Banner Corporation Reports Fourth Quarter and Full Year Results.Business Editors WALLA WALLA Walla Walla (wŏl`ə wŏl`ə), city (1990 pop. 26,478), seat of Walla Walla co., SE Wash., at the junction of the Walla Walla River and Mill Creek, near the Oregon line; inc. 1862. , Wash.--(BUSINESS WIRE)--Feb. 5, 2003 Banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. Corporation (Nasdaq: BANR BANR Board on Agriculture and Natural Resources ), the parent company of Banner Bank Banner Bank is a Washington financial institution based in Walla Walla. Originally known as First Federal Savings And Loan Of Walla Walla, it was the oldest Savings and Loan institution in the state of Washington. , today reported a net loss of $1.6 million, or $(0.14) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the fourth quarter, compared to net income of $3.7 million, or $0.32 per diluted share, in the fourth quarter of 2001. For the year ended December December: see month. 31, 2002, net income was $9.3 million, or $0.82 per diluted share, compared to $7.5 million, or $0.64 per diluted share, for the year ended 2001. Asset Quality "We announced on December 20, 2002, that a portion of our loan portfolio was experiencing signs of deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. , which would require us to substantially increase the quarterly loan loss provision to bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz reserves," said D. Michael Jones Mike or Michael Jones may refer to: In sports:
 `jĕt), arm of the Pacific Ocean, NW Wash., connected with the Pacific by Juan de Fuca Strait, entered through the Admiralty Inlet and extending in two arms c. economy has
continued to weaken. In light of these events, we have increased the
provision for loan losses to $10.0 million for the quarter ended
December 31, 2002. We are hopeful that this additional provision will
allow us to return to a more normal level of provision in 2003."
Non-performing assets increased to $42.2 million, or 1.86% of total assets, at December 31, 2002. The allowance for loan losses was $26.5 million, or 1.69% of total loans outstanding, at December 31, 2002, compared to $17.6 million, or 1.10% of loans, a year earlier. Net charge-offs to average loans outstanding improved to 0.16% for the quarter ended December 31, 2002, from 0.32% in the fourth quarter of 2001. For the year ended December 31, 2002, net charge-offs were 0.78%, compared to 0.75% for the prior year. "The problem loans are primarily due from borrowers located in the Puget Sound region, and are the result of poor risk assessment at the time they were originated coupled with weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economic conditions in that area," said
Jones. "We continue to direct significant efforts toward overall
asset quality and managing non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. , and we have
substantially upgraded our risk-assessment procedures.
"2002 was a very difficult year for Banner Corporation. While we have been successful in building a new management team, adding a number of seasoned commercial lending officers, growing our Bank's deposit portfolio, improving the Company's balance sheet liquidity and augmenting our capital structure, the continuing deterioration of the quality of our loan portfolio and the resulting impact on our earnings performance is very disappointing," said Jones. Income Statement Review Revenues (net interest income before the provision for loan losses plus other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ) for the quarter ended December 31, 2002, increased 12%, to $25.1 million compared to $22.4 million for the same quarter a year earlier. For the year ended December 31, 2002, revenues increased 11% to $94.2 million compared to $85.2 million for 2001. Net interest margin was 3.86% in the fourth quarter of 2002, a six basis point improvement from the 3.80% margin generated in the fourth quarter of 2001. Net interest margin for the year ended December 31, 2002 was 3.91%, an 18 basis point improvement from a year ago. "Funding costs have declined as interest rates remain extraordinarily low, and we continue to grow our deposit base. This decline in costs has contributed to an improvement in our interest margin. However, the Federal Reserve's most recent rate cut, combined with the Bank's increase in non-performing assets, has placed pressure on asset yields and compressed our net interest margin during the last half of the quarter," said Jones. Mortgage banking activities for both purchases and refinancing Refinancing An extension and/or increase in amount of existing debt. continue to contribute to other operating income as housing markets remain strong. Real estate loan production for the year, including construction loans, surpassed $1 billion for the first time in the Company's history. Other operating income increased 42% to $5.2 million in the fourth quarter of 2002, from $3.7 million in the same quarter a year ago. Income from mortgage banking operations grew to $2.7 million while deposit fees totaled $1.5 million during the quarter compared to $1.2 million and $1.5 million, respectively, in the same quarter a year ago. For the year ended December 31, 2002, other operating income reached $15.9 million, an 18% improvement over the $13.5 million generated in the previous year. "We have expanded our franchise through the acquisition of Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. Business Bank in January January: see month. 2002 and de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branches in Spokane Spokane, city, United States Spokane (spōkăn`), city (1990 pop. 177,196), seat of Spokane co., E Wash., at the spectacular falls of the Spokane River; inc. 1881. and Pasco, Washington Pasco (IPA: [ˈpæs ko]) is a city located in Franklin County, in the state of Washington, USA. Pasco is the county seat of Franklin CountyGR6. ," Jones said. "We also have added commercial lending centers in Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , Spokane and the Tri-Cities, and staffed them with a number of experienced commercial bankers; and we have embarked on a regional advertising and marketing campaign. We anticipate increased contributions from each of these efforts in the coming year." Other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $18.0 million for the fourth quarter of 2002, compared to $13.1 million in the fourth quarter of 2001. Other operating expenses were $60.4 million for all of 2002, compared to $59.6 million for 2001. Fourth quarter 2002 expenses increased because of a number of seasoned commercial lending officers that have been added to staff but have not yet had time to convert their long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. customers to Banner Bank. Additionally, expenses were increased when compared to the fourth quarter of 2001 due to significant increases in incentive compensation caused by excellent fourth quarter mortgage banking results along with elevated compensation and collection expenses related to management of the Bank's problem loan portfolio. Following the adoption of Financial Accounting Standards No. 142, Banner Bank no longer amortizes goodwill associated with intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. from acquisitions. Consequently, goodwill amortization expenses have been significantly lower this year compared to comparable periods a year earlier. Goodwill amortization expense was $795,000 in the fourth quarter of 2001 and $3.2 million for the year ended December 31, 2001. Balance Sheet Review Total assets increased 8% to $2.26 billion at December 31, 2002, from $2.09 billion at December 31, 2001, while stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. declined to $190.4 million from $192.3 million over the same period. Book value per share at December 31, 2002, increased to $17.64 per share from $17.40 per share a year earlier. Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share at December 31, 2002, was $14.24 per share compared to $14.55 per share at December 31, 2001. During the fourth quarter 58,000 shares were repurchased by the Company, bringing the total shares repurchased during 2002 to 423,000. Banner's loan portfolio declined slightly to $1.55 billion at December 31, 2002. "Commercial and agricultural loans continue to represent a larger portion of the total loan portfolio as production of these types of loans increases and term real estate loans decline through sales to the secondary market and refinancing activity," said Jones. Commercial and agricultural loans increased 12% and now represent 25% of the loan portfolio. Residential construction and development lending remained strong, contributing significantly to revenue growth throughout the year as average balances exceeded prior year levels, although the December 31, 2002 balance of these types of loans was nearly unchanged from a year earlier. Deposits increased 16% to $1.5 billion at December 31, 2002, from $1.3 billion a year earlier, which substantially improved balance sheet liquidity. Largely as a result of the strong customer deposit growth, the Company increased its investment in interest bearing deposits, federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold, and securities, while also repaying a portion of its borrowings. As a result, cash and securities increased 48% to $567.4 million at December 31, 2002, compared to $384.4 million at December 31, 2001, and borrowings declined by $31.8 million, or 5%, to $547.0 million at December 31, 2002, compared to $578.7 million at December 31, 2001. In addition, during the year the Company significantly strengthened its capital position by issuing $40 million of Trust Preferred Securities. Conference Call The Company will host a conference call today, February February: see month. 5, 2003 at 1:30 p.m. PST PST Paroxysmal supraventricular tachycardia, see there , to discuss fourth quarter and year end results. The conference call can be accessed live by telephone at 303/205-0033 or from the Company's website at www.banrbank.com, or www.companyboardroom.com. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. may access the call via www.streetevents.com. An archived recording of the call can be accessed by dialing 303/590-3000, access code 522830 until February 19, 2003, or via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.companyboardroom.com through February 26, 2003. Banner Corporation is the parent of Banner Bank, a commercial bank which operates a total of 41 branch offices and seven loan offices in 19 counties in Washington This is a list of counties in Washington. There are thirty-nine counties in the U.S. state of Washington. Certain residents of Snohomish County consider themselves to be part of Freedom County. , Oregon and Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). . Banner serves the Pacific Northwest region
The Northwest Region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.banrbank.com. Statements concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are subject to a number of risks and uncertainties that are beyond the Company's control and might cause actual results to differ materially from the expectations and stated objectives. Factors which could cause actual results to differ materially include, but are not limited to, regional and general economic conditions, changes in interest rates, deposit flows, demand for mortgages and other loans, real estate values, competition, loan delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rates, changes in accounting principles, practices, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , changes in legislation or regulation, other economic, competitive, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and technological factors affecting operations, pricing, products and services, Banner's ability to successfully resolve outstanding credit issues and recover check kiting The unlawful practice of drawing checks against a bank account containing insufficient funds to cover them, with the expectation that the necessary funds will be deposited before such checks are presented for payment. losses, and the Company's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. activity. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Banner undertakes no responsibility to update or revise any forward-looking statements.
RESULTS OF OPERATIONS Quarters Ended
------------------------------- -------------------------------------
(In thousands except share and Dec 31, Sep 30, Dec 31,
per share data) 2002 2002 2001
----------- ------------ -----------
INTEREST INCOME:
Loans receivable $ 30,492 $ 30,907 $ 32,378
Mortgage-backed securities 2,526 2,770 2,979
Securities and deposits 2,615 2,672 2,134
----------- ----------- -----------
35,633 36,349 37,491
INTEREST EXPENSE:
Deposits 9,455 9,733 11,149
Federal Home Loan Bank
advances 5,604 5,791 7,021
Trust preferred securities 467 380 --
Other borrowings 226 366 578
----------- ----------- -----------
15,752 16,270 18,748
----------- ----------- -----------
Net Interest Income
Before Provision For
Loan Losses 19,881 20,079 18,743
PROVISION FOR LOAN LOSSES 10,000 4,000 4,100
----------- ----------- -----------
Net Interest Income
After Provision For
Loan Losses 9,881 16,079 14,643
OTHER OPERATING INCOME:
Loan servicing fees 475 239 255
Other fees and service
charges 1,473 1,525 1,545
Mortgage banking operations 2,674 1,602 1,165
Gain (loss) on sale of
securities -- 10 327
Miscellaneous 557 555 359
----------- ----------- -----------
5,179 3,931 3,651
OTHER OPERATING EXPENSE:
Salary and employee
benefits 10,505 9,973 7,044
Less capitalized loan
origination costs (1,737) (1,438) (1,315)
Occupancy and equipment 2,259 2,141 2,177
Information / computer data
services 1,069 925 971
Advertising 900 723 484
Check kiting loss -- -- --
Amortization of intangibles 63 64 795
Miscellaneous 4,920 2,912 2,967
----------- ----------- -----------
17,979 15,300 13,123
----------- ----------- -----------
Income (Loss) Before
Provision For Income
Taxes (2,919) 4,710 5,171
PROVISION FOR (BENEFIT FROM)
INCOME TAXES (1,362) 1,329 1,505
----------- ----------- -----------
NET INCOME (LOSS) $ (1,557) $ 3,381 $ 3,666
=========== =========== ===========
Earnings (Loss) Per Share
Basic $ (0.14) $ 0.31 $ 0.33
Diluted $ (0.14) $ 0.30 $ 0.32
Cumulative Dividend Per Share $ 0.15 $ 0.15 $ 0.14
Weighted Average Shares
Outstanding
Basic 10,738,460 10,892,122 11,103,946
Diluted 11,094,056 11,286,894 11,432,686
Shares repurchased during the
period 58,490 324,354 276,091
RESULTS OF OPERATIONS Year Ended
------------------------------- ------------------------
(In thousands except share and Dec 31, Dec 31,
per share data) 2002 2001
----------- -----------
INTEREST INCOME:
Loans receivable $ 123,352 $ 135,765
Mortgage-backed securities 10,738 12,196
Securities and deposits 10,186 9,705
----------- -----------
144,276 157,666
INTEREST EXPENSE:
Deposits 39,206 52,702
Federal Home Loan Bank
advances 24,094 29,990
Trust preferred securities 1,185 --
Other borrowings 1,484 3,252
----------- -----------
65,969 85,944
----------- -----------
Net Interest Income
Before Provision For
Loan Losses 78,307 71,722
PROVISION FOR LOAN LOSSES 21,000 13,959
----------- -----------
Net Interest Income
After Provision For
Loan Losses 57,307 57,763
OTHER OPERATING INCOME:
Loan servicing fees 1,471 1,158
Other fees and service
charges 5,804 5,704
Mortgage banking operations 6,695 4,575
Gain (loss) on sale of
securities 27 687
Miscellaneous 1,880 1,341
----------- -----------
15,877 13,465
OTHER OPERATING EXPENSE:
Salary and employee
benefits 38,262 29,865
Less capitalized loan
origination costs (5,780) (4,897)
Occupancy and equipment 8,522 7,947
Information / computer data
services 3,331 4,191
Advertising 2,220 1,171
Check kiting loss -- 8,100
Amortization of intangibles 255 3,180
Miscellaneous 13,635 10,079
----------- -----------
60,445 59,636
----------- -----------
Income (Loss) Before
Provision For Income
Taxes 12,739 11,592
PROVISION FOR (BENEFIT FROM)
INCOME TAXES 3,479 4,142
----------- -----------
NET INCOME (LOSS) $ 9,260 $ 7,450
=========== ===========
Earnings (Loss) Per Share
Basic $ 0.85 $ 0.67
Diluted $ 0.82 $ 0.64
Cumulative Dividend Per Share $ 0.60 $ 0.56
Weighted Average Shares
Outstanding
Basic 10,932,573 11,179,166
Diluted 11,351,647 11,599,811
Shares repurchased during the
period 422,844 569,166
NOTE: Certain reclassifications have been made to the prior periods'
financial numbers to conform to the current period's
presentation. These reclassifications have affected certain
ratios for the prior periods. The effect of such
reclassifications is immaterial.
FINANCIAL CONDITION
--------------------------------
(In thousands except share and Dec 31, Sep 30, Dec 31,
per share data) 2002 2002 2001
----------- ----------- -----------
ASSETS
------
Cash and due from banks $ 132,910 $ 125,018 $ 67,728
Securities available for sale 421,222 373,749 301,847
Securities held to maturity 13,253 14,082 14,828
Federal Home Loan Bank stock 32,831 32,282 30,840
Loans receivable:
Held for sale 39,366 29,044 43,235
Held for portfolio 1,534,100 1,563,789 1,549,742
Allowance for loan losses (26,539) (19,150) (17,552)
----------- ----------- -----------
1,546,927 1,573,683 1,575,425
Accrued interest receivable 13,689 14,263 12,929
Real estate held for sale, net 6,062 5,362 3,011
Property and equipment, net 20,745 19,025 18,151
Costs in excess of net assets
acquired (goodwill), net 36,714 36,752 31,437
Deferred income tax asset, net 2,786 1,364 1,443
Bank owned life insurance 31,809 31,356 20,304
Other assets 4,224 4,306 9,151
----------- ----------- -----------
$ 2,263,172 $ 2,231,242 $ 2,087,094
=========== =========== ===========
LIABILITIES
-----------
Deposits:
Non-interest-bearing $ 200,500 $ 222,062 $ 180,813
Interest-bearing 1,297,278 1,263,620 1,114,998
----------- ----------- -----------
1,497,778 1,485,682 1,295,811
Borrowings:
Advances from Federal Home
Loan Bank 465,743 444,243 501,982
Trust preferred securities 40,000 25,000 --
Other borrowings 41,202 65,014 76,715
----------- ----------- -----------
546,945 534,257 578,697
Accrued expenses and other
liabilities 24,700 15,036 17,591
Deferred compensation 3,372 3,083 2,655
Income taxes payable -- -- --
----------- ----------- -----------
2,072,795 2,038,058 1,894,754
STOCKHOLDERS' EQUITY
--------------------
Common stock and additional paid
in capital 120,554 120,836 126,844
Retained earnings 70,813 73,733 68,104
Accumulated other comprehensive
income 3,488 3,595 2,264
Unearned shares of common stock
issued to Employee Stock
Ownership Plan (ESOP) trust:
at cost (4,262) (4,769) (4,769)
Net carrying value of stock
related deferred compensation
plans (216) (211) (103)
----------- ----------- -----------
190,377 193,184 192,340
----------- ----------- -----------
$ 2,263,172 $ 2,231,242 $ 2,087,094
=========== =========== ===========
Shares Issued:
Shares outstanding at end of
period 11,306,977 11,358,505 11,634,159
Less unearned ESOP shares at
end of period 515,707 577,039 577,039
----------- ----------- -----------
Shares outstanding at end of
period excluding unearned ESOP
shares 10,791,270 10,781,466 11,057,120
=========== =========== ===========
Book Value Per Share(1) $ 17.64 $ 17.92 $ 17.40
Tangible Book Value Per Share(1) $ 14.24 $ 14.51 $ 14.55
Consolidated Tier 1 Leverage
Capital Ratio 8.77% 8.39% 7.71%
(1) Calculation is based on number of shares outstanding at the end of
the period rather than weighted average shares outstanding and
excludes unallocated shares in the employee stock ownership plan
(ESOP).
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands)
LOANS (including loans held for Dec 31, Sep 30, Dec 31,
sale): 2002 2002 2001
----------------------------------- ---------- ---------- ----------
Secured by real estate:
One- to four-family $ 355,509 $ 376,557 $ 422,456
Commercial 379,099 379,416 363,560
Multifamily 72,333 81,919 79,035
Construction and land 339,516 335,411 335,798
Commercial business 285,231 278,713 270,022
Agricultural business 102,626 99,899 76,501
Consumer 39,152 40,918 45,605
---------- ---------- ----------
Total loans outstanding $1,573,466 $1,592,833 $1,592,977
========== ========== ==========
NON-PERFORMING ASSETS: Dec 31, Sep 30, Dec 31,
2002 2002 2001
----------------------------------- ---------- ---------- ----------
Loans on non-accrual status $ 34,249 $ 22,282 $ 17,509
Accruing loans greater than 90 days
delinquent 1,859 431 534
---------- ---------- ----------
Total non-performing loans 36,108 22,713 18,043
Real estate owned (REO) /
Repossessed assets 6,062 5,362 3,011
---------- ---------- ----------
Total non-performing assets $ 42,170 $ 28,075 $ 21,054
========== ========== ==========
Total non-performing assets / Total
assets 1.86% 1.26% 1.01%
Quarters Ended Year Ended
------------------------- ------------------
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2002 2002 2001 2002 2001
------- ------- ------- -------- --------
CHANGE IN THE ALLOWANCE
FOR LOAN LOSSES:
------------------------
Balance at beginning of
period $19,150 $16,646 $18,593 $ 17,552 $ 15,314
Acquisitions /
(divestitures) -- -- -- 460 --
Provision for loan
losses 10,000 4,000 4,100 21,000 13,959
Recoveries 208 46 48 325 142
Charge-offs (2,819) (1,542) (5,189) (12,798) (11,863)
------- ------- ------- -------- --------
Net (charge-offs)
recoveries (2,611) (1,496) (5,141) (12,473) (11,721)
------- ------- ------- -------- --------
Balance at end of ------- ------- ------- -------- --------
period $26,539 $19,150 $17,552 $ 26,539 $ 17,552
======= ======= ======= ======== ========
Net charge-offs /
Average loans
outstanding 0.16% 0.10% 0.32% 0.78% 0.75%
Allowance for loan losses
/ Total loans
outstanding 1.69% 1.20% 1.10% 1.69% 1.10%
NOTE: Certain reclassifications have been made to the prior periods'
financial numbers to conform to the current period's
presentation. These reclassifications have affected certain
ratios for the prior periods. The effect of such
reclassifications is immaterial.
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands)
(Rates / Ratios Annualized)
Quarters Ended
----------------------------------
Dec 31, Sep 30, Dec 31,
OPERATING PERFORMANCE: 2002 2002 2001
----------------------------------- ---------- ---------- ----------
Average loans $1,589,608 $1,572,856 $1,605,068
Average securities and deposits 454,671 427,667 352,207
Average non-interest-earning
assets 162,595 157,773 132,102
---------- ---------- ----------
Total Average Assets $2,206,874 $2,158,296 $2,089,377
========== ========== ==========
Average deposits $1,481,623 $1,411,767 $1,301,132
Average borrowings 515,612 534,541 577,456
Average non-interest-earning
liabilities 14,582 14,687 15,649
---------- ---------- ----------
Total Average Liabilities 2,011,817 1,960,995 1,894,237
Total average equity 195,057 197,301 195,140
---------- ---------- ----------
Total Average Liabilities
And Equity $2,206,874 $2,158,296 $2,089,377
========== ========== ==========
Interest rate yield on loans 7.61% 7.80% 8.00%
Interest rate yield on
securities and deposits 4.49% 5.05% 5.76%
---------- ---------- ----------
Interest Rate Yield On
Interest-Earning Assets 6.92% 7.21% 7.60%
---------- ---------- ----------
Interest rate expense on
deposits 2.53% 2.74% 3.40%
Interest rate expense on
borrowings 4.85% 4.85% 5.22%
---------- ---------- ----------
Interest Rate Expense On
Interest-Bearing
Liabilities 3.13% 3.32% 3.96%
---------- ---------- ----------
Interest rate spread 3.79% 3.89% 3.64%
========== ========== ==========
Net interest margin 3.86% 3.98% 3.80%
========== ========== ==========
Other operating income /
Average assets 0.93% 0.72% 0.69%
Other operating expense /
Average assets 3.23% 2.81% 2.49%
Efficiency ratio (other
operating expense / revenue) 71.74% 63.72% 58.60%
Return on average assets (0.28%) 0.62% 0.70%
Return on average equity (3.17%) 6.80% 7.45%
Average equity / Average assets 8.84% 9.14% 9.34%
Year Ended
----------------------
Dec 31, Dec 31,
OPERATING PERFORMANCE: 2002 2001
------------------------------- ---------- ----------
Average loans $1,589,035 $1,569,905
Average securities and deposits 413,419 350,973
Average non-interest-earning
assets 148,706 122,712
---------- ----------
Total Average Assets $2,151,160 $2,043,590
========== ==========
Average deposits $1,404,426 $1,251,970
Average borrowings 537,079 579,326
Average non-interest-earning
liabilities 13,177 15,277
---------- ----------
Total Average Liabilities 1,954,682 1,846,573
Total average equity 196,478 197,017
---------- ----------
Total Average Liabilities
And Equity $2,151,160 $2,043,590
========== ==========
Interest rate yield on loans 7.76% 8.65%
Interest rate yield on
securities and deposits 5.06% 6.24%
---------- ----------
Interest Rate Yield On
Interest-Earning Assets 7.20% 8.21%
---------- ----------
Interest rate expense on
deposits 2.79% 4.21%
Interest rate expense on
borrowings 4.98% 5.74%
---------- ----------
Interest Rate Expense On
Interest-Bearing
Liabilities 3.40% 4.69%
---------- ----------
Interest rate spread 3.80% 3.52%
========== ==========
Net interest margin 3.91% 3.73%
========== ==========
Other operating income /
Average assets 0.74% 0.66%
Other operating expense /
Average assets 2.81% 2.92%
Efficiency ratio (other
operating expense / revenue) 64.18% 70.01%
Return on average assets 0.43% 0.36%
Return on average equity 4.71% 3.78%
Average equity / Average assets 9.13% 9.64%
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