Provident Financial Services, Inc. Announces Quarterly Earnings and Declares Quarterly Cash Dividend.JERSEY CITY, N.J. -- Provident Financial Provident Financial plc is a financial services group based in Bradford, England. It specialises in home credit, but also owns Vanquis Bank which offers credit cards. Domestic Operations Services, Inc. (NYSE NYSE See: New York Stock Exchange :PFS PFS, n post facilitation stretch; therapeutic approach utilized during proprioceptive neuromuscular facilitation in which the patient begins the stretch midway between the fully relaxed and fully stretched position and uses maximum level of effort to ) (the "Company") reported net income of $13.3 million for the three months ended September September: see month. 30, 2004 and $32.2 million for the nine months ended September 30, 2004, compared to $8.1 million and $10.5 million, respectively, for the same periods in 2003. Basic and 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 were $0.19 for the quarter and $0.54 for the nine months ended September 30, 2004, compared to basic and diluted earnings per share of $0.14 and $0.16 for third quarter 2003 and for the period from January January: see month. 15, 2003, the date of the Company's stock conversion, through September 30, 2003, respectively. Earnings and per share data for 2004 reflected the impact of the Company's acquisition of First Sentinel Bancorp, Inc. ("First Sentinel") from July July: see month. 14, 2004, the date the acquisition was completed. Third quarter 2004 earnings were impacted by one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses related to the merger and integration of First Sentinel's operations of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $870 thousand, net of tax. Net income for the nine months ended September 30, 2003 reflected the one-time expense associated with the $15.6 million net of tax contribution to The Provident prov·i·dent adj. 1. Providing for future needs or events. 2. Frugal; economical. [Middle English, from Latin pr Bank Foundation. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. M. Pantozzi, Chairman and Chief Executive Officer, commented, "Third quarter results confirm that our acquisition of First Sentinel has significantly enhanced the performance capabilities of the Company's franchise. Through the efforts of many dedicated employees, including the newest members of our team, the process of integrating operations and systems has proceeded according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. expectations and is now substantially complete. The addition of a loyal customer base in one of New Jersey's best markets allows us to more effectively execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution our proven business model of building relationships with our retail and commercial clients. We continue to drive toward our strategic objectives of improving operating efficiency, maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: core deposits and building our commercial loan portfolios. " Declaration of Quarterly Dividend On October October: see month. 21, 2004, the Company's Board of Directors 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 $0.06 per common share. The dividend is payable on November November: see month. 30, 2004 to stockholders of record as of the close of business on November 12, 2004. Balance Sheet Summary Total assets grew to $6.54 billion at September 30, 2004, compared to $4.28 billion at December December: see month. 31, 2003, with the increase primarily due to the First Sentinel acquisition and internal growth in the Company's loan portfolio. The fair value of assets acquired in the First Sentinel transaction totaled $2.57 billion at July 14, 2004, while deposits and borrowings assumed totaled $1.36 billion and $566.5 million, respectively. The Company's net loans increased $308.8 million, or 13.9%, during the nine months ended September 30, 2004, excluding $1.18 billion in loans added through the First Sentinel acquisition. Internal loan growth highlights for the nine month period ended September 30, 2004 included an $86.2 million, or 34.4%, increase in commercial and industrial loans, an $85.8 million, or 28.7%, increase in consumer loans, and a $124.0 million, or 7.9%, increase in loans secured by real estate. The increase in consumer loans was largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in indirect auto loans, as well as fixed-rate home equity loans and home equity lines of credit. Excluding $744.5 million of investments acquired through the First Sentinel acquisition, total investments decreased $469.9 million, or 28.1%, during the nine months ended September 30, 2004. Proceeds from investment sales, maturities and scheduled cash flows Scheduled cash flows The mortgage principal and interest payments due to be paid under the terms of the mortgage, not including possible prepayments. were used to fund loan growth and the cash portion of the acquisition consideration. Core deposits increased $52.9 million, or 3.0%, for the nine months ended September 30, 2004, excluding $858.9 million in core deposits acquired through the First Sentinel acquisition. Total deposits were $4.09 billion at September 30, 2004, with core deposits representing 65.4% of total deposits. The Company's continued emphasis on core account generation has contributed to an 18 basis point reduction in the cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits to 1.29% for third quarter 2004 compared to 1.47% for third quarter 2003. Compared to the trailing quarter, the cost of deposits decreased six basis points from 1.35% for the second quarter. Common stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. for the three and nine months ended September 30, 2004 totaled 2.9 million shares at an average cost of $17.58 per share and 3.2 million shares at an average cost of $17.76 per share, respectively. An additional 738 thousand shares remain eligible for repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. under the current common stock repurchase authorization The right or permission to use a system resource; the process of granting access. See access control. . At September 30, 2004, book value per share and 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 totaled $15.00 and $9.32, respectively. Results of Operations Net Interest Margin The net interest margin increased 29 basis points to 3.43% for the quarter ended September 30, 2004 compared with 3.14% for the same period in 2003. This represented an increase of 15 basis points versus the trailing quarter net interest margin of 3.28%. Purchase accounting adjustments contributed approximately 14 basis points to the net interest margin for the quarter ended September 30, 2004. The weighted average rate for interest-earning assets was 4.89% for the three months ended September 30, 2004 compared with 4.48% for the three months ended September 30, 2003 and 4.58% for the trailing quarter. The weighted average rate for interest-bearing liabilities was 1.70% for the quarter ended September 30, 2004, compared with 1.75% for the third quarter of 2003 and 1.69% for the quarter ended June June: see month. 30, 2004. The net interest margin increased six basis points to 3.41% for the nine months ended September 30, 2004 compared with 3.35% for the same period in 2003. The weighted average rate for interest-earning assets was 4.77% for the nine months ended September 30, 2004 compared with 4.82% for the nine months ended September 30, 2003. The weighted average rate for interest-bearing liabilities was 1.69% for the nine months ended September 30, 2004, compared with 1.95% for the same period in 2003. Non-Interest Income Non-interest income totaled $8.2 million for the quarter and $22.6 million for the nine months ended September 30, 2004, representing increases of $1.4 million, or 21.5%, and $5.2 million, or 30.0%, respectively, compared to the same periods in 2003. Fee income from retail deposits increased $1.4 million, or 32.9%, to $5.8 million for the three months ended September 30, 2004, compared to $4.3 million for the three months ended September 30, 2003. For the nine months ended September 30, 2004, fee income from retail deposits increased $3.2 million, or 26.2%, to $15.2 million compared to $12.0 million for the same period in 2003. The increase in deposit fees was largely attributable to the implementation of an overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers privilege A permission or right. In information security, it refers to the modes of operation that a user or a process is granted. Examples include user-level privilege, operator privilege and supervisory privilege. product in late 2003. Non-Interest Expense For the three months ended September 30, 2004, non-interest expense increased $8.6 million or 33.5% to $34.3 million compared to $25.7 million for the three months ended September 30, 2003. For the three months ended September 30, 2004, compensation and benefits expense increased $3.7 million compared with the same period in 2003, primarily as a result of the addition of some staff from First Sentinel, increases in stock-based compensation and executive 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 . Amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. increased $1.1 million for the quarter ended September 30, 2004 compared with the same period in 2003, primarily as a result of amortization of the core deposit intangible recorded in connection with the First Sentinel acquisition. Additional increases in occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expense of $1.1 million, advertising expense of $791 thousand and 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 expense of $490 thousand for the quarter ended September 30, 2004, compared with the same period in 2003, are also due primarily to the acquisition and integration of the First Sentinel operations. For the nine months ended September 30, 2004, non-interest expense decreased $10.9 million or 11.1% to $87.1 million compared to $98.0 million for the nine months ended September 30, 2003. A $24.0 million decrease in charitable contributions charitable contribution n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works. associated with the formation of The Provident Bank Foundation in early 2003 was partially offset by increases in compensation expense of $7.6 million, including stock-based compensation and executive severance. Advertising expense increased $2.3 million for the nine months ended September 30, 2004, compared with the same period in 2003, as a result of increased marketing efforts in support of the Company's focus on core deposit and loan generation, as well as the cost of customer communications associated with the integration of the First Sentinel business. Occupancy expense increased $1.8 million for the nine months ended September 30, 2004 compared with the same period in 2003, primarily as a result of the additional 22 branch locations obtained through the First Sentinel acquisition. Asset Quality The Company continues to emphasize asset quality. Total 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. as of September 30, 2004 were $4.9 million or 0.13% of loans compared to $4.0 million or 0.17% of total loans at June 30, 2004 and $5.8 million or 0.28% of total loans at September 30, 2003. About the Company Provident Financial Services, Inc. is the holding company for The Provident Bank. Founded in 1839, the Bank currently operates 77 full service branches throughout northern and central New Jersey. Post Earnings Conference Call Representatives of the Company will hold a conference call for investors at 10:00 a.m. Eastern Time on Monday Monday: see week. October 25, 2004 regarding highlights of the Company's third quarter 2004 financial results. The call can be accessed by dialing 1-800-237-9752 (Domestic) or 1-617-847-8706 (International) and stating the pass code number: 94742996. Internet access See how to access the Internet. to the call is also available (listen only) at www.providentnj.com by going to Investor Relations Investor relations The process by which the corporation communicates with its investors. and clicking on Webcast. Forward Looking Statements Certain statements contained herein 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 Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of 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. terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or , such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. fees and capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines 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.
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Condition
September 30, 2004 (Unaudited) and December 31, 2003
(Dollars in Thousands)
September December
Assets 30, 2004 31, 2003
----------- ----------
Cash and due from banks $ 134,553 $ 106,228
Federal funds sold 4,000 --
Short-term investments 11,823 69,624
----------- ----------
Total cash and cash
equivalents 150,376 175,852
----------- ----------
Investment securities (market value of $465,122
(unaudited) and $524,429 at September 30, 2004
and December 31, 2003, respectively) 458,885 517,789
Securities available for sale, at fair value 1,485,283 1,151,829
Federal Home Loan Bank stock 52,464 34,585
Loans 3,743,686 2,237,367
Less allowance for loan losses 33,630 20,631
----------- ----------
Net loans 3,710,056 2,216,736
----------- ----------
Other real estate owned, net 32 41
Banking premises and equipment, net 64,758 46,741
Accrued interest receivable 24,343 16,842
Intangible assets 429,570 23,938
Bank owned life insurance 104,648 71,506
Other assets 59,567 29,019
----------- ----------
Total assets $ 6,539,982 $4,284,878
=========== ==========
Liabilities and Stockholders' Equity
Deposits:
Demand deposits $ 1,113,028 $ 774,988
Savings deposits 1,561,614 987,877
Certificates of deposit of $100,000 or more 250,233 148,306
Other time deposits 1,167,120 784,805
----------- ----------
Total deposits 4,091,995 2,695,976
Mortgage escrow deposits 14,876 11,061
Borrowed funds 1,239,239 736,328
Subordinated debentures 27,286 --
Other liabilities 31,984 24,394
----------- ----------
Total liabilities 5,405,380 3,467,759
----------- ----------
Stockholders' Equity:
Preferred stock, $0.01 par value,
50,000,000 shares authorized, none issued -- --
Common stock, $0.01 par value, 200,000,000 shares
authorized, 79,879,017 shares issued and
75,616,638 shares outstanding at September 30,
2004 and 61,538,300 shares issued and
60,600,100 shares outstanding at December 31,
2003, Respectively 799 615
Additional paid-in capital 959,339 606,541
Retained earnings 345,163 324,250
Accumulated other comprehensive income 4,704 6,416
Treasury stock at cost (3,228,742 shares at
September 30, 2004) (57,327) --
Unallocated common stock held by Employee Stock
Ownership Plan (76,477) (78,816)
Common Stock acquired by the Stock Award Plan (41,599) (41,887)
Common Stock acquired by the Directors' Deferred
Fee Plan (700,841 shares at September 30, 2004 (13,379) --
Deferred compensation - Directors' Deferred Fee
Plan 13,379 --
---------- ----------
Total stockholders' equity 1,134,602 817,119
---------- ----------
Total liabilities and
stockholders' equity $6,539,982 $4,284,878
========== ===========
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three Months and Nine Months Ended September 30, 2004 and 2003
(Unaudited)
(Dollars in Thousands)
Three Months Ended Nine Months Ended
September 30 September 30
----------------------- ----------------------
2004 2003 2004 2003
----------- ----------- ----------- ----------
Interest income:
Real estate secured
loans $ 36,978 $ 20,371 $ 84,283 $ 62,563
Commercial loans 3,953 5,608 10,979 16,666
Consumer loans 6,552 4,470 15,948 13,859
Investment securities 4,799 4,194 14,522 12,724
Securities available
for sale 14,423 8,738 32,603 30,854
Other short-term
investments 108 126 408 370
Federal funds 95 347 469 1,040
----------- ----------- ----------- ----------
Total interest
income 66,908 43,854 159,212 138,076
----------- ----------- ----------- ----------
Interest expense:
Deposits 11,321 8,792 27,123 30,962
Borrowed funds 8,404 4,325 18,008 11,137
Subordinated debentures 253 -- 253 --
----------- ----------- ----------- ----------
Total interest
expense 19,978 13,117 45,384 42,099
----------- ----------- ----------- ----------
Net interest
income 46,930 30,737 113,828 95,977
Provision for loan
losses 1,050 160 2,700 1,060
----------- ----------- ----------- ----------
Net interest
income after
provision for
loan losses 45,880 30,577 111,128 94,917
----------- ----------- ----------- ----------
Non-interest income:
Fees 5,757 4,333 15,194 12,043
Net gain on securities
transactions 577 665 1,312 661
Commissions 96 39 342 197
Bank owned life
insurance 1,255 1,019 3,193 2,813
Other income 515 695 2,531 1,644
----------- ----------- ----------- ----------
Total non-
interest
income 8,200 6,751 22,572 17,358
----------- ----------- ----------- ----------
Non-interest expense:
Salaries and employee
benefits 17,869 14,151 46,351 38,797
Net occupancy expense 4,837 3,727 12,355 10,562
Federal deposit
insurance 141 105 347 339
Data processing expense 2,156 1,666 5,820 4,939
Advertising and
promotion expense 1,853 1,062 4,897 2,554
Amortization of
intangibles 1,953 863 3,048 2,997
Other operating
expenses 5,531 4,154 14,265 13,766
Contribution to The
Provident Bank
Foundation -- -- -- 24,000
----------- ----------- ----------- ----------
Total non-
interest
expense 34,340 25,728 87,083 97,954
----------- ----------- ----------- ----------
Income before
income tax
expense 19,740 11,600 46,617 14,321
Income tax
expense 6,397 3,462 14,399 3,788
----------- ----------- ----------- ----------
Net income $ 13,343 $ 8,138 $ 32,218 $ 10,533
=========== =========== =========== ==========
Basic earnings per
share $0.19 $0.14 $0.54 $0.16
Average basic shares
outstanding 69,370,408 56,972,858 59,660,054 58,702,373
Diluted earnings per
share $0.19 $0.14 $0.54 $0.16
Average diluted shares
outstanding 69,370,675 57,174,970 59,660,492 58,774,166
PROVIDENT FINANCIAL SERVICES, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share
data)(unaudited)
At or for the Three At or for the
Months Ended Nine Months Ended
September 30 September 30
--------------------------------------------
2004 2003 2004 2003
--------------------------------------------
INCOME STATEMENT:
Net interest income $46,930 $30,737 $113,828 $95,977
Provision for loan losses 1,050 160 2,700 1,060
Non-interest income 8,200 6,751 22,572 17,358
Non-interest expense 34,340 25,728 87,083 97,954
Income before income tax
expense 19,740 11,600 46,617 14,321
Net income 13,343 8,138 32,218 10,533
Basic earnings
per share (1) $0.19 $0.14 $0.54 $0.16
Diluted earnings per
share (1) $0.19 $0.14 $0.54 $0.16
Interest rate spread 3.19% 2.76% 3.08% 2.87%
Net interest margin 3.43% 3.17% 3.41% 3.35%
PROFITABILITY:
Annualized return on
average assets 0.87% 0.78% 0.88% 0.34%
Annualized return on
average equity 5.16% 3.84% 4.84% 1.74%
Annualized operating
expense to average assets 2.21% 2.47% 2.37% 3.21%
Efficiency ratio (net of
foundation expense) (2) 62.29% 68.63% 63.84% 65.25%
ASSET QUALITY:
Non-performing loans 4,889 5,848
Other real estate owned 32 41
Non-performing loans to
total loans 0.13% 0.28%
Non-performing assets to
total assets 0.08% 0.14%
Allowance for loan losses 33,630 21,288
Allowance for loan losses
to non-performing loans 687.92% 364.02%
Allowance for loan losses
to total loans 0.90% 1.01%
AVERAGE BALANCE SHEET
DATA:
Assets $6,154,411 $4,167,851 $4,886,347 $4,085,849
Loans, net 3,405,859 2,016,717 2,636,690 1,981,261
Earning assets 5,442,634 3,886,874 4,461,198 3,827,232
Core deposits 2,540,794 1,700,013 2,019,111 1,674,773
Borrowings 1,173,304 612,818 854,321 537,132
Interest-bearing
liabilities 4,670,130 2,977,902 3,591,234 2,886,430
Stockholders' equity 1,034,078 846,885 889,517 809,046
Average yield on
interest-earning assets 4.89% 4.53% 4.77% 4.82%
Average cost of
interest-bearing
liabilities 1.70% 1.77% 1.69% 1.95%
CAPITAL:
Leverage capital 12.73% 19.37% 12.73% 19.37%
Total risk-based capital 19.78% 35.39% 19.78% 35.39%
Average equity to
average assets 16.80% 20.32% 18.20% 19.80%
Notes
-----
(1) Basic and Diluted Earnings Per Share for the nine months ended
September 30, 2003, includes the results of operations from
January 15, 2003, the date the Company completed its Plan of
Conversion, in the amount of $9,553,000.
(2) Efficiency Ratio Calculation
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------------
2004 2003 2004 2003
--------------------------------------------
Net interest income $46,930 $30,737 $113,828 $95,977
Non-interest income 8,200 6,751 22,572 17,358
--------------------------------------------
Total income $55,130 $37,488 $136,400 $113,335
============================================
Non-interest expense $34,340 $25,728 $87,083 $97,954
LESS: Provident Bank
Charitable Foundation
Donation - - - (24,000)
--------------------------------------------
Adjusted non-interest
expense $34,340 $25,728 $87,083 $73,954
============================================
Expense/Income: 62.29% 68.63% 63.84% 65.25%
Average Quarterly Balance
NET INTEREST MARGIN ANALYSIS
(Unaudited)
(Dollars in Thousands)
September 30, 2004 June 30, 2004
----------------------------- ----------------------
Average Average Average Average
Balance Interest Yield Balance Interest Yield
----------------------------- ------------------------
Interest-Earning Assets:
Fed Funds Sold and
Other Short-Term
Investments $ 58,043 $ 203 1.39% $ 147,058 $ 364 1.00 %
Investment
Securities (1) 474,110 4,799 4.03% 494,080 4,581 3.73 %
Securities
Available
for Sale 1,455,892 14,258 3.90% 1,017,331 8,213 3.25 %
Federal Home
Loan Bank Stock 48,730 165 1.35% 32,090 131 1.64 %
Net Loans (2)
Total Mortgage
Loans 2,599,509 36,978 5.66% 1,625,142 23,539 5.83 %
Total Commercial
Loans 348,116 3,953 4.52% 342,126 3,728 4.38 %
Total Consumer
Loans 458,234 6,552 5.69% 323,698 4,761 5.92 %
---------- --------- ---------- --------
Total Interest-
Earning Assets $5,442,634 66,908 4.89% $3,981,525 45,317 4.58 %
---------- --------- ---------- --------
Non-Interest Earning
Assets:
Cash and Due from
Banks 100,488 81,782
Other Assets 611,289 189,420
---------- ----------
TOTAL ASSETS $6,154,411 $4,252,727
========== ==========
Interest-Bearing
Liabilities:
Demand Deposits $ 659,449 1,530 0.92% $436,910 821 0.76 %
Savings Deposits 1,498,412 2,965 0.79% 990,032 2,200 0.89 %
Time Deposits 1,338,965 6,826 2.03% 937,851 4,915 2.11 %
---------- --------- ---------- --------
TOTAL
DEPOSITS 3,496,826 11,321 1.29% 2,364,793 7,936 1.35 %
---------- --------- ---------- --------
Borrowed Funds 1,173,304 8,657 2.94% 693,534 4,885 2.83 %
---------- --------- ---------- --------
TOTAL
BORROWINGS 1,173,304 8,657 2.94% 693,534 4,885 2.83 %
---------- --------- ---------- --------
Total Interest-
Bearing
Liabilities $4,670,130 19,978 1.70% $3,058,327 12,821 1.69 %
---------- --------- ---------- --------
Non-Interest Bearing
Liabilities 450,203 379,555
--------- ----------
TOTAL
LIABILITIES 5,120,333 3,437,882
Equity 1,034,078 814,845
--------- ----------
TOTAL LIAB &
EQUITY $6,154,411 $4,252,727
========== ==========
Net interest
income $ 46,930 $ 32,496
========= ========
Net interest rate
spread 3.19 % 2.89 %
======= =======
Net interest-earning
assets $ 772,504 $ 923,198
========== ==========
Net interest margin
(3) 3.43 % 3.28 %
======= =======
Ratio of interest-
earning assets to
interest-bearing
liabilities 1.17 x 1.30 x
========== ==========
----------------------
(1) Average oustanding balance amounts shown are amortized cost.
(2) Average outstanding balances shown net of the allowance for loan
losses, deferred loan fees and expenses,loan premiums and
discounts and include non-accrual loans.
(3) Net interest income divided by average interest-earning assets.
The following table summarizes the net interest margin for the
previous year, inclusive.
09/30/04 06/30/04 3/31/04 12/31/03 09/30/03
3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.
---------- --------- -------- -------- --------
Interest-Earning
Assets:
Securities 3.79% 3.16% 3.53% 3.48% 2.84%
Net Loans 5.55% 5.62% 5.78% 5.70% 5.99%
Total Interest-
Earning Assets 4.89% 4.58% 4.79% 4.67% 4.48%
Interest-Bearing
Liabilities:
Total Deposits 1.29% 1.35% 1.35% 1.37% 1.47%
Total Borrowings 2.94% 2.83% 2.76% 2.61% 2.80%
Total Interest-
Bearing
Liabilities 1.70% 1.69% 1.67% 1.64% 1.75%
Interest Rate
Spread 3.19% 2.89% 3.12% 3.03% 2.73%
Net Interest
Margin 3.43% 3.28% 3.50% 3.41% 3.14%
Ratio of interest-
earning assets to
total interest-
bearing
liabilities 1.17x 1.30x 1.30x 1.30x 1.31x
Average YTD Balance
NET INTEREST MARGIN ANALYSIS
(Unaudited)
(Dollars in Thousands)
September 30, 2004 September 30, 2003
--------------------------- -----------------------
Average Average Average Average
Balance Interest Yield Balance Interest Yield
---------------------------- -------------------------
Interest-Earning
Assets:
Fed Funds Sold and
Other
Short-Term
Investments $ 106,645 $ 877 1.10% $170,558 $1,410 1.11 %
Investment
Securities (1) 494,534 14,522 3.92% 445,746 12,724 3.82 %
Securities
Available
for Sale 1,185,256 32,192 3.63% 1,205,195 30,109 3.34 %
Federal Home
Loan Bank
Stock 38,073 411 1.44% 24,472 745 4.07 %
Net Loans(2)
Total Mortgage
Loans 1,960,222 84,283 5.74% 1,287,717 62,563 6.50 %
Total Commercial
Loans 314,134 10,979 4.67% 425,918 16,666 5.23 %
Total Consumer
Loans 362,334 15,948 5.88% 267,626 13,859 6.92 %
---------- --------- ---------- --------
Total Interest-
Earning
Assets $4,461,198 159,212 4.77% $3,827,232 138,076 4.82 %
---------- --------- ---------- --------
Non-Interest Earning
Assets:
Cash and Due from
Banks 88,748 85,589
Other
Assets 336,401 173,028
---------- ----------
TOTAL ASSETS $4,886,347 $4,085,849
========== ==========
Interest-Bearing
Liabilities:
Demand Deposits $508,172 3,143 0.83% $402,695 2,741 0.91 %
Savings Deposits 1,155,000 7,327 0.85% 940,605 9,441 1.34 %
Time Deposits 1,073,741 16,653 2.07% 1,005,998 18,780 2.50 %
---------- --------- ---------- --------
TOTAL
DEPOSITS 2,736,913 27,123 1.32% 2,349,298 30,962 1.76 %
---------- --------- ---------- --------
Borrowed Funds 854,321 18,261 2.86% 537,132 11,137 2.77 %
---------- --------- ---------- --------
TOTAL
BORROWINGS 854,321 18,261 2.86% 537,132 11,137 2.77 %
---------- --------- ---------- --------
Total Interest-
Bearing
Liabilities $3,591,234 45,384 1.69% $2,886,430 42,099 1.95 %
---------- --------- ---------- --------
Non-Interest-
Bearing
Liabilities 405,596 390,373
---------- ----------
TOTAL
LIABILITIES 3,996,830 3,276,803
Equity 889,517 809,046
---------- ----------
TOTAL LIAB &
EQUITY $4,886,347 $4,085,849
========== ==========
Net
interest
income $ 113,828 $ 95,977
========= ========
Net interest rate
spread 3.08% 2.87 %
======= =======
Net interest-
earning assets $ 869,964 $940,802
========== ==========
Net interest
margin (3) 3.41% 3.35 %
======= =======
Ratio of interest-
earning assets to
interest-bearing
liabilities 1.24 x 1.33 x
========== ==========
-----------------------
(1) Average oustanding balance amounts shown are amortized cost.
(2) Average outstanding balances shown net of the allowance for loan
losses, deferred loan fees and expenses, loan premiums and
discounts and include non-accrual loans.
(3) Net interest income divided by average interest-earning assets.
The following table summarizes the net interest margin for the
three previous years, inclusive.
Nine Months Ended
---------------------------------
09/30/04 09/30/03 09/30/02
---------- --------- ----------
Interest-Earning
Assets:
Securities 3.51% 3.26% 4.84%
Net Loans 5.63% 6.28% 7.03%
Total Interest-
Earning Assets 4.77% 4.82% 6.35%
Interest-Bearing
Liabilities:
Total Deposits 1.32% 1.76% 2.52%
Total Borrowings 2.86% 2.77% 4.26%
Total Interest-
Bearing Liabilities 1.69% 1.95% 2.66%
Interest Rate Spread 3.08% 2.87% 3.69%
Net Interest Margin 3.41% 3.35% 4.06%
Ratio of interest-
earning assets to
interest-bearing
liabilities 1.24x 1.33x 1.16x
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