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8-K - FORM 8-K - UNIVEST FINANCIAL Corp | c23681e8vk.htm |
Exhibit 99.1
NEWS |
CONTACT: | Jeff Schweitzer UNIVEST CORPORATION OF PENNSYLVANIA Chief Financial Officer 215-721-2458, schweitzerj@univest.net |
FOR IMMEDIATE RELEASE
UNIVEST CORPORATION OF PENNSYLVANIA UNIVEST
BANK AND TRUST CO. REPORTS THIRD QUARTER EARNINGS
BANK AND TRUST CO. REPORTS THIRD QUARTER EARNINGS
SOUDERTON,
Pa., October 26, 2011 Univest Corporation of Pennsylvania
(NASDAQ: UVSP), parent
company of Univest Bank and Trust Co., a full-service financial institution with 135 years of
experience in delivering financial solutions including personal and business banking, online
banking, residential mortgages, insurance products, investment and wealth advisory solutions, today
announced financial results for the third quarter. Univest reported net income of $5.2 million or
$0.31 diluted earnings per share for the quarter ended September 30, 2011, compared to $4.1 million
or $0.25 diluted earnings per share for the comparable period in the prior year. Net income for the
nine months ended September 30, 2011 was $13.6 million or $0.81 diluted earnings per share,
compared to $10.8 million or $0.65 diluted earnings per share for the comparable period in the
prior year.
Deposits
Total deposits increased $103.8 million from June 30, 2011 and $38.8 million from December 31,
2010. The increase was primarily a result of an increase in public fund balances due to anticipated
seasonal tax deposits as well as larger balances being maintained by existing public fund
customers. Total public fund balances increased $103.2 million for the quarter and $53.9 million
for the first nine months of 2011.
Loans
Gross loans and leases decreased $2.3 million from June 30, 2011 and $34.8 million from December
31, 2010, primarily due to continued light credit demand and utilization of lines by businesses and
consumers as a result of the prolonged challenging economic environment.
Net Interest Income and Margin
Net interest income decreased $337 thousand or 1.78% to $18.6 million in the third quarter of 2011
compared to the third quarter of 2010. The net interest margin on a tax-equivalent basis for the
third quarter of 2011 was 4.15% compared to 4.24% during the second quarter of 2011 and remained
level with 4.15% in the third quarter 2010. The decrease in the net interest margin during the
third quarter was due to the inflow of public fund deposits, which were primarily invested in
overnight fed funds during the quarter, as the Corporations cash position increased by $90.1
million from June 30, 2011 to September 30, 2011.
Net interest income of $56.4 million for the nine months ended September 30, 2011 increased $2.1
million or 3.81% compared to the nine months ended September 30, 2010. The net interest margin on a
tax-equivalent basis for the nine months ended September 30, 2011 increased 13 basis points to
4.21% from 4.08% for the nine months ended September 30, 2010.
The year-to-date increases in the net interest income and the net interest margin were a result of
declines in the cost of interest-bearing liabilities, primarily time deposits. The increases were
also attributed to declines in the volume of Federal Home Loan Bank (FHLB) borrowings, exceeding
the declines in yields on total interest-earning assets. The Corporation repaid its maturing FHLB
advances in 2010 reducing average year-to-date FHLB advances from $58.1 million for the nine months
ended September 30, 2010 to $5.0 million for the nine months ended September 30, 2011. FHLB
advances at September 30, 2011 remained at $5.0 million.
Non-Interest Income
Non-interest income for the quarter ended September 30, 2011 was $9.0 million, a slight increase of
$90 thousand from the comparable period in the prior year. Non-interest income for the quarter
included a net gain on sales of securities of $848 thousand, an increase of $509 thousand from the
third quarter of 2010. These net securities gains were offset by a mortgage servicing right
impairment of $672 thousand during the quarter primarily due to the decline in interest rates which
increased the projected speeds of prepayment. This impairment is reflected in other income and is
an increase of $260 thousand compared to the third quarter of 2010. Non-interest income also
included increases in trust fee income of $175 thousand and bank owned life insurance income of
$228 thousand. Additionally, the third quarter of 2010 was impacted by a fair value write-down on
the ineffective portion of a fair value swap of $246 thousand, which was terminated in August,
2010. These favorable variances were offset by a $415 thousand decline in service charges on
deposit accounts, primarily due to the amendments to Regulation E which were implemented on August
15, 2010; a $333 thousand decrease in the net gain on mortgage banking activities as a result of
lower volume and net gains on sales; and a $150 thousand negative valuation adjustment on one real
estate owned property.
Non-interest income for the nine months ended September 30, 2011 was $25.4 million, an increase of
$279 thousand or 1.11% compared to $25.2 million for the nine months ended September 30, 2010.
Non-interest income for the first nine months of 2011 included increases from trust fees of $425
thousand, investment advisory commissions and fees of $160 thousand, insurance commissions and fees
of $105 thousand, bank owned life insurance income of $306 thousand, other service fee income of
$260 thousand primarily related to interchange fees, and an increase in the net gain on sales of
securities of $991 thousand. Additionally, the nine months ended September 30, 2010 was impacted by
fair value write-downs on the ineffective portion of a fair value swap of $1.1 million, which was
terminated
in August 2010. These favorable variances were partially offset by a decline of $1.3 million in
service charges on deposit accounts, mainly due to the amendments to Regulatory E which were
implemented on August 15, 2010 and a decline of $965 thousand in the net gain on mortgage banking
activities due to weaker mortgage demand in the first six months of the year. During the third
quarter of 2011, mortgage demand has shown significant improvement due to re-financings. In
addition, fair value write-downs on other real estate owned properties increased by $390 thousand
and the first quarter of 2010 included a litigation settlement.
Non-Interest Expense
Non-interest expense for the third quarter of 2011 was $17.3 million, a slight increase of $124
thousand compared to the third quarter of 2010. Salaries and benefits expense increased by $113
thousand, due to increased incentive plan expenses, and other expenses increased $315 thousand
primarily due to loan workout and legal expenses. The increases for the quarter were partially
offset by a decline in deposit insurance premiums of $256 thousand mainly due to the amended
assessment calculation requirement through the FDIC rule implemented April 1, 2011. The payment was
formerly based on deposits whereas the rule change now bases the payment on the average
consolidated total assets less average tangible equity.
For the nine months ended September 30, 2011, non-interest expense was $50.4 million, a decrease of
$712 thousand or 1.39% compared to the same period in the prior year. This was attributed to a
decline of $550 thousand in salaries and benefits as a result of higher deferred loan origination
costs partially offset by higher commissions expense, restricted stock expense, employee incentive
expense and salaries and benefits expense to grow the mortgage banking business. The Corporation
implemented higher deferred loan origination costs commencing during the fourth quarter of 2010
based upon an in-depth study performed which incorporated managements additional review time in
connection with the loan approval process in the current environment. Additionally, the decrease
was a result of a decline of $679 thousand in marketing and advertising expenses and a decline of
$376 thousand in deposit insurance premiums. These decreases were partially offset by increases in
premises and equipment and loan workout expenses.
Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to
$38.2 million at September 30, 2011 from $43.5 million at June 30, 2011 and $45.2 million at
December 31, 2010. The decrease in non-accrual loans was mainly due to the partial charge-off and
foreclosure on two commercial real estate loans for two borrowers. These loans represented $4.7
million in the aggregate, of which $1.7 million was charged-off during the quarter and the
remaining $3.0 million was transferred to other real estate owned at September 30, 2011. Net loan
and lease charge-offs were $5.2
million during the third quarter of 2011 compared to $5.8 million for both the second quarter of
2011 and the third quarter of 2010. For the nine months ended September 30, 2011, net loan and
lease charge-offs were $14.2 million or 1.31% of average loans and leases compared to $11.2 million
or 1.04% for the nine months ended September 30, 2010.
Nonperforming loans and leases as a percentage of total loans and leases equaled 2.96% at September
30, 2011 compared to 3.42% at June 30, 2011 and 2.37% at September 30, 2010. Other real estate
owned increased from $5.0 million at June 30, 2011 to $7.7 million at September 30, 2011 primarily
due to the addition of two commercial properties during the quarter as previously discussed. As of
September 30, 2011, a total of seven properties remain in other real estate owned with three
properties totaling $993 thousand under agreements of sale.
The provision for loan and lease losses declined to $3.6 million for the third quarter of 2011
compared to $5.6 million for the quarter ended June 30, 2011 and $5.5 million for the quarter ended
September 30, 2010. The allowance for loan and lease losses as a percentage of total loans and
leases was 2.16% at September 30, 2011 compared to 2.27% at June 30, 2011 and 1.97% at September
30, 2010. The allowance for loan and lease losses to nonperforming loans and leases equaled 72.85%
at September 30, 2011, which increased from 66.26% at June 30, 2011. The allowance for loan and
lease losses to nonperforming loans and leases was 83.10% at September 30, 2010.
Capital
Univest continues to remain well-capitalized at September 30, 2011. Univests total risk-based
capital at September 30, 2011 was 16.00%, well in excess of the regulatory minimum for well
capitalized status of 10% for total risk-based capital.
During the quarter, Univest deployed $742 thousand of capital to repurchase 56,408 shares of common
stock through the stock repurchase program. Maximum shares available for future repurchases through
the plan at September 30, 2011 was 587,374. Total shares outstanding at September 30, 2011 were
16,727,099.
Dividend
On October 3, 2011, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which
represented a 6.17% annualized yield based on the closing price of Univests stock on the date the
dividend was paid.
About Univest Corporation
Headquartered
in Souderton, Pa., Univest Corporation of Pennsylvania (www.univest.net) and its
subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in
Bucks, Chester, Montgomery and Lehigh counties. For more information on Univest Corporation of
Pennsylvania and its subsidiaries, please visit www.univest.net.
# # #
This press release of Univest Corporation and the reports Univest Corporation files with the
Securities and Exchange Commission often contain forward-looking statements relating to present
or future trends or factors affecting the banking industry and, specifically, the financial
operations, markets and products of Univest Corporation. These forward-looking statements involve
certain risks and uncertainties. There are a number of important factors that could cause Univest
Corporations future results to differ materially from historical performance or projected
performance. These factors include, but are not limited to: (1) a significant increase in
competitive pressures among financial institutions; (2) changes in the interest rate environment
that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes,
charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or
regulatory changes that may adversely affect the businesses in which Univest Corporation is
engaged; (6) technological issues which may adversely affect Univest Corporations financial
operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the
reports and registration statements Univest Corporation files with the Securities and Exchange
Commission. Univest Corporation undertakes no obligation to revise these forward-looking statements
or to reflect events or circumstances after the date of this press release.
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2011
Consolidated Selected Financial Data
September 30, 2011
(Dollars in thousands)
Balance Sheet (Period End) | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | |||||||||||||||
Assets |
$ | 2,174,127 | $ | 2,058,377 | $ | 2,108,579 | $ | 2,133,893 | $ | 2,114,204 | ||||||||||
Securities |
412,340 | 418,020 | 445,798 | 467,024 | 420,998 | |||||||||||||||
Loans held for sale |
1,724 | 2,102 | 1,451 | 4,178 | 3,801 | |||||||||||||||
Loans and leases, gross |
1,436,411 | 1,438,707 | 1,442,137 | 1,471,186 | 1,467,382 | |||||||||||||||
Allowance for loan and lease
losses |
31,002 | 32,601 | 32,804 | 30,898 | 28,883 | |||||||||||||||
Loans and leases, net |
1,405,409 | 1,406,106 | 1,409,333 | 1,440,288 | 1,438,499 | |||||||||||||||
Total deposits |
1,725,063 | 1,621,294 | 1,665,225 | 1,686,270 | 1,677,641 | |||||||||||||||
Non-interest bearing deposits |
275,930 | 277,515 | 280,337 | 271,125 | 272,805 | |||||||||||||||
NOW, Money Market and Savings |
1,016,651 | 967,554 | 974,158 | 997,395 | 969,254 | |||||||||||||||
Time deposits |
432,482 | 376,225 | 410,730 | 417,750 | 435,582 | |||||||||||||||
Borrowings |
135,490 | 127,689 | 125,545 | 143,865 | 128,905 | |||||||||||||||
Shareholders equity |
275,099 | 273,022 | 268,673 | 266,224 | 270,773 |
For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
Balance Sheet (Average) | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | 09/30/11 | 09/30/10 | |||||||||||||||||||||
Assets |
$ | 2,113,446 | $ | 2,096,173 | $ | 2,106,276 | $ | 2,125,112 | $ | 2,117,708 | $ | 2,105,242 | $ | 2,082,742 | ||||||||||||||
Securities |
409,376 | 439,606 | 444,662 | 449,031 | 431,193 | 431,085 | 427,842 | |||||||||||||||||||||
Loans and leases, gross |
1,445,344 | 1,451,076 | 1,461,037 | 1,461,766 | 1,459,820 | 1,452,428 | 1,435,451 | |||||||||||||||||||||
Deposits |
1,672,452 | 1,655,812 | 1,670,062 | 1,689,701 | 1,642,613 | 1,666,118 | 1,596,021 | |||||||||||||||||||||
Shareholders equity |
275,502 | 272,952 | 268,343 | 271,945 | 271,045 | 272,293 | 270,000 |
Asset Quality Data (Period End) | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | |||||||||||||||
Nonaccrual loans and leases, including nonaccrual
troubled
debt restructured loans and leases |
$ | 38,180 | $ | 43,513 | $ | 38,631 | $ | 45,232 | $ | 33,043 | ||||||||||
Accruing loans and leases 90 days or more past due |
449 | 659 | 516 | 696 | 899 | |||||||||||||||
Accruing troubled debt restructured loans and leases |
3,925 | 5,028 | 5,111 | 550 | 813 | |||||||||||||||
Other real estate owned |
7,711 | 4,952 | 6,135 | 2,438 | 1,557 | |||||||||||||||
Nonperforming assets |
50,265 | 54,152 | 50,393 | 48,916 | 36,312 | |||||||||||||||
Allowance for loan and lease losses |
31,002 | 32,601 | 32,804 | 30,898 | 28,883 | |||||||||||||||
Nonperforming loans and leases / Loans and leases |
2.96 | % | 3.42 | % | 3.07 | % | 3.16 | % | 2.37 | % | ||||||||||
Allowance for loan and lease losses / Loans and leases |
2.16 | % | 2.27 | % | 2.27 | % | 2.10 | % | 1.97 | % | ||||||||||
Allowance for loan and lease losses / Nonperforming
loans |
72.85 | % | 66.26 | % | 74.12 | % | 66.48 | % | 83.10 | % |
For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | 09/30/11 | 09/30/10 | ||||||||||||||||||||||
Net loan and lease charge-offs |
$ | 5,248 | $ | 5,759 | $ | 3,228 | $ | 4,261 | $ | 5,755 | $ | 14,235 | $ | 11,204 | ||||||||||||||
Net loan and lease
charge-offs
(annualized)/Average loans
and leases |
1.44 | % | 1.59 | % | 0.90 | % | 1.16 | % | 1.56 | % | 1.31 | % | 1.04 | % |
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2011
Consolidated Selected Financial Data
September 30, 2011
(Dollars in thousands, except per share data)
For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
For the period: | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | 09/30/11 | 09/30/10 | |||||||||||||||||||||
Interest income |
$ | 21,237 | $ | 21,704 | $ | 21,706 | $ | 22,580 | $ | 23,060 | $ | 64,647 | $ | 68,423 | ||||||||||||||
Interest expense |
2,621 | 2,723 | 2,897 | 3,380 | 4,107 | 8,241 | 14,089 | |||||||||||||||||||||
Net interest income |
18,616 | 18,981 | 18,809 | 19,200 | 18,953 | 56,406 | 54,334 | |||||||||||||||||||||
Provision for loan and lease losses |
3,649 | 5,556 | 5,134 | 6,276 | 5,529 | 14,339 | 15,289 | |||||||||||||||||||||
Net interest income after provision |
14,967 | 13,425 | 13,675 | 12,924 | 13,424 | 42,067 | 39,045 | |||||||||||||||||||||
Noninterest income: |
||||||||||||||||||||||||||||
Trust fee income |
1,625 | 1,625 | 1,625 | 1,630 | 1,450 | 4,875 | 4,450 | |||||||||||||||||||||
Service charges on deposit accounts |
1,218 | 1,356 | 1,336 | 1,466 | 1,633 | 3,910 | 5,227 | |||||||||||||||||||||
Investment advisory commission and fee income |
1,239 | 1,194 | 1,162 | 1,191 | 1,227 | 3,595 | 3,435 | |||||||||||||||||||||
Insurance commissions and fee income |
1,787 | 2,072 | 2,200 | 1,740 | 1,815 | 6,059 | 5,954 | |||||||||||||||||||||
Bank owned life insurance income |
554 | 268 | 344 | 410 | 326 | 1,166 | 860 | |||||||||||||||||||||
Other-than-temporary impairment |
(1 | ) | (3 | ) | (7 | ) | (3 | ) | (12 | ) | (11 | ) | (59 | ) | ||||||||||||||
Net gain on sales of securities |
848 | 569 | | 6 | 339 | 1,417 | 426 | |||||||||||||||||||||
Net gain (loss) on mortgage banking activities |
913 | 328 | (25 | ) | 779 | 1,246 | 1,216 | 2,181 | ||||||||||||||||||||
Net loss on interest rate swap |
| | | | (246 | ) | | (1,072 | ) | |||||||||||||||||||
Other income |
791 | 1,287 | 1,124 | 2,049 | 1,106 | 3,202 | 3,748 | |||||||||||||||||||||
Total noninterest income |
8,974 | 8,696 | 7,759 | 9,268 | 8,884 | 25,429 | 25,150 | |||||||||||||||||||||
Noninterest expense |
||||||||||||||||||||||||||||
Salaries and benefits |
9,888 | 9,634 | 8,983 | 8,979 | 9,775 | 28,505 | 29,055 | |||||||||||||||||||||
Premises and equipment |
2,387 | 2,326 | 2,527 | 2,351 | 2,435 | 7,240 | 6,936 | |||||||||||||||||||||
Deposit insurance premiums |
442 | 427 | 713 | 712 | 698 | 1,582 | 1,958 | |||||||||||||||||||||
Other expense |
4,578 | 4,019 | 4,523 | 4,148 | 4,263 | 13,120 | 13,210 | |||||||||||||||||||||
Total noninterest expense |
17,295 | 16,406 | 16,746 | 16,190 | 17,171 | 50,447 | 51,159 | |||||||||||||||||||||
Income before taxes |
6,646 | 5,715 | 4,688 | 6,002 | 5,137 | 17,049 | 13,036 | |||||||||||||||||||||
Applicable income taxes |
1,402 | 1,199 | 826 | 1,093 | 990 | 3,427 | 2,189 | |||||||||||||||||||||
Net income |
$ | 5,244 | $ | 4,516 | $ | 3,862 | $ | 4,909 | $ | 4,147 | $ | 13,622 | $ | 10,847 | ||||||||||||||
Per Common Share Data: |
||||||||||||||||||||||||||||
Book value per share |
$ | 16.45 | $ | 16.27 | $ | 16.04 | $ | 15.99 | $ | 16.29 | $ | 16.45 | $ | 16.29 | ||||||||||||||
Net income per share: |
||||||||||||||||||||||||||||
Basic |
$ | 0.31 | $ | 0.27 | $ | 0.23 | $ | 0.30 | $ | 0.25 | $ | 0.81 | $ | 0.65 | ||||||||||||||
Diluted |
$ | 0.31 | $ | 0.27 | $ | 0.23 | $ | 0.30 | $ | 0.25 | $ | 0.81 | $ | 0.65 | ||||||||||||||
Dividends per share |
$ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | ||||||||||||||
Weighted average shares outstanding |
16,770,741 | 16,771,969 | 16,712,282 | 16,645,115 | 16,621,291 | 16,751,949 | 16,582,493 | |||||||||||||||||||||
Period end shares outstanding |
16,727,099 | 16,777,379 | 16,745,935 | 16,648,303 | 16,626,900 | 16,727,099 | 16,626,900 |
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2011
Consolidated Selected Financial Data
September 30, 2011
For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
Profitability Ratios (annualized) | 09/30/11 | 06/30/11 | 03/31/11 | 12/31/10 | 09/30/10 | 09/30/11 | 09/30/10 | |||||||||||||||||||||
Return on average assets |
0.98 | % | 0.86 | % | 0.74 | % | 0.92 | % | 0.78 | % | 0.87 | % | 0.70 | % | ||||||||||||||
Return on average shareholders equity |
7.55 | % | 6.64 | % | 5.84 | % | 7.16 | % | 6.07 | % | 6.69 | % | 5.37 | % | ||||||||||||||
Net interest margin (FTE) |
4.15 | % | 4.24 | % | 4.24 | % | 4.18 | % | 4.15 | % | 4.21 | % | 4.08 | % | ||||||||||||||
Efficiency ratio (1) |
59.35 | % | 56.47 | % | 59.90 | % | 54.20 | % | 58.88 | % | 58.56 | % | 61.42 | % | ||||||||||||||
Capitalization Ratios |
||||||||||||||||||||||||||||
Dividends paid to net income |
64.00 | % | 74.27 | % | 86.30 | % | 67.85 | % | 80.15 | % | 73.73 | % | 91.78 | % | ||||||||||||||
Shareholders equity to assets
(Period End) |
12.65 | % | 13.26 | % | 12.74 | % | 12.48 | % | 12.81 | % | 12.65 | % | 12.81 | % | ||||||||||||||
Tangible common equity to tangible
assets |
10.34 | % | 10.80 | % | 10.32 | % | 10.08 | % | 10.46 | % | 10.34 | % | 10.46 | % | ||||||||||||||
Regulatory Capital Ratios (Period
End) |
||||||||||||||||||||||||||||
Tier 1 leverage ratio |
11.84 | % | 11.87 | % | 11.72 | % | 11.54 | % | 11.51 | % | 11.84 | % | 11.51 | % | ||||||||||||||
Tier 1 risk-based capital ratio |
14.73 | % | 14.96 | % | 14.59 | % | 14.17 | % | 14.14 | % | 14.73 | % | 14.14 | % | ||||||||||||||
Total risk-based capital ratio |
16.00 | % | 16.25 | % | 15.89 | % | 15.47 | % | 15.45 | % | 16.00 | % | 15.45 | % |
(1) | Total operating expenses to net interest income before loan loss provision plus
non-interest income adjusted for tax equivalent income. |
Distribution of Assets, Liabilities and Shareholders Equity: Interest Rates and Interest Differential
For the Three Months Ended September 30,
2011 | 2010 | |||||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||||||
Tax Equivalent Basis | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Interest-earning deposits with other banks |
$ | 46,109 | $ | 25 | 0.22 | % | $ | 32,983 | $ | 20 | 0.24 | % | ||||||||||||
U.S. Government obligations |
129,263 | 509 | 1.56 | 156,579 | 669 | 1.70 | ||||||||||||||||||
Obligations of state and political subdivisions |
112,935 | 1,720 | 6.04 | 109,376 | 1,746 | 6.33 | ||||||||||||||||||
Other debt and equity securities |
167,178 | 1,347 | 3.20 | 165,238 | 1,687 | 4.05 | ||||||||||||||||||
Total interest-earning deposits and investments |
455,485 | 3,601 | 3.14 | 464,176 | 4,122 | 3.52 | ||||||||||||||||||
Commercial, financial, and agricultural loans |
435,805 | 4,930 | 4.49 | 435,823 | 5,428 | 4.94 | ||||||||||||||||||
Real estatecommercial and construction loans |
528,936 | 7,308 | 5.48 | 538,288 | 7,871 | 5.80 | ||||||||||||||||||
Real estateresidential loans |
247,332 | 2,684 | 4.31 | 255,715 | 2,800 | 4.34 | ||||||||||||||||||
Loans to individuals |
42,358 | 594 | 5.56 | 44,250 | 657 | 5.89 | ||||||||||||||||||
Municipal loans and leases |
132,147 | 1,741 | 5.23 | 110,650 | 1,662 | 5.96 | ||||||||||||||||||
Lease financings |
58,766 | 1,634 | 11.03 | 75,094 | 1,671 | 8.83 | ||||||||||||||||||
Gross loans and leases |
1,445,344 | 18,891 | 5.19 | 1,459,820 | 20,089 | 5.46 | ||||||||||||||||||
Total interest-earning assets |
1,900,829 | 22,492 | 4.69 | 1,923,996 | 24,211 | 4.99 | ||||||||||||||||||
Cash and due from banks |
57,572 | 38,924 | ||||||||||||||||||||||
Reserve for loan and lease losses |
(34,104 | ) | (29,853 | ) | ||||||||||||||||||||
Premises and equipment, net |
34,257 | 34,862 | ||||||||||||||||||||||
Other assets |
154,892 | 149,779 | ||||||||||||||||||||||
Total assets |
$ | 2,113,446 | $ | 2,117,708 | ||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Interest-bearing checking deposits |
$ | 210,499 | $ | 57 | 0.11 | $ | 179,117 | $ | 61 | 0.14 | ||||||||||||||
Money market savings |
291,830 | 167 | 0.23 | 301,674 | 239 | 0.31 | ||||||||||||||||||
Regular savings |
483,341 | 349 | 0.29 | 454,358 | 578 | 0.50 | ||||||||||||||||||
Time deposits |
394,509 | 1,597 | 1.61 | 432,881 | 2,339 | 2.14 | ||||||||||||||||||
Total time and interest-bearing deposits |
1,380,179 | 2,170 | 0.62 | 1,368,030 | 3,217 | 0.93 | ||||||||||||||||||
Securities sold under agreements to repurchase |
104,458 | 78 | 0.30 | 99,855 | 90 | 0.36 | ||||||||||||||||||
Other short-term borrowings |
11 | 18 | N/M | 40,277 | 437 | 4.30 | ||||||||||||||||||
Long-term debt |
5,000 | 48 | 3.81 | 5,000 | 48 | 3.81 | ||||||||||||||||||
Subordinated notes and capital securities |
23,240 | 307 | 5.24 | 24,744 | 315 | 5.05 | ||||||||||||||||||
Total borrowings |
132,709 | 451 | 1.35 | 169,876 | 890 | 2.08 | ||||||||||||||||||
Total interest-bearing liabilities |
1,512,888 | 2,621 | 0.69 | 1,537,906 | 4,107 | 1.06 | ||||||||||||||||||
Demand deposits, non-interest bearing |
292,273 | 274,583 | ||||||||||||||||||||||
Accrued expenses and other liabilities |
32,783 | 34,174 | ||||||||||||||||||||||
Total liabilities |
1,837,944 | 1,846,663 | ||||||||||||||||||||||
Shareholders Equity |
||||||||||||||||||||||||
Common stock |
91,332 | 91,332 | ||||||||||||||||||||||
Additional paid-in capital |
61,473 | 61,420 | ||||||||||||||||||||||
Retained earnings and other equity |
122,697 | 118,293 | ||||||||||||||||||||||
Total shareholders equity |
275,502 | 271,045 | ||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 2,113,446 | $ | 2,117,708 | ||||||||||||||||||||
Net interest income |
$ | 19,871 | $ | 20,104 | ||||||||||||||||||||
Net interest spread |
4.00 | 3.93 | ||||||||||||||||||||||
Effect of net interest-free funding sources |
0.15 | 0.22 | ||||||||||||||||||||||
Net interest margin |
4.15 | % | 4.15 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to
average interest-bearing liabilities |
125.64 | % | 125.10 | % | ||||||||||||||||||||
Notes: | For rate calculation purposes, average loan and lease categories include unearned
discount. |
|
Nonaccrual loans and leases have been included in the average loan and lease balances. |
||
Loans held for sale have been included in the average loan balances. |
||
Tax-equivalent amounts for the three months ended September 30, 2011 and 2010 have been
calculated using the Corporations federal applicable rate of 35.0%. |
||
N/M -
not meaningful |
Distribution of Assets, Liabilities and Shareholders Equity: Interest Rates and Interest Differential
For the Nine Months Ended September 30,
2011 | 2010 | |||||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||||||
Tax Equivalent Basis | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Interest-earning deposits with other banks |
$ | 24,076 | $ | 40 | 0.22 | % | $ | 24,727 | $ | 50 | 0.27 | % | ||||||||||||
U.S. Government obligations |
150,902 | 1,865 | 1.65 | 143,238 | 2,332 | 2.18 | ||||||||||||||||||
Obligations of state and political subdivisions |
110,730 | 5,153 | 6.22 | 108,287 | 5,289 | 6.53 | ||||||||||||||||||
Other debt and equity securities |
169,453 | 4,403 | 3.47 | 176,317 | 5,640 | 4.28 | ||||||||||||||||||
Total interest-earning deposits and investments |
455,161 | 11,461 | 3.37 | 452,569 | 13,311 | 3.93 | ||||||||||||||||||
Commercial, financial, and agricultural loans |
431,983 | 15,048 | 4.66 | 420,572 | 14,985 | 4.76 | ||||||||||||||||||
Real estatecommercial and construction loans |
542,926 | 21,958 | 5.41 | 528,611 | 23,185 | 5.86 | ||||||||||||||||||
Real estateresidential loans |
245,889 | 8,082 | 4.39 | 257,637 | 8,443 | 4.38 | ||||||||||||||||||
Loans to individuals |
42,428 | 1,817 | 5.73 | 45,969 | 2,054 | 5.97 | ||||||||||||||||||
Municipal loans and leases |
127,843 | 5,152 | 5.39 | 104,321 | 4,651 | 5.96 | ||||||||||||||||||
Lease financings |
61,359 | 4,819 | 10.50 | 78,341 | 5,136 | 8.77 | ||||||||||||||||||
Gross loans and leases |
1,452,428 | 56,876 | 5.24 | 1,435,451 | 58,454 | 5.44 | ||||||||||||||||||
Total interest-earning assets |
1,907,589 | 68,337 | 4.79 | 1,888,020 | 71,765 | 5.08 | ||||||||||||||||||
Cash and due from banks |
41,205 | 36,045 | ||||||||||||||||||||||
Reserve for loan and lease losses |
(33,506 | ) | (28,444 | ) | ||||||||||||||||||||
Premises and equipment, net |
34,393 | 34,908 | ||||||||||||||||||||||
Other assets |
155,561 | 152,213 | ||||||||||||||||||||||
Total assets |
$ | 2,105,242 | $ | 2,082,742 | ||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Interest-bearing checking deposits |
$ | 204,619 | $ | 180 | 0.12 | $ | 177,776 | $ | 180 | 0.14 | ||||||||||||||
Money market savings |
292,620 | 542 | 0.25 | 291,841 | 832 | 0.38 | ||||||||||||||||||
Regular savings |
482,026 | 1,186 | 0.33 | 438,832 | 2,020 | 0.62 | ||||||||||||||||||
Time deposits |
403,729 | 5,018 | 1.66 | 434,334 | 7,993 | 2.46 | ||||||||||||||||||
Total time and interest-bearing deposits |
1,382,994 | 6,926 | 0.67 | 1,342,783 | 11,025 | 1.10 | ||||||||||||||||||
Securities sold under agreements to repurchase |
100,695 | 227 | 0.30 | 98,181 | 318 | 0.43 | ||||||||||||||||||
Other short-term borrowings |
4,555 | 29 | 0.85 | 54,379 | 1,664 | 4.09 | ||||||||||||||||||
Long-term debt |
5,000 | 142 | 3.80 | 5,485 | 142 | 3.46 | ||||||||||||||||||
Subordinated notes and capital securities |
23,615 | 917 | 5.19 | 25,116 | 940 | 5.00 | ||||||||||||||||||
Total borrowings |
133,865 | 1,315 | 1.31 | 183,161 | 3,064 | 2.24 | ||||||||||||||||||
Total interest-bearing liabilities |
1,516,859 | 8,241 | 0.73 | 1,525,944 | 14,089 | 1.23 | ||||||||||||||||||
Demand deposits, non-interest bearing |
283,124 | 253,238 | ||||||||||||||||||||||
Accrued expenses and other liabilities |
32,966 | 33,560 | ||||||||||||||||||||||
Total liabilities |
1,832,949 | 1,812,742 | ||||||||||||||||||||||
Shareholders Equity |
||||||||||||||||||||||||
Common stock |
91,332 | 91,332 | ||||||||||||||||||||||
Additional paid-in capital |
61,452 | 61,420 | ||||||||||||||||||||||
Retained earnings and other equity |
119,509 | 117,248 | ||||||||||||||||||||||
Total shareholders equity |
272,293 | 270,000 | ||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 2,105,242 | $ | 2,082,742 | ||||||||||||||||||||
Net interest income |
$ | 60,096 | $ | 57,676 | ||||||||||||||||||||
Net interest spread |
4.06 | 3.85 | ||||||||||||||||||||||
Effect of net interest-free funding sources |
0.15 | 0.23 | % | |||||||||||||||||||||
Net interest margin |
4.21 | % | 4.08 | |||||||||||||||||||||
Ratio of average interest-earning assets to
average interest-bearing liabilities |
125.76 | % | 123.73 | % | ||||||||||||||||||||
Notes: | For rate calculation purposes, average loan and lease categories include unearned
discount. |
|
Nonaccrual loans and leases have been included in the average loan and lease balances. |
||
Loans held for sale have been included in the average loan balances. |
||
Tax-equivalent amounts for the nine months ended September 30, 2011 and 2010 have been
calculated
using the Corporations federal applicable rate of 35.0%. |