Exhibit 99.1
NEWS RELEASE	FOR IMMEDIATE RELEASE

 

 

 

 

 

DCB Financial Corp Announces Second Quarter 2015 Results

 

Lewis Center, OH, July 30, 2015 - DCB Financial Corp (the “Company”), (OTCQB:DCBF), parent holding company of The Delaware County Bank & Trust Company, Lewis Center, Ohio (the “Bank”) announced net income of $144,000 or $0.02 per diluted share for the three months ended June 30, 2015, compared to net income of $37,000 or $0.01 per diluted share for the same period in 2014. The increase in net income resulted from a $196,000 increase in net interest income and an increase of $184,000 in non-interest income, which offset a $273,000 increase in non-interest expenses. During the second quarter of 2015, the Company recorded a $175,000 one-time expense accrual for refunds of certain fees charged to a small segment of deposit customers between 2011 and 2015.

 

Net income was $383,000 or $0.05 per diluted share for the six months ended June 30, 2015, compared to net income of $156,000 or $0.02 per diluted share for the same period in 2014. Increases of $389,000 in net interest income and $151,000 in non-interest income during the first six months of 2015 offset a $150,000 increase in the provision for loan losses and a $163,000 increase in non-interest expenses.

 

Ronald J. Seiffert, President and CEO for the Company said, “Net income for the first half of 2015 increased 146% over the year-ago period, and was slightly higher than our net income for all of 2014, as strong growth in net interest income and higher wealth management fees drove a $540,000 increase in net revenue in the first half of 2015 compared to the first half of last year.”

 

Seiffert continued, “Our business development initiatives have borne strong results over the past year, with average loan balances up over $20 million in both the three months and six months ended June 30, 2015 compared to the year-ago periods. We have a number of strategic initiatives under way designed to further increase our lending capacity in coming quarters, including the hiring of a seasoned mortgage banking professional to lead the development and expansion of our mortgage banking business, which we announced last week.”

 

Balance Sheet Highlights

Total assets were $541.6 million at June 30, 2015, compared with $520.7 million at March 31, 2015 and $515.4 million at December 31, 2014. Cash and cash equivalents increased $26.1 million since the end of 2014 due in large part to seasonal inflows of funds into the Company’s municipal accounts during the second quarter.

 

 

Total loans were $382.2 million at June 30, 2015, compared with $377.2 million at March 31, 2015 and $385.4 million at December 31, 2014. The Company entered 2015 with a relatively light loan pipeline due primarily to seasonal factors and a large number of commercial loan closings in the fourth quarter of 2014. Growth in the Company’s commercial loan portfolios in the fourth quarter of 2014 totaled $9.8 million. In addition, prepayments and payoffs in the Company’s commercial loan portfolios were unusually high during the first quarter of 2015, including 5 relationships aggregating $5.7 million that paid off during the quarter. Loan growth rebounded in the second quarter, with commercial and industrial loans and residential loans increasing $2.9 million and $2.4 million, respectively.

 

Deposits totaled $470.5 million at June 30, 2015, compared with $464.8 million at March 31, 2015 and $453.2 million at December 31, 2014. Money market accounts increased $9.1 million in the first quarter of 2015 due primarily to seasonal inflows of municipal deposits.

 

Shareholders’ equity increased $255,000 in the first half of 2015 to $47.5 million at June 30, 2015. Net income for the first half of 2015 of $383,000 was partially offset by a decrease in accumulated other comprehensive income due to a decrease in unrealized gains on securities available-for-sale.

 

The Bank’s Tier 1 leverage ratio was 8.63% and its total risk-based capital ratio was 13.83% at June 30, 2015, both of which were well above the regulatory thresholds required to be classified as a “well-capitalized” institution, which are 5.0% and 10.0%, respectively.

 

Asset Quality and the Provision for Loan Losses

Delinquent loans (including non-accrual loans) totaled $2.4 million or 0.63% of total loans at June 30, 2015, compared to $2.0 million or 0.53% of total loans at March 31, 2015 and $2.2 million or 0.58% of total loans at December 31, 2014. Non-accrual loans totaled $1.5 million or 0.38% of total loans at June 30, 2015, compared to $1.1 million or 0.30% of total loans at March 31, 2015 and $1.4 million or 0.36% of total loans at December 31, 2014.

 

Non-performing assets were $11.8 million or 2.18% of total assets at June 30, 2015, compared with $11.8 million or 2.26% of total assets at March 31, 2015 and $12.6 million or 2.45% of total assets at December 31, 2014. Troubled debt restructurings (“TDR’s”), which are performing in accordance with the restructured terms and accruing interest, but are included in non-performing assets, were $9.1 million at June 30, 2015, and $9.6 million at March 31, 2015 and at December 31, 2014.

 

Net recoveries of previously charged-off loans totaling $75,000 were recorded in the second quarter of 2015, compared to net charge-offs of $777,000 or 0.87% (annualized) of average loans in the year-ago quarter, and net charge-offs of $297,000 or 0.31% (annualized) of average loans in the first quarter of 2015.

 

  

Net charge-offs were $222,000 or 0.12% (annualized) of average loans in the first half of 2015, compared to net charge-offs of $2.1 million or 1.15% (annualized) of average loans in the first half of 2014. Three relationships comprised nearly all of the charge-offs in the first half of 2014, which were charged against specific allowance allocations established in the fourth quarter of 2013.

 

There was no provision for loan losses recorded in the second quarter of 2015, compared with a provision for loan losses of $150,000 in the first quarter of 2015. There was no provision for loan losses recorded in the three months and six months ended June 30, 2014.

 

The allowance for loan losses was $4.2 million at June 30, 2015, compared to $4.1 million at March 31, 2015 and $4.2 million at December 31, 2014. The ratio of the allowance for loan losses to total loans was 1.09% at June 30, 2015, compared with 1.08% at March 31, 2015 and 1.10% at December 31, 2014. The ratio of the allowance for loan losses to non-performing loans (including TDR’s) was 38.2% at June 30, 2015, compared to 37.8% at March 31, 2015 and 38.5% at December 31, 2014. The ratio of the allowance for loan losses to non-accrual loans was 286% at June 30, 2015, compared to 362% at March 31, 2015 and 306% at December 31, 2014.

 

Net Interest Income

Net interest income totaled $4.2 million in the quarter ended June 30, 2015, compared with $4.0 million in the year-ago quarter and $4.2 million in the first quarter of 2015. The net interest margin was 3.40% in the second quarter of 2015, compared to 3.51% in the year-ago quarter and 3.50% in the first quarter of 2015. The decline in the net interest margin resulted primarily from the effect of higher interest-bearing cash balances, with yields averaging 0.25%.

 

Total average interest-earning assets were $491.1 million in the second quarter of 2015, which was an increase of $37.7 million or 8.3% from the year-ago quarter and was an increase of $6.2 million compared with the first quarter of 2015. Average loans outstanding in the second quarter were up $21.3 million compared to the year-ago quarter, but were down $3.1 million compared with the first quarter of 2015 as nearly all of the $4.9 million increase in outstanding loan balances that occurred during the second quarter occurred in the month of June. Total average loans were 77.0% of total average interest-earning assets in the second quarter of 2015, compared with 78.7% in the year-ago quarter and 78.6% in the first quarter of 2015.

 

Total average interest-bearing deposit balances increased $27.1 million in the second quarter of 2015 compared to the year-ago quarter, with an increase of $33.1 million in the average balances of lower-costing interest-bearing demand, savings and money market accounts (transaction accounts) offsetting a decrease in the average balance of time deposits of $6.0 million. Transaction accounts comprised 78.9% of total interest-bearing deposits in the second quarter of 2015, compared to 75.4% in the year-ago quarter and 78.5% in the first quarter of 2015.

 

 

 

Net interest income totaled $8.3 million in the first half 2015, which was an increase of $389,000 or 4.9% compared with $8.0 million in the year-ago period. The net interest margin was 3.45% for the six months ended June 30, 2015, compared with 3.47% in the year-ago period.

 

Average interest-earning assets were $487.9 million in the first half of 2015, which was an increase of $27.5 million or 6.0% from the first half of 2014. Average loans outstanding in the first half of 2015 increased $20.1 million compared to the year-ago period, and totaled 77.8% of total interest-earning assets in the six months ended June 30, 2015, compared with 77.9% in the six months ended June 30, 2014.

 

The average balance in time deposits decreased $7.9 million in the first half of 2015 compared with the year-ago period, while the average balances in lower-costing interest-bearing demand, savings and money market accounts increased $28.9 million. Transaction accounts comprised 78.7% of total interest-bearing deposits in the first half of 2015, compared to 75.1% in the first half of 2014.

 

Non-Interest Income and Non-Interest Expenses

Non-interest income was $1.2 million in the second quarter of 2015, compared to $996,000 in the second quarter of 2014 and $1.2 million in the first quarter of 2015. Non-interest income for the second quarter of 2014 was negatively impacted by losses of $114,000 on loans held-for-sale. The rest of the increase in non-interest income in the second quarter of 2015 compared with the year-ago period resulted from increases in service charges, wealth management income and treasury management fees.

 

Non-interest income was $2.3 million in the first half of 2015, compared to $2.2 million in the first half of 2014.

 

Non-interest income (net of non-recurring items in the year-ago quarter) accounted for 22.2% of total revenue in the second quarter of 2015, compared with 21.8% in the year-ago quarter and 21.5% in the first quarter of 2015. Non-interest income accounted for 21.9% of total revenue in the first half of 2015, compared with 22.0% in the year-ago period.

 

Non-interest expenses were $5.2 million for the second quarter of 2015, compared with $4.9 million in the year-ago quarter and $5.0 million for the first quarter of 2015. The Company’s efficiency ratio was 95.0% in the second quarter of 2015, compared with 96.2% in the year-ago quarter, and 92.9% in the first quarter of 2015.

 

Non-interest expenses were $10.1 million in the first half of 2015, compared to $10.0 million in the first half of 2014. The Company’s efficiency ratio was 93.8% for the first half of 2015, compared to 97.4% in the year-ago period.

 

 

About DCB Financial Corp

DCB Financial Corp is a financial holding company formed under the laws of the State of Ohio. The Company is the parent of The Delaware County Bank & Trust Company, a state-chartered commercial bank. The Bank conducts business from its main offices at 110 Riverbend Avenue in Lewis Center, Ohio, and through its 14 branch offices located in Central Ohio. The Bank provides customary retail and commercial banking and cash management services to its customers, including checking and savings accounts, time deposits, IRAs, safe deposit facilities, personal loans, commercial loans, commercial leases, real estate mortgage loans, night depository facilities and trust and personalized wealth management services.

 

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of DCB Financial Corp. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: an increase in competitive pressure in the banking industry; changes in the interest rate environment which may affect the net interest margin; changes in the regulatory environment; general economic conditions, either nationally or regionally, resulting in, among other things, in a deterioration in credit quality; changes in business conditions and inflation; changes in the securities markets; changes in technology used in the banking business; our ability to maintain and increase market share and control expenses; increases in FDIC insurance premiums may cause earnings to decrease; and other risks set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and in subsequent filings with the Securities and Exchange Commission.

 

The Company does not undertake, and specifically disclaims any obligation, to publicly revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 

Contact:	DCB Financial Corp
	Ronald J. Seiffert, President and CEO
	(740) 657-7000
	J. Daniel Mohr, Executive Vice President and CFO
	(740) 657-7510

 

 

DCB Financial Corp

Consolidated Balance Sheets (Unaudited)

 

		June 30, 2015				December 31, 2014
		(Dollars in thousands, except share and per share data)
Assets
Cash and due from financial institutions		$	5,676			$	6,247
Interest-bearing deposits			41,717				15,027
Total cash and cash equivalents			47,393				21,274
Securities available-for-sale			78,975				75,909
Loans			382,164				385,444
Less allowance for loan losses			(4,164	)			(4,236	)
Net loans			378,000				381,208
Real estate owned			807				1,111
Investment in FHLB stock			3,250				3,250
Premises and equipment, net			9,837				10,016
Bank-owned life insurance			20,434				20,027
Accrued interest receivable and other assets			2,913				2,587
Total assets		$	541,609			$	515,382
Liabilities and shareholders’ equity
Liabilities:
Deposits:
Non-interest bearing		$	118,114			$	111,022
Interest bearing			352,411				342,170
Total deposits			470,525				453,192
Borrowings			4,719				11,808
Accrued interest payable and other liabilities			18,899				3,171
Total liabilities			494,143				468,171
Shareholders’ equity:
Common stock			16,456				16,064
Retained earnings			38,438				38,055
Treasury stock			(7,416	)			(7,416	)
Accumulated other comprehensive income			493				654
Deferred stock-based compensation			(505	)			(146	)
Total shareholders’ equity			47,466				47,211
Total liabilities and shareholders’ equity		$	541,609			$	515,382
Common shares outstanding			7,287,435				7,233,795
Book value per common share		$	6.51			$	6.53

 

 

DCB Financial Corp

Consolidated Statements of Operations (Unaudited)

 

		Three months ended June 30,								Six months ended June 30,
		2015				2014				2015				2014
		(Dollars in thousands, except share and per share data)
Interest income:
Loans		$	3,953			$	3,719			$	7,905			$	7,456
Securities			482				534				987				1,088
Federal funds sold and interest bearing deposits			19				9				29				23
Total interest income			4,454				4,262				8,921				8,567
Interest expense:
Deposits:
Savings and money market  accounts			150				136				292				269
Time accounts			92				108				184				237
NOW accounts			17				19				33				37
			259				263				509				543
Borrowings			36				36				71				72
Total interest expense			295				299				580				615
Net interest income			4,159				3,963				8,341				7,952
Provision for loan losses			—				—				150				—
Net interest income after provision for loan losses			4,159				3,963				8,191				7,952
Non-interest income:
Service charges			500				489				952				1,000
Wealth management fees			399				378				779				671
Treasury management fees			64				59				122				115
Income from bank-owned life insurance			165				164				408				402
Loss on loans held for sale			—				(114	)			—				(357	)
Loss (gain) on sale of REO			(11	)			(4	)			1				(4	)
Loss on sale of securities, available-for-sale			—				—				—				(140	)
Gain on sale of branch			—				—				—				438
Other non-interest income			63				24				76				62
Total non-interest income			1,180				996				2,338				2,187
Non-interest expense:
Salaries and employee benefits			2,819				2,712				5,531				5,490
Occupancy and equipment			1,023				921				1,986				1808
Professional services			284				197				637				617
Advertising			141				77				249				158
Office supplies, postage and courier			72				89				151				184
FDIC insurance premium			97				172				207				340
State franchise taxes			75				67				150				132
Other non-interest expense			684				687				1,235				1254
Total non-interest expense			5,195				4,922				10,146				9,983
Income before income taxes			144				37				383				156
Income taxes			—				—				—				—
Net income		$	144			$	37			$	383			$	156
Share and Per Share Data
Basic average common shares outstanding			7,287,435				7,192,350				7,262,541				7,192,350
Diluted average common shares outstanding			7,303,902				7,250,702				7,278,933				7,247,315
Basic earnings per common share		$	0.02			$	0.01			$	0.05			$	0.02
Diluted earnings per common share		$	0.02			$	0.01			$	0.05			$	0.02

 

 

DCB Financial Corp

Consolidated Average Balances (Unaudited)

 

		Three months ended June 30,								Six months ended June 30,
		2015				2014				2015				2014
		(Dollars in thousands)
Earning assets
Interest bearing cash		$	28,466			$	13,566			$	24,128			$	17,635
Securities			77,772				75337				77,457				76,224
Tax-exempt securities			6,842				7853				6,846				7,924
Loans (1)			377,985				356,678				379,553				358,663
Total earning assets			491,065				453,434				487,984				460,446
Non-earning assets			41,239				40,778				41,710				40,803
Total assets		$	532,304			$	494,212			$	529,694			$	501,249
Interest bearing liabilities
Interest bearing DDA		$	80,065			$	76,555			$	80,734			$	78,655
Money market			158,782				130,370				156,920				130,352
Savings accounts			43,881				42,720				43,322				43,118
Time deposits			75,384				81,415				75,898				83,797
Overnight borrowings			—				—				—				—
FHLB advances			4,765				4,894				5,564				5,086
Total interest bearing liabilities			362,877				335,954				362,438				341,008
Non-interest bearing deposits		$	119,440			$	109,486			$	116,271			$	110,490
Other non-interest bearing liabilities			3,163				3,043				4,269				4,578
Total liabilities			485,480				448,483				482,978				456,076
Shareholders’ equity			46,824				45,729				46,716				45,173
Total liabilities and shareholders’ equity		$	532,304			$	494,212			$	529,694			$	501,249

 

(1)

Includes loans held for sale in 2014

 

 

DCB Financial Corp

Loans and Deposits (Unaudited)

 

The following table sets forth the composition of the Company’s loan portfolio at the dates indicated (includes loans held for sale):

 

		June 30, 2015								March 31, 2015								December 31, 2014
		Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Loan portfolio composition
Commercial and industrial		$	102,754				26.9	%		$	99,946				26.5	%		$	106,222				27.6	%
Commercial real estate			105,615				27.7	%			106,334				28.2	%			111,851				29.0	%
Real estate and home equity			134,090				35.1	%			131,658				34.9	%			129,650				33.7	%
Consumer and credit card			39,403				10.3	%			39,074				10.4	%			37,507				9.7	%
Total loans		$	381,862				100.0	%		$	377,012				100.0	%		$	385,230				100.0	%
Net deferred loan costs			302								234								214
Allowance for loan losses			(4,164	)							(4,089	)							(4,236	)
Net loans		$	378,000							$	373,157							$	381,208

 

The following table sets forth the composition of the Company’s deposits at the dates indicated :

 

		June 30, 2015								March 31, 2015								December 31, 2014
		Amount				Percent				Amount				Percent				Amount				Percent
		(Dollars in thousands)
Deposit composition
Non-interest bearing demand		$	118,114				25.1	%		$	111,286				23.9	%		$	111,022				24.5	%
Interest bearing demand			79,954				17.0	%			76,390				16.5	%			77,534				17.1	%
Total demand			198,068				42.1	%			187,676				40.4	%			188,556				41.6	%
Savings			43,722				9.3	%			43,568				9.4	%			42,634				9.4	%
Money market			154,344				32.8	%			156,806				33.7	%			147,667				32.6	%
Time deposits			74,391				15.8	%			76,746				16.5	%			74,335				16.4	%
Total deposits		$	470,525				100.0	%		$	464,796				100.0	%		$	453,192				100.0	%

 

DCB Financial Corp

Asset Quality (Unaudited)

 

The following table represents a summary of delinquent loans grouped by the number of days delinquent at the dates indicated:

 

Delinquent loans and leases		June 30, 2015								March 31, 2015								December 31, 2014
		$				%(1)				$				%(1)				$				%(1)
		(Dollars in thousands)
30 days past due and still accruing		$	460				0.12	%		$	250				0.07	%		$	336				0.09	%
60 days past due and still accruing			22				0.01	%			498				0.13	%			37				0.01	%
90 days past due and still accruing			475				0.12	%			105				0.03	%			480				0.12	%
Non-accrual			1,457				0.38	%			1,130				0.30	%			1,384				0.36	%
Total		$	2,414				0.63	%		$	1,983				0.53	%		$	2,237				0.58	%

 

(1) As a percentage of total loans, excluding deferred costs

 

The following table represents information concerning the aggregate amount of non-performing assets (includes loans held for sale):

 

 

Non-performing assets		June 30, 2015				March 31, 2015				December 31, 2014
		(Dollars in thousands)
Non-accruing loans:
Residential real estate loans and home equity		$	766			$	340			$	334
Commercial real estate			31				60				298
Commercial and industrial			593				612				632
Consumer loans and credit cards			67				118				120
Total non-accruing loans			1,457				1,130				1,384
Accruing loans delinquent 90 days or more			475				105				480
Total non-performing loans (excluding TDR’s)			1,932				1,235				1,864
Other real estate and repossessed assets			807				940				1,111
Total non-performing assets (excluding TDR’s)		$	2,739			$	2,175			$	2,975
Troubled debt restructurings(1)		$	9,068			$	9,575			$	9,633
Total non-performing loans (including TDR’s)		$	11,000			$	10,810			$	11,497
Total non-performing assets (including TDR’s)		$	11,807			$	11,750			$	12,608

 

(1) TDR’s that are in compliance with their modified terms and accruing interest.

 

The following table summarizes changes in the allowance for loan losses arising from loans charged off, recoveries on loans and leases previously charged off and additions to the allowance which have been charged to expense:

 

Allowance for loan losses		Three months ended June 30,								Six months ended June 30,
		2015				2014				2015				2014
		(Dollars in thousands)
Allowance for loan losses, beginning of period		$	4,089			$	5,345			$	4,236			$	6,724
Loans charged-off			(78	)			(846	)			(507	)			(2,258	)
Recoveries of loans previously charged-off			153				69				285				199
Net loans charged-off			75				(777	)			(222	)			(2,059	)
Allowance related to loans transferred to held-for-sale			—				—				—				(97	)
Provision for loan losses			—				—				150				—
Allowance for loan losses, end of period		$	4,164			$	4,568			$	4,164			$	4,568

 

 

DCB Financial Corp

Consolidated Financial Information (Unaudited)

 

Key Ratios		At or for the three months ended June 30,								At or for the six months ended June 30,
		2015				2014				2015				2014
Return on average assets			0.19	%			0.05	%			0.19	%			0.07	%
Return on average equity			2.17	%			0.53	%			2.11	%			0.80	%
Yield on earning assets			3.61	%			3.77	%			3.68	%			3.75	%
Cost of interest-bearing liabilities			0.33	%			0.36	%			0.32	%			0.36	%
Net interest margin (1)			3.40	%			3.53	%			3.45	%			3.49	%
Non-interest income to total income (2)			22.2	%			21.8	%			21.9	%			22.0	%
Efficiency ratio (3)			95.0	%			96.2	%			93.8	%			97.4	%
Net loans charged-off to average loans, annualized			(0.08	)%			0.87	%			0.12	%			1.15	%
Provision for loan losses to average loans, annualized			0.00	%			0.00	%			0.04	%			0.00	%
Allowance for loan losses to total loans			1.09	%			1.28	%			1.09	%			1.28	%
Allowance for loan losses to non-accrual loans			286	%			109	%			286	%			109	%
Non-accrual loans to total loans			0.38	%			1.17	%			0.38	%			1.17	%
Non-performing assets to total assets (including performing TDR’s)			2.18	%			2.97	%			2.18	%			2.97	%
Non-performing assets to total assets (excluding performing TDR’s)			0.51	%			1.12	%			0.51	%			1.12	%

 

(1)

Net interest income divided by average earning assets

(2)

Non-interest income (excluding net realized gains and losses on securities and other non-recurring gains and losses) divided by the sum of net interest income and non-interest income (as adjusted)

(3)

Non-interest expense (less OREO expense and non-recurring expenses and losses) divided by the sum of net interest income and non-interest income (as adjusted)

 

 

DCB Financial Corp

Selected Quarterly Financial Data (Unaudited)

 

		2015								2014
		Second				First				Fourth				Third				Second
		(Dollars in thousands, except per share data)
Interest income		$	4,454			$	4,467			$	4,536			$	4,278			$	4,262
Interest expense			295				285				291				306				299
Net interest income			4,159				4,182				4,245				3,972				3,963
Provision for loan losses			—				150				150				—				—
Net interest income after provision for loan losses			4,159				4,032				4,094				3,972				3,963
Non-interest income			1,180				1,158				1,132				1,140				996
Non-interest expenses			5,195				4,951				5,059				5,062				4,922
Income before income taxes			144				239				168				50				37
Income taxes			—				—				—				—				—
Net income		$	144			$	239			$	168			$	50			$	37
Stock and related per share data
Basic and diluted earnings per common share		$	0.02			$	0.03			$	0.02			$	0.01			$	0.01
Basic weighted average common shares outstanding			7,287,435				7,237,371				7.196,404				7,192,350				7,192,350
Diluted weighted average common shares outstanding			7,303,902				7,253,840				7,232,961				7,249,194				7,250,702
Common book value per share		$	6.51			$	6.54			$	6.53			$	6.49			$	6.51
Capital Ratios:
Bank
Tier 1 leverage ratio			8.63	%			8.65	%			9.00	%			8.96	%			8.97	%
Common equity tier 1 capital ratio			12.68	%			12.62	%			12.40	%			12.42	%			12.77	%
Tier 1 risk based capital ratio			12.68	%			12.62	%			12.40	%			12.42	%			12.77	%
Total risk based capital ratio			13.83	%			13.75	%			13.56	%			13.57	%			14.02	%
Total equity to assets ratio (consolidated)			8.80	%			9.15	%			9.16	%			9.33	%			9.35	%
Selected ratios:
Return on average assets			0.19	%			0.18	%			0.13	%			0.04	%			0.05	%
Return on average equity			2.17	%			2.05	%			1.44	%			0.43	%			0.53	%
Yield on earning assets			3.61	%			3.73	%			3.86	%			3.66	%			3.75	%
Cost of interest-bearing liabilities			0.33	%			0.32	%			0.33	%			0.35	%			0.36	%
Net interest margin			3.40	%			3.50	%			3.62	%			3.40	%			3.51	%
Non-interest income to total income (1)			22.2	%			21.5	%			20.6	%			22.6	%			21.8	%
Efficiency ratio (2)			95.0	%			92.9	%			94.6	%			98.7	%			96.2	%
Asset quality ratios:
Net loans charged off to average loans, annualized			(0.08	)%			0.31	%			0.10	%			0.43	%			0.87	%
Provision for loan losses to average loans, annualized			0.00	%			0.16	%			0.16	%			0.00	%			0.00	%
Allowance for loan losses to total loans			1.09	%			1.08	%			1.10	%			1.13	%			1.28	%
Allowance for loan losses to non-accrual loans			286	%			362	%			306	%			139	%			109	%
Non-accrual loans to total loans			0.38	%			0.30	%			0.36	%			0.81	%			1.17	%
Non-performing assets to total assets (including performing TDR’s)			2.18	%			2.26	%			2.45	%			2.91	%			3.06	%
Non-performing assets to total assets (excluding performing TDR’s)			0.51	%			0.42	%			0.58	%			0.95	%			1.12	%

 

(1) Non-interest income (net of realized gains and losses on securities and other non-recurring items) divided by the sum of net interest income and non-interest income (as adjusted)

(2) Non-interest expense (less OREO expense) divided by the sum of net interest income and non-interest income (as adjusted)