Berkshire Hills Bancorp, Inc. Announces Record Fourth Quarter and 2003 EPS; Provides EPS Guidance for 2004.Business Editors PITTSFIELD Pittsfield, city (1990 pop. 48,622), seat of Berkshire co., W Mass., between mountain ranges, on branches of the Housatonic River; inc. as a town 1761, as a city 1889. The city is the metropolis of the Berkshire resort area. , Mass.--(BUSINESS WIRE)--Jan. 28, 2004 Annual Meeting Date Announced and Dividend Declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. Berkshire Hills Berkshire Hills (bûrk`shər, –shĭr), mountainous region of wooded hills with many small lakes and streams, W Mass. The Berkshires are a southern extension of the Green Mts. Bancorp, Inc. (the "Company"), (AMEX AMEX See: American Stock Exchange : BHL BHL Bleeding-Heart Liberal BHL Battle Handover Line BHL Breath Hydrogen Level BHL Biohazard Level BHL Bottom of Heated Length BHL Bachelor of Hebrew Letters/Literature BHL Bilateral Hilar Lymphadenomegaly BHL Back-Hoe Loader ), the holding company for Berkshire Berkshire (bärk`shĭr, –shər, bûrk`–) or Berks (bärks, bûrks), former county, S central England. Bank (the "Bank"), today reported net income of $2.6 million, or $0.45 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , for the quarter ended December December: see month. 31, 2003 as compared to $2.4 million, or $0.43, for the quarter ended September September: see month. 30, 2003 and a net loss of $4.2 million, or $0.78, for the quarter ended December 31, 2002. Net income totaled $9.0 million for 2003, as compared to $2.1 million for 2002. Earnings 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 2003 were $1.57 compared to $0.36 for 2002. Exclusive of net security gains and net non-recurring charges and using a core effective tax rate of 34.3%, earnings for the quarter and year ended December 31, 2003 would have been $2.3 million, or $0.40 per diluted share and $8.6 million, or $1.51 per diluted share, respectively. Following the fourth quarter and 2003 highlights, contained elsewhere herein, is a table containing a reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income to core net income and the resulting core earnings per diluted share for the quarter and year ended December 31, 2003. Commenting on the Company's performance, Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. P. Daly, President and Chief Executive Officer stated, "I am pleased to report record earnings per share for the Company for the fourth quarter and the full year. I am proud of the efforts of all of our employees who executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. the aggressive agenda we outlined early in 2003. These efforts resulted in customer service initiatives that produced double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth in both core deposits and loans. In addition, we were successful in significantly reducing expenses in 2003. I am especially pleased with our sound credit quality. The fourth quarter sale of almost all of the remaining sub-prime loans evidences our commitment to this culture. The following chart illustrates how we have performed against goals we announced during the second quarter of 2003. We expect to achieve these goals by the end of 2005."
1Q2003 4Q2003 Goals
----------------------------------------------------------------------
ROA 0.70 0.86 Greater than 1.00
----------------------------------------------------------------------
ROE 6.06 8.49 10.00
----------------------------------------------------------------------
Efficiency Ratio -
exclusive of EastPoint 67.15% 64.44% Less than 60.00%
----------------------------------------------------------------------
Mr. Daly stated further, "Economic conditions in the markets we serve continue to improve, and we are anticipating interest rates to remain stable throughout most of 2004. Using these assumptions, we expect to achieve 17% to 20% earnings growth in 2004, and therefore we are estimating, at this time, earnings between $1.77 and $1.81 per share on a diluted basis, before security gains. We will also look for ways to expand our franchise in 2004, including non-dilutive acquisitions." Dividend Declared The Board of Directors declared a quarterly cash dividend of $0.12 per share, payable on February February: see month. 23, 2004 to stockholders of record at the close of business on February 9, 2004. Annual Meeting The Company also announced that its 2004 Annual Meeting of Stockholders will be held on May 6, 2004 at the Crowne Plaza This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Hotel, One West Street, Pittsfield, MA at 10:00 A.M. (ET) The voting record date has been set as March 18, 2004. The Company intends to distribute proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual materials on or about April 1, 2004. Fourth Quarter Highlights -- Commercial loans increased $20.1 million, or 22.8% on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, from September 30, 2003. -- Core deposits increased $8.5 million, or 6.8% on an annualized basis, from September 30, 2003. -- The Bank committed to securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. $55.0 million of one-to four-family fixed rate residential mortgages, in an effort to increase balance sheet liquidity and strategic flexibility. -- The Bank sold $9.9 million of sub-prime automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of loans, leaving a balance of $1.4 million. 2003 Highlights -- Core deposits increased $56.7 million, or 12.5%, from December 31, 2002. -- Organic loan growth, which excludes purchases, securitizations and sales of loans, was $88.1 million, or an increase of 12.2%, from December 31, 2002. -- 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. , exclusive of $437,000 of non-recurring retirement benefit charges in 2003 and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs of $6.9 million in 2002, decreased $3.1 million, or 8.0%, as compared to 2002. -- Improved credit quality, as loan delinquencies, non-performing assets and sub-prime loans were down significantly from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002.
Reconciliation of GAAP Net Income to Core Net Income and EPS
4Q2003 FY 2003
----------------------------------------------------------------------
(In thousands, except
per share data)
----------------------------------------------------------------------
----------------------------------------------------------------------
Income before income taxes-GAAP $3,690 $14,030
----------------------------------------------------------------------
Plus:
----------------------------------------------------------------------
Forfeiture of interest income on sale of sub-prime
automobile loans 245 245
----------------------------------------------------------------------
Loss on the sale of sub-prime automobile loans 2,233 2,233
----------------------------------------------------------------------
Loss on impairment of other assets-repossessed
vehicle inventory 206 206
----------------------------------------------------------------------
Retirement benefit charge - 800
----------------------------------------------------------------------
REIT interest charge - 29
----------------------------------------------------------------------
----------------------------------------------------------------------
Less:
----------------------------------------------------------------------
Reversal of provision for loan losses-sub-prime loans 1,000 1,000
----------------------------------------------------------------------
Gain on sale of securities, net 1,564 3,077
----------------------------------------------------------------------
Reversal of retirement benefit charge 363 363
----------------------------------------------------------------------
----------------------------------------------------------------------
Income before taxes-core 3,447 13,103
----------------------------------------------------------------------
Less: Provision for taxes @ 34.3%(1) 1,182 4,494
----------------------------------------------------------------------
Net Income-core $2,265 $8,609
----------------------------------------------------------------------
----------------------------------------------------------------------
Earnings per diluted share-core $0.40 $1.51
----------------------------------------------------------------------
Average diluted shares outstanding 5,717 5,703
----------------------------------------------------------------------
(1) Excludes the charge of $243,000 for the disallowance of the
dividend received deduction on the Bank's REIT
----------------------------------------------------------------------
Financial Condition After purchases, securitizations and sales, loans increased $69.2 million from December 31, 2002. This growth was primarily due to a $50.4 million, or 15.6%, increase in total commercial loans, a $23.9 million, or 9.9%, increase in residential mortgage loans and a $5.1 million, or 12.5%, increase in home equity loans, partially offset by the sale of $9.9 million of sub-prime automobile loans in December 2003. Loans declined $8.1 million from September 30, 2003, primarily due to the sale of sub-prime automobile loans, the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of $16.3 million of one-to four-family fixed rate residential mortgages and the sale of $6.0 million of one-to four-family fixed rate residential mortgages, partially offset by a $20.1 million increase in total commercial loans and organic growth of $3.0 million in residential mortgages. Residential mortgage loans were sold or securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. as part of a strategy to enhance the Bank's ability to deal with a volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. and potentially rising interest rate environment. An additional $38.7 million of one-to four-family fixed rate residential mortgages were committed to be securitized in January January: see month. 2004. Securities available for sale increased $134.3 million from December 31, 2002, with $64.0 million of this increase occurring since September 30, 2003. The fourth quarter increase includes the $16.3 million of securitized loans. Security purchases were made to take advantage of a steep yield curve and were primarily in mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. with durations averaging 3.5 years. Earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin were funded by increases in deposits and borrowings. Core deposits, represented by demand, NOW, savings and money market accounts, were $508.9 million at December 31, 2003, an increase of $56.7 million, or 12.5%, from December 31, 2002, and an increase of $8.5 million, or 1.7%, from September 30, 2003. Certificates of deposit decreased $8.8 million, or 2.7%, from December 31, 2002 and $6.1 million, or 1.9%, from September 30, 2003 due primarily to the relative cost advantage of borrowings. Borrowings from the Federal Home Loan Bank increased $60.1 million from September 30, 2003 and $118.5 million from December 31, 2002. The Company's 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, 2003, September 30, 2003, and December 31, 2002 was $19.13, $18.71 and $18.00, respectively. Asset Quality 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. were $3.2 million at December 31, 2003, a decrease of $452,000 from September 30, 2003, and a decrease of $542,000 from December 31, 2002. The Bank held no foreclosed real estate at December 31, 2003 and September 30, 2003 compared to $1.5 million at December 31, 2002. Sub-prime automobile loans totaled $1.4 million at December 31, 2003, a decrease of $11.6 million from September 30, 2003 and a decrease of $18.2 million from December 31, 2002, as the Bank sold $9.9 million of sub-prime automobile loans in December 2003, accelerating its strategy of exiting the sub-prime automobile loan business. The ratio of loans delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. 30 days or more to total loans was 0.67% at December 31, 2003, as compared to 0.98% at September 30, 2003, and 1.40% at December 31, 2002. The improvement in the 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. ratio from September 30, 2003 was primarily in total commercial loans, which declined from 1.22% to 0.69%, and consumer loans, which declined from 2.20% to 1.59%. The allowance for loan losses totaled $9.0 million, representing 1.13% of total loans at December 31, 2003, compared to $10.1 million, or 1.26%, of total loans at September 30, 2003, and $10.3 million, or 1.43%, of total loans at December 31, 2002. The decline in the allowance was consistent with improvement in the Company's credit risk profile and asset quality, particularly in consideration of the significant reduction in sub-prime automobile loans. Results of Operations Net interest income was $9.7 million for the fourth quarter of 2003, increasing $435,000 and $742,000 compared to the quarters ended September 30, 2003 and December 31, 2002, respectively. The Company's net interest margin was 3.42% for the fourth quarter of 2003 compared to 3.51% for the third quarter of 2003 and 3.59% for the fourth quarter of 2002. Exclusive of the forfeiture The involuntary relinquishment of money or property without compensation as a consequence of a breach or nonperformance of some legal obligation or the commission of a crime. The loss of a corporate charter or franchise as a result of illegality, malfeasance, or Nonfeasance. of $245,000 and $758,000 of interest income resulting from the sale of sub-prime automobile loans in the fourth quarters of 2003 and 2002, respectively, the Company's net interest margin was 3.50% and 3.89%, respectively. This decline of 39 basis points was primarily attributed to reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of cash flows from the maturity and prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of loans and securities at lower yields, as well as the increase in securities, which typically have a lower yield than loans. The sale of $9.9 million of sub-prime automobile loans in the fourth quarter of 2003 resulted in the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.0 million of previously provided loan loss provision. This reversal resulted in a net credit for loan losses of $225,000 for the fourth quarter of 2003. The $225,000 credit is $800,000 less than the provision of $575,000 for the quarter ended September 30, 2003 and $2.5 million less than the $2.3 million provision for the fourth quarter in 2002. Net loan charge-offs totaled $903,000 for the quarter ended December 31, 2003, compared to $760,000 for the quarter ended September 30, 2003 and $2.7 million for the quarter ended December 31, 2002. Net charge-offs consisted primarily of automobile loans. Non-interest income was $2.5 million for the quarter ended December 31, 2003, a $1.1 million, or 31.4%, decrease compared to non-interest income for the quarter ended September 30, 2003 and a $1.8 million, or 42.4%, decrease compared to non-interest income of $4.3 million for the quarter ended December 31, 2002. However, excluding certain non-recurring items and license maintenance and sales fees attributed to EastPoint Technologies, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the Company's majority-owned data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a subsidiary ("EastPoint"), occurring in each of the quarters ended December 31, 2003, September 30, 2003 and December 31, 2002 (all of which are itemized in the table below), non-interest income was $1.6 million for the quarter ended December 31, 2003, $1.6 million for the quarter ended September 30, 2003 and $1.1 million for the quarter ended December 31, 2002. This increase in non-interest income compared to the fourth quarter of 2002 was primarily the result of increases in trust department fees and income earned on increases in cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of life insurance policies. License maintenance and processing fees and license sales and other fees, which represent revenue from EastPoint, totaled $1.8 million in the quarter ended December 31, 2003, increasing $73,000 compared to the previous quarter and $55,000 as compared to the same quarter in 2002. Associated expenses for EastPoint, which are recorded in various expense categories, totaled $1.9 million, net of minority interests, for the quarter ended December 31, 2003, an increase of $92,000 compared to the previous quarter and a decrease of $457,000 as compared to the same quarter in 2002. Non-interest expense was $8.8 million for the quarter ended December 31, 2003, a $178,000, or 2.1%, increase compared to non-interest expense for the quarter ended September 30, 2003 and a $9.0 million, or 50.6%, decrease compared to non-interest expense of $17.7 million for the quarter ended December 31, 2002. However, excluding certain non-recurring items and expenses attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to EastPoint occurring in each of the quarters ended December 31, 2003 and September 30, 2003 (all of which are itemized in the table below), operating expenses totaled $7.2 million for the fourth quarter of 2003, an increase of $449,000, or 6.6%, compared to the third quarter of 2003. This increase was primarily attributed to additional marketing and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . Exclusive of the non-recurring items and EastPoint expenses occurring in each of the quarters ended December 31, 2003 and December 31, 2002 (all of which are itemized in the table below), non-interest expenses for the fourth quarter of 2003 declined $1.3 million, or 15.2%, compared to the fourth quarter of 2002. The majority of this decline resulted from a $1.1 million decrease in foreclosed real estate and other loan expenses, most of which was associated with the Bank's automobile repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, and sales activity that was attributed to the sale of $69.7 million in sub-prime automobile loans in December 2002. The following tables contain a reconciliation of GAAP non-interest income and non-interest expense to what the Company believes to be core or operating non-interest income and expense and also shows core non-interest income and expense minus EastPoint:
4Q2003 3Q2003 4Q2002
----------------------------------------------------------------------
(In thousands)
----------------------------------------------------------------------
Non-interest income-GAAP $2,494 $3,633 $4,328
----------------------------------------------------------------------
Plus:
----------------------------------------------------------------------
Loss on the sale of sub-prime automobile
loans 2,233 - 10,702
----------------------------------------------------------------------
Loss on impairment of other assets-
repossessed
vehicle inventory 206 - 1,262
----------------------------------------------------------------------
Penalty on the prepayment of FHLB
borrowings - - 1,067
----------------------------------------------------------------------
Loss on impairment of securities - - 326
----------------------------------------------------------------------
Less:
----------------------------------------------------------------------
Gain on sale of securities, net 1,564 356 14,833
----------------------------------------------------------------------
Non-interest income-core $3,369 $3,277 $2,852
----------------------------------------------------------------------
Less:
----------------------------------------------------------------------
EastPoint license maintenance
and sales fees 1,794 1,721 1,739
----------------------------------------------------------------------
----------------------------------------------------------------------
Non-interest income-core less EastPoint $1,575 $1,556 $1,113
----------------------------------------------------------------------
4Q2003 3Q2003 4Q2002
----------------------------------------------------------------------
(In thousands)
----------------------------------------------------------------------
Non-interest expense-GAAP $8,773 $8,595 $17,745
----------------------------------------------------------------------
Plus:
----------------------------------------------------------------------
Reversal of retirement benefit charge 363 - -
----------------------------------------------------------------------
Less:
----------------------------------------------------------------------
Severance costs - - 6,860
----------------------------------------------------------------------
Non-interest expense-core $9,136 $8,595 $10,885
----------------------------------------------------------------------
Less:
----------------------------------------------------------------------
EastPoint expense net of minority interest 1,906 1,814 2,363
----------------------------------------------------------------------
----------------------------------------------------------------------
Non-interest expense-core less EastPoint $7,230 $6,781 $8,522
----------------------------------------------------------------------
The Company's effective tax rate was 29.8% for the quarter ended December 31, 2003, decreasing the effective tax rate for the year to 36.1%. The lower effective tax rate in the current quarter was due in part to an increase in securities purchased in the Bank's subsidiary securities corporations, which are taxed at a lower rate. The Company expects that its effective tax rate will be approximately 34% in 2004. Michael P. Daly, President and Chief Executive Officer and Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. F. Patenaude, Senior Vice President, Treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. and Chief Financial Officer, will host a conference call at 10:00 A.M. (ET) on Thursday Thursday: see week. , January 29, 2004. This conference call will include forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information and may include other material information. Persons wishing to access the conference call may do so by dialing 1-800-500-0177, and using access code 685172. Materials related to the topics to be discussed in the conference call will be available on the Bank's website, www.berkshirebank.com, beginning at approximately 8:30 A.M. (ET) on January 29, 2004. Replays of the conference call will be available beginning January 29, 2004 at 5:00 P.M. (ET) through February 6, 2004 at 11:00 P.M. (ET) by dialing 1-888-203-1112 and, using access code 685172. If you have difficulty accessing the material, please contact Rose Borotto at 413-236-3144. Berkshire Hills Bancorp, Inc. is the holding company for Berkshire Bank. Established in 1846, Berkshire Bank is one of Massachusetts' oldest and largest independent banks and is the largest banking institution based in Western Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. . The Bank is headquartered in
Pittsfield, Massachusetts "Pittsfield" redirects here. For other places named Pittsfield, see Pittsfield (disambiguation).Pittsfield is the largest city and county seat of Berkshire County, Massachusetts, United States. with 11 branch offices serving communities throughout Berkshire County. The Bank is committed to continuing to operate as an independent bank, delivering exceptional customer service and a broad array of competitively priced retail and commercial products to its customers. Statements contained in this news release contain 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the beliefs and expectations of management as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. These risks and uncertainties include among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Company's quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, June June: see month. 30 and September 30 and in its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in these forward-looking statements.
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited
At
-----------------------------------
Dec. 31, Sept. 30, Dec. 31,
2003 2003 2002
-----------------------------------
(In thousands)
ASSETS:
Cash and due from banks $15,583 $17,803 $17,258
Short term investments 1,859 9,262 43,397
----------- ----------- -----------
Total cash and cash
equivalents 17,442 27,065 60,655
Securities available for sale,
at fair value 307,425 243,451 173,169
Securities held to maturity,
at amortized cost 36,903 41,380 44,267
Federal Home Loan Bank stock,
at cost 12,923 11,416 7,440
Savings Bank Life Insurance
stock, at cost 2,043 2,043 2,043
Loans 792,227 800,280 723,022
Allowance for loan losses (8,969) (10,097) (10,308)
----------- ----------- -----------
Net loans 783,258 790,183 712,714
Premises and equipment, net 12,626 12,816 13,267
Foreclosed real estate, net - - 1,500
Accrued interest receivable 5,080 5,096 5,125
Goodwill and other
intangibles(1) 10,233 10,284 10,436
Net deferred tax assets 1,894 2,843 2,185
Bank owned life insurance 7,721 7,626 -
Due from Broker 7,089 - -
Other assets 14,080 13,703 13,315
----------- ----------- -----------
TOTAL ASSETS $1,218,717 $1,167,906 $1,046,116
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits $830,244 $827,782 $782,360
Federal Home Loan Bank advances 251,465 191,318 133,002
Securities sold under
agreements to repurchase - - 700
Loans sold with recourse 473 598 1,201
Due to broker 5,646 20,019 -
Accrued expenses and other
liabilities(1) 5,462 5,632 5,846
----------- ----------- -----------
Total liabilities 1,093,290 1,045,349 923,109
----------- ----------- -----------
Minority interests 2,252 2,300 2,438
----------- ----------- -----------
Stockholders' Equity:
Preferred stock ($.01 par
value; 1,000,000 shares
authorized; none issued
or outstanding) - - -
Common stock ($.01 par
value; 26,000,000 shares
authorized; shares issued:
7,673,761 at December 31,
2003, September 30, 2003 and
December 31, 2002; shares
outstanding: 5,903,082 at
December 31, 2003, 5,878,920
at September 30, 2003 and
6,117,134 at December 31,
2002) 77 77 77
Additional paid-in capital 75,764 75,605 74,632
Unearned compensation (8,507) (8,892) (9,535)
Retained earnings(1) 86,276 84,362 80,011
Accumulated other
comprehensive income 5,559 5,427 5,542
Treasury stock at cost
(1,770,679 shares at December
31, 2003, 1,794,841 at
September 30, 2003 and
1,556,627 shares at December
31, 2002) (35,994) (36,322) (30,158)
----------- ----------- -----------
Total stockholders' equity 123,175 120,257 120,569
----------- ----------- -----------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $1,218,717 $1,167,906 $1,046,116
=========== =========== ===========
(1) For the period ended December 2002, the information reflects the
adoption of SFAS 147. The impact resulted in increases to goodwill of
$497,000, deferred taxes of $169,000, and $328,000 to retained
earnings.
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Twelve Months
Ended Ended
----------------- -----------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
--------- -------- -------- --------
(In thousands, except per share data)
Interest and dividend income:
Bond interest $ 2,761 $ 1,467 $ 7,560 $ 5,407
Stock dividends 209 324 956 1,355
Short-term investment interest 6 130 109 456
Loan interest 11,434 12,628 47,683 56,910
-------- -------- -------- --------
Total interest and
dividend income 14,410 14,549 56,308 64,128
-------- -------- -------- --------
Interest expense:
Interest on deposits 3,148 4,221 13,862 17,777
Interest on FHLB advances and
other borrowings 1,518 1,326 4,880 5,651
-------- -------- -------- --------
Total interest expense 4,666 5,547 18,742 23,428
-------- -------- -------- --------
Net interest income 9,744 9,002 37,566 40,700
Provision (credit) for loan losses (225) 2,305 1,460 6,180
-------- -------- -------- --------
Net interest income after
provision (credit) for
loan losses 9,969 6,697 36,106 34,520
-------- -------- -------- --------
Non-interest income:
Customer service fees 557 567 2,300 2,140
Trust Department fees 527 431 2,090 1,796
Loan fees 49 46 386 533
Gain on sale of
securities, net 1,564 14,833 3,077 15,143
Loss on impairment of
securities - (326) - (673)
Loss on sales of loans, net (2,094) (10,702) (1,854) (10,702)
Loss on impairment of
other assets (206) (1,262) (206) (1,262)
Penalty on prepayment of
FHLB borrowings - (1,067) - (1,067)
License maintenance and
processing fees 1,106 1,111 4,443 4,379
License sales and other fees 688 628 2,819 2,612
Other income 303 69 655 519
-------- -------- -------- --------
Total non-interest income 2,494 4,328 13,710 13,418
-------- -------- -------- --------
Non-interest expense:
Salaries and benefits 4,839 12,227 21,219 28,488
Occupancy and equipment 1,251 1,356 5,045 5,288
Marketing and advertising 299 259 678 648
Data processing 246 264 989 758
Professional services 545 442 1,379 1,384
Office supplies 170 238 695 769
Foreclosed real estate and
other loans, net 307 1,429 1,047 3,250
Amortization of other
intangibles(1) 51 51 203 203
Minority interests (47) (385) (185) (685)
Other expenses 1,112 1,864 4,716 5,207
-------- -------- -------- --------
Total non-interest
expense 8,773 17,745 35,786 45,310
-------- -------- -------- --------
Income (Loss) before
income taxes 3,690 (6,720) 14,030 2,628
Provision for income taxes(1) 1,099 (2,512) 5,065 531
-------- -------- -------- --------
Net income (Loss) $ 2,591 $ (4,208)$ 8,965 $ 2,097
======== ======== ======== ========
Earnings (Loss) per share:
Basic $ 0.50 $ (0.78)$ 1.70 $ 0.39
Diluted $ 0.45 $ (0.78)$ 1.57 $ 0.36
Weighted average shares
outstanding:
Basic 5,222 5,370 5,266 5,435
Diluted 5,717 5,370 5,703 5,881
(1) For the quarter and twelve months ended December 31, 2002, the
information reflects the adoption of SFAS 147. The impact for the
quarter, and every quarter in 2002, resulted in a decrease of $124,000
in amortization expense, and an increase of $42,000 in the provision
for income taxes.
BERKSHIRE HILLS BANCORP, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Quarters Ended
-------------------------------------------
Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31
2003 2003 2003 2003 2002
-------------------------------------------
(In thousands, except per share data)
Interest and dividend income:
Residential mortgage $3,793 $4,099 $4,564 $4,030 $3,896
Commercial real estate 2,969 2,760 2,627 2,607 2,521
Commercial 2,312 2,401 2,474 2,544 2,559
Indirect auto loans 1,665 1,945 1,836 1,920 2,686
Other consumer 695 703 859 880 966
------- ------- ------- ------- --------
Total interest
on loans 11,434 11,908 12,360 11,981 12,628
Securities 2,905 1,886 1,706 1,770 1,721
Federal Home Loan Bank 65 59 59 66 70
Short-term investments 6 5 14 84 130
------- ------- ------- ------- --------
Total interest and
dividend income 14,410 13,858 14,139 13,901 14,549
------- ------- ------- ------- --------
Interest expense:
Interest on deposits 3,148 3,343 3,613 3,758 4,221
Interest on FHLB advances
and other borrowings 1,518 1,206 1,093 1,063 1,326
------- ------- ------- ------- --------
Total interest
expense 4,666 4,549 4,706 4,821 5,547
------- ------- ------- ------- --------
Net interest income 9,744 9,309 9,433 9,080 9,002
Provision (credit) for loan
losses (225) 575 785 325 2,305
------- ------- ------- ------- --------
Net interest income after
provision (credit) for
loan losses 9,969 8,734 8,648 8,755 6,697
------- ------- ------- ------- --------
Non-interest income:
Customer service fees 557 568 619 556 567
Trust Department fees 527 573 554 436 431
Loan fees 49 142 147 48 46
Gain on sale of
securities, net 1,564 356 317 840 14,507
License maintenance and
sales fees 1,794 1,721 2,126 1,621 1,739
Net loan sales
(losses)gains, net (2,094) 102 138 - (10,702)
Loss on impairment of
other assets (206) - - - (1,262)
Penalty on prepayment of
FHLB borrowings - - - - (1,067)
Other non-interest income 303 171 121 60 69
------- ------- ------- ------- --------
Total non-interest
income 2,494 3,633 4,022 3,561 4,328
------- ------- ------- ------- --------
Non-interest expense:
Salaries and benefits 4,839 5,132 5,962 5,286 12,227
Occupancy and equipment 1,251 1,191 1,222 1,381 1,356
Professional and outside
service fees 545 292 294 248 442
Marketing and advertising 299 137 139 103 259
Data processing 246 283 239 221 264
Foreclosed real estate and
other loans, net 307 333 286 121 1,429
Amortization of other
intangibles 51 51 51 51 51
Interest from disallowance
of REIT - - (15) 44 -
Other non-interest expense 1,235 1,176 1,589 1,196 1,717
------- ------- ------- ------- --------
Total non-interest
expense 8,773 8,595 9,767 8,651 17,745
------- ------- ------- ------- --------
Income (Loss) before
income taxes 3,690 3,772 2,903 3,665 (6,720)
Income tax effect resulting
from REIT disallowance - - (244) 487 -
Provision (credit) for income
taxes 1,099 1,358 1,009 1,356 (2,512)
------- ------- ------- ------- --------
Net income (Loss) $2,591 $2,414 $2,138 $1,822 $(4,208)
======= ======= ======= ======= ========
Basic earnings (Loss)
per share $0.50 $0.46 $0.40 $0.34 $(0.78)
Diluted earnings (Loss)
per share $0.45 $0.43 $0.38 $0.32 $(0.78)
Average shares:
Basic 5,222 5,196 5,291 5,357 5,370
Diluted 5,717 5,655 5,687 5,731 5,370
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
Unaudited
At or For the Period Ended
---------------------------------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
NON-PERFORMING ASSETS 2003 2003 2003 2003 2002
--------------------- ---------------------------------------------
(In thousands)
Non-accrual loans:
Residential mortgage $348 $221 $213 $220 $230
Commercial real estate 496 154 165 167 -
Commercial 1,887 2,578 2,490 2,641 2,850
Indirect automobile
loans 451 696 710 706 593
Other consumer 17 2 10 148 68
-------- -------- -------- -------- --------
Total non-accrual
loans $3,199 $3,651 $3,588 $3,882 $3,741
Real estate owned ("REO"),
net of allowance for
losses - - - - 1,500
Total
non-performing
assets $3,199 $3,651 $3,588 $3,882 $5,241
Non-performing loans as a
percentage of total loans 0.40% 0.46% 0.44% 0.49% 0.52%
Non-performing assets as a
percentage of total loans
and REO 0.40% 0.46% 0.44% 0.49% 0.72%
Non-performing assets to
total assets 0.26% 0.31% 0.32% 0.37% 0.50%
Allowance for loan losses
as a percentage of
non-performing loans 280.37% 276.55% 286.57% 266.59% 275.54%
Allowance for loan losses
as a percentage of total
loans 1.13% 1.26% 1.25% 1.31% 1.43%
Net charge-offs as a
percentage of total loans 0.11% 0.09% 0.10% 0.04% 0.37%
----------------------------------------------------------------------
PROVISION (CREDIT) AND ALLOWANCE FOR LOAN LOSSES
----------------------------------------------------------------------
Balance at beginning
of period $10,097 $10,282 $10,349 $10,308 $10,676
Charge-offs (1,074) (1,015) (1,164) (1,111) (3,174)
Recoveries 171 255 312 827 501
-------- -------- -------- -------- --------
Net loan charge-offs (903) (760) (852) (284) (2,673)
Provision (credit) for
loan losses (225) 575 785 325 2,305
-------- -------- -------- -------- --------
Balance at end of period $8,969 $10,097 $10,282 $10,349 $10,308
======== ======== ======== ======== ========
----------------------------------------------------------------------
NET LOAN (CHARGE-OFFS) RECOVERIES
----------------------------------------------------------------------
Residential mortgage $- $- $- $- $-
Commercial real estate - - - - -
Commercial loans (110) 21 (26) 399 (196)
Consumer loans(1) (793) (781) (826) (683) (2,477)
-------- -------- -------- -------- --------
Total $(903) $(760) $(852) $(284) $(2,673)
======== ======== ======== ======== ========
----------------------------------------------------------------------
SUB-PRIME LOANS
----------------------------------------------------------------------
Balance at end of period $1,393 $13,006 $15,128 $17,238 $19,573
Allowance for sub-prime
loans/Total sub-prime
loans 44.94% 15.75% 15.79% 16.01% 15.83%
----------------------------------------------------------------------
AVERAGE FICO SCORES
CONSUMER LOANS(1) 691 674 670 666 665
----------------------------------------------------------------------
(1) Consists primarily of automobile loans
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS
Unaudited
At or for the three months ended
Dec 31, Sept 30, June 30, March 31, Dec 31,
2003 2003 2003 2003 2002
------- ------- ------- ------- --------
(In thousands, except per share data)
Performance Ratios(1):
Return (loss)
on average
assets 0.86% 0.86% 0.80% 0.70% (1.44%)
Return (loss)
on average
stockholders'
equity 8.49% 8.10% 7.16% 6.06% (11.84%)
Return (loss)
on average
tangible
stockholders'
equity 9.27% 8.87% 7.85% 6.33% (12.87%)
Net interest
margin 3.42%(2) 3.51% 3.73% 3.67% 3.59%(2)
Non-interest
income to
average
assets 0.83%(3) 1.29%(4) 1.50%(4) 1.36%(4) 1.61%(5)
Non-interest
expense to
average
assets 2.91%(6) 3.05% 3.64%(7) 3.31%(8) 6.60%(9)
Average
earning
assets to
average
assets 94.28% 94.14% 95.09% 94.67% 94.88%
Efficiency
ratio(10) 68.40%(11) 68.29% 68.37%(12) 73.68%(13) 91.49%(14)
Capital ratios
Stockholders'
equity to
total assets 10.11% 10.30% 10.57% 11.20% 11.53%
Tier I capital
to average
adjusted
assets 8.97% 9.36% 9.66% 10.00% 10.30%
Tier I capital
to risk
weighted
assets 12.60% 12.51% 12.06% 13.02% 13.45%
Total capital
to risk
weighted
assets 14.10% 14.16% 13.75% 14.67% 15.19%
Other data
Book value per
share $20.86 $20.46 $20.14 $19.80 $19.71
Tangible book
value per
share $19.13 $18.71 $18.38 $18.07 $18.00
Stock price:
High $37.40 $33.90 $28.40 $24.00 $25.25
Low $33.55 $28.10 $23.10 $21.86 $22.94
Close $36.20 $33.69 $28.40 $23.00 $23.55
(1) Ratios are annualized for each of the quarters.
(2) Excluding the forfeiture of $245,000 and $758,000 in interest
income upon the sale of sub-prime automobile loans in December 2003
and December 2002, respectively, the net interest margin would have
been 3.50% and 3.89%, respectively.
(3) Excluding the gain on sale of securities of $1.6 million, the
$2.2 million loss on the sale of sub- prime automobile loans, and the
loss of $206,000 on the impairment of other assets - repossessed
vehicle inventory, the ratio would have been 1.12%.
(4) Excluding the gain on the sale of securities of $356,000,
$317,000 and $804,000 in quarters ended September 2003, June 2003 and
March 2003, respectively, the ratios would have been 1.16%, 1.38% and
1.04%, respectively.
(5) Excluding the gain on sale of securities of $14.8 million, the
loss on the sale of sub-prime End of automobile loans of $10.7
million, period prices and values the loss on the impairment of other
assets - repossessed vehicle inventory of $1.3 million, the penalty on
the pre-payment of FHLB borrowings of $1.1 million and the impairment
of securities of $326,000, the ratio would have been 1.06%.
(6) Excluding $363,000 representing the partial reversal of an
$800,000 retirement benefit charge that End of was recorded in the
period prices and values second quarter of 2003, the ratio would have
been 3.21%.
(7) Excluding the retirement benefit charges of $800,000 and
$15,000 representing the partial reversal End of of a $44,000 interest
period prices and values charge associated with the disallowance of
the dividend received deduction from the Bank's REIT that was recorded
in the first quarter of 2003, the ratio would have been 3.36%.
(8) Excluding the $44,000 interest charge associated with the
disallowance of the Bank's dividend received deduction received from
the Bank's REIT, the ratio would have been 3.30%.
(9) Excluding the severance costs of $6.9 million, the ratio would
have been 4.04%.
(10) Efficiency ratio is non-interest expenses, less non-recurring
items, divided by the total of net interest income, plus non-interest
income, less securities gains, less non-recurring items.
(11) Excludes the partial reversal of retirement benefit charges
of $363,000 from non-interest expenses, $2.2 million of loss on the
sale of sub-prime automobile loans, $245,000 in forfeiture of interest
income associated with the sale of sub-prime automobile loans and the
loss on the impairment of other assets - repossessed vehicle inventory
of $206,000.
(12) Excludes the retirement benefit charges of $800,000 and the
$15,000 representing the partial reversal of a $44,000 interest charge
associated with the Bank's REIT that was recorded in the first quarter
of 2003 from non- interest expenses.
(13) Excludes the $44,000 interest charge associated with the
disallowance of the Bank's dividend received deduction from the Bank's
REIT.
(14) Excludes severance costs of $6.9 million from non-interest
expenses, loss on the sale of sub-prime automobile loans of $10.7
million, the loss on the impairment of other assets - repossessed
vehicle inventory of $1.3 million, the penalty on the pre-payment of
FHLB borrowings of $1.1 million and the impairment of securities of
$326,000.
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS
Unaudited
Quarters Ended
December 31, 2003
----------------------------------
Average Yield/
Balance Interest Rate(1)
------------------------------------------------------------------
(In thousands)
Earning assets:
Short-term investments $2,853 $6 0.84%
Securities(2) 314,070 2,905 3.70%
Federal Home Loan Bank 12,166 65 2.14%
Loans:
Residential mortgage 287,518 3,793 5.28%
Commercial real estate 193,728 2,969 6.13%
Commercial 167,427 2,312 5.52%
Indirect auto loans 103,821 1,665 6.41%
Other consumer 57,013 695 4.88%
----------- --------
Total loans 809,507 11,434 5.65%
----------- --------
Total earning assets 1,138,596 $14,410 5.06%
========
Other assets 69,076
-----------
Total assets $1,207,672
-----------
Funding liabilities:
Deposits:
Non-interest-bearing deposits $98,392
Savings, NOW and money market 415,486 814 0.78%
----------- --------
Total core deposits 513,878 814 0.63%
Certificates of deposits 321,732 2,334 2.90%
----------- --------
Total deposits 835,610 3,148 1.51%
----------- --------
Borrowings:
Federal Home Loan Bank
advances 236,534 1,518 2.57%
----------- --------
Total funding liabilities 1,072,144 $4,666 1.74%
========
Other liabilities 11,249
-----------
Total liabilities 1,083,393
Minority Interest 2,261
Stockholders' Equity 122,018
-----------
Total liabilities and
equity $1,207,672
-----------
Net interest income/spread $9,744 3.32%
--------
Net interest margin 3.42%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS
Unaudited
Quarters Ended
September 30, 2003
----------------------------------
Average Yield/
Balance Interest Rate(1)
------------------------------------------------------------------
(In thousands)
Earning assets:
Short-term investments $2,626 $5 0.76%
Securities(2) 220,514 1,886 3.42%
Federal Home Loan Bank 8,406 59 2.81%
Loans:
Residential mortgage 324,272 4,099 5.06%
Commercial real estate 177,306 2,760 6.23%
Commercial 169,653 2,401 5.66%
Indirect auto loans 104,252 1,945 7.46%
Other consumer 54,684 703 5.14%
----------- --------
Total loans 830,167 11,908 5.74%
----------- --------
Total earning assets 1,061,713 $13,858 5.22%
========
Other assets 65,993
-----------
Total assets $1,127,706
-----------
Funding liabilities:
Deposits:
Non-interest-bearing deposits $99,351
Savings, NOW and money market 407,451 832 0.82%
----------- --------
Total core deposits 506,802 832 0.66%
Certificates of deposits 330,821 2,511 3.04%
----------- --------
Total deposits 837,623 3,343 1.60%
----------- --------
Borrowings:
Federal Home Loan Bank
advances 165,011 1,206 2.92%
----------- --------
Total funding liabilities 1,002,634 $4,549 1.81%
========
Other liabilities 3,650
-----------
Total liabilities 1,006,284
Minority Interest 2,279
Stockholders' Equity 119,143
-----------
Total liabilities and
equity $1,127,706
-----------
Net interest income/spread $9,309 3.41%
--------
Net interest margin 3.51%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
BERKSHIRE HILLS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELD/RATE ANALYSIS
Unaudited
Quarters Ended
December 31, 2002
----------------------------------
Average Yield/
Balance Interest Rate(1)
------------------------------------------------------------------
(In thousands)
Earning assets:
Short-term investments $32,549 $130 1.60%
Securities(2) 180,131 1,721 3.82%
Federal Home Loan Bank 7,440 70 3.76%
Loans:
Residential mortgage 238,646 3,896 6.53%
Commercial real estate 150,571 2,521 6.70%
Commercial 167,895 2,559 6.10%
Indirect auto loans 160,340 2,686 6.70%
Other consumer 62,338 966 6.20%
----------- --------
Total loans 779,790 12,628 6.48%
----------- --------
Total earning assets 999,910 $14,549 5.82%
========
Other assets 60,164
-----------
Total assets $1,060,074
-----------
Funding liabilities:
Deposits:
Non-interest-bearing deposits $84,879
Savings, NOW and money market 373,808 1,209 1.29%
----------- --------
Total core deposits 458,687 1,209 1.05%
Certificates of deposits 329,762 3,012 3.65%
----------- --------
Total deposits 788,449 4,221 2.14%
----------- --------
Borrowings:
Federal Home Loan Bank
advances 138,219 1,326 3.84%
----------- --------
Total funding liabilities 926,668 $5,547 2.39%
========
Other liabilities 3,024
-----------
Total liabilities 929,692
Minority Interest 2,624
Stockholders' Equity 127,758
-----------
Total liabilities and
equity $1,060,074
-----------
Net interest income/spread $9,002 3.43%
--------
Net interest margin 3.59%
(1) Average yields earned and rates paid are annualized.
(2) Average balances and yields for securities available for sale are
based on amortized cost.
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