2,810

 

393

 

3,095

 

Other

 

389

 

409

 

744

 

822

 

Total Noninterest Expense

 

5,419

 

8,307

 

11,412

 

13,982

 

Income Before Income Taxes

 

3,420

 

1,482

 

6,203

 

4,134

 

Income tax provision

 

1,105

 

438

 

1,932

 

1,263

 

Net Income

 

$

2,315

 

$

1,044

 

$

4,271

 

$

2,871

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

$

0.09

 

$

0.38

 

$

0.25

 

Diluted

 

$

0.20

 

$

0.09

 

$

0.37

 

$

0.25

 

 

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in Thousands, Except Share Data)

 

 

 

June 30,

 

December 31,

 

 

 

2014

 

2013

 

 

 

(Unaudited)

 

(Audited)

 

ASSETS

 

 

 

 

 

Cash and due from banks

 

$

274

 

$

149

 

Interest-earning demand deposits in other banks

 

9,409

 

11,798

 

Total cash and cash equivalents

 

9,683

 

11,947

 

Investment securities available-for-sale

 

8,477

 

10,489

 

Mortgage related securities available-for-sale

 

236,143

 

246,068

 

Mortgage related securities held-to-maturity (fair value of $72,961 at June 30, 2014 and $67,491 at December 31, 2013)

 

72,606

 

68,397

 

Loans, net of allowance for loan losses of $11,573 at June 30, 2014 and $11,529 at December 31, 2013

 

724,513

 

720,490

 

Federal Home Loan Bank stock, at cost

 

11,152

 

9,813

 

Bank-owned life insurance

 

14,784

 

14,547

 

Premises and equipment, net

 

9,569

 

9,814

 

Assets acquired through foreclosure

 

2,017

 

6,252

 

Real estate held for investment

 

1,620

 

1,620

 

Accrued interest receivable

 

3,275

 

3,308

 

Mortgage servicing rights, net

 

127

 

152

 

Deferred tax asset, net

 

4,743

 

8,906

 

Other assets

 

6,363

 

4,819

 

Total Assets

 

$

1,105,072

 

$

1,116,622

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Deposits

 

$

691,979

 

$

673,715

 

Short-term borrowings

 

47,300

 

80,500

 

Federal Home Loan Bank advances

 

150,000

 

150,000

 

Other borrowed funds

 

30,000

 

30,000

 

Advances from borrowers for taxes and insurance

 

1,802

 

1,525

 

Accrued interest payable

 

312

 

314

 

Accrued expenses and other liabilities

 

5,474

 

7,101

 

Total Liabilities

 

926,867

 

943,155

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Preferred stock ($.01 par value; 1,000,000 shares authorized, none issued and outstanding at June 30, 2014 and December 31, 2013)

 

 

 

Common stock ($.01 par value; 60,000,000 shares authorized, 12,112,491 shares outstanding at June 30, 2014 and 12,147,803 shares outstanding at December 31, 2013)

 

146

 

146

 

Additional paid-in capital

 

138,401

 

137,593

 

Treasury stock, at cost (2,538,172 shares at June 30, 2014 and 2,468,172 at December 31, 2013)

 

(34,581

)

(33,436

)

Common stock acquired by benefit plans

 

(8,566

)

(9,272

)

Retained earnings

 

83,057

 

82,885

 

Accumulated other comprehensive loss, net

 

(252

)

(4,449

)

Total Stockholders’ Equity

 

178,205

 

173,467

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

1,105,072

 

$

1,116,622

 

 

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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)

(Dollars in Thousands, Except Per Share Data)

 

 

 

June 30,

 

March 31,

 

December 31,

 

June 30,

 

 

 

2014

 

2014

 

2013

 

2013

 

CAPITAL RATIOS:

 

 

 

 

 

 

 

 

 

Stockholders’ equity (to total assets) (1)

 

16.13

%

16.13

%

15.53

%

15.45

%

Tier 1 capital (to adjusted assets) (2)

 

13.18

 

12.87

 

13.12

 

12.78

 

Tier 1 risk —based capital (to risk-weighted assets) (2)

 

18.59

 

18.74

 

18.44

 

18.94

 

Total risk-based capital (to risk-weighted assets) (2)

 

19.64

 

19.78

 

19.48

 

19.98

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY INDICATORS:

 

 

 

 

 

 

 

 

 

Nonperforming Assets:

 

 

 

 

 

 

 

 

 

Nonaccruing loans

 

$

4,144

 

$

3,979

 

$

8,780

 

$

9,989

 

Accruing loans past due 90 days or more

 

 

 

 

 

Total nonperforming loans

 

$

4,144

 

$

3,979

 

$

8,780

 

$

9,989

 

Assets acquired through foreclosure

 

2,017

 

4,574

 

6,252

 

9,948

 

Total nonperforming assets

 

$

6,161

 

$

8,553

 

$

15,032

 

$

19,937

 

 

 

 

 

 

 

 

 

 

 

Ratio of nonperforming loans to total loans

 

0.56

%

0.56

%

1.20

%

1.40

%

Ratio of nonperforming assets to total assets

 

0.56

 

0.79

 

1.35

 

1.78

 

Ratio of allowance for loan losses to total loans

 

1.57

 

1.62

 

1.57

 

1.48

 

Ratio of allowance for loan losses to nonperforming loans

 

279.3

 

287.4

 

131.3

 

105.1

 

 

 

 

 

 

 

 

 

 

 

Troubled Debt Restructurings:

 

 

 

 

 

 

 

 

 

Nonaccruing troubled debt restructurings (3) 

 

$

282

 

$

157

 

$

3,488

 

$

9,989

 

Accruing troubled debt restructurings

 

5,324

 

5,107

 

6,786

 

7,265

 

Total troubled debt restructurings

 

$

5,606

 

$

5,264

 

$

10,274

 

$

17,254

 

 

 

 

 

 

 

 

 

 

 

Past Due Loans:

 

 

 

 

 

 

 

 

 

30 - 59 days

 

$

526

 

$

829

 

$

413

 

$

1,618

 

60 - 89 days

 

10

 

179

 

5

 

323

 

Total

 

$

536

 

$

1,008

 

$

418

 

$

1,941

 

 


(1) Represents stockholders’ equity ratio of Fox Chase Bancorp, Inc.

(2) Represents regulatory capital ratios of Fox Chase Bank.

(3) Nonaccruing troubled debt restructurings are included in total nonaccruing loans above

 

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At or for the Three Months Ended

 

 

 

June 30,

 

March 31,

 

December 31,

 

June 30,

 

 

 

2014

 

2014

 

2013

 

2013

 

PERFORMANCE RATIOS (4):

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.85

%

0.72

%

0.54

%

0.38

%

Return on average equity

 

5.25

 

4.46

 

3.40

 

2.34

 

Net interest margin

 

3.20

 

3.17

 

3.17

 

3.01

 

Efficiency ratio (5)

 

59.8

 

65.1

 

64.0

 

64.2

 

OTHER:

 

 

 

 

 

 

 

 

 

Tangible book value per share - Core (6)

 

$

14.73

 

$

14.61

 

$

14.65

 

$

14.48

 

Tangible book value per share (7)

 

$

14.71

 

$

14.38

 

$

14.28

 

$

14.28

 

Employees (full-time equivalents)

 

140

 

141

 

142

 

143

 

 

 

 

At or for the Six Months Ended

 

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

 

2014

 

2013

 

 

 

 

 

PERFORMANCE RATIOS (4):

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.78

%

0.53

%

 

 

 

 

Return on average equity

 

4.85

 

3.20

 

 

 

 

 

Net interest margin

 

3.19

 

3.04

 

 

 

 

 

Efficiency ratio (5)

 

62.4

 

63.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(4) Annualized

(5) Represents noninterest expense, excluding valuation adjustments on assets acquired through foreclosure,  divided by the sum of net interest income and noninterest income, excluding gains or losses on the sale of securities, premises and equipment and assets acquired through foreclosure.

(6) Total stockholders’equity, excluding the impact of accumulated other comprehensive loss, net ($252,000 at June 30, 2014, $2.7 million at March 31, 2014, $4.4 million at December 31, 2013 and $2.4 million at June 30, 2013) divided by total shares outstanding.

(7) Total stockholders’equity divided by total shares outstanding.  Tangible book value per share and book value per share were the same for all periods indicated.

 

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AVERAGE BALANCE SHEET

(Dollars in Thousands, Unaudited)

 

 

 

Three Months Ended June 30,

 

 

 

2014

 

2013

 

 

 

 

 

Interest

 

 

 

 

 

Interest

 

 

 

 

 

Average

 

and

 

Yield/

 

Average

 

and

 

Yield/

 

 

 

Balance

 

Dividends

 

Cost (2)

 

Balance

 

Dividends

 

Cost (2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning demand deposits

 

$

6,241

 

$

1

 

0.05

%

$

5,822

 

$

 

0.04

%

Mortgage related securities

 

313,939

 

1,774

 

2.26

%

331,110

 

1,751

 

2.12

%

Investment securities

 

19,001

 

173

 

3.65

%

20,713

 

58

 

1.14

%

Loans (1)

 

714,243

 

8,130

 

4.56

%

690,584

 

8,016

 

4.65

%

Allowance for loan losses

 

(11,553

)

 

 

 

 

(11,962

)

 

 

 

 

Net loans

 

702,690

 

8,130

 

 

 

678,622

 

8,016

 

 

 

Total interest-earning assets

 

1,041,871

 

10,078

 

3.88

%

1,036,267

 

9,825

 

3.80

%

Noninterest-earning assets

 

45,628

 

 

 

 

 

51,250

 

 

 

 

 

Total assets

 

$

1,087,499

 

 

 

 

 

$

1,087,517

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

560,578

 

$

797

 

0.57

%

$

581,391

 

$

1,141

 

0.79

%

Borrowings

 

220,770

 

856

 

1.56

%

196,632

 

817

 

1.67

%

Total interest-bearing liabilities

 

781,348

 

1,653

 

0.85

%

778,023

 

1,958

 

1.01

%

Noninterest-bearing deposits

 

122,395

 

 

 

 

 

124,025

 

 

 

 

 

Other noninterest-bearing liabilities

 

7,284

 

 

 

 

 

6,727

 

 

 

 

 

Total liabilities

 

911,027

 

 

 

 

 

908,775

 

 

 

 

 

Stockholders’ equity

 

177,895

 

 

 

 

 

176,645

 

 

 

 

 

Accumulated comprehensive income

 

(1,423

)

 

 

 

 

2,097

 

 

 

 

 

Total stockholder’s equity

 

176,472

 

 

 

 

 

178,742

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,087,499

 

 

 

 

 

$

1,087,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

8,425

 

 

 

 

 

$

7,867

 

 

 

Interest rate spread

 

 

 

 

 

3.03

%

 

 

 

 

2.79

%

Net interest margin

 

 

 

 

 

3.20

%

 

 

 

 

3.01

%

 


(1)         Nonperforming loans are included in average balance computation.

(2)         Yields are not presented on a tax-equivalent basis.

 

9



 

AVERAGE BALANCE SHEET

(Dollars in Thousands, Unaudited)

 

 

 

Three Months Ended

 

 

 

June 30, 2014

 

March 31, 2014

 

 

 

 

 

Interest

 

 

 

 

 

Interest

 

 

 

 

 

Average

 

and

 

Yield/

 

Average

 

and

 

Yield/

 

 

 

Balance

 

Dividends

 

Cost (2)

 

Balance

 

Dividends

 

Cost (2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning demand deposits

 

$

6,241

 

$

1

 

0.05

%

$

7,325

 

$

 

0.03

%

Mortgage related securities

 

313,939

 

1,774

 

2.26

%

317,098

 

1,828

 

2.31

%

Investment securities

 

19,001

 

173

 

3.65

%

18,416

 

120

 

2.61

%

Loans (1)

 

714,243

 

8,130

 

4.56

%

714,983

 

8,110

 

4.59

%

Allowance for loan losses

 

(11,553

)

 

 

 

 

(11,603

)

 

 

 

 

Net loans

 

702,690

 

8,130

 

 

 

703,380

 

8,110

 

 

 

Total interest-earning assets

 

1,041,871

 

10,078

 

3.88

%

1,046,219

 

10,058

 

3.88

%

Noninterest-earning assets

 

45,628

 

 

 

 

 

46,457

 

 

 

 

 

Total assets

 

$

1,087,499

 

 

 

 

 

$

1,092,676

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

560,578

 

$

797

 

0.57

%

$

573,346

 

$

898

 

0.64

%

Borrowings

 

220,770

 

856

 

1.56

%

215,915

 

843

 

1.58

%

Total interest-bearing liabilities

 

781,348

 

1,653

 

0.85

%

789,261

 

1,741

 

0.89

%

Noninterest-bearing deposits

 

122,395

 

 

 

 

 

119,207

 

 

 

 

 

Other noninterest-bearing liabilities

 

7,284

 

 

 

 

 

8,619

 

 

 

 

 

Total liabilities

 

911,027

 

 

 

 

 

917,087

 

 

 

 

 

Stockholders’ equity

 

177,895

 

 

 

 

 

178,266

 

 

 

 

 

Accumulated comprehensive income

 

(1,423

)

 

 

 

 

(2,677

)

 

 

 

 

Total stockholder’s equity

 

176,472

 

 

 

 

 

175,589

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,087,499

 

 

 

 

 

$

1,092,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

8,425

 

 

 

 

 

$

8,317

 

 

 

Interest rate spread

 

 

 

 

 

3.03

%

 

 

 

 

2.99

%

Net interest margin

 

 

 

 

 

3.20

%

 

 

 

 

3.17

%

 


(1)         Nonperforming loans are included in average balance computation.

(2)         Yields are not presented on a tax-equivalent basis.

 

10



 

AVERAGE BALANCE SHEET

(Dollars in Thousands, Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2014

 

2013

 

 

 

 

 

Interest

 

 

 

 

 

Interest

 

 

 

 

 

Average

 

and

 

Yield/

 

Average

 

and

 

Yield/

 

 

 

Balance

 

Dividends

 

Cost (2)

 

Balance

 

Dividends

 

Cost (2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning demand deposits

 

$

6,783

 

$

1

 

0.04

%

$

5,484

 

$

1

 

0.04

%

Mortgage related securities

 

315,519

 

3,602

 

2.28

%

327,241

 

3,489

 

2.13

%

Investment securities

 

18,709

 

293

 

3.14

%

20,841

 

129

 

1.24

%

Loans (1)

 

714,613

 

16,240

 

4.57

%

689,434

 

16,078

 

4.69

%

Allowance for loan losses

 

(11,578

)

 

 

 

 

(11,703

)

 

 

 

 

Net loans

 

703,035

 

16,240

 

 

 

677,731

 

16,078

 

 

 

Total interest-earning assets

 

1,044,046

 

20,136

 

3.88

%

1,031,297

 

19,697

 

3.80

%

Noninterest-earning assets

 

46,043

 

 

 

 

 

49,565

 

 

 

 

 

Total assets

 

$

1,090,089

 

 

 

 

 

$

1,080,862

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

566,963

 

$

1,695

 

0.60

%

$

580,709

 

$

2,318

 

0.80

%

Borrowings

 

218,343

 

1,699

 

1.57

%

194,410

 

1,599

 

1.66

%

Total interest-bearing liabilities

 

785,306

 

3,394

 

0.87

%

775,119

 

3,917

 

1.02

%

Noninterest-bearing deposits

 

120,801

 

 

 

 

 

118,449

 

 

 

 

 

Other noninterest-bearing liabilities

 

7,952

 

 

 

 

 

7,632

 

 

 

 

 

Total liabilities

 

914,059

 

 

 

 

 

901,200

 

 

 

 

 

Stockholders’ equity

 

178,081

 

 

 

 

 

176,882

 

 

 

 

 

Accumulated comprehensive income

 

(2,051

)

 

 

 

 

2,780

 

 

 

 

 

Total stockholder’s equity

 

176,030

 

 

 

 

 

179,662

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,090,089

 

 

 

 

 

$

1,080,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

16,742

 

 

 

 

 

$

15,780

 

 

 

Interest rate spread

 

 

 

 

 

3.01

%

 

 

 

 

2.78

%

Net interest margin

 

 

 

 

 

3.19

%

 

 

 

 

3.04

%

 


(1)         Nonperforming loans are included in average balance computation.

(2)         Yields are not presented on a tax-equivalent basis.

 

###

 

11