EX-99.1 CHARTER 2 pressrelease.htm PRESS RELEASE pressrelease.htm

 
 
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 News Release


For more information contact:
Dennis J. Zember Jr.
Executive Vice President & CFO
(229) 890-1111



AMERIS BANCORP REPORTS SECOND QUARTER 2009 RESULTS



July 21, 2009


AMERIS BANCORP (NASDAQ-GS: ABCB), Moultrie, Georgia, today reported a net loss available to common shareholders of $3.36 million, or $0.25 per diluted share, for the quarter ended June 30, 2009, compared to net income of $3.15 million, or $0.23 per diluted share, for the second quarter of 2008.  For the first half of 2009, Ameris Bancorp reported a net loss available to common shareholders of $4.58 million, or $0.34 per diluted share, compared to net income of $6.12 million, or $0.45 per diluted share, for the first half of 2008.  Improvements in the Company’s net interest margin and continued strong capital position were overshadowed by larger than normal loan loss provisions.
 
Net Interest Margin Improves for the Third Consecutive Quarter
During the second quarter of 2009, the Company reported net interest income of $18.5 million and a net interest margin of 3.58%, compared to $16.9 million and 3.21%, respectively, for the first quarter of 2009.  A significant improvement in the Company’s cost of funds, together with stable yields on earning assets, was the primary driver in margin improvement and helped lift net interest income by $1.57 million, or 9.3%, when compared to the first quarter of 2009.  The current quarter’s net interest margin and net interest income compare less favorably to the same quarter in 2008 when the Company reported a margin of 3.96% and net interest income of $19.1 million.  These declines are representative of the lower interest rate environment that began to materialize in the second half of 2008.

 
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Maintaining stable to slightly increasing yields on earning assets over the recent quarters has been critical to the Company’s improvement in pre-tax, pre-provision earnings.  Yields on earning assets were 5.60% during the second quarter of 2009, compared to 5.57% in the first quarter of 2009 and 6.64% in the second quarter of 2008.  Loan yields were flat during the current quarter at 6.21% when compared to the first quarter of 2009.  Yields on current loan production for new and renewed loans are at higher levels than the Company’s quarter end yield on loans outstanding.  Yields on investment securities were relatively unchanged at 5.01% for the second quarter of 2009 when compared to the second quarter of 2008 but were up from 4.33% in the first quarter of 2009.  During the latter part of the first quarter, a low-yielding portion of the portfolio matured and had not been re-invested as of the end of the second quarter.
 
Interest expense fell during the current quarter to $10.56 million compared to $12.65 million in the prior quarter and $13.19 million in the same quarter in 2008.  Similarly, deposit costs fell during the current quarter to 2.04% compared to 2.46% in the first quarter of 2009 and 2.80% in the same quarter of 2008.  Increasing liquidity in the marketplace and better pricing disciplines in the banking industry allowed the Company to achieve significant cost savings with regard to customer deposits.  In addition, a shift in the Company’s deposit mix continues with demand deposits (interest bearing and non-interest bearing) now totaling 54.9% of total deposits compared to 45.6% in the same quarter of 2008.  Time deposits at the end of the second quarter of 2009 were 42.3% of total deposits compared to 51.3% at the end of the second quarter of 2008.  Non-deposit borrowings totaled only 3.22% of total funding at June 30, 2009 compared to 10.83% at June 30, 2008.
 
Non-Interest Income
Non-interest income during the quarter totaled $4.60 million, a decrease of 13.7% from the same quarter in 2008.  Several non-recurring amounts are included in both quarters, including a gain on VISA stock recognized in the second quarter of 2008 totaling approximately $409,000 and a gain on the sale of investment securities in the second quarter of 2009 totaling $101,000.  Excluding these charges, non-interest income would have decreased $423,000, or 8.60%, compared to the same quarter in 2008.  Service charges on deposit accounts were $3.39 million during the second quarter of 2009 compared to $3.66 million during the second quarter of 2008.  The decrease relates primarily to fewer insufficient funds charges across the Company’s retail checking accounts than had been seen in prior periods.  Mortgage related revenue increased slightly to $877,000 in the current quarter when compared to the same quarter in 2008.  Although governmental action to keep mortgage rates low has succeeded, new and existing home sales have not yet recovered to pre-recession levels, keeping mortgage activity somewhat muted.
 
Non-interest Expense
Operating expenses totaled $17.73 million for the quarter, an increase over the same quarter in 2008 when the Company reported $15.98 million in total non-interest expense.  Salaries and benefits in the current quarter were $7.90 million compared to $8.66 million in the second quarter of 2008, a decrease of 8.8%.  Decreases in total headcount by 9.5% or 62 positions, and lower levels of incentive pay accounted for the majority of the decrease in personnel costs.  Occupancy and equipment costs as well as communications and data processing costs increased only slightly during the quarter when compared to the same quarter in 2008 despite the additional costs incurred from several new branch openings.  Renegotiation of certain operating contracts and efforts to reduce controllable expenses across the Company have succeeded in holding increases in operating expenses to a minimum.  Other operating expenses increased from $2.6 million in the second quarter of 2008 to $5.3 million in the second quarter of 2009.  FDIC insurance expense during the second quarter was $1.58 million, a $1.41 million increase when compared to the second quarter of 2008.  Costs associated with OREO and problem loans totaled $1.41 million in the current quarter compared to $314,000 during the same quarter in 2008.



 
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Credit Quality Trends
Economic challenges in our markets continue to affect credit quality and the Company’s provision for loan losses.  During the current quarter, the Company expensed $9.4 million of loan loss provision, an increase of $5.7 million compared to the same quarter in 2008.  These loan loss provisions were 138% of the current quarter’s net charge-offs, allowing the Company to continue to build its loan loss reserves to 2.68% of total loans, compared to 1.71% at the same time in 2008.  Annualized net charge-offs for the quarter were 1.62% of total loans compared to 0.75% in the second quarter of 2008.
 
Non-performing assets during the quarter increased to 5.19% of total loans and foreclosed assets, compared to 4.63% at the end of the first quarter of 2009 and 2.09% at June 30, 2008.  At June 30, 2009, 22% of the Company’s non-performing assets were in OREO compared to only 7% at the end of 2008.
 
Strong Capital Levels
The Company’s capital ratios at the end of the quarter continued to be very strong.  Tier one and total risk based capital ratios at June 30, 2009 were approximately 9.38% and 13.56%, respectively, compared to 9.42% and 13.13%, respectively, at December 31, 2008.  The Company’s total risk based capital is approximately 70% over the regulatory guidelines to be adequately capitalized which illustrates the Company’s strong capital position.  Tangible common equity ended the current quarter at 5.77%, an increase when compared to 5.74% at December 31, 2008.  Edwin W. Hortman, Jr., President and CEO, commented on the Company’s capital and credit quality, saying “Our efforts to dramatically improve our core earnings have been successful and have allowed us to deal with economic challenges in our credit quality with little or no effect on our tangible capital.  Efforts to further increase our core earnings are underway and I expect that higher net interest margins and lower operating expenses in the coming quarters will result and continue to buffer our Company’s capital ratios from impacts related to credit quality.”
 
 
Ameris Bancorp is headquartered in Moultrie, Georgia, and at the end of the most recent quarter, had 50 locations in Georgia, Alabama, northern Florida and South Carolina.
 
 
 
Ameris Bancorp Common Stock is quoted on the NASDAQ Global Select Market under the symbol “ABCB”. The preceding release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “estimate”, “expect”, “intend”, “anticipate” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.
 

 
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FINANCIAL HIGHLIGHTS
  
(unaudited)
  
(dollars in thousands except per share data and FTE headcount)
  
                                           
                                           
   
Three Months Ended
    
Six Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept
    
June
    
June
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
    
2009
    
2008
  
                                           
                                           
EARNINGS
                                          
Net Income/(Loss) Available to Common Shareholders
   $ (3,359 )   $ (1,225 )   $ (10,725 )   $ 366     $ 3,149     $ (4,584 )   $ 6,115  
                                                         
PER COMMON SHARE DATA
                                                        
Earnings per share available to common shareholders:
                                                        
Basic
   $ (0.25 )   $ (0.09 )   $ (0.79 )   $ 0.03     $ 0.23     $ (0.34 )   $ 0.45  
Diluted
   $ (0.25 )   $ (0.09 )   $ (0.79 )   $ 0.03     $ 0.23     $ (0.34 )   $ 0.45  
Cash Dividends per share
   $ 0.05     $ 0.05     $ 0.05     $ 0.05     $ 0.14     $ 0.10     $ 0.28  
Book value per share (period end)
   $ 13.54     $ 13.90     $ 14.06     $ 14.25     $ 14.20     $ 13.54     $ 14.20  
Tangible book value per share (period end)
   $ 9.26     $ 9.61     $ 9.74     $ 9.92     $ 9.84     $ 9.26     $ 9.84  
Weighted average number of shares:
                                                        
Basic
     13,543,468       13,527,437       13,532,521       13,515,767       13,510,907       13,534,166       13,557,704  
Diluted
     13,543,468       13,527,437       13,532,521       13,543,612       13,563,032       13,534,166       13,561,397  
Period-end number of shares
     13,581,179       13,584,107       13,534,601       13,564,032       13,564,032       13,581,179       13,564,032  
Market data:
                                                        
High closing price
   $ 8.09     $ 11.73     $ 14.21     $ 15.07     $ 16.48     $ 11.73     $ 16.55  
Low closing price
   $ 5.29     $ 3.66     $ 7.19     $ 7.82     $ 8.70     $ 3.66     $ 8.70  
Period end closing price
   $ 6.32     $ 4.71     $ 11.85     $ 14.85     $ 8.70     $ 6.32     $ 8.70  
Average daily volume
     28,778       31,931       31,527       43,464       62,739       30,329       62,271  
                                                         
PERFORMANCE RATIOS
                                                        
Return on average assets
     (0.59 %)     (0.21 %)     (1.81 %)     0.07 %     0.59 %     (0.40 %)     0.58 %
Return on average common equity
     (7.15 %)     (2.61 %)     (22.17 %)     0.78 %     6.58 %     (4.88 %)     6.42 %
Earning asset yield (TE)
     5.60 %     5.57 %     5.58 %     6.38 %     6.64 %     5.59 %     6.91 %
Total cost of funds
     2.08 %     2.45 %     2.72 %     2.54 %     2.74 %     2.27 %     3.02 %
Net interest margin (TE)
     3.58 %     3.21 %     2.92 %     3.87 %     3.96 %     3.39 %     3.94 %
Non-interest income excluding securities transactions,
                                                        
as a percent of total revenue (TE)
     13.26 %     12.02 %     11.66 %     12.49 %     14.01 %     12.63 %     13.14 %
Efficiency ratio
     76.63 %     70.01 %     80.67 %     61.97 %     65.52 %     73.37 %     66.29 %
                                                         
CAPITAL ADEQUACY
                                                        
Common equity to assets
     8.05 %     8.05 %     7.91 %     8.56 %     8.78 %     8.05 %     8.78 %
Tangible common equity to tangible assets
     5.77 %     5.83 %     5.74 %     6.12 %     6.26 %     5.77 %     6.26 %
                                                         
OTHER PERIOD-END DATA
                                                        
FTE Headcount
     589       597       595       601       651       589       651  
Assets per FTE
   $ 3,880     $ 3,930     $ 4,046     $ 3,756     $ 3,369     $ 3,880     $ 3,369  
Branch locations
     50       48       50       50       48       50       48  
Deposits per branch location
   $ 39,527     $ 42,264     $ 40,271     $ 36,127     $ 36,893     $ 39,527     $ 36,893  
                                                         
                                                         
                                                         
                                                         

 
4
 




FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)
 
   
Three Months Ended
    
Six Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept
    
June
    
June
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
    
2009
    
2008
  
                                           
                                           
INCOME STATEMENT
                                          
                                           
Interest income
                                          
Interest and fees on loans
   $ 25,829     $ 25,727     $ 26,582     $ 28,280     $ 28,339     $ 51,556     $ 58,473  
Interest on taxable securities
     2,906       3,657       3,677       3,563       3,646       6,563       7,228  
Interest on nontaxable securities
     255       167       171       169       173       422       346  
Interest on deposits in other banks
     109       25       123       100       91       134       291  
Interest on federal funds sold
     1       41       5       -       -       42       -  
Total interest income
     29,100       29,617       30,558       32,112       32,249       58,717       66,338  
                                                         
Interest expense
                                                        
Interest on deposits
   $ 10,030     $ 12,155     $ 13,769     $ 11,717     $ 12,314     $ 22,185       26,456  
Interest on other borrowings
     531       494       817       1,218       879       1,025       2,366  
Total interest expense
     10,561       12,649       14,586       12,935       13,193       23,210       28,822  
                                                         
Net interest income
     18,539       16,968       15,972       19,177       19,056       35,507       37,515  
                                                         
Provision for loan losses
     9,390       7,912       19,890       8,220       3,720       17,302       6,920  
                                                         
Net interest income/(loss) after provision for loan losses
   $ 9,149     $ 9,056     $ (3,918 )   $ 10,957     $ 15,336       18,205       30,595  
                                                         
Noninterest income
                                                        
Service charges on deposit accounts
   $ 3,393     $ 3,035     $ 3,279     $ 3,657     $ 3,664     $ 6,428       6,980  
Mortgage banking activity
     877       763       711       745       855       1,640       1,725  
Other service charges, commissions and fees
     77       63       90       120       220       140       498  
Gain(loss) on sale of securities
     101       713       316       -       -       814       -  
Other non-interest income
     148       922       (3 )     112       588       1,070       953  
Total noninterest income
     4,596       5,496       4,393       4,634       5,327       10,092       10,156  
                                                         
Noninterest expense
                                                        
Salaries and employee benefits
     7,899       7,991       7,309       7,113       8,660       15,890       17,278  
Occupancy and equipment expense
     2,224       2,158       2,070       1,904       2,103       4,382       4,095  
Amortization of intangible assets
     147       146       291       293       293       293       585  
Data processing & communications costs
     1,704       1,627       1,600       1,678       1,655       3,331       3,178  
Advertising & marketing fees
     439       574       739       818       656       1,013       1,534  
Other operating expenses
     5,316       3,231       4,419       2,950       2,609       8,547       4,931  
Total noninterest expense
     17,729       15,727       16,428       14,756       15,976       33,456       31,601  
                                                         
Operating profit/(loss)
   $ (3,984 )   $ (1,175 )   $ (15,953 )   $ 835     $ 4,687       (5,159 )     9,151  
                                                         
Income tax (benefit)/expense
     (1,290 )     (539 )     (5,556 )     469       1,538       (1,829 )     3,034  
                                                         
Net income/(loss)
   $ (2,694 )   $ (636 )   $ (10,397 )   $ 366     $ 3,149     $ (3,330 )   $ 6,115  
                                                         
Preferred stock dividends
     665       589       328       -       -       1,254       -  
                                                         
Net income/(loss) available
                                                        
     to common shareholders
   $ (3,359 )   $ (1,225 )   $ (10,725 )   $ 366     $ 3,149     $ (4,584 )   $ 6,115  
                                                         
Diluted earnings available to common shareholders
     (0.25 )     (0.09 )     (0.79 )     0.03       0.23       (0.34 )     0.45  
                                                         

 
5
 




FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)

   
Three Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept.
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
  
                               
PERIOD-END BALANCE SHEET
                              
                               
Assets
                              
Cash and due from banks
   $ 46,773     $ 54,758     $ 66,787     $ 43,549     $ 47,720  
Federal funds sold and interest bearing balances
     163,343       137,770       144,383       75,458       38,125  
Investment securities available for sale, at fair value
     257,771       344,032       367,894       286,002       291,813  
Other investments
     6,229       5,702       8,627       11,624       11,439  
                                         
Loans, net of unearned income
     1,677,045       1,672,923       1,695,777       1,710,109       1,678,147  
Less allowance for loan losses
     44,998       42,417       39,652       30,144       28,660  
Loans, net
     1,632,047       1,630,506       1,656,125       1,679,965       1,649,487  
                                         
Premises and equipment, net
     67,334       65,152       66,107       65,868       63,291  
Intangible assets, net
     3,339       3,485       3,631       3,924       4,217  
Goodwill
     54,813       54,813       54,813       54,813       54,813  
Other assets
     53,596       50,060       38,723       36,440       32,116  
Total assets
   $ 2,285,245     $ 2,346,278     $ 2,407,090     $ 2,257,643     $ 2,193,021  
                                         
Liabilities
                                        
Deposits:
                                        
Noninterest-bearing
   $ 210,456     $ 207,686     $ 208,532     $ 198,900     $ 200,936  
Interest-bearing
     1,765,915       1,820,998       1,804,993       1,607,439       1,569,925  
Total deposits
     1,976,371       2,028,684       2,013,525       1,806,339       1,770,861  
Federal funds purchased & securities sold under
                                        
agreements to repurchase
     16,484       18,295       27,416       63,973       39,795  
Other borrowings
     7,000       7,000       72,000       138,600       133,000  
Other liabilities
     9,967       12,046       12,521       13,118       14,541  
Subordinated deferrable interest debentures
     42,269       42,269       42,269       42,269       42,269  
Total liabilities
     2,052,091       2,108,294       2,167,731       2,064,299       2,000,466  
                                         
                                         
Stockholders' equity
                                        
  Preferred stock
   $ 49,279     $ 49,140     $ 49,028     $ -     $ -  
  Common stock
     14,915       14,915       14,866       14,895       14,895  
  Capital surplus
     86,286       86,141       86,038       83,453       83,308  
  Retained earnings
     87,451       91,619       93,696       105,117       105,430  
  Accumulated other comprehensive loss
     6,033       6,956       6,518       666       (291 )
  Less treasury stock
     (10,810 )     (10,787 )     (10,787 )     (10,787 )     (10,787 )
Total stockholders' equity
     233,154       237,984       239,359       193,344       192,555  
Total liabilities and stockholders' equity
   $ 2,285,245     $ 2,346,278     $ 2,407,090     $ 2,257,643     $ 2,193,021  
                                         
                                         
Other Data
                                        
Earning Assets
     2,104,388       2,160,427       2,216,681       2,083,193       2,019,524  
Intangible Assets
     58,152       58,298       58,444       58,737       59,030  
Interest Bearing Liabilities
     1,831,668       1,888,562       1,946,678       1,852,281       1,784,989  
Average Assets
     2,285,190       2,346,958       2,354,142       2,192,501       2,141,940  
Average Common Stockholders' Equity
     188,442       190,395       192,479       186,541       192,605  


 
6
 

FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)

   
Three Months Ended
    
Six Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept
    
June
    
June
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
    
2009
    
2008
  
                                           
ASSET QUALITY INFORMATION
                                          
                                           
Allowance for loan losses
                                          
Balance at beginning of period
   $ 42,417     $ 39,652     $ 30,144     $ 28,660     $ 28,094     $ 39,652     $ 27,640  
Provision for loan loss
     9,390       7,912       19,890       8,220       3,720       17,302       6,920  
                                                         
Charge-offs
     7,102       5,521       10,648       6,946       3,801       12,623       6,745  
Recoveries
     293       374       266       210       647       667       845  
Net charge-offs (recoveries)
     6,809       5,147       10,382       6,736       3,154       11,956       5,900  
                                                         
Ending balance
   $ 44,998     $ 42,417     $ 39,652     $ 30,144     $ 28,660     $ 44,998     $ 28,660  
                                                         
As a percentage of loans
     2.68 %     2.54 %     2.34 %     1.76 %     1.71 %     2.68 %     1.71 %
As a percentage of nonperforming loans
     65.35 %     66.37 %     60.62 %     76.46 %     89.27 %     65.35 %     89.27 %
As a percentage of nonperforming assets
     51.11 %     54.25 %     56.52 %     69.84 %     81.55 %     51.11 %     81.55 %
                                                         
                                                         
Net charge-off information
                                                        
Charge-offs
                                                        
Commercial, Financial & Agricultural
   $ 815     $ 1,389     $ 1,090     $ 963     $ 282     $ 2,204     $ 673  
Real Estate - Residential
     1,364       1,738       1,951       989       902       3,102       1,574  
Real Estate - Commercial & Farmland
     902       277       1,288       628       49       1,179       348  
Real Estate - Construction & Development
     3,731       1,930       5,932       4,165       2,320       5,661       3,624  
Consumer Installment
     290       187       387       201       248       477       527  
Other
     0       -       -       -       -       -       -  
Total charge-offs
     7,102       5,521       10,648       6,946       3,801       12,623       6,745  
                                                         
Recoveries
                                                        
Commercial, Financial & Agricultural
     16       82       11       71       102       98       120  
Real Estate - Residential
     216       8       30       54       90       224       115  
Real Estate - Commercial & Farmland
     13       230       10       10       68       243       99  
Real Estate - Construction & Development
     8       10       27       26       323       18       356  
Consumer Installment
     40       44       187       49       64       84       154  
Other
     0       -       1       -       -       0       -  
Total recoveries
     293       374       266       210       647       667       845  
                                                         
Net charge-offs (recoveries)
   $ 6,809     $ 5,147     $ 10,382     $ 6,736     $ 3,154     $ 11,956     $ 5,900  
                                                         
                                                         
                                                         
Non-accrual loans
     68,858       63,908       65,414       39,427       32,106       68,858       32,106  
Foreclosed assets
     19,180       14,271       4,742       3,734       3,032       19,180       3,032  
Accruing loans delinquent 90 days or more
     0       2       2       -       5       -       5  
Total non-performing assets
     88,038       78,181       70,158       43,161       35,143       88,038       35,143  
                                                         
Non-performing assets as a percent of loans
                                                        
and foreclosed assets
     5.19 %     4.63 %     4.13 %     2.52 %     2.09 %     5.19 %     2.09 %
Net charge offs as a percent of loans (Annualized)
     1.63 %     1.23 %     2.45 %     1.58 %     0.75 %     1.44 %     0.70 %

 
7
 



FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)

   
Three Months Ended
    
Six Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept
    
June
    
June
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
    
2009
    
2008
  
                                           
                                           
AVERAGE BALANCES
                                          
                                           
Federal funds sold
   $ 2,444     $ 33,034     $ 9,516     $ -     $ -     $ 17,739      $ -  
Interest bearing deposits in banks
     159,510       83,424       123,876       21,219       18,236       121,467       20,858  
Investment securities - taxable
     231,281       341,296       310,824       269,501       277,300       286,289       270,345  
Investment securities - nontaxable
     27,488       18,458       18,132       18,472       19,297       22,973       18,832  
Other investments
     6,226       6,797       8,902       11,591       10,707       6,511       10,329  
Loans
     1,671,808       1,683,615       1,703,137       1,698,024       1,650,781       1,677,712       1,634,386  
  Total Earning Assets
   $ 2,098,757     $ 2,166,624     $ 2,174,387     $ 2,018,807     $ 1,976,321     $ 2,132,691      $ 1,954,750  
                                                         
Noninterest bearing deposits
   $ 205,403     $ 204,010     $ 203,810     $ 200,357     $ 197,662     $ 204,706      $ 194,761  
NOW accounts
     475,498       369,774       306,483       280,892       261,953       422,636       262,747  
MMDA
     333,998       268,946       276,106       326,642       345,824       301,472       347,248  
Savings accounts
     57,503       55,529       53,055       55,143       54,973       56,516       54,597  
Retail CDs < $100,000
     365,771       439,781       443,358       342,136       345,968       402,776       350,910  
Retail CDs > $100,000
     381,719       474,956       486,833       405,126       404,455       428,338       400,118  
Brokered CDs
     151,780       189,538       218,195       182,525       153,232       170,659       146,134  
  Total Deposits
     1,971,672       2,002,534       1,987,840       1,792,821       1,764,067       1,987,103       1,756,514  
                                                         
FHLB advances
     2,000       25,214       70,630       130,849       111,922       13,607       104,542  
Subordinated debentures
     42,269       42,269       42,269       42,269       42,269       42,269       42,269  
Repurchase agreements
     15,211       19,233       22,158       12,082       3,721       17,222       5,848  
Correspondent bank line of credit and other
     5,000       5,000       5,000       18,631       10,094       5,000       9,805  
  Total Non-Deposit Funding
     64,480       91,716       140,057       203,831       168,006       78,098       162,464  
                                                         
  Total Funding
   $ 2,036,152     $ 2,094,250     $ 2,127,897     $ 1,996,652     $ 1,932,073     $ 2,065,201     $ 1,918,978  

 
8
 
 
 

FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)

   
Three Months Ended
    
Six Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept
    
June
    
June
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
    
2009
    
2008
  
                                           
INTEREST INCOME/EXPENSE
                                          
                                           
INTEREST INCOME
                                          
Federal funds sold
   $ 1     $ 41     $ 5     $ -     $ -     $ 42     $ -  
Interest bearing deposits in banks
     109       25       118       99       91       134       292  
Investment securities - taxable
     2,890       3,640       3,662       3,488       3,489       6,530       6,918  
Investment securities - nontaxable (TE)
     392       258       262       260       267       650       532  
Other investments
     18       17       16       76       156       35       296  
Loans (TE)
     25,886       25,794       26,514       28,559       28,704       51,680       59,113  
Total Earning Assets
   $ 29,296     $ 29,775     $ 30,577     $ 32,482     $ 32,707       59,071       67,151  
                                                         
INTEREST EXPENSE
                                                        
Non-interest bearing deposits
   $ -     $ -     $ -     $ -     $ -     $ -     $ -  
NOW accounts
     1,504       966       924       793       584       2,470       1,251  
MMDA
     1,404       1,051       1,444       1,929       1,996       2,455       4,779  
Savings accounts
     106       105       123       121       129       211       247  
Retail CDs < $100,000
     2,625       3,936       4,181       3,038       3,463       6,561       7,521  
Retail CDs > $100,000
     2,970       4,594       4,836       3,818       4,287       7,564       9,039  
Brokered CDs
     1,424       1,503       2,260       2,018       1,855       2,927       3,620  
Total Deposits
     10,033       12,155       13,768       11,717       12,314       22,188       26,457  
                                                         
FHLB advances
     31       (8 )     186       359       302       23       955  
Subordinated debentures
     443       436       494       493       487       879       1,173  
Repurchase agreements
     33       38       73       69       15       71       48  
Correspondent bank line of credit and other
     35       28       65       153       75       63       190  
  Total Non-Deposit Funding
     542       494       818       1,074       879       1,036       2,366  
                                                         
  Total Funding
   $ 10,575     $ 12,649     $ 14,586     $ 12,791     $ 13,193     $ 23,224     $ 28,823  
                                                         
Net Interest Income (TE)
   $ 18,721     $ 17,126     $ 15,991     $ 19,691     $ 19,513     $ 35,847     $ 38,328  

 
9
 
FINANCIAL HIGHLIGHTS
(unaudited)
(dollars in thousands except per share data and FTE headcount)

   
Three Months Ended
    
Six Months Ended
  
   
June
    
Mar.
    
Dec.
    
Sept
    
June
    
June
    
June
  
   
2009
    
2009
    
2008
    
2008
    
2008
    
2009
    
2008
  
YIELDS (1)
                                          
                                           
Federal funds sold
     0.16 %     0.50 %     0.21 %     0.00 %     0.00 %     0.48 %     0.00 %
Interest bearing deposits in banks
     0.27 %     0.12 %     0.38 %     1.85 %     2.00 %     0.22 %     2.82 %
Investment securities - taxable
     5.01 %     4.33 %     4.67 %     5.13 %     5.05 %     4.60 %     5.15 %
Investment securities - nontaxable
     5.72 %     5.67 %     5.73 %     5.58 %     5.55 %     5.71 %     5.68 %
Other investments
     1.16 %     1.01 %     0.71 %     2.60 %     5.84 %     1.08 %     5.76 %
Loans
     6.21 %     6.21 %     6.18 %     6.67 %     6.97 %     6.21 %     7.27 %
  Total Earning Assets
     5.60 %     5.57 %     5.58 %     6.38 %     6.64 %     5.59 %     6.91 %
                                                         
Noninterest bearing deposits
     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
NOW accounts
     1.27 %     1.06 %     1.20 %     1.12 %     0.89 %     1.18 %     1.91 %
MMDA
     1.69 %     1.58 %     2.07 %     2.34 %     2.32 %     1.64 %     5.54 %
Savings accounts
     0.74 %     0.77 %     0.92 %     0.87 %     0.94 %     0.75 %     1.82 %
Retail CDs < $100,000
     2.88 %     3.63 %     3.74 %     3.52 %     4.01 %     3.28 %     4.31 %
Retail CDs > $100,000
     3.12 %     3.92 %     3.94 %     3.74 %     4.25 %     3.56 %     4.54 %
Brokered CDs
     3.76 %     3.22 %     4.11 %     4.39 %     4.86 %     3.46 %     4.98 %
  Total Deposits
     2.04 %     2.46 %     2.75 %     2.59 %     2.80 %     2.25 %     3.03 %
                                                         
FHLB advances
     6.22 %     (0.13 %)     1.04 %     1.09 %     1.08 %     0.34 %     1.84 %
Subordinated debentures
     4.20 %     4.18 %     4.64 %     4.63 %     4.62 %     4.19 %     5.58 %
Repurchase agreements
     0.87 %     0.80 %     1.31 %     2.27 %     1.62 %     0.83 %     1.65 %
Correspondent bank line of credit and other
     2.81 %     2.27 %     5.16 %     3.26 %     2.98 %     2.54 %     3.90 %
  Total Non-Deposit Funding
     3.37 %     2.18 %     2.32 %     2.09 %     2.10 %     2.68 %     2.93 %
                                                         
  Total funding (3)
     2.08 %     2.45 %     2.72 %     2.54 %     2.74 %     2.27 %     3.02 %
                                                         
Net interest spread
     3.52 %     3.12 %     2.86 %     3.84 %     3.90 %     3.32 %     3.89 %
                                                         
Net interest margin
     3.58 %     3.21 %     2.92 %     3.87 %     3.96 %     3.39 %     3.94 %
                                                         
                                                         
                                                         
(1) Interest and average rates are calculated on a tax-equivalent basis using an effective tax rate of 35%.
                                  
(2) Rate calculated based on average earning assets.
                                                        
(3) Rate calculated based on total average funding including non-interest bearing liabilities.
                                  
                                                         

 
10