Business & Finance
Tue, November 3, 2009Mon, November 2, 2009Sun, November 1, 2009Sat, October 31, 2009Fri, October 30, 2009Thu, October 29, 2009Wed, October 28, 2009Tue, October 27, 2009Mon, October 26, 2009Sat, October 24, 2009Fri, October 23, 2009Thu, October 22, 2009Wed, October 21, 2009Teche Holding Company Earns Record $3.35 per Share FYE 2009
//business-finance.news-articles.net/content/200 .. ompany-earns-record-3-35-per-share-fye-2009.html
Published in Business and Finance on Wednesday, October 28th 2009 at 9:20 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
FRANKLIN, LA--(Marketwire - October 28, 2009) - Teche Holding Company (
For fiscal 2009, Teche's net income was a record $3.35 per diluted share compared to $2.63 per diluted share for fiscal 2008.
"We not only generated record earnings per share, but had good book value growth, capital growth and increased SmartGrowth deposits and loans boosting our net interest margin," said Patrick O. Little, President and Chief Executive Officer. "We are now better positioned to take advantage of possible future opportunities and to weather future possible challenges.
"These notable results were generated despite an ongoing national recession, economic uncertainties, and two items that reduced diluted earnings per share $0.48 this year. Specifically, we recorded impairment charges of $0.36 per share related to our private label mortgage-backed securities portfolio and an FDIC special assessment (levied on all insured banks) of $0.12 per share. During these challenging times, our dedicated employees continue to provide excellent customer service which has resulted in an increase in both SmartGrowth deposits and loans year after year," said Little. SmartGrowth deposits are made up of Teche's core deposits and exclude time deposits. SmartGrowth loans consist of all loans, excluding conforming home mortgage loans.
According to the Louisiana Economic Outlook (LEO) reported earlier this month, the state of Louisiana, contrary to the rest of the country, will hit "record employment levels" in 2010 and 2011. While not as high as previous years, the LEO continues to predict job growth in south Louisiana. The LEO predicts growth in the Lafayette MSA of 0.5%, in the Houma MSA of 0.9% and the Baton Rouge MSA of 1.5%. These three market areas comprise practically all of the market of Teche Federal Bank. While this is considerably better than the rest of the country, the LEO states that it will be even better if several key proposals in Congress are defeated. Of particular concern were the following proposals: the budget, which includes a $33 billion tax on the oil extraction industry; the cap and trade legislation; the significant increases on the regulation of businesses and other proposals of concern. The LEO states that proposals of this type "tend to arrest economic growth" and should they fail to become law, "Lafayette's future will be much brighter than we have predicted" and "the Houma area economy will fare much better."
Fiscal Fourth Quarter Financial 2009 Highlights
-- Solid Fourth Quarter diluted EPS of $0.94 -- The Bank sold $26 million in fixed rate loans for a gain of $559,000, or $0.18 per diluted share after tax -- Fourth Quarter operating revenue increased 9.8% over the prior year to a record $11.7 million. -- Net interest margin (NIM) expanded to 4.14% for the quarter. -- Fourth Quarter annualized return on average tangible equity of 11.53%, and return on average assets of 1.01% -- Net interest income for the fourth quarter increased 10.3%, to $7.5 million.
Fiscal Year Financial 2009 Highlights
-- Record fiscal year EPS of $3.35 -- Significant Organic Growth: SmartGrowth Deposits increased 11.3%, while SmartGrowth Loans increased 7.2% -- Net interest margin (NIM) expanded to 4.01% for fiscal 2009, up 30 basis points compared to fiscal 2008. -- Tangible Book Value per share increased 6.5% to $32.33 from $30.37 a year ago -- Tangible Stockholders' Equity increased 5.6% to $67.8 million from $64.3 million a year ago. -- The Bank's capital ratios remained well above the regulatory requirements for well-capitalized institutions, with a solid total risk- based capital ratio of 12.72% compared to 12.21% as of September 30, 2008. -- Tangible common equity to tangible assets stood at 8.90% compared to 8.40% a year earlier. -- Fiscal year operating revenue increased 8.5% to a record $45.3 million. -- Fiscal year return on average tangible equity of 10.49% and return on average assets of 0.91% compared to ROATE of 8.83%, and ROAA of 0.76% in fiscal 2008. -- Asset quality remains strong, with non-performing assets at 1.19% of total assets and fiscal 2009 net charge-offs of only 0.29% of average loans. -- Net interest income for the year increased 11.7%, to $28.9 million from $25.9 million for fiscal year 2008. -- Teche paid 58 consecutive cash dividends since June 1995 and consistently increased annual cash dividends to its present $1.405 per share, generating an annualized yield of 4.24%.
OPERATING RESULTS
"We are especially proud of our record profits for fiscal 2009, considering the state of the national economy," said Little. "Even with the fact that we booked $0.90 per share in various charges this fiscal year, Teche still is posting record bottom line earnings.
"We were also very pleased with our return on assets and return on equity," said Little. For fiscal 2009, the annualized return on average assets was 0.91% and return on average tangible equity was 10.49%, resulting in increased capital and increased book value per share.
"We also had record top-line results," said Little. Revenues for the quarter, consisting of net interest income (before provision for loan losses) plus non-interest income, increased 9.8% to a record $11.7 million for the fiscal fourth quarter, compared to $10.7 million for fiscal fourth quarter 2008.
For fiscal 2009, revenue increased 8.5% to a record $45.3 million, compared to $41.7 million for fiscal 2008. Net interest income before the provision for loan losses increased 11.7% to $28.9 million for fiscal 2009, compared to $25.9 million for the same period a year ago.
The table below reflects Teche's operating revenues in millions over the past five quarters:
Operating Revenue Sep '09 Jun '09 Mar '09 Dec '09 Sep '08 -------- -------- -------- -------- -------- Net Interest Income $ 7.5 $ 7.6 $ 7.1 $ 6.8 $ 6.8 Non Interest Income 4.2 4.0 4.1 4.0 3.9 -------- -------- -------- -------- -------- Operating Revenue $ 11.7 $ 11.6 $ 11.2 $ 10.8 $ 10.7 ======== ======== ======== ======== ========
Fiscal fourth quarter 2009 marked the eighth consecutive quarter of NIM expansion for Teche as the Company benefits from the success of its SmartGrowth strategy. For fiscal 2009, net interest margin was 4.01% compared to 3.71% for fiscal 2008.
"While our loan yields fell by 8 basis points, we reduced our cost of funds by 10 basis points, thus expanding our net interest margin by 2 basis points to 4.14%, for the quarter. This compares to 3.85% in the fourth fiscal quarter a year ago and 4.12% in the linked quarter," remarked Little.
Net interest income, before provision for loan losses, increased 10.3% to $7.5 million in fiscal fourth quarter of 2009 compared to $6.8 million in fiscal fourth quarter a year ago.
Non-interest income increased to $4.2 million for the quarter from $4.0 million in the linked quarter and $3.9 million a year ago. This amounted to 2.16% of average assets for the quarter, compared to 2.04% for the linked quarter and 2.04% a year ago. For fiscal 2009, non-interest income was 2.09% of average assets compared to 2.11% for fiscal 2008. Deposit fees comprised 91.9% of non-interest income for the quarter, compared to 92.1% for the linked quarter and 95.8% a year ago. For fiscal 2009, deposit fees comprised 91.7% of non-interest income, compared to 95.7% for fiscal 2008.
Additionally, the Bank sold $26 million of fixed rate home loans to FNMA at a net gain of $559,000. The benefits of this sale include: improvements in our capital ratios and interest rate risk profile.
For the quarter, non-interest expense was $7.9 million or 4.03% of average assets, compared to the linked quarter of $8.2 million or 4.15% of average assets, a decrease of 3.8%, primarily due to a special FDIC assessment recorded in June 2009. Compared to the same quarter in fiscal 2008, non-interest expense increased from $7.6 million, or 3.97% of average assets, to $7.9 million or 4.03%, primarily due to FDIC deposit insurance.
ASSET QUALITY
"We remain focused on credit quality and capital adequacy, and we compare favorably to our peers on both measures," stated Little. "As a result of our solid commitment to sound underwriting standards, effective servicing and diligent collection efforts, our credit quality remained strong, and we believe our strong credit culture will continue to serve us well. $1.3 million of charge-offs recorded this quarter were primarily the result of a multi-family real estate project. This project has been completely resolved. The asset was sold to a new owner and there is no new credit relationship with Teche."
The following table sets forth asset quality ratios for each of the past five quarters:
Sep '09 Jun '09 Mar '09 Dec '09 Sep '08 -------- -------- -------- -------- -------- Net Charge-offs/Average Loans 0.22% 0.03% 0.03% 0.01% 0.01% ALLL/NPLs 95.44% 74.30% 84.60% 87.00% 86.80% ALLL/NPAs 74.86% 68.00% 77.80% 78.80% 82.00% ALLL/Loans 1.14% 1.10% 1.05% 0.93% 0.94% Non-Accrual Loans/Loans 1.02% 1.07% 0.84% 0.81% 0.64% NPAs/Assets 1.19% 1.27% 1.05% 0.93% 0.88%
Net charge-offs in fiscal fourth quarter were $1.3 million, or 0.22% of average loans, compared to $0.1 million, or 0.01% of average loans, for the same period a year ago. For fiscal 2009, net charge-offs totaled $1.8 million, or 0.29% of average loans, compared to $0.4 million, or 0.06% of average loans for fiscal 2008. "Charge-offs were higher than our historical experience this quarter but we continue to compare very favorably to our peers and the overall banking industry."
The allowance for loan and lease losses (ALLL) increased to $6.8 million, or 1.14% of total loans at year end, compared with $5.50 million, or 0.94% of total loans, at September 30, 2008, in part reflecting growth in the loan portfolio and non-performing loans. At June 30, 2009, the allowance for loan and lease losses was $6.8 million, or 1.10% of total loans.
The following table sets forth the allowance for loan loss calculations for each of the past 5 quarters.
(in 000's) Sep '09 Jun '09 Mar '09 Dec '09 Sep '08 -------- -------- -------- -------- -------- Beginning ALLL $ 6,836 $ 6,478 $ 5,531 $ 5,545 $ 5,470 Provision for Loan Losses 1,286 550 1,035 155 160 Net Charge-offs 1,316 192 188 69 85 Ending ALLL $ 6,806 $ 6,836 $ 6,478 $ 5,631 $ 5,545
Non-performing assets totaled $9.1 million, or 1.19% of total assets, at September 30, 2009, compared to $10.0 million, or 1.27% of total assets at June 30, 2009, and $6.8 million, or 0.88% of total assets, a year ago. Non-performing assets consist of non-accrual loans, accruing loans 90 days or more past due, restructured loans and other real estate owned.
BALANCE SHEET
Total net loans grew 0.7% to $588.5 million at September 30, 2009, compared to $584.6 million a year ago and decreased 3.8% compared to $612.0 million at June 30, 2009 primarily due to the sale of approximately $26 million in single family fixed rate mortgage loans in August 2009. Teche originated $54.5 million in loans during the current quarter, including $45.5 million in SmartGrowth loans, of which $26.6 million were commercial loans.
Teche's total assets decreased 0.6% to $765.0 million, at September 30, 2009, compared to $769.5 million a year ago. Total assets decreased from $789.5 million at June 30, 2009 primarily due to the sale of loans set forth above and a corresponding reduction in total deposits.
At September 30, 2009 SmartGrowth loans comprised 77.3% of the total loan portfolio, compared to 72.8% a year ago. SmartGrowth loans increased 7.2% to $460.3 million at September 30, 2009 compared to $429.5 million a year ago, and decreased 0.4% from $462.1 million at June 30, 2009.
SmartGrowth deposits at September 30, 2009 were 62.8% of total deposits compared to 56.1% a year ago. SmartGrowth deposits increased 11.3% to $367.7 million at September 30, 2009 compared to $330.4 million a year ago. Following the run-off of $41.1 million of primarily higher cost time deposits, total deposits were $585.5 million at September 30, 2009, compared $589.2 million at September 30, 2008.
"Checking deposits were down seasonally this quarter," said Little, "but our year-over-year gain in checking and total SmartGrowth deposits showed a significant increase for the year.
"The organic growth in SmartGrowth loans and deposits has been the cause of much of the success of the Bank this past year," said Little.
Consumer and commercial loans increased 9.5% and 11.9% respectively over the past year. Consumer loans now total $108.0 million at September 30, 2009 and commercial loans increased to $210.2 million. "Our recent increase in consumer loans has been remarkable," said Little. "Not only did we post a significant increase in consumer loan balances, but the interest rate on consumer loans increased. Further, net charge-offs for consumer loans have been very low. As a result, we have again posted solid gains in both commercial and consumer loans this past quarter and have been encouraged by the steady increase in our SmartGrowth Loans."
Total stockholders' equity increased by $3.4 million to $71.5 million, as earnings were partially offset primarily by cash dividends and repurchases during the quarter.
Total cash and securities in the portfolio continued to gradually decline to $125.1 million from $135.8 million a year ago. The vast majority of our securities are government-sponsored enterprise mortgage-backed securities, with only $4.2 million, or 0.5% of total assets in private label mortgage backed securities.
CAPITAL ADEQUACY
"We did not participate in the TARP program and our capital is strong," added Little. "All capital ratios continue to exceed the 'well-capitalized' requirements established by banking regulators."
The Tier 1 risk-based capital ratio was 11.51% at September 30, 2009, compared with 11.17% at June 30, 2009 and at September 30, 2008. The total risk-based capital ratio was 12.72% at September 30, 2009, compared with 12.15% at June 30, 2009 and 12.21% at September 30, 2008.
Tangible shareholders' equity improved to $67.8 million, or 8.90% of total assets at September 30, 2009, compared with $64.3 million, or 8.40 % of total assets at September 30, 2008. Book value per share increased to $34.09 at September 30, 2009, from $32.12 a year ago and tangible book value per share increased to $32.33 at quarter end from $30.37 a year ago. The increases were primarily due to earnings, partially offset by dividends paid during the year.
On September 30, 2009, Teche paid a $0.355 per share quarterly cash dividend to shareholders, generating an annualized yield of 4.29% based on the recent share price. Teche has paid 58 consecutive quarterly cash dividends since June 1995. "Because of the solid performance of our balance sheet, we are able to continue rewarding shareholders with quarterly cash dividends," Little noted.
ABOUT TECHE HOLDING COMPANY
Teche Holding Company is the parent company of Teche Federal Bank, which operates twenty offices in South Louisiana and provides various deposit, loan and investments services to over 60,000 customers. Founded in 1934, Teche Federal Bank is the fourth largest publicly traded (
[ www.teche.com ]
Statements contained in this news release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by Teche Holding Company with the Securities and Exchange Commission from time to time. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Statements of Income (UNAUDITED) THREE MONTHS ENDED ----------------------------------------------------- Sep. Jun. Mar. Dec. Sep. 2009 2009 2009 2008 2008 --------- --------- --------- --------- --------- Interest Income $ 10,880 $ 11,130 $ 11,013 $ 11,214 $ 11,417 Interest Expense 3,386 3,583 3,950 4,378 4,620 --------- --------- --------- --------- --------- Net Interest Income 7,494 7,547 7,063 6,836 6,797 Provision for Loan Losses 1,286 550 1,035 155 160 --------- --------- --------- --------- --------- Net Interest Income after Provision for Loan Losses 6,208 6,997 6,028 6,681 6,637 Non Interest Income 4,225 4,036 4,114 3,952 3,872 Non Interest Expense 7,894 8,204 7,678 7,595 7,604 --------- --------- --------- --------- --------- Income Before Gain on Securities and Sale of Loans 2,539 2,829 2,464 3,038 2,905 Gain (Loss) on Securities (183) (434) 18 (436) 1 Gain (Loss) on Sale of Loans 559 -- -- -- -- Income Taxes 932 662 826 838 787 --------- --------- --------- --------- --------- Net Income (loss) $ 1,983 $ 1,733 $ 1,656 $ 1,764 $ 2,119 ========= ========= ========= ========= ========= Selected Financial Data --------- --------- --------- --------- --------- Dividends Declared Per Share $ 0.355 $ 0.35 $ 0.35 $ 0.35 $ 0.35 Basic Earnings Per Common Share $ 0.95 $ 0.82 $ 0.78 $ 0.83 $ 1.00 Diluted Earnings Per Common Share $ 0.94 $ 0.81 $ 0.78 $ 0.83 $ 0.99 Annualized Return on Avg. Assets 1.01% 0.88% 0.85% 0.92% 1.11% Annualized Return on Avg. Equity 10.91% 9.55% 9.24% 10.37% 12.28% Annualized Return on Avg. Tangible Equity (1) 11.53% 10.11% 9.79% 11.00% 13.02% Yield on Interest Earning Assets 6.01% 6.07% 6.11% 6.26% 6.42% Cost of Interest Bearing Liabilities 2.12% 2.22% 2.47% 2.77% 2.91% Spread 3.88% 3.85% 3.64% 3.49% 3.56% Net Interest Margin 4.14% 4.12% 3.92% 3.82% 3.85% Non-Interest Income/Avg. Assets 2.16% 2.04% 2.12% 2.05% 2.02% Non-Interest Expense/Avg. Assets 4.03% 4.15% 3.94% 3.94% 3.97% Quarterly Net Charge Offs/Avg. Loans 0.22% 0.03% 0.03% 0.01% 0.01% Weighted avg. shares Outstanding Basic 2,096 2,107 2,118 2,118 2,118 Diluted 2,117 2,125 2,128 2,128 2,133 AVERAGE BALANCE SHEET DATA --------- --------- --------- --------- --------- Total Assets $ 784,058 $ 790,499 $ 780,054 $ 770,227 $ 765,779 Earning assets $ 724,678 $ 733,368 $ 720,998 $ 716,127 $ 711,430 Loans $ 608,769 $ 615,616 $ 606,951 $ 601,355 $ 591,898 Interest-bearing deposits $ 534,850 $ 538,403 $ 532,033 $ 528,575 $ 537,431 Total deposits $ 600,339 $ 604,681 $ 596,291 $ 596,881 $ 593,869 Total stockholders' equity $ 72,723 $ 72,568 $ 71,689 $ 68,057 $ 69,045 (1) Eliminates the effect of goodwill and the core deposit intangible assets and the related amortization expense on a tax effected basis. The amount was calculated using the following information. Average Stockholders' Equity $ 72,723 $ 72,568 $ 71,689 $ 68,057 $ 69,045 Less average goodwill and other intangible assets, net of related income taxes 3,694 3,703 3,708 3,715 3,723 --------- --------- Average Tangible Equity $ 69,029 $ 68,865 $ 67,981 $ 64,342 $ 65,322 ========= ========= ========= ========= ========= Net Income $ 1,983 $ 1,733 $ 1,656 $ 1,764 $ 2,119 Plus Amortization of core deposit intangibles, net of related income taxes 7 7 7 7 7 --------- --------- --------- --------- --------- Net Income, as adjusted $ 1,990 $ 1,740 $ 1,663 $ 1,771 $ 2,126 ========= ========= ========= ========= ========= TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Statements of Income (UNAUDITED) Twelve months ended Twelve months ended Sept. 2009 Sept. 2008 ------------------- ------------------- Interest Income $ 44,237 $ 45,633 Interest Expense 15,297 19,733 ------------------- ------------------- Net Interest Income 28,940 25,900 Provision for Loan Losses 3,026 825 ------------------- ------------------- Net Interest Income after Provision for Loan Losses 25,914 25,075 Non Interest Income 16,328 15,813 Non Interest Expense 31,372 30,552 ------------------- ------------------- Income Before Gain on Securities and Sale of Loans 10,870 10,336 Gain (Loss) on Securities (1,035) (2,580) Gain (Loss) on Sale of Loans 559 Income Taxes 3,258 2,047 ------------------- ------------------- Net Income $ 7,136 $ 5,709 =================== =================== Selected Financial Data ------------------- ------------------- Dividends Declared Per Share $ 1.41 $ 1.37 Basic Earnings Per Common Share $ 3.38 $ 2.65 Diluted Earnings Per Common Share $ 3.35 $ 2.63 Annualized Return on Avg. Assets 0.91% 0.76% Annualized Return on Avg. Equity 9.98% 8.29% Annualized Return on Avg. Tangible Equity (1) 10.49% 8.83% Yield on Interest Earning Assets 6.12% 6.60% Cost of Interest Bearing Liabilities 2.40% 3.17% Spread 3.73% 3.42% Net Interest Margin 4.01% 3.71% Non-Interest Income/Avg. Assets 2.08% 2.11% Non-Interest Expense/Avg. Assets 4.02% 4.07% FYTD Charge-Offs/Avg. Loans 0.29% 0.06% Weighted avg. shares Outstanding Basic 2,110 2,154 Diluted 2,127 2,171 AVERAGE BALANCE SHEET DATA ------------------- ------------------- Total Assets $ 781,187 $ 749,825 Earning assets $ 722,409 $ 697,236 Loans $ 606,751 $ 594,944 Interest-bearing deposits $ 533,022 $ 526,458 Total deposits $ 597,559 $ 581,253 Total stockholders' equity $ 71,479 $ 68,833 (1) Eliminates the effect of goodwill and the core deposit intangible assets and the related amortization expense on a tax-effected basis. The amount was calculated using the following information Average Stockholders' Equity $ 71,479 $ 68,833 Less average goodwill and other intangible assets, net of related income taxes 3,715 3,743 ------------------- ------------------- Average Tangible Equity $ 67,764 $ 65,090 =================== =================== Net Income $ 7,136 $ 5,709 Plus Amortization of core deposit intangibles, net of related income taxes 28 36 ------------------- ------------------- Net Income, as adjusted $ 7,108 $ 5,745 =================== =================== TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Balance Sheet (UNAUDITED) Sep. 2009 Jun. 2009 Mar. 2009 Dec. 2008 Sept. 2008 --------- --------- --------- --------- ---------- SmartGrowth Loans Consumer $ 108,013 $ 106,563 $ 104,524 $ 102,438 $ 98,632 Commercial 210,201 209,091 204,973 195,754 187,791 Home Equity 58,348 58,216 57,852 57,720 55,713 Alternative Mortgage Loans 83,775 88,200 88,305 88,181 87,404 --------- --------- --------- --------- ---------- Total SmartGrowth Loans 460,337 462,070 455,654 444,093 429,540 Mortgage Loans (owner occupied conforming) 134,996 156,759 157,954 160,410 160,596 --------- --------- --------- --------- ---------- 595,333 618,829 613,608 604,503 590,136 Allowance for Loan Losses -6,806 -6,836 -6,478 -5,631 -5,545 --------- --------- --------- --------- ---------- Loans Receivable, Net 588,527 611,993 607,130 598,872 584,591 Cash and Securities 125,058 127,441 139,149 120,235 135,819 Goodwill and Other Intangibles 3,715 3,723 3,734 3,745 3,756 Foreclosed Real Estate 1,953 604 672 672 343 Other 45,818 45,752 44,811 44,094 44,979 --------- --------- --------- --------- ---------- TOTAL ASSETS $ 765,071 $ 789,513 $ 795,496 $ 767,618 $ 769,488 ========= ========= ========= ========= ========== SmartGrowth Deposits Checking $ 165,796 $ 168,733 $ 175,477 $ 158,742 $ 144,601 Money Market 95,461 108,668 120,865 121,621 130,399 Savings 106,479 93,485 78,944 57,387 55,390 --------- --------- --------- --------- ---------- Total SmartGrowth Deposits 367,736 370,886 375,286 337,750 330,390 Time Deposits 217,733 234,556 236,403 251,032 258,838 --------- --------- --------- --------- ---------- Total Deposits 585,469 605,442 611,689 588,782 589,228 FHLB Advances 100,628 106,890 107,089 103,491 104,877 Other Liabilities 7,490 7,129 6,656 6,013 7,339 Stockholders' Equity 71,484 70,052 70,062 69,332 68,044 --------- --------- --------- --------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 765,071 $ 789,513 $ 795,496 $ 767,618 $ 769,488 ========= ========= ========= ========= ========== Ratio of Equity to Assets 9.34% 8.87% 8.81% 9.03% 8.84% Tangible Equity Ratio (2) 8.90% 8.44% 8.38% 8.59% 8.40% Risk-Based Capital Ratio 12.72% 12.15% 11.98% 12.43% 12.21% Book Value per Common Share $ 34.09 $ 33.43 $ 33.08 $ 32.72 $ 32.12 Tangible Book Value Per Common Share (2) $ 32.33 $ 31.67 $ 31.33 $ 31.00 $ 30.37 Non-performing Assets/Total Assets 1.19% 1.27% 1.05% 0.93% 0.88% Shares Outstanding (in thousands) 2,097 2,095 2,118 2,116 2,118 (2) Eliminates the effect of goodwill and the core deposit intangible assets and the related accumulated amortization on a tax-effected basis. The amount was calculated using the following information: Stockholders' Equity $ 71,484 $ 70,052 $ 70,062 $ 69,332 $ 68,044 Less goodwill and other Intangible assets, net of related income taxes -3,692 -3,697 -3,704 -3,712 -3,721 --------- --------- --------- --------- ---------- Tangible Stockholders' Equity $ 67,792 $ 66,355 $ 66,358 $ 65,620 $ 64,323 ========= ========= ========= ========= ========== Total Assets 765,071 $ 789,513 $ 795,496 $ 767,619 $ 769,488 Less goodwill and other Intangible assets, net of related income taxes -3,692 -3,697 -3,704 -3,712 -3,721 --------- --------- --------- --------- ---------- Total Tangible Assets 761,379 $ 785,816 $ 791,792 $ 763,907 $ 765,767 ========= ========= ========= ========= ========== Quarter-End Loan Data Sept. 30, 2009 90 Days + Total Charge- Charge- Non 90 Days + Loans Offs Offs Accrual Non Accrual Dollars Dollars Percentage Dollars Percentage --------- --------- ---------- ---------- ----------- Real Estate Loans Construction $ 21,707 $ 0 0.0 % $ 1,066 4.91% Permanent, Secured by: 1-4 Dwelling Units: Revolving, Open-End Loans 17,529 0 0.0 % 50 0.29% All Other Secured by First Liens 302,072 4 0.0 % 4,408 1.46% Secured by Junior Liens 13,882 5 0.04 % 88 0.63% Multifamily (5+ Dwelling Units) 23,921 1,139 4.76 % 324 1.35% Nonresidential Property (Except Land) 91,428 63 0.07 % 371 0.41% Land 34,644 0 0.0 % 388 1.12% Non-Real Estate Loans: Commercial Loans 30,395 96 0.32 % 98 0.32% Consumer Loans: Loans on Deposits 7,779 1 0.01 % 50 0.64% Auto Loans 3,044 (5) (0.03)% 19 0.62% Mobile Home Loans 40,327 6 0.01 % 266 0.66% Other 8,605 7 0.08 % 2 0.02% --------- --------- ---------- Gross Loans $ 595,333 $ 1,316 0.22 % $ 7,130 1.20% ========= ========= ========== Non-accruals $ 6,048 OREO & Foreclosed 1,962 90 + Days Past Due 1,082 --------- Non-performing Assets $ 9,092 ========= NPAs/Assets 1.19% NPAs/(Loans + OREO) 1.52% LLR/Loans 1.14% Net Charge-offs/ Loans 0.22% Average Loan Balances & Yields Linked Quarter Comparison 09/30/2009 6/30/2009 Change Change Balance Yield Balance Yield Balance Yield --------- ----- --------- ----- --------- ------ Real Estate Loans 1-4 Family $ 362,662 6.12% $ 371,900 6.20% $ (9,238) -0.08% Commercial 137,729 5.85% 135,699 6.10% 2,030 -0.25% --------- --------- --------- 500,391 6.04% 507,599 6.18% (7,208) -0.14% Non-Real Estate Loans Commercial 29,342 6.44% 30,158 6.37% (816) 0.07% Consumer 79,036 9.45% 77,859 9.27% 1,177 0.18% --------- --------- --------- 108,378 8.63% 108,017 8.46% 361 0.17% --------- --------- --------- Total All Loans $ 608,769 6.50% $ 615,616 6.58% $ (6,847) -0.08% ========= ========= ========= Average Loan Balances & Yields Prior Year Comparison 09/30/2009 9/30/2008 Change Change Balance Yield Balance Yield Balance Yield --------- ----- --------- ----- --------- ------ Real Estate Loans 1-4 Family $ 370,125 6.24% $ 383,338 6.56% $ (13,213) -0.32% Commercial 130,063 6.18% 116,202 7.11% 13,861 -0.93% --------- --------- --------- 500,188 6.22% 499,540 6.69% 648 -0.47% Non-Real Estate Loans Commercial 29,464 6.44% 23,030 7.23% 6,434 -0.79% Consumer 77,099 9.28% 67,044 9.25% 10,055 0.03% --------- --------- --------- 106,563 8.50% 90,074 8.73% 16,489 -0.23% --------- --------- --------- Total All Loans $ 606,751 6.62% $ 589,614 7.00% $ 17,137 -0.38% ========= ========= ========= Interest-bearing Liabilities: Linked Quarter Comparison Average balances 9/30/2009 6/30/2009 Change Avg. Avg. Change Avg. %Balance $Balance Yield $Balance Yield $Balance Yield Change --------- ----- --------- ----- -------- ------ -------- NOW Accounts $ 102,756 0.47% $ 106,830 0.48% $ (4,074) -0.01% -3.8% Non-interest bearing Deposits 65,489 0.00% 66,278 0.00% (789) 0.00% -1.2% --------- ----- --------- ----- -------- ------ -------- Checking Total 168,245 0.29% 173,108 0.30% (4,863) -0.01% -2.8% Savings Accounts 97,036 0.88% 86,301 0.87% 10,735 0.01% 12.4% Money Market Accounts 103,868 0.55% 114,376 0.91% (10,508) -0.36% -9.2% --------- ----- --------- ----- -------- ------ -------- Total SmartGrowth Deposits 369,149 0.52% 373,785 0.62% (4,636) -0.10% -1.2% Time Deposits 231,190 3.03% 230,896 3.13% 294 -0.10% 0.1% Total Deposits $ 600,339 1.49% $ 604,681 1.58% $ (4,342) -0.09% -0.7% FHLB Advances 103,328 4.47% 106,193 4.51% (2,865) -0.04% -2.7% --------- --------- -------- Total Interest- bearing liabilities $ 638,178 2.12% $ 644,596 2.22% $ (6,418) -0.10% -1.0% ========= ========= ======== Interest-bearing Liabilities: Prior Year Comparison Average balances 9/30/2009 9/30/2008 Change Avg. Avg. Change Avg. %Balance $Balance Yield $Balance Yield $Balance Yield Change --------- ----- --------- ----- -------- ------ -------- NOW Accounts 101,311 0.53% $ 83,516 0.55% $ 17,795 -0.02% 21.3% Non-interest bearing Deposits 64,537 0.00% 54,796 0.00% 9,741 0.00% 17.7% --------- ----- --------- ----- -------- ------ -------- Checking Total 165,848 0.32% 138,312 0.33% 27,536 -0.01% 19.9% Savings Accounts 76,214 0.87% 52,851 0.77% 23,363 0.10% 44.2% Money Market Accounts 115,227 1.24% 125,905 2.71% (10,678) -1.47% -8.5% --------- ----- --------- ----- -------- ------ -------- Total SmartGrowth Deposits 357,289 0.74% 317,068 1.35% 40,221 -0.61% 12.7% Time Deposits 240,270 3.28% 264,185 4.16% (23,915) -0.88% -9.1% Total Deposits 597,559 1.76% 581,253 2.63% 16,306 -0.87% 2.8% FHLB Advances 105,060 4.54% 95,225 4.67% 9,835 -0.13% 10.3% --------- --------- -------- Total Interest- bearing liabilities $ 638,082 2.40% $ 621,682 3.17% $ 16,400 0.69% 2.6% ========= ========= ========