Missouri
|
43-1265338
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification No.)
|
13001
Hollenberg Drive
Bridgeton,
Missouri
|
63044
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(314)
506-5500
(Registrant’s
telephone number, including area
code)
|
(Check
one)
|
Large
Accelerated Filer ¨
|
Accelerated
Filer x
|
Non-Accelerated
Filer ¨
|
Smaller
Reporting Company ¨
|
PART
I – Financial Information
|
|||
Item
1.
|
FINANCIAL
STATEMENTS
|
||
Consolidated
Balance Sheets
|
|||
March
31, 2010 (unaudited) and December 31, 2009
|
3
|
||
Consolidated
Statements of Income
|
|||
Three
months ended March 31, 2010 and 2009 (unaudited)
|
4
|
||
Consolidated
Statements of Cash Flows
|
|||
Three
months ended March 31, 2010 and 2009 (unaudited)
|
5
|
||
Notes
to Consolidated Financial Statements (unaudited)
|
6
|
||
Item
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
14
|
|
Item
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
23
|
|
Item 4.
|
CONTROLS
AND PROCEDURES
|
23
|
|
PART II – Other
Information – Items 1. – 6.
|
24
|
||
SIGNATURES
|
25
|
PART
I.
|
FINANCIAL
INFORMATION
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
March 31,
2010
(Unaudited)
|
December 31,
2009
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 6,633 | $ | 5,763 | ||||
Interest-bearing
deposits in other financial institutions
|
18,989 | 33,426 | ||||||
Federal
funds sold and other short-term investments
|
85,172 | 40,105 | ||||||
Cash
and cash equivalents
|
110,794 | 79,294 | ||||||
Securities
available-for-sale, at fair value
|
226,183 | 224,597 | ||||||
Loans
|
664,824 | 641,957 | ||||||
Less:
Allowance for loan losses
|
8,999 | 8,284 | ||||||
Loans,
net
|
655,825 | 633,673 | ||||||
Premises
and equipment, net
|
10,101 | 10,451 | ||||||
Investments
in bank-owned life insurance
|
13,779 | 13,644 | ||||||
Payments
in excess of funding
|
28,150 | 22,637 | ||||||
Goodwill
|
7,471 | 7,471 | ||||||
Other
intangible assets, net
|
348 | 375 | ||||||
Other
assets
|
20,510 | 20,839 | ||||||
Total
assets
|
$ | 1,073,161 | $ | 1,012,981 | ||||
Liabilities
and Shareholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$ | 116,319 | $ | 113,151 | ||||
Interest-bearing
|
327,620 | 324,725 | ||||||
Total
deposits
|
443,939 | 437,876 | ||||||
Accounts
and drafts payable
|
479,779 | 430,251 | ||||||
Short-term
borrowings
|
18 | 26 | ||||||
Other
liabilities
|
14,941 | 15,260 | ||||||
Total
liabilities
|
938,677 | 883,413 | ||||||
Shareholders’
Equity:
|
||||||||
Preferred
stock, par value $.50 per share; 2,000,000 shares authorized and no shares
issued
|
– | – | ||||||
Common
stock, par value $.50 per share; 20,000,000 shares authorized and
9,949,324 shares issued at March 31, 2010 and December 31,
2009
|
4,975 | 4,975 | ||||||
Additional
paid-in capital
|
45,910 | 45,696 | ||||||
Retained
earnings
|
95,835 | 92,401 | ||||||
Common
shares in treasury, at cost (563,920 shares at March 31, 2010 and 564,119
shares at December 31, 2009)
|
(13,376 | ) | (13,323 | ) | ||||
Accumulated
other comprehensive income (loss)
|
1,140 | (181 | ) | |||||
Total
shareholders’ equity
|
134,484 | 129,568 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 1,073,161 | $ | 1,012,981 |
Three Months Ended
March 31,
|
||||||||
2010
|
2009
|
|||||||
Fee
Revenue and Other Income:
|
||||||||
Information
services payment and processing revenue
|
$ | 12,745 | $ | 11,944 | ||||
Bank
service fees
|
341 | 404 | ||||||
Gains
on sales of securities
|
–
|
119 | ||||||
Other
|
139 | 135 | ||||||
Total
fee revenue and other income
|
13,225 | 12,602 | ||||||
Interest
Income:
|
||||||||
Interest
and fees on loans
|
9,427 | 8,617 | ||||||
Interest
and dividends on securities:
|
||||||||
Taxable
|
14 | 2 | ||||||
Exempt
from federal income taxes
|
2,098 | 1,858 | ||||||
Interest
on federal funds sold and other short-term investments
|
89 | 16 | ||||||
Total
interest income
|
11,628 | 10,493 | ||||||
Interest
Expense:
|
||||||||
Interest
on deposits
|
1,176 | 934 | ||||||
Interest
on short-term borrowings
|
–
|
18 | ||||||
Interest
on subordinated convertible debentures
|
–
|
39 | ||||||
Total
interest expense
|
1,176 | 991 | ||||||
Net
interest income
|
10,452 | 9,502 | ||||||
Provision
for loan losses
|
900 | 400 | ||||||
Net
interest income after provision for loan losses
|
9,552 | 9,102 | ||||||
Total
net revenue
|
22,777 | 21,704 | ||||||
Operating
Expense:
|
||||||||
Salaries
and employee benefits
|
12,490 | 12,449 | ||||||
Occupancy
|
572 | 615 | ||||||
Equipment
|
898 | 841 | ||||||
Amortization
of intangible assets
|
27 | 70 | ||||||
Other
operating
|
2,210 | 2,315 | ||||||
Total
operating expense
|
16,197 | 16,290 | ||||||
Income
before income tax expense
|
6,580 | 5,414 | ||||||
Income
tax expense
|
1,831 | 1,491 | ||||||
Net
Income
|
$ | 4,749 | $ | 3,923 | ||||
Basic
Earnings Per Share
|
$ | .51 | $ | .43 | ||||
Diluted
Earnings Per Share
|
.50 | .42 |
Three Months Ended
March
31,
|
||||||||
2010
|
2009
|
|||||||
Cash
Flows From Operating Activities:
|
||||||||
Net
income
|
$ | 4,749 | $ | 3,923 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
1,031 | 1,055 | ||||||
Gains
on sales of securities
|
– | (119 | ) | |||||
Provision
for loan losses
|
900 | 400 | ||||||
Stock-based
compensation expense
|
392 | 308 | ||||||
(Decrease)
increase in income tax liability
|
(649 | ) | 494 | |||||
Increase
in pension liability
|
198 | 186 | ||||||
Other
operating activities, net
|
(387 | ) | (531 | ) | ||||
Net
cash provided by operating activities
|
6,234 | 5,716 | ||||||
Cash
Flows From Investing Activities:
|
||||||||
Proceeds
from sales of securities available-for-sale
|
– | 4,277 | ||||||
Proceeds
from maturities of securities available-for-sale
|
– | 2,680 | ||||||
Purchase
of securities available-for-sale
|
– | (2,877 | ) | |||||
Net
increase in loans
|
(23,052 | ) | (9,414 | ) | ||||
Increase
in payments in excess of funding
|
(5,512 | ) | (1,015 | ) | ||||
Purchases
of premises and equipment, net
|
(207 | ) | (396 | ) | ||||
Net
cash used in investing activities
|
(28,771 | ) | (6,745 | ) | ||||
Cash
Flows From Financing Activities:
|
||||||||
Net
increase (decrease) in noninterest-bearing demand deposits
|
3,168 | (8,383 | ) | |||||
Net
(decrease) increase in interest-bearing demand and savings
deposits
|
(22,573 | ) | 2,006 | |||||
Net
increase in time deposits
|
25,468 | 39,680 | ||||||
Net
increase (decrease) in accounts and drafts payable
|
49,528 | (52,087 | ) | |||||
Net
(decrease) increase in short-term borrowings
|
(8 | ) | 12,857 | |||||
Cash
dividends paid
|
(1,315 | ) | (1,199 | ) | ||||
Distribution
of stock awards, net
|
(251 | ) | – | |||||
Other
financing activities, net
|
20 | 19 | ||||||
Net
cash provided by (used in) financing activities
|
54,037 | (7,107 | ) | |||||
Net
increase (decrease) in cash and cash equivalents
|
31,500 | (8,136 | ) | |||||
Cash
and cash equivalents at beginning of period
|
79,294 | 29,485 | ||||||
Cash
and cash equivalents at end of period
|
$ | 110,794 | $ | 21,349 | ||||
Supplemental
information:
|
||||||||
Cash
paid for interest
|
$ | 1,125 | $ | 910 | ||||
Cash
paid for income taxes
|
2,501 | 1,030 |
March 31, 2010
|
December 31, 2009
|
|||||||||||||||
(In thousands)
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
||||||||||||
Assets
eligible for amortization:
|
||||||||||||||||
Software
|
$ | 862 | $ | (862 | ) | $ | 862 | $ | (862 | ) | ||||||
Customer
List
|
750 | (402 | ) | 750 | (375 | ) | ||||||||||
Total
|
1,612 | (1,264 | ) | 1,612 | (1,237 | ) | ||||||||||
Unamortized
intangible assets:
|
||||||||||||||||
Goodwill
|
7,698 | (227 | ) | 7,698 | (227 | ) | ||||||||||
Total
unamortized intangibles
|
7,698 | (227 | ) | 7,698 | (227 | ) | ||||||||||
Total
intangible assets
|
$ | 9,310 | $ | (1,491 | ) | $ | 9,310 | $ | (1,464 | ) |
Three Months Ended
March 31,
|
||||||||
(In thousands, except per share data)
|
2010
|
2009
|
||||||
Basic
|
||||||||
Net
income
|
$ | 4,749 | $ | 3,923 | ||||
Weighted-average
common shares outstanding
|
9,328,697 | 9,135,326 | ||||||
Basic
earnings per share
|
$ | .51 | $ | .43 | ||||
Diluted
|
||||||||
Basic
net income
|
$ | 4,749 | $ | 3,923 | ||||
Net
income effect of 5.33% convertible debentures
|
– | 20 | ||||||
Diluted
net income
|
4,749 | 3,943 | ||||||
Weighted-average
common shares outstanding
|
9,328,697 | 9,135,326 | ||||||
Effect
of dilutive restricted stock, stock options and stock appreciation
rights
|
94,039 | 89,889 | ||||||
Effect
of convertible debentures
|
– | 153,630 | ||||||
Weighted-average
common shares outstanding assuming dilution
|
9,422,736 | 9,378,845 | ||||||
Diluted
earnings per share
|
$ | .50 | $ | .42 |
|
Three Months Ended
March 31,
|
|||||||
(In thousands)
|
2010
|
2009
|
||||||
Net
income
|
$ | 4,749 | $ | 3,923 | ||||
Other
comprehensive income:
|
||||||||
Reclassification
adjustments for gains included in net income, net of tax
|
– | (77 | ) | |||||
Net
unrealized gain on securities available-for-sale, net of
tax
|
1,321 | 4,728 | ||||||
Total
comprehensive income
|
$ | 6,070 | $ | 8,574 |
(In thousands)
|
Information
Services
|
Banking
Services
|
Corporate,
Eliminations
and Other
|
Total
|
||||||||||||
Quarter
Ended March 31, 2010
|
||||||||||||||||
Total
Revenues:
|
||||||||||||||||
Revenue
from customers
|
$ | 17,228 | $ | 5,549 | $ | ― | $ | 22,777 | ||||||||
Intersegment
income (expense)
|
2,275 | 380 | (2,655 | ) | ― | |||||||||||
Net
income
|
2,904 | 1,845 | ― | 4,749 | ||||||||||||
Goodwill
|
7,335 | 136 | ― | 7,471 | ||||||||||||
Other
intangible assets, net
|
348 | – | ― | 348 | ||||||||||||
Total
assets
|
579,766 | 498,105 | (4,710 | ) | 1,073,161 | |||||||||||
Quarter
Ended March 31, 2009
|
||||||||||||||||
Total
Revenues:
|
||||||||||||||||
Revenue
from customers
|
$ | 17,383 | $ | 4,321 | $ | ― | $ | 21,704 | ||||||||
Intersegment
income (expense)
|
1,615 | 357 | (1,972 | ) | ― | |||||||||||
Net
income
|
2,834 | 1,089 | ― | 3,923 | ||||||||||||
Goodwill
|
7,335 | 136 | ― | 7,471 | ||||||||||||
Other
intangible assets, net
|
527 | ― | ― | 527 | ||||||||||||
Total
assets
|
556,709 | 419,592 | (89,031 | ) | 887,270 |
(In thousands)
|
March 31,
2010
|
December 31,
2009
|
||||||
Commercial
and industrial
|
$ | 108,243 | $ | 93,371 | ||||
Real
estate (commercial and church):
|
||||||||
Mortgage
|
494,523 | 469,097 | ||||||
Construction
|
57,891 | 74,407 | ||||||
Industrial
revenue bonds
|
2,596 | 2,676 | ||||||
Other
|
1,571 | 2,406 | ||||||
Total
loans
|
$ | 664,824 | $ | 641,957 |
Amount of Commitment Expiration per Period
|
||||||||||||||||||||
(In thousands)
|
Total
|
Less than
1 year
|
1-3
Years
|
3-5
Years
|
Over 5
Years
|
|||||||||||||||
Operating
lease commitments
|
$ | 2,917 | $ | 877 | $ | 968 | $ | 600 | $ | 472 | ||||||||||
Time
deposits
|
141,210 | 130,894 | 9,268 | 1,048 | ― | |||||||||||||||
Total
|
$ | 144,127 | $ | 131,771 | $ | 10,236 | $ | 1,648 | $ | 472 |
Three Months Ended
March 31, 2010
|
||||||||
Shares
|
Fair Value
|
|||||||
Balance
at December 31, 2009
|
75,965 | $ | 28.97 | |||||
Granted
|
7,049 | 30.16 | ||||||
Vested
|
(34,118 | ) | 29.99 | |||||
Forfeited
|
– | – | ||||||
Balance
at March 31, 2010
|
48,896 | $ | 28.43 |
Weighted-
Average
|
Average
Remaining
|
Aggregate
Intrinsic
|
||||||||||||||
Exercise
|
Contractual
|
Value
|
||||||||||||||
Shares
|
Price
|
Term Years
|
(In thousands)
|
|||||||||||||
Outstanding
at December 31, 2009
|
44,120 | $ | 17.65 | |||||||||||||
Exercised
|
(1,631 | ) | 12.82 | |||||||||||||
Outstanding
at March 31, 2010
|
42,489 | $ | 17.83 | 2.15 | $ | 565 | ||||||||||
Exercisable
at March 31, 2010
|
30,048 | $ | 17.03 | 1.96 | $ | 424 |
Shares
|
Weighted-
Average
Grant Date
Fair Value
|
|||||||
Non-vested
at December 31, 2009
|
27,586 | $ | 2.81 | |||||
Vested
|
(15,145 | ) | 2.70 | |||||
Non-vested
at March 31, 2010
|
12,441 | $ | 2.94 |
Weighted-
Average
|
Average
Remaining
|
Aggregate
Intrinsic
|
||||||||||||||
Exercise
|
Contractual
|
Value
|
||||||||||||||
Shares
|
Price
|
Term Years
|
(In thousands)
|
|||||||||||||
Outstanding
at December 31, 2009
|
231,262 | $ | 27.02 | |||||||||||||
Granted
|
23,311 | 30.16 | ||||||||||||||
Outstanding
at March 31, 2010
|
254,573 | $ | 27.31 | 8.60 | $ | 979 | ||||||||||
Exercisable
at March 31, 2010
|
113,372 | $ | 27.46 | 5.35 | $ | 418 |
Shares
|
Weighted-
Average
Grant Date
Fair Value
|
|||||||
Non-vested
at December 31, 2009
|
195,119 | $ | 6.74 | |||||
Granted
|
23,311 | 9.12 | ||||||
Vested
|
(77,229 | ) | 6.89 | |||||
Non-vested
at March 31, 2010
|
141,201 | $ | 7.06 |
Three Months Ended
March 31,
|
||||||||
2010
|
2009
|
|||||||
Risk-free
interest rate
|
3.33 | % | 1.94 | % | ||||
Expected
life
|
7
yrs.
|
7
yrs.
|
||||||
Expected
volatility
|
30.00 | % | 27.00 | % | ||||
Expected
dividend yield
|
1.86 | % | 2.02 | % |
(In thousands)
|
Estimated
2010
|
Actual
2009
|
||||||
Service
cost – benefits earned during the year
|
$ | 1,796 | $ | 1,606 | ||||
Interest
cost on projected benefit obligation
|
2,251 | 2,080 | ||||||
Expected
return on plan assets
|
(2,443 | ) | (1,880 | ) | ||||
Net
amortization and deferral
|
563 | 873 | ||||||
Net periodic pension
cost
|
$ | 2,167 | $ | 2,679 |
(In thousands)
|
Estimated
2010
|
Actual
2009
|
||||||
Service
cost – benefits earned during the year
|
$ | 78 | $ | 33 | ||||
Interest
cost on projected benefit obligation
|
315 | 278 | ||||||
Net
amortization
|
257 | 130 | ||||||
Net periodic pension
cost
|
$ | 650 | $ | 441 |
March 31, 2010
|
||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
State
and political subdivisions
|
$ | 212,204 | $ | 13,999 | $ | 20 | $ | 226,183 |
December 31, 2009
|
||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
State
and political subdivisions
|
$ | 212,651 | $ | 11,970 | $ | 24 | $ | 224,597 |
March 31, 2010
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
(In thousands)
|
fair value
|
losses
|
fair value
|
losses
|
Fair value
|
losses
|
||||||||||||||||||
State and
political subdivisions
|
$ | 1,415 | $ | 20 | $ | — | $ | — | $ | 1,415 | $ | 20 |
December 31, 2009
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
(In thousands)
|
fair value
|
losses
|
fair value
|
losses
|
Fair value
|
losses
|
||||||||||||||||||
State and
political subdivisions
|
$ | 1,415 | $ | 24 | $ | — | $ | — | $ | 1,415 | $ | 24 |
March 31, 2010
|
||||||||
(In thousands)
|
Amortized Cost
|
Fair Value
|
||||||
Due
in 1 year or less
|
$ | 8,752 | $ | 8,930 | ||||
Due
after 1 year through 5 years
|
43,069 | 46,094 | ||||||
Due
after 5 years through 10 years
|
103,024 | 111,401 | ||||||
Due
after 10 years
|
57,359 | 59,758 | ||||||
Total
|
$ | 212,204 | $ | 226,183 |
March 31, 2010
|
December 31, 2009
|
|||||||||||||||
(In thousands)
|
Carrying
Amount
|
Fair Value
|
Carrying
Amount
|
Fair Value
|
||||||||||||
Balance
sheet assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 110,794 | $ | 110,794 | $ | 79,294 | $ | 79,294 | ||||||||
Investment
securities
|
226,183 | 226,183 | 224,597 | 224,597 | ||||||||||||
Loans,
net
|
655,825 | 656,774 | 633,673 | 634,598 | ||||||||||||
Accrued
interest receivable
|
5,245 | 5,245 | 5,294 | 5,294 | ||||||||||||
Total
|
$ | 998,047 | $ | 998,996 | $ | 942,858 | $ | 943,783 | ||||||||
Balance
sheet liabilities:
|
||||||||||||||||
Deposits
|
$ | 443,939 | $ | 443,939 | $ | 437,876 | $ | 437,876 | ||||||||
Accounts
and drafts payable
|
479,779 | 479,779 | 430,251 | 430,251 | ||||||||||||
Short-term
borrowings
|
18 | 18 | 26 | 26 | ||||||||||||
Accrued
interest payable
|
278 | 278 | 227 | 227 | ||||||||||||
Total
|
$ | 924,014 | $ | 924,014 | $ | 868,380 | $ | 868,380 |
ITEM
2.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
First Quarter of
|
||||||||||||
(In thousands except per share data)
|
2010
|
2009
|
% Change
|
|||||||||
Net
income
|
$ | 4,749 | $ | 3,923 | 21.1 | % | ||||||
Diluted
earnings per share
|
$ | .50 | $ | .42 | 19.0 | % | ||||||
Return
on average assets
|
1.80 | % | 1.79 | % | — | |||||||
Return
on average equity
|
14.71 | % | 14.35 | % | — |
First Quarter of
|
||||||||||||
(In thousands)
|
2010
|
2009
|
% Change
|
|||||||||
Freight
Core Invoice Transaction Volume*
|
6,017 | 5,395 | 11.5 | % | ||||||||
Freight
Invoice Dollar Volume
|
$ | 3,768,941 | $ | 3,386,740 | 11.3 | % | ||||||
Utility
Transaction Volume
|
3,055 | 2,830 | 8.0 | % | ||||||||
Utility
Transaction Dollar Volume
|
$ | 2,608,099 | $ | 2,495,697 | 4.5 | % | ||||||
Payment
and Processing Fees
|
$ | 12,745 | $ | 11,944 | 6.7 | % |
First Quarter of
|
||||||||||||
(In thousands)
|
2010
|
2009
|
% Change
|
|||||||||
Average
earnings assets
|
$ | 984,700 | $ | 803,943 | 22.5 | % | ||||||
Average
interest-bearing liabilities
|
323,253 | 203,095 | 59.2 | % | ||||||||
Net
interest income*
|
11,595 | 10,522 | 10.2 | % | ||||||||
Net
interest margin*
|
4.78 | % | 5.31 | % | — | |||||||
Yield
on earning assets*
|
5.26 | % | 5.81 | % | — | |||||||
Rate
on interest bearing liabilities
|
1.48 | % | 1.98 | % | — |
First Quarter of 2010
|
First Quarter of 2009
|
|||||||||||||||||||||||
(In thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|||||||||||||||||
Assets1
|
||||||||||||||||||||||||
Earning
assets
|
||||||||||||||||||||||||
Loans2,
3:
|
||||||||||||||||||||||||
Taxable
|
$ | 645,818 | $ | 9,402 | 5.90 | % | $ | 588,912 | $ | 8,580 | 5.91 | % | ||||||||||||
Tax-exempt4
|
2,630 | 38 | 5.86 | 3,321 | 57 | 6.91 | ||||||||||||||||||
Investment
securities5:
|
||||||||||||||||||||||||
Taxable
|
792 | 14 | 7.17 | 3,559 | 2 | .22 | ||||||||||||||||||
Tax-exempt4
|
212,492 | 3,228 | 6.16 | 188,178 | 2,858 | 6.16 | ||||||||||||||||||
Interest-bearing
deposits in other financial institutions
|
21,406 | 13 | .25 | 13,498 | 8 | .24 | ||||||||||||||||||
Federal
funds sold and other short-term investments
|
101,562 | 76 | .30 | 6,475 | 8 | .50 | ||||||||||||||||||
Total
earning assets
|
984,700 | 12,771 | 5.26 | 803,943 | 11,513 | 5.81 | ||||||||||||||||||
Non-earning
assets
|
||||||||||||||||||||||||
Cash
and due from banks
|
9,414 | 9,067 | ||||||||||||||||||||||
Premises
and equipment, net
|
10,324 | 11,678 | ||||||||||||||||||||||
Bank-owned
life insurance
|
13,710 | 13,168 | ||||||||||||||||||||||
Goodwill
and other intangibles
|
7,835 | 8,039 | ||||||||||||||||||||||
Other
assets
|
54,801 | 48,856 | ||||||||||||||||||||||
Allowance
for loan losses
|
(8,386 | ) | (6,569 | ) | ||||||||||||||||||||
Total
assets
|
$ | 1,072,398 | $ | 888,182 | ||||||||||||||||||||
Liabilities
and Shareholders’ Equity1
|
||||||||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 169,486 | $ | 510 | 1.22 | % | $ | 82,085 | $ | 302 | 1.49 | % | ||||||||||||
Savings
deposits
|
24,967 | 72 | 1.17 | 20,281 | 69 | 1.38 | ||||||||||||||||||
Time
deposits >=$100
|
49,953 | 204 | 1.66 | 41,516 | 287 | 2.80 | ||||||||||||||||||
Other
time deposits
|
78,807 | 390 | 2.01 | 45,779 | 276 | 2.45 | ||||||||||||||||||
Total
interest-bearing deposits
|
323,213 | 1,176 | 1.48 | 189,661 | 934 | 2.00 | ||||||||||||||||||
Short-term
borrowings
|
40 | — | — | 10,443 | 18 | .69 | ||||||||||||||||||
Subordinated
debentures
|
— | — | — | 2,991 | 39 | 5.33 | ||||||||||||||||||
Total
interest bearing liabilities
|
323,253 | 1,176 | 1.48 | 203,095 | 991 | 1.98 | ||||||||||||||||||
Non-interest
bearing liabilities
|
||||||||||||||||||||||||
Demand
deposits
|
110,722 | 93,464 | ||||||||||||||||||||||
Accounts
and drafts payable
|
491,821 | 461,770 | ||||||||||||||||||||||
Other
liabilities
|
15,661 | 18,963 | ||||||||||||||||||||||
Total
liabilities
|
941,457 | 777,292 | ||||||||||||||||||||||
Shareholders’
equity
|
130,941 | 110,890 | ||||||||||||||||||||||
Total
liabilities and shareholders’ equity
|
$ | 1,072,398 | $ | 888,182 | ||||||||||||||||||||
Net
interest income
|
$ | 11,595 | $ | 10,522 | ||||||||||||||||||||
Net
interest margin
|
4.78 | % | 5.31 | % | ||||||||||||||||||||
Interest
spread
|
3.78 | 3.83 |
1.
|
Balances
shown are daily averages.
|
2.
|
For
purposes of these computations, nonaccrual loans are included in the
average loan amounts outstanding. Interest on nonaccrual loans
is recorded when received as discussed further in Note 1 to the Company’s
2009 consolidated financial statements, filed with the Company’s 2009
Annual Report on Form 10-K.
|
3.
|
Interest
income on loans includes net loan fees of $74,000 and $136,000 for the
First Quarter of 2010 and 2009,
respectively.
|
4.
|
Interest
income is presented on a tax-equivalent basis assuming a tax rate of
35%. The tax-equivalent adjustment was approximately $1,143,000
and $1,020,000 for the First Quarter of 2010 and 2009,
respectively.
|
5.
|
For
purposes of these computations, yields on investment securities are
computed as interest income divided by the average amortized cost of the
investments.
|
First Quarter of 2010 Over
First Quarter of 2009
|
||||||||||||
(In thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Increase
(decrease) in interest income:
|
||||||||||||
Loans1,
2:
|
||||||||||||
Taxable
|
$ | 828 | $ | (6 | ) | $ | 822 | |||||
Tax-exempt3
|
(11 | ) | (8 | ) | (19 | ) | ||||||
Investment
securities:
|
||||||||||||
Taxable
|
(3 | ) | 15 | 12 | ||||||||
Tax-exempt3
|
369 | 1 | 370 | |||||||||
Interest-bearing
deposits in other financial institutions
|
5 | – | 5 | |||||||||
Federal
funds sold and other short-term investments
|
72 | (4 | ) | 68 | ||||||||
Total
interest income
|
1,260 | (2 | ) | 1,258 | ||||||||
Interest
expense on:
|
||||||||||||
Interest-bearing
demand deposits
|
272 | (64 | ) | 208 | ||||||||
Savings
deposits
|
14 | (11 | ) | 3 | ||||||||
Time
deposits >=$100
|
50 | (133 | ) | (83 | ) | |||||||
Other
time deposits
|
171 | (57 | ) | 114 | ||||||||
Short-term
borrowings
|
(9 | ) | (9 | ) | (18 | ) | ||||||
Subordinated
debentures
|
(20 | ) | (19 | ) | (39 | ) | ||||||
Total
interest expense
|
478 | (293 | ) | 185 | ||||||||
Net interest income
|
782 | 291 | 1,073 |
1.
|
Average
balances include nonaccrual loans.
|
2.
|
Interest
income includes net loan fees.
|
3.
|
Interest
income is presented on a tax-equivalent basis assuming a tax rate of
35%.
|