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8-K - FORM 8-K - NEWBRIDGE BANCORP | g25881e8vk.htm |
Exhibit 99.1
Contact:
Ramsey Hamadi, EVP and Chief Financial Officer
336-369-0900
Ramsey Hamadi, EVP and Chief Financial Officer
336-369-0900
NEWBRIDGE BANCORP REPORTS $1.1 MILLION FOURTH QUARTER 2010 NET INCOME;
$3.4 MILLION NET INCOME FOR YEAR
$3.4 MILLION NET INCOME FOR YEAR
| Fourth quarter 2010 net income up sharply | ||
| Year-over-year pre-tax income improvement of $29.9 million | ||
| Net interest income up $654,000 over prior fourth quarter, $10.1 million for year | ||
| Net interest margin 4.00% for quarter and year | ||
| Provision for credit losses declined $14.5 million from prior year on improving asset quality | ||
| Nonperforming loans declined 13% for year. Excluding restructured loans, nonperforming loans fell 42% from prior year and 47% from June 2009 peak | ||
| Cumulative loan related charges for this negative credit cycle total $115 million, or 7.1% of peak level loans, as aggressive loss recognition continued | ||
| Total risk based capital increased to 13.13%; tier one leverage capital reached 9.69% | ||
| Core deposits rose 16% in 2010; 66% of total deposits | ||
| Noninterest expense declined $5.0 million in 2010 |
GREENSBORO, N.C., January 26, 2011 NewBridge Bancorp (NASDAQ: NBBC), parent of NewBridge Bank,
today reported financial results for the fourth quarter and fiscal year ended December 31, 2010.
For the fourth quarter, net income totaled $1.1 million compared to $51,000 for the fourth quarter
ended December 31, 2009. After dividends and accretion on preferred stock, the Company reported
net income available to common shareholders of $390,000, or $0.02 per diluted share. After
dividends and accretion on preferred stock in the prior years fourth quarter, the net loss
available to common shareholders was ($679,000), or ($0.04) per diluted share.
For the full fiscal year just ended, net income totaled $3.4 million and net income available to
common shareholders amounted to $462,000, or $0.03 per diluted share, compared to a net loss of
($15.1) million and a loss of ($18.1) million available to common shareholders, or ($1.15) per
diluted share, in 2009.
The fourth quarter included a $338,000 impairment charge on properties associated with the recently
announced agreement to sell the Banks Harrisonburg, Virginia
operations. The fourth quarter of 2009
included a $389,000 pre-tax gain on sale of investment securities. The year ended December 31,
2010 also included a $3.6 million pre-tax gain on sale of investment securities. The 2009 fiscal
year included one-time expenses related to restructuring branch operations, terminating certain
retired data processing systems and termination of non-
executive employment agreements totaling $2.9 million pre-tax, as well as a special industry-wide
FDIC assessment expense of $970,000, partially offset by a $1.1 million pre-tax gain on sale of
merchant card services.
In making the announcement, Pressley A. Ridgill, President and Chief Executive Officer of NewBridge
Bancorp, commented: We are pleased to report a profit in 2010 on the strength of a number of
positive trends that resulted in a $29.9 million pre-tax improvement over the prior year. Our net
interest margin remained stable for the quarter and year which resulted in a $10.1 million increase
in net interest income. Noninterest expense declined $5.0 million on disciplined cost cutting
measures, despite a $3.5 million rise in OREO write-downs and expense. Other credit related costs
also declined as nonperforming loans decreased 47% below peak levels, excluding restructured loans.
In addition noninterest income and capital levels improved. The
Companys tier one leverage capital was
9.69% and total risk based capital was 13.13% at December 31, 2010.
Mr. Ridgill continued, There are a number of positive trends. However, the results for the fourth
quarter were impacted by elevated net loan chargeoffs totaling $11.4 million. As discussed last
quarter, management established a $5.0 million reserve for a loan in September 2010 due to its
unique risk characteristics. This $10.0 million loan represents subordinated debt to a
financial institution. Due to continued deterioration in the borrowers financial condition, in
December the Company changed the classification of this relationship to impaired and charged off
$6.2 million, leaving a carrying value of $3.8 million. The Company does not have any other loans
to financial institutions. The balance of the chargeoffs for the fourth quarter are the result of
the Companys continued philosophy of charging off known, quantifiable losses, rather than growing
the allowance for credit losses with specific reserves. At December 31, 2010 the allowance for
credit losses totaled 2.28% of loans, with 95% of the allowance in general reserves and only 5% in
specific reserves.
Net interest income, net margin continued to grow
Net interest income increased $654,000, or 4.0%, to $17.1 million for the fourth quarter of 2010
from $16.5 million for the same quarter the year before. Net interest income totaled $69.5 million
for the full year, an increase of $10.1 million, or 17.0%, compared to 2009. The increases for the
quarter and year were due to a rise in the net interest margin of 37 basis points and 82 basis
points, respectively, to 4.00% for both periods. The wider net interest margin is due primarily to
lower interest expense on liabilities resulting in increased net interest income despite a smaller
balance sheet. Compared to the September 2010 quarter, the margin fell nine basis points due to
cash held on the balance sheet early in the quarter from the sale of municipal securities in
September. During the quarter, the Company took a methodical approach to reinvesting this cash
which allowed it to take advantage of a steepening yield curve, preventing further margin erosion.
The weighted average cost of deposits fell to 0.94% in the fourth quarter, compared to 1.60% for
the quarter ended December 31, 2009 and 2.16% for the full year ended December 31, 2009. Beginning
in late 2008, the Companys deposit prices were negatively impacted by irrational pricing pressure
from competing financial institutions. This margin pressure continued through the first two
quarters of 2009 until the higher rate time deposits began to mature. In mid-2009, the Company
began shifting its marketing and strategic focus away from higher cost time deposits toward
checking accounts and other core deposit relationships.
Balance Sheet
While loan demand is improving, loan balances declined $29.9 million for the quarter to $1.31
billion at December 31, 2010. Loans held for sale increased $59.2 million to $77.0 million
primarily
due to the reclassification of $73.0 million of loans to held for sale status related to the pending
sale of the Virginia operations.
Investment securities increased $49.6 million to $325.1 million during the quarter just ended. In
the quarter, the Company was able to redeploy excess cash held on the balance sheet into agency
issued bonds. As previously discussed, the Company sold $83 million of its $100 million municipal
security portfolio in September due to rising credit concerns with municipal securities. The sale
proved to be well timed as the remaining $17.4 million of municipal securities market value
declined $1.7 million during the quarter. Volatility impacted the fair market value of the
Companys investment portfolio, creating a decrease in shareholders equity of $3.4 million for the
quarter and $1.4 million for the year to $163.2 million. At December 31, 2010 the Companys net
unrealized gains in the investment portfolio totaled $3.8 million pre-tax, down from $10.0 million
at the previous quarter end, as the yield curve at the average maturity point of the portfolio
moved meaningfully during the quarter. The decline in the overall gain position of the
investment portfolio reduced the Companys tangible book value per share by $0.20 during the
quarter.
Softening loan demand and reduced liquidity demands have allowed the Company to reduce its dependence on retail time deposits. Core deposits increased 16%, or $132.5 million, and
amounted to 66% of total deposits at December 31, 2010, up from 55% at December 31, 2009 and 43% at
December 31, 2008. Total deposits declined $46.3 million to $1.45 billion at year end, compared to
$1.50 billion at December 31, 2009. Time deposits declined $178.8 million, which was offset by the
growth in core deposits. NOW and non-interest bearing checking accounts increased $174.7 million,
and was partially offset by a $42.1 million decline in money market and savings balances.
The continued growth in core deposits allowed the Companys liquidity to remain strong at December
31, 2010. As a result, the Company has reduced brokered deposits and other sources of wholesale
funds. At year end, it had available borrowings, unencumbered investments and access to wholesale
deposits exceeding $475 million. Since December 31, 2009, FHLB and other borrowings have declined
$95.1 million.
Noninterest Income
Noninterest income declined $764,000 to $4.1 million for the three months ended December 31, 2010
compared to $4.9 million for the same period a year ago. For the year, noninterest income
increased $330,000 to $19.5 million. Gains on sale of investment securities totaled $3.6 million
in 2010 compared to $389,000 in 2009. These gains were partially offset by loss on sale of OREO of
$1.8 million in 2010 and $591,000 in 2009 and other writedowns on land and fixed assets of $418,000
in 2010. For the quarter and fiscal year just ended, growth in mortgage revenue and investment
service income exceeded declines in deposit service income. Mortgage revenue increased $1.8
million, or 261%, for the year and $871,000, or 760%, for the quarter. The growth in mortgage
revenue was due primarily to the Companys decision to purchase Bradford Mortgage a year ago.
Investment service revenue increased $403,000 for the year to $1.6 million and remains part of the
core growth strategy for the Company. Deposit service charge revenue declined 13% for the year, or
$1.1 million, due primarily to ongoing regulatory changes in the industry. Merchant processing
income decreased by $1.6 million as a result of the Companys sale of its merchant card servicing
operation in 2009.
Mr. Ridgill commented, Growth in fee income continues to be important in the future of banking.
Consequently, we are actively exploring opportunities to grow noninterest income. Although talent
recruitment remains our best opportunity for future growth of fee income, we are also
open to complementary acquisitions similar to the one we accomplished with Bradford Mortgage.
Noninterest Expense
Noninterest expense declined $5.0 million, or 7%, for 2010. For the fourth quarter, noninterest
expense was unchanged from the previous quarter at $15.7 million, excluding the one-time impairment
of $338,000 on properties associated with the planned sale of the Virginia operations. The results
in 2009 were affected by $3.8 million of one time expenses related to an industry-wide FDIC special
assessment and certain other one-time expenses described earlier. Excluding the one-time items and
the increased costs on OREO, operating costs have declined $4.6 million for the year on lower data
processing costs, legal and professional expense, merchant processing costs and various other
operating expense reductions.
Mr. Ridgill commented, Operating expenses are lower and the organizations cost management culture
has improved significantly since the merger of equals in 2007. We are pleased with the progress,
but believe that opportunities remain for further improvement. Excluding one time items such as
costs related to OREO expense, the Companys efficiency percentage has improved from 88% a year ago
to 66% in the December quarter.
Asset Quality
Asset quality has steadily improved since nonperforming loans peaked in June of 2009 at $64.0
million. At December 31, 2010, nonperforming loans totaled $50.6 million, or 4.01% of total loans,
and nonperforming assets totaled $77.3 million, or 4.28% of total assets. Since its peak level of
loans outstanding, the Company has added $14.5 million to troubled debt restructured loans, offset
by a $27.9 million decrease in nonaccruing loans. The Companys highest risk and most closely
monitored nonperforming assets are nonaccruing loans excluding troubled debt restructures. These
loans totaled $32.0 million at December 31, 2010, down $19.6 million, or 38%, since December 31,
2009 and down $27.3 million, or 47%, since June 30, 2009. OREO balances continue to cycle through
the balance sheet, helping control the level of nonperforming assets over time. At December 31,
2010, OREO balances totaled $26.7 million, down from $27.3 million at December 31, 2009. During
2010, $20.7 million of loans were transferred into OREO,
$3.8 million of OREO was written down,
and $17.5 million of OREO was sold.
At the end of the year, the allowance for credit losses totaled $28.8 million, or 2.28% of retained
loans and 56.8% of nonperforming loans versus 61.56% at December 31, 2009. Provision for credit
loss declined $14.5 million for the year to $21.3 million compared to $35.7 million at the previous
year end. For the fourth quarter, provision for credit loss totaled $4.6 million compared to $5.6
million for the same period the year before. As previously discussed, the September 2010 quarter
provision for credit loss included a $5.0 million expense, and the December 2010 quarter included
an additional $1.2 million expense, associated with the establishment of a reserve for the $10.0
million subordinated debt loan to a financial institution. The Companys coverage percentage may
not be comparable with other banking institutions due to its practice of charging off specific
estimated losses on loans at the time they become measurable. Consequently, the Companys
allowance for credit losses consists almost exclusively of general reserves, with 95% being general and
5% specific. Substantially all estimated losses from the Companys $50.0 million of non-performing
loans have been recognized through charge-offs. Consequently, the
Companys allowance for credit losses is available almost in its entirety for the potential losses that exist in its watch list and
other performing loans portfolio. Since the current adverse credit cycle began in 2007, the
Company has charged off $115.0 million of loans and other real estate owned, or 7.1% of the
highest/peak level of loan balances from June 2008.
Forward Looking
Mr. Ridgill expressed his opinion that, We have modestly improved our outlook for 2011. Through
disciplined management of what is within our control, core pre-tax earnings before credit expenses
improved $20 million in 2010. Credit costs will likely remain challenging, but we expect to see a
continuing decline. Loan demand has improved as our pipeline for new loans is larger than it has
been in nearly two years. The Bank became smaller and more profitable in 2010, but it is not our
intention to shrink the Bank in the coming year. We anticipate modest growth and continued
profitability. Improvement in loan demand is enhanced by less focused competition, which is
creating opportunities for new relationships, with customers and prospective bankers.
Looking forward, the Company will remain focused on improving core efficiencies. The net interest
margin should rise modestly in 2011. We remain focused on increasing net interest income and will
also continue to pursue increased operating efficiencies through reduced operating costs. While
noninterest expense has declined significantly in recent years, our goal remains to improve
efficiencies to a level that surpasses our peers. We have not yet achieved this objective and will
continue to focus on the opportunities before us.
Sweeping consolidation among financial institutions is likely to occur in North Carolina and the
Company is positioned to benefit in that cycle. We continue our position of having no near-term
plans to raise capital for the purpose of repaying TARP funds. With so many favorable trends, we
believe our shareholders will continue to benefit by our current focus on reducing problem assets
and further enhancing operating efficiencies so that when the Company seeks to repay TARP funds,
investors will not be overly diluted. Over the last year and into 2011, our stock price has
performed well. We believe this is because the Company has not allowed external events to shift
our focus from improving our financial position. While the Company remains focused on enhancing
performance, we will continue to evaluate potential acquisitions with a goal of improving
shareholders long term value.
About NewBridge Bancorp
NewBridge Bancorp is the parent company of NewBridge Bank, a full service state chartered community
bank with headquarters in Greensboro, North Carolina. NewBridge Bank also offers financial planning
and investment alternatives, such as mutual funds and annuities, through Raymond James Financial
Services, Inc., a registered broker dealer.
With approximately $1.8 billion of total assets, NewBridge Bank is one of the largest community
banks in North Carolina, and based on deposit market share is the largest community bank in the
Piedmont Triad region of North Carolina. The Bank has 30 offices in the Piedmont Triad and
Wilmington region of North Carolina and one office in Harrisonburg, VA. The Company recently
announced an agreement to sell the Harrisonburg, VA operations.
Disclosures About Forward Looking Statements
The discussions included in this document and its exhibits may contain forward looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995, including Section 21E
of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Such
statements involve known and unknown risks, uncertainties and other factors that may cause actual
results to differ materially. For the purposes of these discussions, any statements that are not
statements of historical fact may be deemed to be forward looking
statements. Such statements are often characterized by the use of qualifying words such as
expects, anticipates, believes, estimates, plans, projects, or other statements
concerning opinions or judgments of NewBridge and its management about future events. The accuracy
of such forward looking statements could be affected by factors including, but not limited to, the
financial success or changing conditions or strategies of NewBridge Bancorps customers or vendors,
fluctuations in interest rates, actions of government regulators, the availability of capital and
personnel or general economic conditions. Additional factors that could cause actual results to
differ materially from those anticipated by forward looking statements are discussed in NewBridges
filings with the Securities and Exchange Commission, including without limitation its annual report
on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. NewBridge undertakes
no obligation to revise or update these statements following the date of this press release.
####
FINANCIAL SUMMARY
Three Months Ended December 31, 2010 | Three Months Ended December 31, 2009 | |||||||||||||||||||||||
Average | Interest Income/ | Average Yield/ | Average | Interest Income/ | Average Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
(Fully taxable equivalent basis, dollars in thousands) | ||||||||||||||||||||||||
Earning Assets |
||||||||||||||||||||||||
Loans receivable |
$ | 1,358,187 | $ | 17,869 | 5.22 | % | $ | 1,489,016 | $ | 20,099 | 5.36 | % | ||||||||||||
Investment securities |
292,321 | 3,423 | 4.65 | % | 327,737 | 4,318 | 5.23 | % | ||||||||||||||||
Other earning assets |
53,634 | 42 | 0.31 | % | 36,012 | 23 | 0.25 | % | ||||||||||||||||
Total Earning Assets |
1,704,142 | 21,334 | 4.97 | % | 1,852,765 | 24,440 | 5.23 | % | ||||||||||||||||
Non-Earning Assets |
132,096 | 131,139 | ||||||||||||||||||||||
Total Assets |
$ | 1,836,238 | 21,334 | $ | 1,983,904 | 24,440 | ||||||||||||||||||
Interest-Bearing Liabilities |
||||||||||||||||||||||||
Deposits |
$ | 1,321,383 | 3,118 | 0.94 | % | $ | 1,403,392 | 5,665 | 1.60 | % | ||||||||||||||
Borrowings |
163,018 | 1,033 | 2.51 | % | 231,578 | 1,801 | 3.09 | % | ||||||||||||||||
Total Interest-Bearing Liabilities |
1,484,401 | 4,151 | 1.11 | % | 1,634,970 | 7,466 | 1.81 | % | ||||||||||||||||
Noninterest-bearing deposits |
167,879 | 162,133 | ||||||||||||||||||||||
Other liabilities |
18,401 | 20,745 | ||||||||||||||||||||||
Shareholders equity |
165,557 | 166,056 | ||||||||||||||||||||||
Total
Liabilities and Shareholders Equity |
$ | 1,836,238 | 4,151 | $ | 1,983,904 | 7,466 | ||||||||||||||||||
Net Interest Income |
$ | 17,183 | $ | 16,974 | ||||||||||||||||||||
Net Interest Margin |
4.00 | % | 3.63 | % | ||||||||||||||||||||
Interest Rate Spread |
3.86 | % | 3.42 | % |
Twelve Months Ended December 31, 2010 | Twelve Months Ended December 31, 2009 | |||||||||||||||||||||||
Average | Interest Income/ | Average Yield/ | Average | Interest Income/ | Average Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
(Fully taxable equivalent basis, dollars in thousands) | ||||||||||||||||||||||||
Earning Assets |
||||||||||||||||||||||||
Loans receivable |
$ | 1,406,624 | $ | 74,795 | 5.32 | % | $ | 1,538,777 | $ | 84,089 | 5.46 | % | ||||||||||||
Investment securities |
330,634 | 16,519 | 5.00 | % | 306,754 | 16,179 | 5.27 | % | ||||||||||||||||
Other earning assets |
34,496 | 96 | 0.28 | % | 84,595 | 236 | 0.28 | % | ||||||||||||||||
Total Earning Assets |
1,771,754 | 91,410 | 5.16 | % | 1,930,126 | 100,504 | 5.21 | % | ||||||||||||||||
Non-Earning Assets |
136,273 | 124,361 | ||||||||||||||||||||||
Total Assets |
$ | 1,908,027 | 91,410 | $ | 2,054,487 | 100,504 | ||||||||||||||||||
Interest-Bearing Liabilities |
||||||||||||||||||||||||
Deposits |
$ | 1,359,593 | 14,960 | 1.10 | % | $ | 1,479,471 | 31,891 | 2.16 | % | ||||||||||||||
Borrowings |
199,429 | 5,494 | 2.75 | % | 225,021 | 7,265 | 3.23 | % | ||||||||||||||||
Total Interest-Bearing Liabilities |
1,559,022 | 20,454 | 1.31 | % | 1,704,492 | 39,156 | 2.30 | % | ||||||||||||||||
Noninterest-bearing deposits |
164,958 | 158,436 | ||||||||||||||||||||||
Other liabilities |
17,591 | 20,988 | ||||||||||||||||||||||
Shareholders equity |
166,456 | 170,571 | ||||||||||||||||||||||
Total
Liabilities and Shareholders Equity |
$ | 1,908,027 | 20,454 | $ | 2,054,487 | 39,156 | ||||||||||||||||||
Net Interest Income |
$ | 70,956 | $ | 61,348 | ||||||||||||||||||||
Net Interest Margin |
4.00 | % | 3.18 | % | ||||||||||||||||||||
Interest Rate Spread |
3.85 | % | 2.91 | % |
FINANCIAL SUMMARY
2010 | 2009 | |||||||||||||||||||
Fourth | Third | Second | First | Fourth | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
Period-End Balances |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Assets |
$ | 1,807,161 | $ | 1,862,912 | $ | 1,930,842 | $ | 1,954,292 | $ | 1,946,526 | ||||||||||
Loans held for investment |
1,260,585 | 1,355,634 | 1,407,808 | 1,425,727 | 1,456,526 | |||||||||||||||
Loans held for sale |
76,994 | 17,793 | 10,893 | 8,716 | 6,568 | |||||||||||||||
Investment securities |
325,129 | 275,570 | 349,643 | 352,582 | 325,339 | |||||||||||||||
Earning assets |
1,745,297 | 1,724,433 | 1,795,072 | 1,806,625 | 1,799,472 | |||||||||||||||
Noninterest-bearing deposits |
161,734 | 158,290 | 165,160 | 168,414 | 156,040 | |||||||||||||||
Savings deposits |
38,898 | 39,653 | 40,513 | 41,565 | 39,502 | |||||||||||||||
NOW accounts |
440,190 | 414,976 | 391,333 | 326,751 | 271,208 | |||||||||||||||
Money market accounts |
316,608 | 337,406 | 347,024 | 349,538 | 358,165 | |||||||||||||||
Time deposits |
495,565 | 560,267 | 607,318 | 658,985 | 674,395 | |||||||||||||||
Interest-bearing liabilities |
1,465,735 | 1,521,776 | 1,581,663 | 1,603,813 | 1,607,844 | |||||||||||||||
Shareholders equity |
163,188 | 166,600 | 166,679 | 164,732 | 164,604 | |||||||||||||||
Asset Quality Data |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Nonperforming loans: |
||||||||||||||||||||
Commercial nonaccrual loans, not restructured |
$ | 23,453 | $ | 28,699 | $ | 38,326 | $ | 42,869 | $ | 46,788 | ||||||||||
Commercial nonaccrual loans which
have been restructured |
11,190 | 8,338 | 8,915 | 4,406 | 1,777 | |||||||||||||||
Non-commercial nonaccrual loans |
8,537 | 7,828 | 6,184 | 4,566 | 4,772 | |||||||||||||||
Total nonaccrual loans |
43,180 | 44,865 | 53,425 | 51,841 | 53,337 | |||||||||||||||
Loans past due 90 days or more and
still accruing |
27 | 1,290 | 649 | 2,571 | 3,450 | |||||||||||||||
Accruing restructured loans |
7,378 | 5,865 | 5,379 | 2,300 | 1,442 | |||||||||||||||
Total nonperforming loans |
50,585 | 52,020 | 59,453 | 56,712 | 58,229 | |||||||||||||||
Other real estate owned |
26,718 | 29,571 | 25,966 | 29,316 | 27,337 | |||||||||||||||
Total nonperforming assets |
$ | 77,303 | $ | 81,591 | $ | 85,419 | $ | 86,028 | $ | 85,566 | ||||||||||
Net chargeoffs |
11,438 | 5,493 | 7,370 | 4,042 | 8,629 | |||||||||||||||
Allowance for credit losses |
28,752 | 35,554 | 33,081 | 35,524 | 35,843 | |||||||||||||||
Allowance for credit losses
to loans |
2.28 | % | 2.62 | % | 2.35 | % | 2.49 | % | 2.46 | % | ||||||||||
Nonperforming loans to loans |
4.01 | 3.84 | 4.22 | 3.98 | 4.00 | |||||||||||||||
Nonperforming assets to total assets |
4.28 | 4.38 | 4.42 | 4.40 | 4.40 | |||||||||||||||
Nonperforming loans to total assets |
2.80 | 2.79 | 3.08 | 2.90 | 2.99 | |||||||||||||||
Net charge-off percentage (annualized) |
3.63 | 1.62 | 2.09 | 1.13 | 2.35 | |||||||||||||||
Allowance for credit losses to nonperforming loans |
56.84 | 68.35 | 55.64 | 62.64 | 61.56 | |||||||||||||||
Loans identified as impaired |
$ | 38,303 | $ | 40,621 | $ | 38,677 | $ | 39,328 | $ | 46,122 | ||||||||||
Other nonperforming loans |
12,282 | 11,399 | 20,776 | 17,384 | 12,107 | |||||||||||||||
Total nonperforming loans |
50,585 | 52,020 | 59,453 | 56,712 | 58,229 | |||||||||||||||
Other potential problem loans |
110,924 | 118,067 | 100,912 | 84,936 | 66,725 | |||||||||||||||
Total impaired and potential problem loans |
$ | 161,509 | $ | 170,087 | $ | 160,365 | $ | 141,648 | $ | 124,954 | ||||||||||
Gross loan chargeoffs, and writedowns and losses
on other real estate owned to peak loans
during the credit cycle beginning January 1, 2007: |
2007 | 2008 | 2009 | 2010 | TOTAL | |||||||||||||||
Gross loan chargeoffs |
$ | 9,412 | $ | 22,468 | $ | 38,494 | $ | 30,720 | $ | 101,094 | ||||||||||
Other real estate owned writedowns and losses |
4,001 | 3,571 | 1,294 | 5,508 | 14,374 | |||||||||||||||
Total chargeoffs, writedowns and losses |
$ | 13,413 | $ | 26,039 | $ | 39,788 | $ | 36,228 | $ | 115,468 | ||||||||||
Peak loans at September 30, 2008 |
$ | 1,626,504 | ||||||||||||||||||
Chargeoffs, writedowns and losses to peak loans |
7.10 | % |
FINANCIAL SUMMARY
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Income Statement Data |
||||||||||||||||
(Dollars in thousands, except share data) |
||||||||||||||||
Interest income: |
||||||||||||||||
Loans |
$ | 17,869 | $ | 20,099 | $ | 74,795 | $ | 84,089 | ||||||||
Investment securities |
3,361 | 3,811 | 15,022 | 14,175 | ||||||||||||
Other |
42 | 23 | 96 | 236 | ||||||||||||
Total interest income |
21,272 | 23,933 | 89,913 | 98,500 | ||||||||||||
Interest expense: |
||||||||||||||||
Deposits |
3,118 | 5,665 | 14,960 | 31,891 | ||||||||||||
Borrowings from the FHLB |
448 | 1,191 | 3,087 | 4,706 | ||||||||||||
Other |
585 | 610 | 2,407 | 2,559 | ||||||||||||
Total interest expense |
4,151 | 7,466 | 20,454 | 39,156 | ||||||||||||
Net interest income |
17,121 | 16,467 | 69,459 | 59,344 | ||||||||||||
Provision for credit losses |
4,636 | 5,569 | 21,252 | 35,749 | ||||||||||||
Net interest income after provision for credit losses |
12,485 | 10,898 | 48,207 | 23,595 | ||||||||||||
Noninterest income: |
||||||||||||||||
Service charges on deposit account |
1,687 | 2,100 | 7,392 | 8,527 | ||||||||||||
Mortgage banking services |
985 | 114 | 2,438 | 674 | ||||||||||||
Gain on sale of investment securities |
| 389 | 3,637 | 389 | ||||||||||||
Loss on sale of real estate acquired in
settlement of loans |
(508 | ) | (48 | ) | (1,817 | ) | (591 | ) | ||||||||
Other |
1,955 | 2,328 | 7,857 | 10,178 | ||||||||||||
Total noninterest income |
4,119 | 4,883 | 19,507 | 19,177 | ||||||||||||
Noninterest expense |
||||||||||||||||
Personnel |
7,152 | 7,276 | 29,897 | 30,901 | ||||||||||||
Occupancy |
979 | 1,025 | 4,189 | 5,436 | ||||||||||||
Furniture and equipment |
1,134 | 1,121 | 4,644 | 6,012 | ||||||||||||
OREO writedown/expense |
1,606 | 376 | 5,117 | 1,622 | ||||||||||||
Technology and data processing |
1,047 | 1,347 | 4,359 | 5,724 | ||||||||||||
One-time costs for branch closures, core conversion
and contract termination |
339 | | 339 | 2,876 | ||||||||||||
FDIC insurance |
858 | 658 | 3,491 | 4,528 | ||||||||||||
Other |
2,867 | 3,849 | 12,545 | 12,447 | ||||||||||||
Total noninterest expense |
15,982 | 15,652 | 64,581 | 69,546 | ||||||||||||
Income (loss) before income taxes |
622 | 129 | 3,133 | (26,774 | ) | |||||||||||
Income taxes |
(498 | ) | 78 | (247 | ) | (11,641 | ) | |||||||||
Net income (loss) |
1,120 | 51 | 3,380 | (15,133 | ) | |||||||||||
Dividends and accretion on preferred stock |
(730 | ) | (730 | ) | (2,918 | ) | (2,918 | ) | ||||||||
Net income (loss) available to common shareholders |
$ | 390 | ($679 | ) | $ | 462 | ($18,051 | ) | ||||||||
Net income (loss) per share basic and diluted |
$ | 0.02 | ($0.04 | ) | $ | 0.03 | ($1.15 | ) | ||||||||
Other Data |
||||||||||||||||
Return on average assets |
0.24 | % | 0.01 | % | 0.18 | % | (0.74 | )% | ||||||||
Return on average equity |
2.71 | 0.12 | 2.03 | (8.87 | ) | |||||||||||
Net yield on earning assets |
4.00 | 3.63 | 4.00 | 3.18 | ||||||||||||
Efficiency |
74.89 | 71.34 | 74.01 | 85.89 | ||||||||||||
Average loans to assets |
73.97 | 75.05 | 73.72 | 74.90 | ||||||||||||
Average loans to deposits |
91.20 | 95.11 | 92.26 | 93.95 | ||||||||||||
Average noninterest bearing deposits
to total deposits |
11.27 | 10.36 | 10.82 | 9.67 | ||||||||||||
Average equity to assets |
9.02 | 8.37 | 8.72 | 8.30 | ||||||||||||
Total capital as a percentage of total risk weighted assets |
13.13 | 12.27 | 13.13 | 12.27 | ||||||||||||
Tangible common equity as a percentage
of total risk weighted assets |
7.16 | 6.69 | 7.16 | 6.69 |
COMMON STOCK DATA
2010 | 2009 | |||||||||||||||||||
Fourth | Third | Second | First | Fourth | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
Market value: |
||||||||||||||||||||
End of period |
$ | 4.70 | $ | 3.57 | $ | 3.51 | $ | 3.56 | $ | 2.22 | ||||||||||
High |
5.00 | 4.00 | 5.28 | 4.34 | 2.78 | |||||||||||||||
Low |
3.40 | 2.94 | 3.46 | 2.08 | 1.89 | |||||||||||||||
Book value |
7.08 | 7.30 | 7.30 | 7.18 | 7.18 | |||||||||||||||
Tangible book value |
6.79 | 7.00 | 6.99 | 6.85 | 6.84 | |||||||||||||||
Shares outstanding at period-end |
15,655,868 | 15,655,868 | 15,655,868 | 15,655,868 | 15,655,868 | |||||||||||||||
Average shares outstanding |
15,655,868 | 15,655,868 | 15,655,868 | 15,655,868 | 15,655,868 |