x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
California
|
20-8859754
|
|
(State or
other jurisdiction of incorporation)
|
(IRS Employer
Identification No.)
|
|
504 Redwood
Blvd., Suite 100,
Novato, CA
|
94947
|
|
(Address of
principal executive office)
|
(Zip
Code)
|
Not
Applicable
|
|
(Former name
or former address, if changes since last
report)
|
Large accelerated filer ¨
|
Accelerated filer x
|
Non-accelerated filer ¨
|
Smaller reporting company ¨
|
PART I
|
FINANCIAL
INFORMATION
|
|
Item
1
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
Item
2
|
13
|
|
Item
3
|
25
|
|
Item
4
|
25
|
|
PART
II
|
OTHER
INFORMATION
|
|
Item
1
|
26
|
|
Item
1A
|
26
|
|
Item
2
|
26
|
|
Item
3
|
26
|
|
Item
4
|
26
|
|
Item
5
|
26
|
|
Item
6
|
27
|
|
28
|
||
29
|
CONSOLIDATED STATEMENT OF
CONDITION
|
||||||||
at
March 31, 2008 and December 31, 2007
|
||||||||
(in
thousands, except share amounts - 2008 unaudited)
|
March 31,
2008
|
December 31,
2007
|
||||||
Assets
|
||||||||
Cash and due
from banks
|
$ | 28,328 | $ | 28,765 | ||||
Fed funds
sold
|
--- | 47,500 | ||||||
Cash and cash
equivalents
|
28,328 | 76,265 | ||||||
Investment
securities
|
||||||||
Held to
maturity, at amortized cost
|
20,297 | 13,182 | ||||||
Available for
sale (at fair market value, amortized cost$73,747 at 3/31/08 and $87,450
at 12/31/07)
|
74,118 | 86,989 | ||||||
Total
investment securities
|
94,415 | 100,171 | ||||||
Loans, net of
allowance for losses of $8,199 at 3/31/08 and$7,575 at
12/31/07
|
761,331 | 717,303 | ||||||
Bank premises
and equipment, net
|
7,887 | 7,821 | ||||||
Interest
receivable and other assets
|
27,878 | 32,341 | ||||||
Total
assets
|
$ | 919,839 | $ | 933,901 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Non-interest
bearing
|
$ | 204,875 | $ | 220,272 | ||||
Interest
bearing
|
||||||||
Transaction
accounts
|
76,461 | 110,174 | ||||||
Savings and
money market
|
396,463 | 421,255 | ||||||
Time
|
82,363 | 82,941 | ||||||
Total
deposits
|
760,162 | 834,642 | ||||||
Federal funds
purchased and Federal Home Loan Bank borrowings
|
55,300 | --- | ||||||
Subordinated
debenture
|
5,000 | 5,000 | ||||||
Interest
payable and other liabilities
|
8,664 | 6,485 | ||||||
Total
liabilities
|
829,126 | 846,127 | ||||||
Stockholders'
Equity
|
||||||||
Common stock,
no par value
|
||||||||
Authorized -
15,000,000 shares
|
||||||||
Issued and
outstanding - 5,131,546 shares at 3/31/08 and 5,122,971 at
12/31/07
|
50,959 | 51,059 | ||||||
Retained
earnings
|
39,539 | 36,983 | ||||||
Accumulated
other comprehensive gain (loss), net
|
215 | (268 | ) | |||||
Total
stockholders' equity
|
90,713 | 87,774 | ||||||
Total
liabilities and stockholders' equity
|
$ | 919,839 | $ | 933,901 | ||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
CONSOLIDATED STATEMENT OF
OPERATIONS
|
||||||||||||
for
the three months ended March 31, 2008, December 31, 2007 and March 31,
2007
|
||||||||||||
(in
thousands, except per share amounts - March 31, 2008 and March 31,
2007
|
||||||||||||
unaudited)
|
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
|||||||||
Interest
income
|
||||||||||||
Interest and
fees on loans held in portfolio
|
$ | 13,312 | $ | 13,662 | $ | 12,696 | ||||||
Interest on
auto loans held for sale
|
--- | --- | 1,108 | |||||||||
Interest on
investment securities
|
||||||||||||
U.S. Treasury
securities
|
--- | --- | 8 | |||||||||
Securities of
U.S. Government agencies
|
867 | 1,045 | 842 | |||||||||
Obligations
of state and political subdivisions (tax exempt)
|
161 | 121 | 118 | |||||||||
Corporate
debt securities and other
|
89 | 320 | 98 | |||||||||
Interest on
Federal funds sold
|
112 | 552 | 2 | |||||||||
Total
interest income
|
14,541 | 15,700 | 14,872 | |||||||||
Interest
expense
|
||||||||||||
Interest on
interest bearing transaction accounts
|
88 | 76 | 77 | |||||||||
Interest on
savings and money market deposits
|
2,191 | 3,109 | 3,392 | |||||||||
Interest on
time deposits
|
751 | 837 | 869 | |||||||||
Interest on
borrowed funds
|
221 | 199 | 537 | |||||||||
Total
interest expense
|
3,251 | 4,221 | 4,875 | |||||||||
Net interest
income
|
11,290 | 11,479 | 9,997 | |||||||||
Provision for
loan losses
|
615 | 345 | 65 | |||||||||
Net interest
income after provision for loan losses
|
10,675 | 11,134 | 9,932 | |||||||||
Non-interest
income
|
||||||||||||
Service
charges on deposit accounts
|
406 | 357 | 248 | |||||||||
Wealth
Management Services
|
336 | 325 | 275 | |||||||||
Net gain on
indirect auto portfolio
|
--- | --- | 520 | |||||||||
Net gain on
redemption of shares in Visa, Inc.
|
457 | --- | --- | |||||||||
Other
income
|
503 | 549 | 465 | |||||||||
Total
non-interest income
|
1,702 | 1,231 | 1,508 | |||||||||
Non-interest
expense
|
||||||||||||
Salaries and
related benefits
|
4,158 | 3,836 | 3,963 | |||||||||
Occupancy and
equipment
|
768 | 716 | 710 | |||||||||
Depreciation
and amortization
|
318 | 317 | 301 | |||||||||
Data
processing
|
445 | 403 | 418 | |||||||||
Professional
services
|
406 | 442 | 318 | |||||||||
Other
expense
|
906 | 1,314 | 979 | |||||||||
Total
non-interest expense
|
7,001 | 7,028 | 6,689 | |||||||||
Income before
provision for income taxes
|
5,376 | 5,337 | 4,751 | |||||||||
Provision for
income taxes
|
2,100 | 2,079 | 1,777 | |||||||||
Net
income
|
$ | 3,276 | $ | 3,258 | $ | 2,974 | ||||||
Net income
per common share:
|
||||||||||||
Basic
|
$ | 0.64 | $ | 0.63 | $ | 0.57 | ||||||
Diluted
|
$ | 0.63 | $ | 0.62 | $ | 0.55 | ||||||
Weighted
average shares used to compute net income per common
share:
|
||||||||||||
Basic
|
5,136 | 5,158 | 5,231 | |||||||||
Diluted
|
5,238 | 5,280 | 5,417 | |||||||||
Dividends
declared per common share
|
$ | 0.14 | $ | 0.13 | $ | 0.12 | ||||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY
|
||||||||||||||||||||
for
the year ending December 31, 2007 and the three months ended March 31,
2008
|
||||||||||||||||||||
Accumulated
Other
|
||||||||||||||||||||
Comprehensive
|
||||||||||||||||||||
Common
Stock
|
Retained
|
(Loss)/Gain,
|
||||||||||||||||||
(dollar
amounts in thousands - 2008 unaudited)
|
Shares
|
Amount
|
Earnings
|
Net of
Taxes
|
Total
|
|||||||||||||||
Balance at
December 31, 2006
|
5,366,416 | $ | 61,355 | $ | 28,760 | $ | (590 | ) | $ | 89,525 | ||||||||||
Cumulative-effect
adjustment of adoption of SFAS No.159
|
--- | --- | (1,452 | ) | --- | (1,452 | ) | |||||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
--- | --- | 12,324 | --- | 12,324 | |||||||||||||||
Other
comprehensive income
|
||||||||||||||||||||
Net change in
unrealized loss on available for sale securities (net of tax liability of
$234)
|
--- | --- | --- | 322 | 322 | |||||||||||||||
Comprehensive
income
|
--- | --- | 12,324 | 322 | 12,646 | |||||||||||||||
Stock options
exercised
|
112,496 | 1,620 | --- | --- | 1,620 | |||||||||||||||
Tax benefit
from exercised stock options
|
--- | 729 | --- | --- | 729 | |||||||||||||||
Stock
repurchased, including commission costs
|
(365,823 | ) | (13,483 | ) | --- | --- | (13,483 | ) | ||||||||||||
Stock issued
under employee stock purchase plan
|
292 | 8 | --- | --- | 8 | |||||||||||||||
Stock-based
compensation
|
--- | 502 | 502 | |||||||||||||||||
Cash
dividends paid
|
--- | --- | (2,649 | ) | --- | (2,649 | ) | |||||||||||||
Stock issued
in payment of director fees
|
9,590 | 328 | --- | --- | 328 | |||||||||||||||
Balance at
December 31, 2007
|
5,122,971 | $ | 51,059 | $ | 36,983 | $ | (268 | ) | $ | 87,774 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
--- | --- | 3,276 | --- | 3,276 | |||||||||||||||
Other
comprehensive income
|
||||||||||||||||||||
Net change in
unrealized loss on available for sale securities (net of tax liability of
$350)
|
--- | --- | --- | 483 | 483 | |||||||||||||||
Comprehensive
income
|
--- | --- | 3,276 | 483 | 3,759 | |||||||||||||||
Stock options
exercised
|
35,964 | 525 | --- | --- | 525 | |||||||||||||||
Tax benefit
from exercised stock options
|
--- | 81 | --- | --- | 81 | |||||||||||||||
Stock
repurchased, including commission costs
|
(31,602 | ) | (950 | ) | --- | --- | (950 | ) | ||||||||||||
Stock issued
under employee stock purchase plan
|
248 | 7 | --- | --- | 7 | |||||||||||||||
Stock-based
compensation
|
--- | 120 | --- | --- | 120 | |||||||||||||||
Cash
dividends paid
|
--- | --- | (720 | ) | --- | (720 | ) | |||||||||||||
Stock issued
in payment of director fees
|
3,965 | 117 | --- | --- | 117 | |||||||||||||||
Balance at
March 31, 2008
|
5,131,546 | $ | 50,959 | $ | 39,539 | $ | 215 | $ | 90,713 | |||||||||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
CONSOLIDATED STATEMENT OF CASH
FLOWS
|
||||||||
for
three months ended March 31, 2008 and 2007
|
||||||||
(in
thousands, unaudited)
|
March 31,
2008
|
March 31,
2007
|
||||||
Cash
Flows from Operating Activities:
|
||||||||
Net
income
|
$ | 3,276 | $ | 2,974 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision for
loan losses
|
615 | 65 | ||||||
Compensation
payable in common stock
|
70 | 104 | ||||||
Stock-based
compensation expense
|
120 | 122 | ||||||
Excess tax
benefits from exercised stock options
|
(78 | ) | (497 | ) | ||||
Amortization
and accretion of investment security premiums, net
|
80 | 42 | ||||||
Depreciation
and amortization
|
318 | 301 | ||||||
Net gain on
indirect auto portfolio
|
--- | (520 | ) | |||||
Net gain on
redemption of shares in Visa, Inc.
|
(457 | ) | --- | |||||
Net change in
operating assets and liabilities:
|
||||||||
Interest
receivable
|
328 | 360 | ||||||
Interest
payable
|
(13 | ) | 24 | |||||
Deferred rent
and other rent-related expenses
|
47 | 29 | ||||||
Other
assets
|
3,785 | 240 | ||||||
Other
liabilities
|
2,273 | 850 | ||||||
Total
adjustments
|
7,088 | 1,120 | ||||||
Net cash
provided by operating activities
|
10,364 | 4,094 | ||||||
Cash
Flows from Investing Activities:
|
||||||||
Purchase of
securities held-to-maturity
|
(7,137 | ) | --- | |||||
Purchase of
securities available-for-sale
|
(37,425 | ) | --- | |||||
Proceeds from
paydowns/maturity of:
|
||||||||
Securities
held-to-maturity
|
- | 1,000 | ||||||
Securities
available-for-sale
|
31,071 | 4,994 | ||||||
Proceeds from
sale of securities
|
20,457 | --- | ||||||
Loans
originated and principal collected, net
|
(44,643 | ) | (19,362 | ) | ||||
Additions to
premises and equipment
|
(384 | ) | (114 | ) | ||||
Net cash used
in investing activities
|
(38,061 | ) | (13,482 | ) | ||||
Cash
Flows from Financing Activities:
|
||||||||
Net
(decrease) increase in deposits
|
(74,480 | ) | 37,332 | |||||
Proceeds from
stock options exercised
|
525 | 1,244 | ||||||
Net increase
(decrease) in Federal Funds purchased and Federal Home Loan Bank
borrowings
|
55,300 | (24,800 | ) | |||||
Common stock
repurchased
|
(950 | ) | (11,055 | ) | ||||
Dividends
paid in cash
|
(720 | ) | (625 | ) | ||||
Stock issued
under employee stock purchase plan
|
7 | --- | ||||||
Excess tax
benefits from exercised stock options
|
78 | 497 | ||||||
Net cash
(used in) provided by financing activities
|
(20,240 | ) | 2,593 | |||||
Net decrease
in cash and cash equivalents
|
(47,937 | ) | (6,795 | ) | ||||
Cash and cash
equivalents at beginning of period
|
76,265 | 38,783 | ||||||
Cash and cash
equivalents at end of period
|
$ | 28,328 | $ | 31,988 | ||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Three months
ended
|
||||||||||||
(in
thousands)
|
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
|||||||||
Weighted
average basic shares outstanding
|
5,136 | 5,158 | 5,231 | |||||||||
Add:
Potential common shares related to stock options
|
102 | 122 | 186 | |||||||||
Weighted
average diluted shares outstanding
|
5,238 | 5,280 | 5,417 | |||||||||
Anti-dilutive
shares not included in the calculation of diluted earnings per
share
|
211 | 206 | 0 | |||||||||
Net
income
|
$ | 3,276 | $ | 3,258 | $ | 2,974 | ||||||
Earnings per
share (basic)
|
$ | 0.64 | $ | 0.63 | $ | 0.57 | ||||||
Earnings per
share (diluted)
|
$ | 0.63 | $ | 0.62 | $ | 0.55 |
(Dollars in
thousands)
Description
of Financial Instruments
|
March 31,
2008
|
Quoted Prices
in
Active
Markets for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
||||||||||||
Securities
available for sale
|
$ | 74,118 | $ | 74,118 | $ | --- | $ | --- | ||||||||
Derivative
financial assets
|
57 | 57 | --- | |||||||||||||
Total
Assets
|
$ | 74,175 | $ | 74,118 | $ | 57 | $ | --- | ||||||||
Derivative
financial liabilities
|
$ | 1,336 | $ | --- | $ | 1,336 | $ | --- |
Three months
ended
|
||||||||||||
(in thousands
- unaudited)
|
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
|||||||||
Beginning
balance
|
$ | 7,575 | $ | 7,227 | $ | 8,023 | ||||||
Cumulative-effect
adjustment of adoption of SFAS No. 159
|
- | - | (1,048 | ) | ||||||||
Provision for
loan loss charged to expense
|
615 | 345 | 65 | |||||||||
Loans charged
off
|
(2 | ) | (4 | ) | (1 | ) | ||||||
Loan loss
recoveries
|
11 | 7 | 3 | |||||||||
Ending
balance
|
$ | 8,199 | $ | 7,575 | $ | 7,042 | ||||||
Total loans
held in portfolio at end of period, before deducting allowance for loan
losses
|
$ | 769,530 | $ | 724,878 | $ | 656,116 | ||||||
Ratio of
allowance for loan losses to loans held in portfolio
|
1.07 | % | 1.05 | % | 1.07 | % | ||||||
Nonaccrual
loans at period end
|
$ | 244 | $ | 144 | $ | 117 |
Three months
ended
|
||||||||||||
(in thousands
except per share data - unaudited)
|
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
|||||||||
Cash
dividends
|
$ | 720 | $ | 672 | $ | 625 | ||||||
Cash
dividends per share
|
$ | 0.14 | $ | 0.13 | $ | 0.12 |
Three months
ended
|
||||||||||||
(in thousands
- unaudited)
|
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
|||||||||
Stock-based
compensation
|
$ | 120 | $ | 123 | $ | 122 | ||||||
Tax benefits
on exercised options
|
$ | 81 | $ | 1 | $ | 598 |
(in
thousands)
|
Fair
Value
Swap
(Shortcut
Accounting
Treatment)
|
Fair
Value
Swap
(Non-shortcut
Accounting
Treatment)
|
Yield
Maintenance
Agreement
|
|||||||||
At March 31,
2008:
|
||||||||||||
Notional or
contractual amount
|
$ | 7,113 | $ | 8,134 | --- | |||||||
Credit risk
amount (1)
|
--- | --- | --- | |||||||||
Estimated net
fair value
|
(370 | ) | (966 | ) | 57 | |||||||
At December
31, 2007:
|
||||||||||||
Notional or
contractual amount
|
$ | 7,201 | $ | 8,134 | --- | |||||||
Credit risk
amount (1)
|
--- | --- | --- | |||||||||
Estimated net
fair value
|
(44 | ) | (603 | ) | 62 | |||||||
Three months
ended
|
||||||||||||
Mar. 31,
2008
|
Dec. 31,
2007
|
Mar. 31,
2007
|
||||||||||
Fair Value
Swap
|
||||||||||||
(Shortcut
Accounting Treatment):
|
||||||||||||
Weighted
average pay rate
|
4.59 | % | 4.59 | % | 4.59 | % | ||||||
Weighted
average receive rate
|
3.73 | % | 5.05 | % | 5.32 | % | ||||||
Fair Value
Swap
|
||||||||||||
(Non-Shortcut
Accounting Treatment):
|
||||||||||||
Weighted
average pay rate
|
5.54 | % | 5.54 | % | 5.54 | % | ||||||
Weighted
average receive rate
|
3.68 | % | 5.03 | % | 5.32 | % | ||||||
Yield
maintenance agreement
|
||||||||||||
Weighted
average receive rate (2)
|
5.15 | % | 5.15 | % | 5.15 | % | ||||||
(Loss) gain
on designated and undesignated interest rate contracts
|
$ | (689 | ) | $ | (556 | ) | $ | 2 | ||||
Increase
(decrease) in value of designated loans and yield maintenance agreement
qualifying as derivatives
|
689 | 545 | (2 | ) | ||||||||
Net (loss)
gain on derivatives used to hedge loans recorded in income
|
$ | - | $ | (11 | ) | $ | --- |
1
|
Credit risk
represents the amount of unrealized gain included in derivative assets
which is subject to counterparty credit risk. It reflects the effect of
master netting agreements and includes credit risk on virtual
derivatives.
|
2
|
Tax
equivalent yield equals 8.45%.
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTSOPERATIONS
|
As of and for
the three months ended
|
||||||||||||
(dollars in
thousands except per share data)
|
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
|||||||||
For the
period:
|
||||||||||||
Net
income
|
$ | 3,276 | $ | 3,258 | $ | 2,974 | ||||||
Net income
per share
|
||||||||||||
Basic
|
0.64 | 0.63 | 0.57 | |||||||||
Diluted
|
0.63 | 0.62 | 0.55 | |||||||||
Return on
average equity
|
14.63 | % | 14.64 | % | 14.36 | % | ||||||
Return on
average assets
|
1.48 | % | 1.41 | % | 1.39 | % | ||||||
Cash dividend
payout ratio
|
21.88 | % | 20.63 | % | 21.05 | % | ||||||
Efficiency
ratio
|
53.89 | % | 55.30 | % | 58.14 | % | ||||||
At period
end:
|
||||||||||||
Book value
per share
|
$ | 17.68 | $ | 17.13 | $ | 15.81 | ||||||
Total
assets
|
$ | 919,839 | $ | 933,901 | $ | 881,550 | ||||||
Total
loans
|
$ | 769,530 | $ | 724,878 | $ | 736,115 | ||||||
Total
deposits
|
$ | 760,162 | $ | 834,642 | $ | 774,029 | ||||||
Loan-to-deposit
ratio
|
101.2 | % | 86.8 | % | 95.1 | % |
Distribution
of Average Statements of Condition and Analysis of Net Interest
Income
|
||||||||||||||||||||||||||||||||||||
Three months
ended
|
Three months
ended
|
Three months
ended
|
||||||||||||||||||||||||||||||||||
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
||||||||||||||||||||||||||||||||||
Interest
|
Interest
|
Interest
|
||||||||||||||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
||||||||||||||||||||||||||||
(in
thousands)
|
Balance
|
Expense
(1)
|
Rate
(1)
|
Balance
|
Expense
(1)
|
Rate
(1)
|
Balance
|
Expense
(1)
|
Rate
(1)
|
|||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Federal funds
sold
|
$ | 11,156 | $ | 112 | 4.02 | % | $ | 43,704 | 552 | 5.02 | % | 121 | 2 | 5.21 | % | |||||||||||||||||||||
Investment
securities
|
||||||||||||||||||||||||||||||||||||
U.S. Treasury
securities
|
--- | --- | --- | --- | --- | --- | 1,282 | 8 | 2.42 | % | ||||||||||||||||||||||||||
U.S.
Government agencies
|
73,108 | 867 | 4.77 | % | 79,531 | 1,045 | 5.21 | % | 68,872 | 842 | 4.96 | % | ||||||||||||||||||||||||
Other
|
7,444 | 89 | 4.82 | % | 21,119 | 320 | 6.02 | % | 7,992 | 98 | 4.99 | % | ||||||||||||||||||||||||
Municipal
bonds
|
16,866 | 225 | 5.36 | % | 13,291 | 164 | 4.93 | % | 12,851 | 157 | 4.97 | % | ||||||||||||||||||||||||
Loans and
banker's acceptances (2)
|
735,888 | 13,312 | 7.28 | % | 710,145 | 13,662 | 7.63 | % | 722,629 | 13,804 | 7.75 | % | ||||||||||||||||||||||||
Total
interest-earning assets
|
844,462 | 14,605 | 6.96 | % | 867,790 | 15,743 | 7.20 | % | 813,747 | 14,911 | 7.43 | % | ||||||||||||||||||||||||
Cash and due
from banks
|
21,531 | 22,427 | 27,175 | |||||||||||||||||||||||||||||||||
Bank premises
and equipment, net
|
7,866 | 7,931 | 8,378 | |||||||||||||||||||||||||||||||||
Interest
receivable and other assets, net
|
16,332 | 16,549 | 16,702 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 890,191 | $ | 914,697 | $ | 866,002 | ||||||||||||||||||||||||||||||
Liabilities
and Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
transaction accounts
|
78,527 | 88 | 0.45 | % | 78,689 | 76 | 0.39 | % | 74,810 | 77 | 0.41 | % | ||||||||||||||||||||||||
Savings and
money market accounts
|
407,890 | 2,191 | 2.16 | % | 434,593 | 3,109 | 2.84 | % | 376,976 | 3,392 | 3.65 | % | ||||||||||||||||||||||||
Time
accounts
|
81,948 | 751 | 3.69 | % | 84,216 | 837 | 3.94 | % | 88,010 | 869 | 4.01 | % | ||||||||||||||||||||||||
Purchased
funds
|
21,041 | 130 | 2.47 | % | 7,837 | 95 | 4.79 | % | 35,063 | 438 | 5.06 | % | ||||||||||||||||||||||||
Borrowed
funds
|
5,000 | 91 | 7.23 | % | 5,000 | 104 | 8.36 | % | 5,000 | 99 | 7.96 | % | ||||||||||||||||||||||||
Total
interest-bearing liabilities
|
594,406 | 3,251 | 2.20 | % | 610,335 | 4,221 | 2.74 | % | 579,859 | 4,875 | 3.41 | % | ||||||||||||||||||||||||
Demand
accounts
|
198,503 | 208,555 | 195,891 | |||||||||||||||||||||||||||||||||
Interest
payable and other liabilities
|
7,210 | 7,512 | 6,234 | |||||||||||||||||||||||||||||||||
Stockholders'
equity
|
90,072 | 88,295 | 84,018 | |||||||||||||||||||||||||||||||||
Total
liabilities & stockholders' equity
|
$ | 890,191 | $ | 914,697 | $ | 866,002 | ||||||||||||||||||||||||||||||
Net interest
income
|
$ | 11,354 | $ | 11,522 | $ | 10,036 | ||||||||||||||||||||||||||||||
Net interest
margin
|
5.41 | % | 5.27 | % | 5.00 | % | ||||||||||||||||||||||||||||||
Net interest
rate spread
|
4.76 | % | 4.46 | % | 4.02 | % |
(1)
|
Yields and
interest income are presented on a taxable-equivalent basis using the
Federal statutory rate of 35
percent.
|
(2)
|
Average
balances on loans outstanding include non-performing loans, if any. The
amortized portion of net loan origination fees (costs) is included in
interest income on loans, representing an adjustment to the
yield.
|
3/31/08
compared
|
3/31/08
compared
|
|||||||||||||||||||||||||||
to
12/31/07
|
to
3/31/07
|
|||||||||||||||||||||||||||
Three months
ended
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||
March
31,
|
December
31,
|
March
31,
|
Increase
|
Increase
|
Increase
|
Increase
|
||||||||||||||||||||||
(dollars in
thousands)
|
2008
|
2007
|
2007
|
(Decrease)
|
(Decrease)
|
(Decrease)
|
(Decrease)
|
|||||||||||||||||||||
Service
charges on deposit accounts
|
$ | 406 | $ | 357 | $ | 248 | $ | 49 | 13.7 | % | $ | 158 | 63.7 | % | ||||||||||||||
Wealth
Management Services
|
336 | 325 | 275 | 11 | 3.4 | % | 61 | 22.2 | % | |||||||||||||||||||
Unrealized
gain on indirect auto portfolio
|
--- | --- | 520 | --- | --- | (520 | ) |
NM
|
||||||||||||||||||||
Net gain on
redemption of shares in Visa, Inc
|
457 | --- | --- | 457 |
NM
|
457 |
NM
|
|||||||||||||||||||||
Other
non-interest income
|
||||||||||||||||||||||||||||
Earnings on
Bank-owned life insurance
|
147 | 147 | 139 | --- | --- | 8 | 5.8 | % | ||||||||||||||||||||
Customer
banking fees and other charges
|
94 | 127 | 120 | (33 | ) | (26.0 | %) | (26 | ) | (21.7 | %) | |||||||||||||||||
Other
income
|
262 | 275 | 206 | (13 | ) | (4.7 | %) | 56 | 27.2 | % | ||||||||||||||||||
Total other
non-interest income
|
503 | 549 | 465 | (46 | ) | (8.4 | %) | 38 | 8.2 | % | ||||||||||||||||||
Total
non-interest income
|
$ | 1,702 | $ | 1,231 | $ | 1,508 | $ | 471 | 38.3 | % | $ | 194 | 12.9 | % |
3/31/08
compared
|
3/31/08
compared
|
|||||||||||||||||||||||||||
to
12/31/07
|
to
3/31/07
|
|||||||||||||||||||||||||||
Three months
ended
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||
March
31,
|
December
31,
|
March
31,
|
Increase
|
Increase
|
Increase
|
Increase
|
||||||||||||||||||||||
(dollars in
thousands)
|
2008
|
2007
|
2007
|
(Decrease)
|
(Decrease)
|
(Decrease)
|
(Decrease)
|
|||||||||||||||||||||
Salaries and
related benefits
|
$ | 4,158 | $ | 3,836 | $ | 3,963 | $ | 322 | 8.4 | % | $ | 195 | 4.9 | % | ||||||||||||||
Occupancy and
equipment
|
768 | 716 | 710 | 52 | 7.3 | % | 58 | 8.2 | % | |||||||||||||||||||
Depreciation
& amortization
|
318 | 317 | 301 | 1 | 0.3 | % | 17 | 5.6 | % | |||||||||||||||||||
Data
processing fees
|
445 | 403 | 418 | 42 | 10.4 | % | 27 | 6.5 | % | |||||||||||||||||||
Professional
services
|
406 | 442 | 318 | (36 | ) | (8.1 | %) | 88 | 27.7 | % | ||||||||||||||||||
Other
non-interest expense
|
||||||||||||||||||||||||||||
Advertising
|
102 | 47 | 63 | 55 | 117.0 | % | 39 | 61.9 | % | |||||||||||||||||||
Director
expense
|
113 | 104 | 112 | 9 | 8.7 | % | 1 | 0.9 | % | |||||||||||||||||||
Other
expense
|
691 | 1,163 | 804 | (472 | ) | (40.6 | %) | (113 | ) | (14.1 | %) | |||||||||||||||||
Total other
non-interest expense
|
906 | 1,314 | 979 | (408 | ) | (31.1 | %) | (73 | ) | (7.5 | %) | |||||||||||||||||
Total
non-interest expense
|
$ | 7,001 | $ | 7,028 | $ | 6,689 | $ | (27 | ) | (0.4 | %) | $ | 312 | 4.7 | % |