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Independent Bank Corp. Reports First Quarter 2006 Earnings.

ROCKLAND, Mass. -- Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust Company, today announced that net income for the quarter ended March 31, 2006 was $7.9 million, the same as for the quarter ended March 31, 2005. On a per diluted share basis, net income for the quarter was $0.51, also the same as the quarter ended March 31, 2005.

GAAP earnings were impacted by certain non-core items in the first quarters of 2006 and 2005. First, the after-tax impact of losses on the sale of securities, which amounted to $1.2 million, or $0.07 per diluted share, for the current period and the after-tax impact of gains on the sale on securities which amounted to $223,000, or $0.01 per diluted share, for the first quarter of 2005. Second, the after-tax impact of Bank Owned Life Insurance ("BOLI") benefit proceeds amounted to $1.3 million, or $0.08 per diluted share, for the current period. Excluding the above items, net operating earnings for the quarter ended March 31, 2006 was $7.7 million, an increase of 0.6% from the first quarter of 2005. On a per diluted share basis, excluding the above items, operating earnings for the first quarter of 2006 was $0.50, unchanged from the comparable quarter last year.

Net interest income increased $438,000, or 1.7%. The net interest margin for the three months ended March 31, 2006 was 3.88%, as compared to 3.84% for the comparable period last year.

Non-interest income decreased by $253,000, or (3.8%), during the three months ended March 31, 2006, as compared to the same period in 2005. Excluding losses and gains on the sale of securities and BOLI benefit proceeds, non-interest income grew by $543,000, or 8.7%, for the quarter ended March 31, 2006 when compared to the prior year.

--Service charges on deposit accounts increased by $446,000, or 15.0%, for the three months ended March 31, 2006, as compared to the same period in 2005, reflecting increased revenue on overdrafts and debit card service charges.

--Investment management income increased by $117,000, or 9.5%, for the three months ended March 31, 2006, compared to the same period in 2005 due to growth in managed assets. Assets under administration at March 31, 2006 were $699.4 million, an increase of $136.8 million, or 24.3%, as compared to March 31, 2005.

--Mortgage banking income decreased by $110,000, or (11.9%), for the three months ended March 31, 2006, as compared to the same period in 2005 as a result of a decline in mortgage sales. The balance of the mortgage servicing asset is $2.8 million and loans serviced amounted to $327.1 million as of March 31, 2006.

--Net gains and losses on the sale of securities totaled a loss of $1.8 million in the first quarter of 2006, a decrease of $2.1 million, when compared to the $343,000 gain recorded in the first quarter of 2005.

--Other non-interest income increased by $87,000, or 12.8%, for the three months ended March 31, 2006, as compared to the same period in 2005. The increase is primarily due to changes in the fair value of trading assets.

Non-interest expense increased by $594,000, or 3.0%, for the three months ended March 31, 2006, as compared to the same period in 2005.

--Salaries and employee benefits increased by $72,000, or 0.6%, for the three months ended March 31, 2006, as compared to the same period in 2005. The increase from the comparative quarter is largely the result of increases in pension expense partially offset by reductions in staffing levels.

--Occupancy and equipment related expense increased by $118,000, or 4.6%, for the three months ended March 31, 2006, as compared to the same period in 2005. The increase in this expense is driven by the timing of equipment maintenance and repairs.

--Data processing and facilities management expense has increased $98,000, or 10.2%, for the three months ended March 31, 2006, compared to the same period in 2005, largely as a result of contractual increases.

--Other non-interest expenses increased by $306,000, or 6.9%, for the three months ended March 31, 2006, as compared to the same period in the prior year. The increase is primarily attributable to increases in debit card and ATM processing of $140,000, partially attributable to increased transaction volume and new fraud detection services, recruitment expense of $89,000 associated with the hiring of three new experienced commercial lenders, and education and training expense of $83,000.

Total assets decreased by $117.7 million, or (3.9%), from December 31, 2005 to $2.9 billion at March 31, 2006. This decrease is due, in part, to short-term fluctuation in cash levels as well as the impact of a flat treasury yield curve environment. As a result of this environment, management continues to decrease the Company's securities portfolio while focusing on the commercial and home equity lending categories.

--Fed funds sold and short term investments decreased by $51.7 million, or (81.2%), during the first quarter of 2006.

--Securities decreased by $58.6 million, or (8.2%), during the three months ending March 31, 2006. This resulted mainly from the sale of $31.4 million in lower coupon securities and the decision not to reinvest pay-downs on the securities portfolio in the current rate environment. The ratio of securities to total assets as of March 31, 2006 was 22.5%, as compared to 23.6% at December 31, 2005 and 27.5% at March 31, 2005.

--Total loans decreased by $216,000, or (0.01%), during the three months ended March 31, 2006. Total commercial loans increased by $4.6 million, or 0.5%, as a result of a $7.9 million, or 5.1%, increase in commercial and industrial loans. Consumer loans decreased $2.0 million, or (0.4%), with a decrease in the auto loan portfolio of $12.2 million, offsetting $11.1 million, or 4.4%, increase in home equity lending. Business banking loans totaled $54.2 million, representing growth of 5.5%, and residential loans decreased $5.7 million, or (1.3%), during the first three months of 2006.

Total deposits of $2.1 billion at March 31, 2006 decreased $85.8 million, or (3.9%), compared to December 31, 2005, due to seasonality and the competitive pricing environment. Borrowings decreased by $31.1 million, or (5.3%), during the three months ended March 31, 2006.

Stockholders' equity at March 31, 2006 totaled $227.0 million, as compared to $228.2 million at December 31, 2005. The Tier 1 leverage capital ratio at March 31, 2006 was 7.86%, maintaining the Company's well-capitalized position.

As previously announced on January 19, 2006 the Company's Board of Directors approved a common stock repurchase program. Under the program, the Company is authorized to repurchase up to 800,000 shares, or approximately 5% of the Company's outstanding common stock. The stock repurchase program has begun and is ongoing.

Nonperforming assets totaled $4.6 million at March 31, 2006 (0.16% of total assets), as compared to $3.3 million (0.11% of total assets) reported at December 31, 2005. The allowance for loan losses increased to $26.7 million at March 31, 2006 compared to $26.6 million at December 31, 2005. The provision for loan losses decreased by $180,000, or (19.4%), for quarter ended March 31, 2006 as compared to the same period in 2005. Provision expense for the quarter ending March 31, 2006 was $750,000, which covered net charge-offs by 1.2 times. The Company's allowance for loan losses as a percentage of loans was 1.31% at March 31, 2006.

Christopher Oddleifson, President and Chief Executive Officer of Independent Bank Corp. and Rockland Trust Company, stated that, "We view the actions to reduce the size of the balance sheet as prudent in the current rate environment, and I am pleased with the first quarter 2006 results. Management continues to focus on creating long-term shareholder value through a disciplined approach to asset generation and deposit pricing, a commitment to superior customer service, and through targeted expansion, such as the opening of our new commercial lending office in New Bedford, MA on March 20, 2006."

Christopher Oddleifson, and Denis K. Sheahan, Chief Financial Officer, of Independent Bank Corp., will host a conference call to discuss first quarter earnings at 10:00 a.m. Eastern Time on Wednesday, April 12, 2006. Internet access to the call is available on the Company's website at http://www.RocklandTrust.com or by telephonic access by dial-in at 1-877-407-8031 reference: INDB. A replay of the call will be available by calling 1-877-660-6853, Account Number: 286, Conference ID: 197435. The webcast replay will be available until July 12, 2006 and the telephone replay will be available until April 17, 2006.

Independent Bank Corp.'s sole bank subsidiary, Rockland Trust Company, currently has $2.9 billion in assets. Rockland Trust Company is a full-service community bank serving southeastern Massachusetts and Cape Cod. To find out more about the products and services available at Rockland Trust Company, please visit our website at www.RocklandTrust.com.

This press release contains certain "forward-looking statements" with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the Company's performance. These non-GAAP measures may exclude significant gains or losses that are unusual in nature, such as securities gains. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------------------------------
(Unaudited - Dollars in Thousands)

CONSOLIDATED BALANCE SHEETS March 31, December 31, $ %
 2006 2005 Variance Change
----------------------------------------------------------------------
Assets
Cash and Due From Banks $ 59,011 $ 66,289 (7,278)-10.98%
Fed Funds Sold and Short Term
 Investments 12,000 63,662 (51,662)-81.15%
Securities
 Trading Assets 1,598 1,557 41 2.63%
 Securities Available for
 Sale 523,315 581,516 (58,201)-10.01%
 Securities Held to Maturity 103,818 104,268 (450) -0.43%
 Federal Home Loan Bank Stock 29,287 29,287 - 0.00%
 --------------------------------------
Total Securities 658,018 716,628 (58,610) -8.18%
 --------------------------------------
Loans
 Commercial and Industrial 163,024 155,081 7,943 5.12%
 Commercial Real Estate 681,025 683,240 (2,215) -0.32%
 Commercial Construction 139,557 140,643 (1,086) -0.77%
 Business Banking 54,188 51,373 2,815 5.48%
 Residential Real Estate 419,732 428,343 (8,611) -2.01%
 Residential Construction 7,460 8,316 (856)-10.29%
 Residential Loans Held for
 Sale 8,831 5,021 3,810 75.88%
 Consumer - Home Equity 262,931 251,852 11,079 4.40%
 Consumer - Auto 251,025 263,179 (12,154) -4.62%
 Consumer - Other 52,819 53,760 (941) -1.75%
 --------------------------------------
Total Loans 2,040,592 2,040,808 (216) -0.01%
 Less - Allowance for Loan
 Losses (26,746) (26,639) (107) 0.40%
 --------------------------------------
 Net Loans 2,013,846 2,014,169 (323) -0.02%
 --------------------------------------
Bank Premises and Equipment 36,955 37,431 (476) -1.27%
Goodwill and Core Deposit
 Intangible 56,778 56,858 (80) -0.14%
Other Assets 87,375 86,648 727 0.84%
 --------------------------------------
 Total Assets $2,923,983 $3,041,685 (117,702) -3.87%
 ======================================

Liabilities and Stockholders'
 Equity
Deposits
 Demand Deposits $ 485,283 $ 511,920 (26,637) -5.20%
 Savings and Interest
 Checking Accounts 576,126 613,840 (37,714) -6.14%
 Money Market 532,007 550,677 (18,670) -3.39%
 Time Certificates of
 Deposit 526,247 529,057 (2,810) -0.53%
 --------------------------------------
 Total Deposits 2,119,663 2,205,494 (85,831) -3.89%
 --------------------------------------
Borrowings
 Federal Home Loan Bank
 Borrowings 392,448 417,477 (25,029) -6.00%
 Fed Funds Purchased and
 Assets Sold
 Under Repurchase
 Agreements 112,484 113,335 (851) -0.75%
 Junior Subordinated
 Debentures 51,546 51,546 - 0.00%
 Treasury Tax and Loan
 Notes 225 5,452 (5,227)-95.87%
 --------------------------------------
Total Borrowings 556,703 587,810 (31,107) -5.29%
 --------------------------------------
Total Deposits and Borrowings 2,676,366 2,793,304 (116,938) -4.19%
Other Liabilities 20,610 20,229 381 1.88%
 Stockholders' Equity 227,007 228,152 (1,145) -0.50%
 --------------------------------------
 Total Liabilities and
 Stockholders' Equity $2,923,983 $3,041,685 (117,702) -3.87%
 ======================================


 --------------------------------
 March 31,
 March 31, 2006 v 2005 %
 2005 Variance Change
 --------------------------------
Assets
Cash and Due From Banks $ 67,474 (8,463) -12.54%
Fed Funds Sold and Short Term
 Investments 1,891 10,109 534.58%
Securities
 Trading Assets 1,527 71 4.65%
 Securities Available for Sale 686,969 (163,654) -23.82%
 Securities Held to Maturity 107,297 (3,479) -3.24%
 Federal Home Loan Bank Stock 28,413 874 3.08%
 ---------- ----------------
Total Securities 824,206 (166,188) -20.16%
 ---------- ----------------
Loans
 Commercial and Industrial 159,476 3,548 2.22%
 Commercial Real Estate 629,086 51,939 8.26%
 Commercial Construction 133,626 5,931 4.44%
 Business Banking 46,211 7,977 17.26%
 Residential Real Estate 426,834 (7,102) -1.66%
 Residential Construction 7,404 56 0.76%
 Residential Loans Held for Sale 6,475 2,356 36.39%
 Consumer - Home Equity 206,770 56,161 27.16%
 Consumer - Auto 287,053 (36,028) -12.55%
 Consumer - Other 51,422 1,397 2.72%
 ---------- ----------------
Total Loans 1,954,357 86,235 4.41%
 Less - Allowance for Loan Losses (25,505) (1,241) 4.87%
 ---------- ----------------
 Net Loans 1,928,852 84,994 4.41%
 ---------- ----------------
Bank Premises and Equipment 36,575 380 1.04%
Goodwill and Core Deposit Intangible 57,207 (429) -0.75%
Other Assets 82,308 5,067 6.16%
 ---------- ----------------
 Total Assets $2,998,513 (74,530) -2.49%
 ========== ================

Liabilities and Stockholders' Equity
Deposits
 Demand Deposits $ 496,436 (11,153) -2.25%
 Savings and Interest Checking
 Accounts 619,293 (43,167) -6.97%
 Money Market 511,440 20,567 4.02%
 Time Certificates of Deposit 511,745 14,502 2.83%
 ---------- ----------------
 Total Deposits 2,138,914 (19,251) -0.90%
 ---------- ----------------
Borrowings
 Federal Home Loan Bank Borrowings 516,561 (124,113) -24.03%
 Fed Funds Purchased and Assets
 Sold Under Repurchase Agreements 59,848 52,636 87.95%
 Junior Subordinated Debentures 51,546 - 0.00%
 Treasury Tax and Loan Notes 1,366 (1,141) -83.53%
 ---------- ----------------
Total Borrowings 629,321 (72,618) -11.54%
 ---------- ----------------
Total Deposits and Borrowings 2,768,235 (91,869) -3.32%
Other Liabilities 19,689 921 4.68%
 Stockholders' Equity 210,589 16,418 7.80%
 ---------- ----------------
 Total Liabilities and
 Stockholders' Equity $2,998,513 (74,530) -2.49%
 ========== ================







INDEPENDENT BANK CORP. FINANCIAL SUMMARY
----------------------------------------------------------------
(Unaudited - Dollars in Thousands, Except Per Share Data)



CONSOLIDATED STATEMENTS
OF INCOME Quarter Ended
 ---------------------------------
 March 31, $ %
 2006 2005 Variance Change
 ------------------------------------------
INTEREST INCOME
Interest on Fed Funds Sold
 and Short Term Investments $ 100 $ 30 70 233.33%
Interest and Dividends on
 Securities 7,898 8,818 (920) -10.43%
Interest on Loans 32,703 28,128 4,575 16.26%
 ---------------------------------------
 Total Interest Income 40,701 36,976 3,725 10.07%
 ---------------------------------------
INTEREST EXPENSE
Interest on Deposits 8,460 5,254 3,206 61.02%
Interest on Borrowed Funds 5,935 5,854 81 1.38%
 ---------------------------------------
 Total Interest Expense 14,395 11,108 3,287 29.59%
 ---------------------------------------
Net Interest Income 26,306 25,868 438 1.69%
 Less - Provision for
 Loan Losses 750 930 (180) -19.35%
 ---------------------------------------
Net Interest Income after
 Provision for Loan Losses 25,556 24,938 618 2.48%
 ---------------------------------------
NON-INTEREST INCOME
Service Charges on Deposit
 Accounts 3,418 2,972 446 15.01%
Investment Management
 Services Income 1,355 1,238 117 9.45%
Mortgage Banking Income 818 928 (110) -11.85%
BOLI Income 1,743 424 1,319 311.08%
Net Loss/Gain on Sale of
 Securities (1,769) 343 (2,112)-615.74%
Other Non-Interest Income 769 682 87 12.76%
 ---------------------------------------
 Total Non-Interest
 Income 6,334 6,587 (253) -3.84%
 ---------------------------------------
NON-INTEREST EXPENSE
Salaries and Employee
 Benefits 11,864 11,792 72 0.61%
Occupancy and Equipment
 Expenses 2,713 2,595 118 4.55%
Data Processing and
 Facilities Management 1,060 962 98 10.19%
Other Non-Interest Expense 4,747 4,441 306 6.89%
 ---------------------------------------
 Total Non-Interest
 Expense 20,384 19,790 594 3.00%
 ---------------------------------------
INCOME BEFORE INCOME TAXES 11,506 11,735 (229) -1.95%
 ---------------------------------------
PROVISION FOR INCOME TAXES 3,602 3,821 (219) -5.73%
 ---------------------------------------
 NET INCOME $ 7,904 $ 7,914 (10) -0.13%
 =======================================

BASIC EARNINGS PER SHARE $ 0.52 $ 0.52 0.00%
DILUTED EARNINGS PER SHARE $ 0.51 $ 0.51 0.00%
BASIC AVERAGE SHARES 15,343,807 15,347,540 -0.02%
DILUTED AVERAGE SHARES 15,497,431 15,512,220 -0.10%

PERFORMANCE RATIOS:
---------------------------
 Net Interest Margin
 (FTE) 3.88% 3.84% 1.04%
 Return on Average Assets 1.07% 1.08% -0.93%
 Return on Average Equity 13.74% 14.87% -7.60%

RECONCILIATION TABLE - NON-
 GAAP FINANCIAL INFORMATION
---------------------------
 NET INCOME (GAAP) $ 7,904 $ 7,914 (10) -0.13%
 Add - Net
 Loss on
 Sale of
 Securities,
 net of tax 1,150 - 1,150 100.00%
 Less - Net
 Gain on
 Sale of
 Securities,
 net of tax - (223) 223 100.00%
 Less - BOLI
 Benefit
 Proceeds (1,316) - (1,316)-100.00%
 ----------- ----------- -------
 NET OPERATING
 EARNINGS $ 7,738 $ 7,691 47 0.61%
 =========== =========== =======

 Diluted Earnings Per
 Share (GAAP) $ 0.51 $ 0.51 0.00%
 Add -
 Effects of
 Net Loss on
 Sale of
 Securities,
 net of tax 0.07 -
 Less -
 Effects of
 Net Gain on
 Sale of
 Securities,
 net of tax - (0.01)
 Less -
 Effects of
 BOLI
 Benefit
 Proceeds (0.08) -
 ----------- -----------
 Diluted Earnings Per
 Share, on an
 Operating Basis $ 0.50 $ 0.50 0.00%
 =========== ===========



INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL INFORMATION
CONSOLIDATED AVERAGE BALANCE SHEETS AND AVERAGE RATE DATA


(Unaudited - Dollars in Thousands)


 Ending
 Balance
-------------------------------
Interest-Earning Assets:
 Federal Funds
 Sold and Short
 Term Investments $ 12,000
Securities:
 Trading Assets 1,598
 Taxable
 Investment
 Securities 595,936
 Non-taxable
 Investment
 Securities (1) 60,484
 ----------
 Total
 Securities: 658,018
Loans (1) 2,040,592
 ----------
Total Interest-
 Earning Assets $2,710,610
 ----------
Cash and Due from
 Banks 59,011
Other Assets 154,362
 ----------
 Total Assets $2,923,983
 ==========
Interest-bearing
 Liabilities:
Deposits:
 Savings and
 Interest
 Checking
 Accounts $ 576,126
 Money Market 532,007
 Time Deposits 526,247
 ----------
 Total
 interest-
 bearing
 deposits: 1,634,380
Borrowings:
 Federal Home Loan
 Bank Borrowings $ 392,448
 Federal Funds
 Purchased and
 Assets Sold
 Under
 Repurchase
 Agreement 112,484
 Junior
 Subordinated
 Debentures 51,546
 Treasury Tax and
 Loan Notes 225
 ----------
 Total
 Borrowings: 556,703
 ----------
Total Interest-
 Bearing Liabilities $2,191,083
 ----------
Demand Deposits 485,283

Other Liabilities 20,610
 ----------
 Total
 Liabilities $2,696,976
Stockholders' Equity 227,007
 ----------
 Total
 Liabilities and
 Stockholders'
 Equity $2,923,983
 ==========

Net Interest Income

Interest Rate Spread
 (2)

Net Interest Margin
 (2)

Supplemental
 Information:
Total Deposits,
 including Demand
 Deposits $2,119,663
Cost of Total
 Deposits
Total Funding
 Liabilities,
 including Demand
 Deposits $2,676,366
Cost of Total Funding
 Liabilities


 Quarter Ended March 31,
 ----------------------------------------------
 2006 2005
 ----------------------------------------------

 Interest Interest
 Average Earned/ Yield/ Average Earned/ Yield/
 Balance Paid Rate Balance Paid Rate

 Federal Funds
 Sold and Short
 Term Investments$ 9,856 $ 100 4.06% $ 4,885 $ 30 2.46%
Securities:
 Trading Assets 1,555 12 3.09% 1,571 12 3.06%
 Taxable
 Investment
 Securities 640,048 7,216 4.51% 739,914 8,142 4.40%
 Non-taxable
 Investment
 Securities (1) 61,538 1,031 6.70% 62,656 1,022 6.52%
 ------------------------ -----------------------
 Total
 Securities: 703,141 8,259 4.70% 804,141 9,176 4.56%
Loans (1) 2,042,984 32,797 6.42% 1,932,768 28,214 5.84%
 ------------------------ ---------- ------------
Total Interest-
 Earning Assets $2,755,981 $ 41,156 5.97%$2,741,794 $37,420 5.46%
 ------------------------ ---------- ------------
Cash and Due from
 Banks 61,022 61,613
Other Assets 150,329 140,558
 ---------- ----------
 Total Assets $2,967,332 $2,943,965
 ========== ==========
Interest-bearing
 Liabilities:
Deposits:
 Savings and
 Interest
 Checking
 Accounts $ 573,944 $ 933 0.65%$ 598,734 $ 658 0.44%
 Money Market 545,491 3,322 2.44% 499,468 1,830 1.47%
 Time Deposits 537,454 4,205 3.13% 497,328 2,766 2.22%
 ------------------------ ---------- ------------
 Total
 interest-
 bearing
 deposits: 1,656,889 8,460 2.04% 1,595,530 5,254 1.32%
Borrowings:
 Federal Home Loan
 Bank Borrowings $ 416,084 $ 4,165 4.00%$ 508,971 $ 4,538 3.57%
 Federal Funds
 Purchased and
 Assets Sold
 Under
 Repurchase
 Agreement 107,249 636 2.37% 64,729 194 1.20%
 Junior
 Subordinated
 Debentures 51,546 1,118 8.68% 51,546 1,117 8.67%
 Treasury Tax and
 Loan Notes 1,442 16 4.44% 2,016 5 0.99%
 ------------------------ ---------- ------------
 Total
 Borrowings: 576,321 5,935 4.12% 627,262 5,854 3.73%
 ------------------------ ---------- ------------
Total Interest-
 Bearing Liabilities $2,233,210 $ 14,395 2.58%$2,222,792 $11,108 2.00%
 ------------------------ ---------- ------------
Demand Deposits 485,997 491,093

Other Liabilities 17,948 17,203
 ---------- ----------
 Total
 Liabilities $2,737,155 $2,731,088
Stockholders' Equity 230,177 212,877
 ---------- ----------
 Total
 Liabilities and
 Stockholders'
 Equity $2,967,332 $2,943,965
 ========== ==========

Net Interest Income $26,761 $26,312
 ======== ========

Interest Rate Spread
 (2) 3.39% 3.46%
 ===== =====


Net Interest Margin
 (2) 3.88% 3.84%
 ===== =====

Supplemental
 Information:
Total Deposits,
 including Demand
 Deposits $2,142,886 $ 8,460 $2,086,623 $ 5,254
Cost of Total
 Deposits 1.58% 1.01%
Total Funding
 Liabilities,
 including Demand
 Deposits $2,719,207 $ 14,395 $2,713,885 $ 11,108
Cost of Total Funding
 Liabilities 2.12% 1.64%



(1) The total amount of adjustment to present interest income and
 yield on a fully tax-equivalent basis is $455 for the three months
 ended March 31, 2006 and $444 for the three months ended March 31,
 2005.

(2) Interest rate spread represents the difference between the
 weighted average yield on interest-earning assets and the weighted
 average cost of interest-bearing liabilities. Net interest margin
 represents annualized net interest income as a percentage of
 average interest-earning assets.



 As Of
 March December
 31, 31,
Asset Quality 2006 2005
------------------------------------------------- --------
 (Dollars in
 Thousands,
 Except Per
 Share Data)
Nonperforming Loans $4,627 $3,339
Nonperforming Assets $4,627 $3,339
Net charge-offs (year to date) $643 $2,733
Net charge-offs to average loans
 (annualized) 0.13% 0.14%
Loans 90 days past due & still accruing $267 $227
Nonperforming Loans/Gross Loans 0.23% 0.16%
Allowance for Loan Losses/Nonperforming
 Loans 578.04% 797.81%
Loans/Total Deposits 96.27% 92.53%
Allowance for Loan Losses/Total Loans 1.31% 1.31%

Financial Ratios
------------------------------------------
 Book Value per Share $14.88 $14.81
 Tangible Capital/Tangible Asset 5.94% 5.74%
 Tangible Capital/Tangible Asset
 (proforma to include
 the deductibility of goodwill) 6.44% 6.23%
 Tangible Book Value per Share $11.16 $11.12
 Tangible Book Value per Share
 (proforma to include
 the deductibility of goodwill) $12.11 $12.06

Capital Adequacy
------------------------------------------
Tier one leverage capital ratio (1) 7.86% 7.71%
(1) Estimated number for March 31, 2006
------------------------------------------------- --------
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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