EX-99.1 2 exhibit-99_1.htm COMMUNITY BANKS, INC. EARNINGS RELEASE Community Banks, Inc. Earnings Release

FOR IMMEDIATE RELEASE     
Date:  April 18, 2007     
Contact:  Donald F. Holt, EVP/CFO
(717) 920-5801, Fax (717) 920-1683


COMMUNITY REPORTS FIRST QUARTER RESULTS, COMPLETES MERGERS,
AND ADOPTS NEW ACCOUNTING STANDARDS


Harrisburg, PA-, Community Banks, Inc. (“Community”) (Listed on NASDAQ: CMTY) today reported improved operating results for the first quarter of 2007, reflecting net income of $9.6 million and earnings per share of $0.41. These results were slightly ahead of the net income of $9.4 million and earnings per share of $0.40 reported in the immediately preceding fourth quarter of 2006. First quarter 2007 performance produced more stable funding expenses than those experienced in the fourth quarter of 2006, which contributed to a modest improvement in Community’s largest source of revenue, net interest income.

“Since mid-year 2006, we have consistently commented on the lingering presence of a flat or inverted yield curve and its impact on our ability to achieve incrementally higher levels of revenue growth, particularly net interest income” explained Eddie L. Dunklebarger, President and CEO of Community. “We remain optimistic about our ability to moderate the effect of the yield curve on our earnings growth trends. We believe, however, that the banking industry is likely to face some headwinds that could temper the pace of profit improvement in the near term. We remain confident in our ability to weather these short-term trends and are convinced that we will continue to re-align our expense levels with our revenue stream as we did in this most recent quarter. Unfortunately, more substantial improvements in top-line banking revenues will remain challenging for most of the industry until these yield curve trends begin to reverse and normalize,” he added.

Despite the constraining influence of interest rate trends on both net interest income and profit growth, most other critical performance metrics at Community continued to reflect favorable operating conditions. These conditions included solid loan and deposit growth, stable asset quality, modest increases in operating expenses, and continued focus on the expansion of other sources of revenue. Notably, Community reported no loss exposure related to the sub-prime mortgage issues that have adversely influenced first quarter 2007 performance in certain other sectors of the financial services industry.

 
Performance Overview
 
Although operating results in the first quarter of 2007 were 7% under those reported in the first quarter of 2006, loan and deposit balances reflected solid increases of 5% and 7%, respectively. Net interest margin, a critical determinant of net interest income growth for financial institutions, declined from 3.98% to 3.76 % between the two periods, largely attributed to the aforementioned interest rate conditions. Comparisons to the year ago first quarter reflected increasing consumer preference for shorter duration time deposits combined with some attrition in certain lower-cost core funding sources, particularly non-interest checking accounts. Rate offerings on short-term time deposits were sensitive to the series of Fed-influenced rate increases that produced sustained deposit pricing pressure since mid-year 2006, particularly on those time deposit categories with maturities of less than two years. This has produced an increased weighting of these deposits in Community’s funding mix and contributed to the funding cost increase.
 




Fully-taxable equivalent net interest income reached $28.7 million in the first quarter of 2007, reversing the trend which produced a recent low point of $28.1 million in the fourth quarter of 2006. The fourth quarter of 2006 had produced disproportionate increases in the cost of funding sources attributed to Community’s re-pricing of a substantial portion its time deposit base. Performance in the first quarter of 2007 suggests that incremental re-pricing of time deposits abated to some degree, resulting in stabilization of net interest income.

During the first quarter of 2007, Community recorded a provision for loan losses that permitted the allowance for credit losses to keep pace with overall loan growth and sustained the ratio of the allowance to loans at 1.00%. Overall credit quality metrics remained relatively stable with no major changes in Community’s asset quality profile since the end of 2006. The provision of $1.3 million was substantially in excess of first quarter net charge-offs of $547,000.

Non-interest income grew nearly 15% from the first quarter of 2006, a considerable portion of which related to the purchases of an additional insurance agency in May, 2006, and a trust business in October, 2006. Accordingly, the first quarter of 2006 reflected no revenues from these acquired businesses and the increases related thereto produced more than half of the overall increases in total non-interest income. Deposit and service fees continued to experience organic growth, providing most of the remaining improvement in other income.

At the end of 2006, Community announced its intention to accelerate expense saving initiatives related to both a reduction in operating regions from nine to six, and to the introduction of its more expansive office rationalization process. In connection with these efforts, Community identified initial salary and benefit savings in the first quarter, the majority of which were facilitated through early retirement, scheduled attrition, or selected staff reductions. Community incurred nearly $300,000 of one-time expenses in the opening quarter of 2007, but expects to recognize nearly $1.8 million of related annual savings for the remainder of the year. Additionally, Community is continuing its office rationalization process that has resulted in a more focused review and analysis of under-performing offices and produced strategic delays in previously-planned office openings. These efforts will continue throughout 2007, with additional efficiencies to be realized throughout the remainder of the year.

The efficiency ratio, which compares the relative levels of expenses to revenues, declined to 58.1% and reflected improvement from the 61.0% performance in the fourth quarter of 2006. Community continued its emphasis on ensuring that operating expenses are appropriately aligned with its revenue stream. While first quarter 2007 expenses grew 7.8% from the first quarter of 2006, expenses exhibited no increase since the more recent fourth quarter. The comparative increase from the first quarter of 2006 was largely attributable to the increased expenses associated with the acquired insurance and trust businesses. After excluding these incremental expenses, which were not present in the first quarter of 2006, core expense growth approximated 5%.

 
Mergers
 
On April 1, 2007, Community completed its mergers with BUCS Financial Corp (BUCS) ($149 million in assets) and East Prospect State Bank (East Prospect) ($61 million in assets). BUCS’ four branches, plus two banking offices already operated by CommunityBanks in Carroll County, Md., will be newly designated as CommunityBanks' Central Maryland region. East Prospect's single banking office has become a part of CommunityBanks' York region, giving the bank its 21st office in York County, Pennsylvania. These two mergers provide an important market extension into the desirable, adjacent Central Maryland region and bolster Community’s position in the vibrant York County, Pennsylvania, market. Effective with the completion of the two mergers, Community’s operating footprint will boast assets of nearly $3.8 billion and 80 banking offices that extend throughout the center of Pennsylvania from the Pocono region into suburban Baltimore, Maryland. Community Banks, Inc. is the 8th largest financial services holding company headquartered in Pennsylvania and the largest financial institution headquartered in its capital city of Harrisburg.


2

Adoption of Accounting Standards

In February of 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard (SFAS) No. 159, which is entitled “The Fair Value Option for Financial Assets and Financial Liabilities”. This new accounting pronouncement permits the measurement of selected eligible financial instruments at their fair value as of the effective date of adoption. This accounting standard, and its companion standard, SFAS No. 157 “Fair Value Measurements”, are to be adopted no later than January 1, 2008. However, each of these standards permitted early adoption, subject to certain conditions.

Effective January 1, 2007, Community elected to adopt SFAS No. 157 and SFAS No. 159, pursuant to the early adoption guidance. Upon adoption, Community selected the fair value option for certain investment securities with a basis of approximately $150 million, the majority of which had stated yields below 5%. As of the end of 2006, these investments had been included in its “available for sale” portfolio. Effective January 1, 2007, these securities were transferred to Community’s “trading securities” account at their fair market value. Pursuant to the guidance in SFAS No. 159, this transfer resulted in a one-time cumulative effect charge of $3.1 million, net of tax, to opening shareholders’ equity and had no impact on 2007 earnings. This one-time charge did not adversely affect shareholders’ equity at January 1, 2007, because the fair value adjustment for these securities had been included as a component of the other comprehensive income adjustment under pre-existing accounting rules. Prior to the adoption of these standards, Community had intended to hold these securities until their scheduled maturity or until there was a recovery in the market prices associated with these specific investments.
 
After March 31, 2007, Community decided to sell its portfolio of trading securities, which had been categorized as such upon the adoption of SFAS No. 159. Community believes that the adoption of SFAS No. 159, combined with its decision to sell and reinvest the proceeds of its trading securities portfolio, will have a beneficial impact on its earnings for the remainder of 2007 and beyond. This strategy presented Community with an opportunity to reduce its exposure to lower-yielding, shorter duration bonds. These bonds presented substantial prepayment risk in a period when cash flows would be reinvested in a potentially unfavorable interest rate environment. Community reinvested the sales proceeds to acquire investments that provided both longer duration and favorable call provisions more consistent with Community’s desired balance sheet posture. Community reported a relatively modest pre-tax gain of $146,000 from trading activities in the first quarter of 2007.

 
Many of the traditional metrics used to evaluate a company’s performance in a post-merger environment have undergone change due to the usage of the purchase accounting method now required under authoritative accounting guidance. Community has provided an extensive reconcilement of “GAAP” to “non-GAAP” presentations to this release to assist investors in their understanding of the effect of acquisition activity on reported results. Such information is not presented as a substitute for traditional GAAP measurements, but is provided as a supplemental enhancement to improve comparability and investor understanding.

 
This press release contains “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995, which is based on Community’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events, or results. Such statements involve potential risks and uncertainties and, accordingly, actual performance results may differ materially. Community undertakes no obligation to publicly update or revise forward looking information, whether as a result of new, updated information, future events, or otherwise.

3

 
COMMUNITY BANKS, INC.
  
       
Selected Financial Information
  
(Dollars in thousands, except per share data) (1)
  
       
   
Three Months Ended
  
   
March 31,
  
   
2007
  
2006
  
Consolidated summary of operations:
          
Interest income
  
$
52,409
 
$
46,889
  
Interest expense
    
25,972
    
20,025
  
Net interest income
    
26,437
    
26,864
  
Provision for loan losses
    
1,300
    
500
  
Net interest income after provision for loan losses
    
25,137
    
26,364
  
               
Non-interest income:
              
Investment management and trust services
    
1,445
    
1,013
  
Service charges on deposit accounts
    
2,996
    
2,531
  
Other service charges, commissions, and fees
    
2,028
    
1,700
  
Investment security gains
    
2
    
283
  
Trading activities gain
    
146
    
---
  
Insurance premium income and commissions
    
1,176
    
928
  
Mortgage banking activities
    
548
    
468
  
Earnings on investment in life insurance
    
688
    
656
  
Other
    
591
    
805
  
Total non-interest income
    
9,620
    
8,384
  
               
Non-interest expenses:
              
Salaries and employee benefits
    
12,009
    
11,418
  
Net occupancy and equipment expense
    
3,794
    
3,512
  
Marketing expense
    
505
    
575
  
Telecommunications expense
    
525
    
551
  
Amortization of intangibles
    
661
    
654
  
Other
    
4,647
    
3,823
  
Total non-interest expenses
    
22,141
    
20,533
  
Income before income taxes
    
12,616
    
14,215
  
Income taxes
    
2,970
    
3,646
  
               
Net income
 
$
9,646
  
$
10,569
  
               
Net loan charge-offs
  
$
547
  
$
155
  
Net interest margin (FTE)
    
3.76
%
  
3.98
%
Efficiency ratio (2)
    
58.06
%
  
55.96
%
Return on average assets
    
1.10
%
  
1.27
%
Return on average stockholders’ equity
    
8.04
%
  
8.96
%
Net operating (tangible) income (3)
  
$
10,075
  
$
10,994
  
Operating return on average tangible assets (3)(4)
    
1.24
%
  
1.43
%
Operating return on average tangible equity (3)(4)
    
17.82
%
  
20.12
%
               
Consolidated per share data:
             
               
Basic earnings per share
  
$
0.41
  
$
0.44
 
               
Diluted earnings per share
  
$
0.41
  
$
0.44
 
               
Book value at end of period
  
$
20.83
  
$
19.96
  
               
Tangible book value at end of period (4)
  
$
9.91
  
$
9.19
 

4

COMMUNITY BANKS, INC.

Selected Financial Information
(Dollars in thousands, except per share data) (1)

Consolidated balance sheet data:

   
Three Months Ended
  
   
March 31,
  
   
2007
  
2006
  
           
Average total loans
  
$
2,404,530
 
$
2,289,979
  
Average earning assets
    
3,097,626
    
2,938,647
  
Average assets
    
3,544,059
    
3,383,211
  
Average tangible assets (4)
    
3,284,976
    
3,124,522
  
Average deposits
    
2,462,141
    
2,301,898
  
Average stockholders’ equity
    
486,798
    
478,507
  
Average tangible equity (4)
    
229,261
    
221,552
  
Average diluted shares outstanding
   
23,682,671
    
24,189,097
  

               
3/31/2007
  
               
vs.
  
   
March 31,
  
December 31,
  
March 31,
  
3/31/2006
  
   
2007
  
2006
  
2006
  
% Change
  
                   
Assets
  
$
3,629,386
  
$
3,496,370
    $
3,421,562
    
6
%
Total loans
    
2,442,318
   
2,370,889
    
2,286,820
    
7
%
Deposits
    
2,529,187
    
2,513,182
    
2,373,865
    
7
%
Stockholders’ equity
   
490,564
    
486,161
    
475,587
    
3
%
Common shares outstanding
   
23,545,448
    
23,519,041
    
23,831,307
    
(1
)%
                           
                           
Non-accrual loans
  
$
15,715
 
$
12,545
  
$
10,102
    
56
%
Loans renegotiated with borrowers
    
---
    
---
    
110
    
n/a
  
Foreclosed real estate
    
61
    
37
    
1,728
    
(96
)%
Total non-performing assets
    
15,776
    
12,582
    
11,940
    
32
%
Accruing loans 90 days past due
    
101
    
659
    
29
    
248
%
                           
Total risk elements
  
$
15,877
  
$
13,241
  
$
11,969
    
33
%
                           
Allowance for loan losses
  
$
24,379
  
$
23,626
  
$
23,310
    
5
%
                           
Asset quality ratios:
                          
                           
Allowance for loan losses to total loans
    
1.00
%
  
1.00
%
  
1.02
%
      
Allowance for loan losses to non-accrual loans
    
155
%
  
188
%
  
231
%
      
Non-accrual loans to total loans
    
0.64
%
  
0.53
%
  
0.44
%
      
Non-performing assets to total assets
    
0.43
%
  
0.36
%
  
0.35
%
      
                           
(1) Per share data reflect stock splits and stock dividends.
(2) The efficiency ratio does not include net securities transactions.
(3) Net operating (tangible) income excludes amortization of core deposit and other intangible assets, net of applicable income tax effects. A reconciliation of net income and net operating (tangible) income appears on page 6. 
(4) The difference between total assets and total tangible assets, and stockholders’ equity and tangible stockholders’ equity, represents goodwill and core deposit and other intangibles net of applicable deferred tax balances. A reconciliation of these balances appears on page 6.

5

COMMUNITY BANKS, INC.

Selected Financial Information
(Dollars in thousands, except per share data)

Reconciliation of GAAP to Non-GAAP Measures (1):

   
Three Months Ended
  
   
March 31,
  
   
2007
  
2006
  
Income statement data:
          
           
Net income
          
Net income
  
$
9,646
  
$
10,569
  
Amortization of core deposit and other intangible assets (1)
    
429
    
425
  
Net operating (tangible) income
  
$
10,075
  
$
10,994
  
               
               
Balance sheet data:
              
               
Average assets
    
       
Average assets
  
$
3,544,059
  
$
3,383,211
  
Goodwill
    
(246,400
)
  
(244,775
)
Core deposit and other intangible assets
    
(12,683
)
  
(13,914
)
Average tangible assets
  
$
3,284,976
  
$
3,124,522
  
               
Operating return on average tangible assets
    
1.24
%
  
1.43
%
               
Average equity
              
Average equity
  
$
486,798
 
$
478,507
  
Goodwill
    
(246,400
)
  
(244,775
)
Core deposit and other intangible assets
    
(12,683
)
  
(13,914
)
Deferred taxes
    
1,546
    
1,734
  
Average tangible equity
  
$
229,261
  
$
221,552
  
               
Operating return on average tangible equity
   
17.82
%
  
20.12
%
               
At end of quarter:
              
Total assets
              
Total assets
  
$
3,629,386
  
$
3,421,562
 
Goodwill
    
(246,449
)
  
(244,760
)
Core deposit and other intangible assets
    
(12,363
)
  
(13,599
)
Total tangible assets
  
$
3,370,574
  
$
3,163,203
  
               
Total equity
              
Total equity
  
$
490,564
  
$
475,587
  
Goodwill
    
(246,449
)
  
(244,760
)
Core deposit and other intangible assets
    
(12,363
)
  
(13,599
)
Deferred taxes
    
1,482
    
1,854
  
Total tangible equity
  
$
233,234
  
$
219,082
  
               
Tangible book value at end of period
  
$
9.91
  
$
9.19
  
               
 (1) Net of related tax effect
              

6


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - March 31, 2007
  
                       
                       
KEY RATIOS (1)
  
                           
 
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
      
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Annual
  
Diluted earnings per share
 
$
0.41
  
$
0.40
  
$
0.45
 
$
0.44
  
$
0.44
  
$
1.72
  
Tangible operating earnings per share (1)
  
$
0.43
  
$
0.41
  
$
0.46
  
$
0.46
  
$
0.45
  
$
1.79
  
Return on average assets
    
1.10
%
  
1.08
%
  
1.24
%
  
1.24
%
  
1.27
%
  
1.21
%
Return on average equity
    
8.04
%
  
7.74
%
  
8.88
%
  
8.95
%
  
8.96
%
  
8.63
%
Operating return on average tangible assets  (2)
    
1.24
%
  
1.22
%
  
1.39
%
  
1.40
%
  
1.43
%
  
1.36
%
Operating return on average tangible equity (2)
    
17.82
%
  
17.37
%
  
20.31
%
  
20.59
%
  
20.12
%
  
19.57
%
                                       
Net interest margin
    
3.76
%
  
3.71
%
  
3.90
%
  
3.94
%
  
3.98
%
  
3.88
%
Non-interest income/revenues
(FTE excluding security gains)
    
24.82
%
  
23.83
%
  
23.40
%
  
22.76
%
  
21.93
%
  
22.99
%
Provision for loan losses/average loans
(annualized)
    
0.22
%
  
0.11
%
  
0.04
%
  
0.11
%
  
0.09
%
  
0.09
%
Efficiency ratio (4)
    
58.06
%
  
60.97
%
  
56.25
%
  
56.18
%
  
55.96
%
  
57.33
%
                                       
Non-performing assets to period-end loans
    
0.65
%
  
0.53
%
  
0.50
%
  
0.50
%
  
0.52
%
      
90 day past due loans to period-end loans
    
0.00
%
  
0.03
%
  
0.03
%
  
0.03
%
  
0.00
%
      
Total risk elements to period-end loans
    
0.65
%
  
0.56
%
  
0.53
%
  
0.53
%
  
0.52
%
      
                                       
Allowance for loan losses to loans
    
1.00
%
  
1.00
%
  
1.02
%
  
1.01
%
  
1.02
%
  
1.00
%
Allowance for loan losses to
                                      
non-accrual loans
    
155
%
  
188
%
  
207
%
  
207
%
  
231
%
  
188
%
Net charge-offs/average loans (annualized)
    
0.09
%
  
0.18
%
  
0.00
%
  
0.03
%
  
0.03
%
  
0.06
%
                                       
Equity to assets
    
13.52
%
  
13.90
%
  
13.98
%
  
13.76
%
  
13.90
%
  
13.90
%
Tangible equity to assets (3)
    
6.92
%
  
7.05
%
  
6.99
%
  
6.68
%
  
6.93
%
  
7.05
%
                                       
                                       
(1) Per share data reflect stock splits and stock dividends.
(2) Net tangible operating income excludes amortization of core deposit and other intangible assets, and merger, conversion and restructuring expenses, net of applicable income tax effects. A reconciliation of net income and net tangible operating income appears on page 19. 
(3) The difference between total assets and total tangible assets, and stockholders’ equity and tangible stockholders’ equity, represents goodwill and core deposit and other intangibles net of applicable deferred tax balances. A reconciliation of these balances appears on page 19.
(4) The efficiency ratio does not include net securities transactions.
 


7


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
                       
PER SHARE STATISTICS *
  
                       
Diluted Earnings (Loss) per Share 
  
   
Fourth
  
Third
  
Second
  
First
      
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Total
  
2007
              
$                       0.41
  
$                       0.41
  
2006
  
$
0.40
  
$
0.45
  
$
0.44
  
$
0.44
  
$
1.72
  
2005
  
$
0.45
  
$
0.42
  
$
(0.09
)
$
0.42
  
$
1.35
  
                                 
                                 
Average Diluted Shares Outstanding 
(in thousands)
    
Fourth
 
 
Third
 
 
Second
 
 
First
 
 
Average for
 
 
 
 
Quarter 
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Year
  
2007
                      
23,683
    
23,683
  
2006
    
23,728
    
23,663
    
23,858
    
24,189
    
23,918
  
2005
    
24,421
    
24,750
    
13,240
    
13,192
    
18,975
  
                                 
                                 
Book Value per Share 
      
   
Fourth
    
Third
 
 
Second
 
 
First
 
 
 
 
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Quarter
        
2007
                    
$
20.83
        
2006
  
$
20.67
  
$
20.43
  
$
19.86
  
$
19.96
        
2005
  
$
19.81
  
$
19.83
  
$
11.82
  
$
11.74
        
                                 
                                 
Tangible Book Value per Share
      
   
Fourth 
 
 
Third
 
 
Second
 
 
First
 
 
 
 
 
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
      
2007
                    
$
9.91
        
2006
  
$
9.71
  
$
9.45
  
$
8.91
  
$
9.19
        
2005
  
$
9.12
  
$
9.26
 
$
11.43
  
$
11.35
        
                                 
* Per share data reflect stock splits and stock dividends
 


8


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
                       
                       
QUARTER END INFORMATION
  
                       
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
  
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Total loans
  
$
2,442,318
 
$
2,370,889
  
$
2,348,159
  
$
2,344,677
  
$
2,286,820
  
Allowance for loan losses
    
(24,379
)
  
(23,626
)
  
(24,034
)
  
(23,788
)
  
(23,310
)
Loans, net
    
2,417,939
    
2,347,263
    
2,324,125
    
2,320,889
    
2,263,510
  
Earning assets
    
3,153,614
    
3,033,585
    
2,971,391
    
2,922,356
    
2,960,648
  
Goodwill and other intangible assets
    
258,812
    
259,406
    
259,505
    
258,606
    
258,359
  
Total assets
    
3,629,386
    
3,496,370
    
3,431,208
    
3,385,599
    
3,421,562
  
Deposits
    
2,529,187
    
2,513,182
    
2,483,519
    
2,406,551
    
2,373,865
  
Long-term debt
    
438,196
    
315,079
    
336,954
    
363,816
    
443,275
  
Subordinated debt
    
72,167
    
51,548
    
51,548
    
51,548
    
51,548
  
Total shareholder's equity
    
490,564
    
486,161
    
479,584
    
465,760
    
475,587
  
Accumulated other comprehensive income
(loss) (net of tax)
    
650
    
(1,806
)
  
(2,670
)
  
(10,107
)
  
(4,368
)
                                 
                                 






















9


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
CONDENSED CONSOLIDATED QUARTERLY AVERAGE STATEMENTS OF CONDITION
  
                       
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
  
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Assets
                      
Earning Assets:
                      
Loans
  
$
2,404,530
  
$
2,353,774
  
$
2,339,352
  
$
2,312,900
  
$
2,289,979
  
Federal funds sold and other
    
10,701
    
37,059
    
29,324
    
53,872
    
34,777
  
Investment securities
    
682,395
    
610,312
    
566,772
    
577,581
    
613,891
  
Total earning assets
    
3,097,626
    
3,001,145
    
2,935,448
    
2,944,353
    
2,938,647
  
                                 
Cash and due from banks
    
55,542
    
62,318
    
62,636
    
59,461
    
59,253
  
Allowance for loan losses
    
(24,022
)
  
(24,102
)
  
(24,385
)
  
(23,882
)
  
(23,172
)
Goodwill and other intangible assets
    
259,083
    
259,373
    
259,023
    
259,003
    
258,689
  
Premises, equipment and other assets
    
155,830
    
153,361
    
153,183
    
152,973
    
149,794
  
Total assets
  
$
3,544,059
  
$
3,452,095
  
$
3,385,905
  
$
3,391,908
  
$
3,383,211
  
                                 
Liabilities and equity
                                
Interest-bearing liabilities:
                                
Deposits
                                
Savings and NOW accounts
  
$
858,469
  
$
876,404
  
$
873,670
  
$
820,265
  
$
826,742
  
Time
    
994,824
    
1,010,249
    
984,415
    
981,371
    
900,698
  
Time deposits greater than $100,000
    
268,268
    
267,747
    
235,264
    
228,931
    
200,821
  
Short-term borrowings
    
124,985
    
77,910
    
60,680
    
57,903
    
68,524
  
Long-term debt
    
391,196
    
318,078
    
340,162
    
405,705
    
467,010
  
Subordinated debt
    
56,817
    
51,548
    
51,548
    
51,548
    
44,674
  
Total interest-bearing liabilities
    
2,694,559
    
2,601,936
    
2,545,739
    
2,545,723
    
2,508,469
  
                                 
Noninterest-bearing deposits
    
340,580
    
342,766
    
344,708
    
350,574
    
373,637
  
Other liabilities
    
22,122
    
25,659
    
23,547
    
24,916
    
22,598
  
Total liabilities
    
3,057,261
    
2,970,361
    
2,913,994
    
2,921,213
    
2,904,704
  
Stockholders' equity
    
486,798
    
481,734
    
471,911
    
470,695
    
478,507
  
Total liabilities and stockholders’ equity
  
$
3,544,059
  
$
3,452,095
  
$
3,385,905
  
$
3,391,908
  
$
3,383,211
  
                                 
                                 
CHANGE IN AVERAGE BALANCES*
                                 
     
2007
  
2006
   
First 
 
 
Fourth
 
 
Third
 
 
Second
 
 
First
 
 
 
 
Quarter 
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Quarter
  
Loans
    
5.0
%
  
6.9
%
  
9.3
%
  
82.8
%
  
86.0
%
Total assets
    
4.8
%
  
4.2
%
  
2.1
%
  
66.1
%
  
70.6
%
Deposits
    
7.0
%
  
10.4
%
  
8.4
%
  
72.2
%
  
73.5
%
Stockholders' equity
    
1.7
%
  
1.3
%
  
(1.9
)%
  
205.9
%
  
206.0
%
                                 
* Compares the current quarter to the comparable quarter of the prior year
                  

10


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                           
                           
                           
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
  
                           
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
      
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Annual
  
Interest income
  
$
52,409
 
$
51,364
  
$
50,443
 
$
48,938
 
$
46,889
 
$
197,634
  
Tax equivalent adjustment
    
2,253
    
1,998
    
1,916
    
1,910
    
1,978
    
7,802
  
                                       
     
54,662
    
53,362
    
52,359
    
50,848
    
48,867
    
205,436
  
Interest expense
    
25,972
    
25,273
    
23,505
    
21,931
    
20,025
    
90,734
  
                                       
Net interest income
    
28,690
    
28,089
    
28,854
    
28,917
    
28,842
    
114,702
  
Provision for loan losses
    
1,300
    
650
    
250
    
650
    
500
    
2,050
  
                                       
Net interest income after provision
    
27,390
    
27,439
    
28,604
    
28,267
    
28,342
    
112,652
  
Non-interest income
    
8,924
    
8,194
    
8,279
    
7,957
    
7,633
    
32,063
  
Investment security gains income
    
2
    
415
    
28
    
6
    
283
    
732
  
Trading activities gain
   
146
    
---
    
---
    
---
    
---
    
---
  
Mortgage banking activities income
    
548
    
591
    
533
    
580
    
468
    
2,172
  
Non-interest expenses
    
22,141
    
22,482
    
21,172
    
20,698
    
20,533
    
84,885
  
                                       
Income before income taxes
    
14,869
    
14,157
    
16,272
    
16,112
    
16,193
    
62,734
  
Income taxes
    
2,970
    
2,759
    
3,798
    
3,698
    
3,646
    
13,901
  
Tax equivalent adjustment
    
2,253
    
1,998
    
1,916
    
1,910
    
1,978
    
7,802
  
                                       
NET INCOME
  
$
9,646
  
$
9,400
  
$
10,558
  
$
10,504
  
$
10,569
  
$
41,031
  
                                       
Tax effect of security transactions
  
$
1
  
$
145
  
$
10
 
$
2
 
$
99
  
$
256
  
                                       


11


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                           
                           
                           
ANALYSIS OF NON-INTEREST INCOME
  
                           
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
      
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Annual
  
                           
Investment management and trust services
  
$
1,445
  
$
1,325
  
$
968
  
$
1,088
  
$
1,013
  
$
4,394
  
Service charges on deposit accounts
    
2,996
    
3,084
    
3,037
    
2,855
    
2,531
    
11,507
  
Other service charges, commissions and fees
    
2,028
    
1,852
    
1,817
    
1,903
    
1,700
    
7,272
  
Insurance premium income and commissions
    
1,176
    
1,022
    
1,053
    
1,117
    
928
    
4,120
  
Earnings on investment in life insurance
    
688
    
715
    
679
    
675
    
656
    
2,725
  
Other income
    
591
    
196
    
725
    
319
    
805
    
2,045
  
                                       
Total non-interest income
  
$
8,924
  
$
8,194
  
$
8,279
  
$
7,957
  
$
7,633
  
$
32,063
  
                                       
                                       
                                       
                                       
                                       
ANALYSIS OF NON-INTEREST EXPENSES
                                       
(dollars in thousands)
    
2007
 
2006
 
 
 
First
 
 
Fourth
 
 
Third
 
 
Second
 
 
First
 
 
 
 
 
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Annual
  
                                       
Salaries and employee benefits
  
$
12,009
  
$
12,154
  
$
11,611
 
$
11,251
 
$
11,418
  
$
46,434
  
Net occupancy and equipment expense
    
3,794
    
3,767
    
3,452
    
3,386
    
3,512
    
14,117
  
Marketing expense
    
505
    
558
    
354
    
265
    
575
    
1,752
  
Telecommunications expense
    
525
    
584
    
542
    
566
    
551
    
2,243
  
Amortization of intangibles
    
661
    
624
    
659
    
702
    
654
    
2,639
  
Other operating expenses
    
4,647
    
4,795
    
4,554
    
4,528
    
3,823
    
17,700
  
                                       
Total non-interest expenses
  
$
22,141
  
$
22,482
  
$
21,172
  
$
20,698
  
$
20,533
  
$
84,885
  
                                       


12


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
                       
RISK ELEMENTS ANALYSIS
  
                       
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
  
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
                       
Non-performing assets:
                      
Non-accrual loans
  
$
15,715
  
$
12,545
  
$
11,626
  
$
11,492
  
$
10,102
  
Loans renegotiated with borrowers
    
---
    
---
    
---
    
108
    
110
  
Foreclosed real estate
    
61
    
37
    
52
    
108
    
1,728
  
                                 
Total non-performing assets
    
15,776
    
12,582
    
11,678
    
11,708
    
11,940
  
Accruing loans 90 days or more past due
    
101
    
659
    
685
    
621
    
29
  
                                 
Total risk elements
  
$
15,877
  
$
13,241
  
$
12,363
  
$
12,329
  
$
11,969
  
                                 
                                 
                                 
                                 
Non-performing assets to period-end loans
    
0.65
%
  
0.53
%
  
0.50
%
  
0.50
%
  
0.52
%
                                 
90 day past due loans to period-end loans
    
0.00
%
  
0.03
%
  
0.03
%
  
0.03
%
  
0.00
%
                                 
Total risk elements to period-end loans
    
0.65
%
  
0.56
%
  
0.53
%
  
0.53
%
  
0.52
%
                                 




13


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
                       
ALLOWANCE FOR LOAN LOSSES
  
                       
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
  
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
                       
Balance at beginning of period
  
$
23,626
  
$
24,034
  
$
23,788
 
$
23,310
 
$
22,965
  
Loans charged off
    
(922
)
  
(1,136
)
  
(499
)
  
(342
)
  
(313
)
Recoveries
    
375
    
78
    
495
    
170
    
158
  
                                 
Net loans charged off
    
(547
)
  
(1,058
)
  
(4
)
  
(172
)
  
(155
)
Provision for loan losses
    
1,300
    
650
    
250
    
650
    
500
  
                                 
Balance at end of period
  
$
24,379
  
$
23,626
  
$
24,034
  
$
23,788
  
$
23,310
  
                                 
                                 
                                 
Net loans charged-off to average loans*
    
0.09
%
  
0.18
%
  
0.00
%
  
0.03
%
  
0.03
%
                                 
Provision for loan losses to average loans*
    
0.22
%
  
0.11
%
  
0.04
%
  
0.11
%
  
0.09
%
                                 
Allowance for loan losses to loans
    
1.00
%
  
1.00
%
  
1.02
%
  
1.01
%
  
1.02
%
                                 
*Annualized
                                
 
                      


14


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
                       
OTHER RATIOS
  
                       
 
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
  
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
                                 
Investment portfolio - fair value to amortized cost
    
100.6
%
  
100.0
%
  
99.9
%
  
97.9
%
  
99.4
%
Dividend payout ratio
    
51.3
%
  
50.0
%
  
44.4
%
  
45.1
%
  
43.0
%
Net loans to deposits ratio, average
    
96.7
%
  
93.3
%
  
95.0
%
  
96.1
%
  
98.3
%
                                 


           
MARKET PRICE AND DIVIDENDS DECLARED *
  
 
  
 
  
 
  
 
  
               
   
Closing Bid Price Range
  
Dividends
  
Year / Quarter
  
High
  
Low
  
Declared
 
               
2007
          
 
  
First
  
$
28.11
  
$
22.96
  
$
0.2100
  
Second
                    
Third
                    
Fourth
                    
 
 
$
0.2100
  
                     
                     
2006
  
  
First
  
$
27.85
  
$
25.67
  
$
0.1905
  
Second
  
$
27.39
  
$
24.38
  
$
0.2000
  
Third
  
$
27.29
  
$
24.58
  
$
0.2000
  
Fourth
  
$
28.48
  
$
25.74
  
$
0.2000
  
 
 
$
0.7905
  
                     
                     
2005
                  
First
  
$
27.15
  
$
22.57
  
$
0.1619
  
Second
  
$
25.24
  
$
21.94
  
$
0.1810
  
Third
  
$
27.48
  
$
25.39
  
$
0.1810
  
Fourth
  
$
28.42
  
$
23.90
  
$
0.1905
  
 
  
$
0.7144
  
                     
             
* Per share data reflect stock splits and dividends
            

15


 COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                           
                           
NET INTEREST MARGIN - YEAR-TO-DATE
 
                           
(dollars in thousands)
  
March 31, 2007
  
March 31, 2006
  
 
  
Average Balance
  
FTE Interest Income/
Expense
  
Average Rate Earned/Paid
  
Average Balance
  
FTE Interest Income/
Expense
  
Average Rate Earned/Paid
  
Federal funds sold and interest-bearing deposits in banks
  
$
10,701
 
$
135
   
5.12
%
$
34,885
 
$
393
   
4.57
%
Investment securities
    
682,395
    
10,379
    
6.17
%
  
613,891
    
8,901
    
5.88
%
Loans - commercial
    
895,114
    
17,792
    
8.06
%
  
808,108
    
15,145
    
7.60
%
- commercial real estate
    
810,424
    
14,174
    
7.09
%
  
799,505
    
13,605
    
6.90
%
- residential real estate
    
151,141
    
2,397
    
6.43
%
  
153,282
    
2,297
    
6.08
%
- consumer
    
547,851
    
9,785
    
7.24
%
  
528,976
    
8,526
    
6.54
%
Total earning assets
  
$
3,097,626
  
$
54,662
    
7.16
%
$
2,938,647
  
$
48,867
    
6.74
%
                                       
Deposits - savings and NOW accounts
  
$
858,469
  
$
4,835
    
2.28
%
$
826,742
  
$
3,501
    
1.72
%
- time
   
1,263,092
    
14,051
    
4.51
%
  
1,101,519
    
9,920
    
3.65
%
Short-term borrowings
    
124,985
    
1,564
    
5.07
%
  
68,524
    
696
    
4.12
%
Long-term debt
    
391,196
    
4,500
    
4.67
%
  
467,010
    
5,111
    
4.44
%
Subordinated debt
    
56,817
    
1,022
    
7.29
%
  
44,674
    
797
    
7.24
%
Total interest-bearing liabilities
  
$
2,694,559
  
$
25,972
    
3.91
%
$
2,508,469
  
$
20,025
    
3.24
%
                                       
Interest income to earning assets
                
7.16
%
              
6.74
%
Interest expense to paying liabilities
                
3.91
%
              
3.24
%
Interest spread
                
3.25
%
              
3.50
%
Impact of noninterest funds
                
0.51
%
              
0.48
%
Net interest margin
        
$
28,690
    
3.76
%
      
$
28,842
    
3.98
%
                                       



16


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                           
                           
NET INTEREST MARGIN - QUARTER-TO-DATE
 
                           
(dollars in thousands)
  
March 31, 2007
  
December 31, 2006
  
 
  
Average Balance
  
FTE Interest Income/
Expense
  
Average Rate Earned/Paid
  
Average Balance
  
FTE Interest Income/
Expense
  
Average Rate Earned/Paid
  
Federal funds sold and interest-bearing deposits in banks
  
$
10,701
 
$
135
   
5.12
%
$
37,059
 
$
477
   
5.11
%
Investment securities
    
682,395
    
10,379
    
6.17
%
  
610,312
    
9,405
    
6.11
%
Loans - commercial
    
895,114
    
17,792
    
8.06
%
  
840,982
    
16,555
    
7.81
%
- commercial real estate
    
810,424
    
14,174
    
7.09
%
  
822,007
    
14,694
    
7.09
%
- residential real estate
    
151,141
    
2,397
    
6.43
%
  
150,132
    
2,355
    
6.22
%
- consumer
    
547,851
    
9,785
    
7.24
%
  
540,653
    
9,876
    
7.25
%
Total earning assets
  
$
3,097,626
  
$
54,662
    
7.16
%
$
3,001,145
  
$
53,362
    
7.05
%
                                       
Deposits - savings and NOW accounts
  
$
858,469
  
$
4,835
    
2.28
%
$
876,404
  
$
5,260
    
2.38
%
- time
   
1,263,092
    
14,051
    
4.51
%
  
1,277,996
    
14,326
    
4.45
%
Short-term borrowings
    
124,985
    
1,564
    
5.07
%
  
77,910
    
941
    
4.79
%
Long-term debt
    
391,196
    
4,500
    
4.67
%
  
318,078
    
3,769
    
4.70
%
Subordinated debt
    
56,817
    
1,022
    
7.29
%
  
51,548
    
977
    
7.52
%
Total interest-bearing liabilities
  
$
2,694,559
  
$
25,972
    
3.91
%
$
2,601,936
  
$
25,273
    
3.85
%
                                       
Interest income to earning assets
                
7.16
%
              
7.05
%
Interest expense to paying liabilities
                
3.91
%
              
3.85
%
Interest spread
                
3.25
%
              
3.20
%
Impact of noninterest funds
                
0.51
%
              
0.51
%
Net interest margin
        
$
28,690
    
3.76
%
      
$
28,089
    
3.71
%
                                       









17



COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                       
                       
PERIOD-END LOAN PORTFOLIO ANALYSIS
  
                       
(dollars in thousands)
  
2007
  
2006
  
   
First
  
Fourth
  
Third
  
Second
  
First
  
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
                       
Commercial:
                      
     Commercial
  
$
824,301
  
$
763,800
  
$
757,714
  
$
763,637
 
$
747,954
  
     Obligations of political subdivisions
    
101,090
    
101,555
    
79,028
    
76,408
    
75,449
  
 Total commercial
    
925,391
    
865,355
    
836,742
    
840,045
    
823,403
  
                                 
                                 
Commercial real estate:
                                
     Commercial mortgages
  
$
804,652
  
$
815,028
  
$
820,619
  
$
834,345
  
$
805,120
  
                                 
                                 
Residential real estate:
                                
    Residential mortgages
  
$
145,719
  
$
141,826
  
$
144,047
  
$
144,590
 
$
146,360
  
     Construction
    
6,730
    
7,290
    
6,918
    
5,770
    
5,136
  
 Total residential real estate
    
152,449
    
149,116
    
150,965
    
150,360
    
151,496
  
                                 
                                 
Consumer:
                                
     Home equity loans
  
$
331,418
  
$
322,712
  
$
308,173
  
$
282,777
  
$
262,835
  
     Home equity lines of credit
    
90,675
    
92,163
    
96,608
    
103,216
    
105,933
   
     Indirect consumer loans
    
69,097
    
65,699
    
66,126
    
67,786
    
66,344
  
     Other consumer loans
    
68,636
    
60,816
    
68,926
    
66,148
    
71,689
  
 Total consumer
    
559,826
    
541,390
    
539,833
    
519,927
    
506,801
  
                                 
                                 
                                 
Total loans
  
$
2,442,318
  
$
2,370,889
  
$
2,348,159
  
$
2,344,677
  
$
2,286,820
  
 
                      



18


COMMUNITY BANKS, INC. & SUBSIDIARIES
  
Fiscal Insight - MARCH 31, 2007
  
                           
Reconciliation of GAAP to Non-GAAP Measures:
                      
 (in thousands, except per share data)
  
2007
  
2006
  
   
First
 
Fourth
  
Third
  
Second
  
First
      
 
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Annual
  
                           
Income statement data:
                                      
Net income
                                      
Net income
  
$
9,646
  
$
9,400
  
$
10,558
  
$
10,504
  
$
10,569
  
$
41,031
  
Amortization of core deposit and other intangible assets (1)
    
429
    
406
    
428
    
456
    
425
    
1,715
  
Net operating (tangible) income
  
$
10,075
  
$
9,806
  
$
10,986
  
$
10,960
  
$
10,994
  
$
42,746
  
                                       
Earnings per share
                                      
Diluted earnings per common share
  
$
0.41
  
$
0.40
  
$
0.45
  
$
0.44
  
$
0.44
  
$
1.72
  
Amortization of core deposit and other intangible assets (1)
    
0.02
    
0.01
    
0.01
    
0.02
    
0.01
    
0.07
  
Diluted operating (tangible) earnings per share
  
$
0.43
  
$
0.41
  
$
0.46
  
$
0.46
  
$
0.45
  
$
1.79
  
                                       
Balance sheet data:
                                      
Average assets
                                      
Average assets
  
$
3,544,059
  
$
3,452,095
  
$
3,385,905
 
$
3,391,908
 
$
3,383,211
  
$
3,403,421
  
Goodwill
    
(246,400
)
  
(246,287
)
  
(245,794
)
  
(245,749
)
  
(244,775
)
  
(245,652
)
Core deposit and other intangible assets
    
(12,683
)
  
(13,086
)
  
(13,229
)
  
(13,254
)
  
(13,914
)
  
(13,369
)
Average tangible assets
  
$
3,284,976
  
$
3,192,722
  
$
3,126,882
  
$
3,132,905
  
$
3,124,522
  
$
3,144,400
  
                                       
Operating return on average tangible assets
    
1.24
%
  
1.22
%
  
1.39
%
  
1.40
%
  
1.43
%
  
1.36
%
                                       
Average equity
                                      
Average equity
  
$
486,798
  
$
481,734
  
$
471,911
  
$
470,695
  
$
478,507
  
$
475,710
  
Goodwill
    
(246,400
)
  
(246,287
)
  
(245,794
)
  
(245,749
)
  
(244,775
)
  
(245,652
)
Core deposit and other intangible assets
    
(12,683
)
  
(13,086
)
  
(13,229
)
  
(13,254
)
  
(13,914
)
  
(13,368
)
Deferred taxes
    
1,546
    
1,652
    
1,755
    
1,836
    
1,734
    
1,744
  
Average tangible equity
  
$
229,261
  
$
224,013
  
$
214,643
  
$
213,528
  
$
221,552
  
$
218,434
  
                                       
Operating return on average tangible equity
   
17.82
%
  
17.37
%
  
20.31
%
  
20.59
%
  
20.12
%
  
19.57
%
                                       
At end of quarter:
                                      
Total assets
                                      
Total assets
  
$
3,629,386
  
$
3,496,370
  
$
3,431,208
  
$
3,385,599
  
$
3,421,562
  
$
3,496,370
  
Goodwill
    
(246,449
)
  
(246,383
)
  
(245,864
)
  
(245,056
)
  
(244,760
)
  
(246,383
)
Core deposit and other intangible assets
    
(12,363
)
  
(13,023
)
  
(13,641
)
  
(13,550
)
  
(13,599
)
  
(13,023
)
Total tangible assets
  
$
3,370,574
  
$
3,236,964
  
$
3,171,703
  
$
3,126,993
  
$
3,163,203
  
$
3,236,964
  
                                       
Total equity
                                      
Total equity
  
$
490,564
  
$
486,161
  
$
479,584
  
$
465,760
  
$
475,587
  
$
486,161
  
Goodwill
    
(246,449
)
  
(246,383
)
  
(245,864
)
  
(245,056
)
  
(244,760
)
  
(246,383
)
Core deposit and other intangible assets
    
(12,363
)
  
(13,023
)
  
(13,641
)
  
(13,550
)
  
(13,599
)
  
(13,023
)
Deferred taxes
    
1,482
    
1,591
    
1,698
    
1,800
    
1,854
    
1,591
  
Total tangible equity
  
$
233,234
  
$
228,346
  
$
221,777
  
$
208,954
  
$
219,082
  
$
228,346
  
                                       
Tangible book value at end of period
  
$
9.91
  
$
9.71
  
$
9.45
  
$
8.91
  
$
9.19
  
$
9.71
  
Tangible equity to assets
    
6.92
%
  
7.05
%
  
6.99
%
  
6.68
%
  
6.93
%
  
7.05
%
                                       
 (1) Net of related tax effect
                                      

19