Interchange Financial Services Corporation Reports 2006 1st Quarter Results.SADDLE saddle, seat or pad to support the rider on an animal, chiefly a horse. The saddles mentioned in the Bible are generally considered to have been saddlecloths. The ancient Greeks sometimes used saddlecloths, but they had no saddles and often rode bareback. BROOK A brook is a small stream. Brook may refer to the following places:
Please [ improve this article] or discuss the issue on the talk page. Corporation (the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :IFCJ IFCJ International Fellowship of Christians and Jews (Washington, DC) ), holding company of Interchange Bank (the "Bank"), today reported 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 ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") of $0.22, on net income of $4.5 million for the quarter ended March 31, 2006. Net income increased $109 thousand or 2.5%, while diluted earnings per share declined $0.01 or 4.3%, for the three months ended March 31, 2006 as compared to the same period in 2005. "The challenging interest rate and competitive environment in New Jersey continued through the first quarter of 2006. We believe that our balance sheet remains well positioned and we continue to seek ways to expand our non-interest income to offset the pressures on our net interest margin," Anthony Abbate, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated. "Our Small Business Administration department had a most productive first quarter through which we realized more than $387 thousand in gains on sales of the guaranteed portion of loans and fees." Commenting further on the Company's activities, Mr. Abbate stated, "We are extremely excited about the proposed acquisition of the Company by TD Banknorth  This article or section may be confusing or unclear for some readers.Please [improve the article] or discuss this issue on the talk page. and look forward to the benefits and greater array of products and services that our combined entities will be able to provide to our customers and community." The Company on January January: see month. 17, 2006 increased its quarterly cash dividend more than 11% from the prior year and it represents the 12th consecutive year of regular dividend increases. The Company 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. a quarterly cash dividend of $0.10 per common share, payable May 9, 2006 to shareholders of record on May 1, 2006. The dividend represents $0.40 per share 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. The results of operations for the quarter ended March 31, 2006 include Franklin Franklin, cities, United States Franklin. 1 City (1990 pop. 12,907), seat of Johnson co., S central Ind., inc. 1823. It is a farm trade center. Manufactures include auto parts, aluminum doors and windows, and copper panels. Bank which was acquired on October October: see month. 13, 2005. Return on Average Assets and Equity For the first quarter of 2006 return on average 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. and return on average assets were 10.05% and 1.11% versus 11.70% and 1.20%, respectively, for the same period in 2005. 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. return on equity for the first quarters ended March 31, 2006 and 2005 was 17.11% and 19.32%, respectively. Net Interest Income Net interest income for the first quarter 2006, on a taxable equivalent basis, increased to $14.2 million as compared to $13.7 million for the same period in 2005. The net interest margin ("margin") was 3.84% for the quarter versus 4.14% for the same period in 2005. The margin was primarily affected by an increase in the cost of interest bearing deposits and both the rate paid on and the volume of borrowings increased. The increase in the borrowing costs was primarily a result of an increase in Federal Home Loan Bank advances. During the second quarter of 2005, $20 million of trust preferred securities were issued by the Company's subsidiaries at an average rate of 6.10%. The trust preferred securities were issued as part of our overall liquidity and capital management plans and in support of our continued loan growth. Non-Interest Income Non-interest income was $2.7 million for the first quarter of 2006 as compared to $2.2 million in 2005, or a 22.3% increase. Service charges on deposits were $892 thousand for the quarter ended March 31, 2006 as compared to $883 thousand for the same period in 2005. Gains on sales of loans and leases were $261 thousand, an increase of $105 thousand or 11.5%. The gain on the sale of the guaranteed portion of Small Business Administration loans was $206 thousand, an increase of $82 thousand or 66.1%. In addition to the gain on sales of SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government loans during the quarter, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $181 thousand of other fees were earned through placing a SBA loan with another financial institution. Non-Interest Expense Non-interest expense for the first quarter was $9.8 million, an increase of $678 thousand or 7.4%, as compared to the same period in 2005. Approximately $205 thousand of the increase was associated with recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operating costs operating costs npl → gastos mpl operacionales from the Franklin transaction, which closed during the fourth quarter of 2005. Salaries and benefits increased $482 thousand or 9.7%. In addition, legal fees were approximately $301 thousand for the quarter, an increase of $116 thousand or 63% from the prior year. Total Loans At March 31, 2006, total gross loans were approximately $1.12 billion, an increase of $18.1 million, or 6.6% on an annualized basis as compared to December December: see month. 31, 2005. The increase in loans was principally a result of a $24.1 million net growth in our commercial loan portfolio. Commercial mortgages and construction loans expanded $16.3 million and $10.4 million, respectively, offset somewhat by a decrease of $2.6 million in commercial and financial loans. 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 $3.5 million and $3.6 million, at March 31, 2006 and December 31, 2005, respectively. Non-performing assets represented 0.32% of the total loans and foreclosed and repossessed assets outstanding at March 31, 2006 and December 31, 2005. Net charge-offs to average loans and leases for the quarter ended March 31, 2006 was 0.09%. The Allowance for Loan and Lease Losses ("ALLL ALLL Allowance for Loan and Lease Losses ") totaled $10.6 million at March 31, 2006, of which approximately $1.0 million was a result of the acquisition of Franklin Bank during the fourth quarter of 2005. The ALLL at March 31, 2006 represented 299.7% of non-performing loans and leases and 0.94% of total loans and leases. About Interchange Financial Services Corporation Headquartered in Saddle Brook, N.J., Interchange Bank is New Jersey's largest independent bank serving Bergen Bergen, city, Norway Bergen (bĕr`gən), city (1995 pop. 221,645), capital of Hordaland co., SW Norway, situated on inlets of the North Sea. It is Norway's second largest city and a major shipping center. and Essex Counties Essex County can refer to:
A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Interchange Financial Services Corp. (NASDAQ:IFCJ). With $1.6 billion in assets and 30 branches, Interchange Bank offers innovative financial products and services to businesses and retail customers. For additional information, please visit the company's Web site at www.interchangebank.com. In addition to discussing historical information, certain statements included in or incorporated into this report relate to the financial condition, results of operations and business of the Company which are not historical facts, but which are "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. When used herein, the words "anticipate," "believe," "estimate," "expect," "will" and other similar expressions are generally intended to identify such forward-looking statements. Such statements are intended to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions for forward-looking statements contained in such Act, and we are including this statement for purposes of invoking these safe harbor provisions. These forward-looking statements include, but are not limited to, statements about the operations of the Company, the adequacy of the Company's allowance for losses associated with the loan portfolio, the prospects of continued loan and deposit growth, improved credit quality and the impact of the proposed acquisition of the Company by TD Banknorth and other risks as discussed in reports we have filed with the SEC. The forward-looking statements in this report involve certain estimates or assumptions, known and unknown risks and uncertainties, many of which are beyond the control of the Company, and reflect what we currently anticipate will happen in each case. What actually happens could differ materially. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake - and specifically disclaims any obligation - to publicly release the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. which may be made to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2006 2005 Change
----------- ----------- ------
(unaudited) (unaudited)
Assets
Cash and due from banks $36,840 $42,620 (13.6) %
Interest earning deposits 4 4 -
Securities 357,098 356,466 0.2
Loans and leases
Commercial 807,989 783,902 3.1
Commercial Lease Financing 23,702 24,584 (3.6)
Consumer 292,400 297,483 (1.7)
----------- ----------- ------
1,124,091 1,105,969 1.6
Allowance for loan and lease losses (10,559) (10,646) (0.8)
----------- ----------- ------
Net loans 1,113,532 1,095,323 1.7
Premises and equipment, net 17,425 17,509 (0.5)
Foreclosed real estate and other
repossesed assets 74 122 (39.3)
Bank Owned Life Insurance 27,209 26,941 1.0
Goodwill and other intangible assets 74,198 74,379 (0.2)
Accrued interest receivable and
other assets 18,406 18,022 2.1
----------- ----------- ------
Total assets $1,644,786 $1,631,386 0.8
=========== =========== ======
Liabilities
Deposits $1,251,276 $1,260,108 (0.7)
Borrowings 179,120 160,422 11.7
Subordinated debentures 20,620 20,620 -
Accrued interest payable and other
liabilities 11,986 11,234 6.7
----------- ----------- ------
Total liabilities 1,463,002 1,452,384 0.7
----------- ----------- ------
Total stockholders' equity 181,784 179,002 1.6
----------- ----------- ------
Total liabilities and
stockholders' equity $1,644,786 $1,631,386 0.8
=========== =========== ======
CONSOLIDATED INCOME STATEMENTS
(dollars in thousands, except per Three Months Ended
share data) March 31,
------------------------------
2006 2005 Change
----------- ----------- ------
(unaudited) (unaudited)
Interest income:
Interest and fees on loans $18,826 $14,957 25.9 %
Interest and dividends on securities:
Taxable interest income 2,373 2,665 (11.0)
Interest income exempt from
federal income taxes 687 323 112.7
Dividends 103 60 71.7
----------- ----------- ------
Total interest income 21,989 18,005 22.1
----------- ----------- ------
Interest expense:
Interest on deposits 6,292 3,922 60.4
Interest on borrowings 1,910 519 268.0
----------- ----------- ------
Total interest expense 8,202 4,441 84.7
----------- ----------- ------
Net interest income 13,787 13,564 1.6
Provision for loan and lease losses 175 175 -
----------- ----------- ------
Net interest income after provision
for loan & lease losses 13,612 13,389 1.7
----------- ----------- ------
Non-interest income:
Service fees on deposit accounts 892 883 1.0
Net gain on sale of securities 23 67 (65.7)
Other 1,769 1,244 42.2
----------- ----------- ------
Total non-interest income 2,684 2,194 22.3
----------- ----------- ------
Non-interest expense:
Salaries and benefits 5,437 4,955 9.7
Net occupancy 1,586 1,463 8.4
Furniture and equipment 372 315 18.1
Advertising and promotion 236 395 (40.3)
Other 2,201 2,026 8.6
----------- ----------- ------
Total non-interest expense 9,832 9,154 7.4
----------- ----------- ------
Income before income taxes 6,464 6,429 0.5
Income taxes 1,935 2,009 (3.7)
----------- ----------- ------
Net income $4,529 $4,420 2.5
=========== =========== ======
Basic earnings per common share $0.22 $0.23 (4.3)
Diluted earnings per common share $0.22 $0.23 (4.3)
Analysis of Net Interest Income
---------------------------------------------------------------------
for the quarter ended March 31,
(dollars in thousands) 2006
----------------------------
(unaudited) Average Average
Balance Interest Rate
----------- -------- -------
Assets
Interest earning assets:
Loans (1) $1,109,004 $18,852 6.80 %
Taxable securities (4) 290,904 2,476 3.40
Tax-exempt securities (2) (4) 74,286 1,037 5.58
Federal funds sold and interest earning
deposits 4 - -
----------- -------- -------
Total interest-earning assets 1,474,198 22,365 6.07
--------
Non-interest earning assets:
Cash and due from banks 36,835
Allowance for loan and lease losses (10,671)
Other assets 133,253
-----------
Total assets $1,633,615
===========
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest bearing deposits $1,009,666 6,292 2.49
Borrowings and subordinated debentures 180,990 1,910 4.22
----------- -------- -------
Total interest-bearing liabilities 1,190,656 8,202 2.76
--------
Non-interest bearing liabilities
Demand deposits 250,958
Other liabilities 11,790
-----------
Total liabilities (3) 1,453,404
Stockholders' equity 180,211
-----------
Total liabilities and
stockholders' equity $1,633,615
===========
Net interest income (tax-equivalent
basis) 14,163 3.31
Tax-equivalent basis adjustment (376)
--------
Net interest income $13,787
========
Net interest income as a percent of interest-
earning assets (tax-equivalent basis) 3.84 %
Analysis of Net Interest Income
--------------------------------------------------------------------
for the quarter ended March 31,
(dollars in thousands) 2005
----------------------------
(unaudited) Average Average
Balance Interest Rate
----------- -------- -------
Assets
Interest earning assets:
Loans (1) $946,417 $14,985 6.33 %
Taxable securities (4) 346,224 2,725 3.15
Tax-exempt securities (2) (4) 35,076 457 5.21
Federal funds sold and interest earning
deposits 64 - -
----------- -------- -------
Total interest-earning assets 1,327,781 18,167 5.47
--------
Non-interest earning assets:
Cash and due from banks 34,875
Allowance for loan and lease losses (9,874)
Other assets 115,435
-----------
Total assets $1,468,217
===========
Liabilities and stockholders' equity
Interest-bearing liabilities
Interest bearing deposits $997,141 3,922 1.57
Borrowings and subordinated debentures 72,042 519 2.88
----------- -------- -------
Total interest-bearing liabilities 1,069,183 4,441 1.66
--------
Non-interest bearing liabilities
Demand deposits 238,549
Other liabilities 9,433
-----------
Total liabilities (3) 1,317,165
Stockholders' equity 151,052
-----------
Total liabilities and
stockholders' equity $1,468,217
===========
Net interest income (tax-equivalent
basis) 13,726 3.81
Tax-equivalent basis adjustment (162)
--------
Net interest income $13,564
========
Net interest income as a percent of interest-
earning assets (tax-equivalent basis) 4.14 %
(1) Nonaccrual loans and any related interest recorded have been
included in computing the average rate earned on the loan portfolio.
When applicable, tax exempt loans are computed on a fully taxable
equivalent basis using the corporate federal tax rate of 34%.
(2) Computed on a fully taxable equivalent basis using the corporate
federal tax rate of 34%.
(3) All deposits are in domestic bank offices.
(4) The average balances are based on historical cost and do not
reflect unrealized gains or losses.
STATEMENT OF CONDITION - SELECTED DATA (Period Ending)
March 31, December 31, 3 month March 31, 12 month
2006 2005 Change 2005 Change
----------- ----------- ------ ----------- ------
(unaudited) (unaudited) (unaudited)
Loans $1,124,091 $1,105,969 1.6 % $977,089 15.0 %
Securities 357,098 356,466 0.2 371,439 (3.9)
Earning assets 1,481,193 1,462,439 1.3 1,348,530 9.8
Total Assets 1,644,786 1,631,386 0.8 1,488,849 10.5
Deposits 1,251,276 1,260,108 (0.7) 1,231,396 1.6
Borrowings 179,120 160,422 11.7 95,586 87.4
Subordinated
debentures 20,620 20,620 - - n/a
Shareholders'
equity 181,784 179,002 1.6 151,207 20.2
Leverage ratio 8.46 %(a) 8.20 % 6.72 %
Risk weighted
ratios:
Tier 1 11.13 (a) 11.02 9.25
Total 12.02 (a) 11.93 10.20
(a) Estimates subject to change.
Asset quality
Quarter ended
-----------------------------------------
Net charge offs $263 $756 (65.2)% $96 174.0 %
Loan loss allowance (10,559) (10,646) (0.8) (9,876) 6.9
Nonperforming loans $3,523 $3,558 (1.0) $7,774 (54.7)
Foreclosed real estate &
other repossessed assets 74 122 (39.3) 150 (50.7)
-------- -------- ------ ------- ------
Total Nonperforming
assets ("NPA") $3,597 $3,680 (2.3) $7,924 (54.6)
======== ======== ====== ======= ======
Ratio's
-----------------------------
Net charge offs as % of
average loans (annualized) 0.09 % 0.27 % 0.04 %
Loan loss allowance as % of
period-end loans 0.94 0.96 1.01
Loan loss allowance as % of
nonperforming loans 299.7 299.2 127.0
NPA's as a percent of loans +
foreclosed assets 0.32 0.33 0.72
PROFITABILITY
(dollars in thousands,
except per share data) Quarter ended
---------------------------------------------------
March 31, December 31, 3 month March 31, 12 month
2006 2005 Change 2005 Change
----------- ----------- ------ ----------- ------
(unaudited) (unaudited) (unaudited)
Net interest income
(taxable equivalent) $14,163 $14,741 (3.9)% $13,726 3.2 %
Provision for loan
and lease losses 175 225 (22.2) 175 -
Net gain on sale of
securities 23 - - 67 (65.7)
Non-interest
income, excluding
net gain on sale
of securities 2,661 3,034 (12.3) 2,127 25.1
Non-interest
expense 9,832 8,119 21.1 9,154 7.4
Net income $4,529 $6,094 (25.7) $4,420 2.5
Return on average
assets 1.11 % 1.49 % 1.20 %
Return on average
equity 10.05 13.79 11.70
Return on average
tangible equity 17.11 23.16 19.32
Net interest margin 3.84 3.99 4.14
Basic earnings per
common share (1) $0.22 $0.30 (26.7)% $0.23 (4.3)%
Diluted earnings
per common share (1) 0.22 0.30 (26.7) 0.23 (4.3)
Dividends declared
per common share (1) 0.10 0.09 11.1 0.09 11.1
Book value per
common share - end
of period (1) $8.94 $8.89 0.6 $7.90 13.2
Shares outstanding
- end of period (1) 20,337 20,139 1.0 19,144 6.2
Weighted average
shares outstanding (1)
Basic (1) 20,231 20,214 0.1 19,134 5.7
Diluted (1) 20,708 20,614 0.5 19,556 5.9
(1) Adjusted for 3 for 2 stock split declared on January 18, 2005
payable on February 18, 2005
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