UNION, NJ -- 10/26/07 --
Center Bancorp, Inc. (NASDAQ: CNBC), parent
company of Union Center National Bank, today reported operating results for
the third quarter ended September 30, 2007. Earnings amounted to
approximately $1.0 million for the quarter ended September 30, 2007 as
compared with net income for the quarter ended September 30, 2006 of $1.3
million. Basic and fully diluted earnings per common share for the quarter
ended September 30, 2007 were $0.07 and $0.07, respectively. By
comparison, for the quarter ended September 30, 2006, basic and fully
diluted earnings per common share were $0.09 and $0.09, respectively.
The results for the third quarter of 2007 included certain amounts
associated with the Corporation's previously announced cost-cutting
measures. As a result of the Corporation's freezing of its Defined Benefit
Pension Plan the Corporation recorded a pension curtailment benefit of $1.2
million. The Corporation recorded salary and benefit expense of $1.6
million related to salary and benefit severance payments. The cumulative
effect of these items was to reduce income before income tax by $410,000 or
$.03 per share.
For the nine months ended September 30, 2007, net income amounted to $3.3
million, an increase of $1.7 million from September 30, 2006. Basic and
fully diluted earnings per common share for the nine-months ended September
30, 2007 were $0.24 and $0.24, respectively. By comparison, for the
nine-months ended September 30, 2006, basic and fully diluted earnings per
common share were $0.11 and $0.11, respectively.
Quarterly Condensed Consolidated Income Statements (unaudited)
(dollars in thousands, except share and per share data)
For the
quarter
ended: 9/30/07 6/30/07 3/31/07 12/31/06 9/30/06 6/30/06
-------- --------- --------- --------- --------- ---------
Net
interest
income $ 5,481 $ 5,225 $ 5,621 $ 5,691 $ 5,952 $ 6,308
Provision
for loan
losses 100 100 0 57 0 0
Net
interest
income
after
loan loss
provision 5,381 5,125 5,621 5,634 5,952 6,308
Non
interest
income 911 1,177 1,410 1,618 1,007 873
Non
interest
expense (6,080) (6,056) (6,428) (6,656) (5,735) (5,766)
Income
before
income
tax 212 246 603 596 1,224 1,415
Income tax
expense/
(benefit) (786) (771) (706) (1,695) (78) 43
NET INCOME $ 998 $ 1,017 $ 1,309 $ 2,291 $ 1,302 $ 1,372
EPS
(basic) $ 0.07 $ 0.07 $ 0.09 $ 0.16 $ 0.09 $ 0.10
EPS
(diluted) $ 0.07 $ 0.07 $ 0.09 $ 0.16 $ 0.09 $ 0.10
Weighted average common shares outstanding adjusted for 5% stock dividend:
Basic 13,864,272 13,910,450 13,910,450 13,898,178 13,896,165 13,940,396
Diluted 13,938,892 13,962,934 13,986,333 13,980,270 13,989,262 14,020,835
---------- ---------- ---------- ---------- ---------- ----------
Beacon Trust Company
The Corporation announced that the Boards of Directors of the Corporation
and Beacon Trust Company have mutually agreed to terminate their Agreement
and Plan of Merger dated as of March 15, 2007. Concurrently, the parties
have agreed to a dismissal of the litigation commenced by Beacon Trust
Company to compel consummation of the merger. During the fourth quarter of
2007, the Corporation will recognize merger-related expenses, reflecting
the cost of the transaction from the outset of negotiations, in an amount
expected to be approximately $600,000. Acting Chief Executive Officer
Anthony C. Weagley stated: "We part in the same manner as we began -- as
friends. We will explore opportunities to work together with Beacon in the
future, but not as part of a combined enterprise."
Total average loan volume for the third quarter of 2007 increased to $538.8
million on average, an increase of $6.3 million from $532.5 million for the
comparable quarter of the previous year. On a linked sequential quarter
comparison, total average loans increased by $6.0 million, from $532.8
million on average during the second quarter of 2007. The Corporation had
total loans of $550.8 million at September 30, 2007, representing a $17.1
million, or 3.20%, increase on a linked sequential quarter basis. Payoff
levels subsided during the quarter; there was $22.4 million in payoffs
received, versus new loan volume booked of $36.4 million.
Loan Mix:
(unaudited)
(dollars in thousands)
At quarter
ended: 9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
--------- --------- --------- ---------- --------- ---------
Real estate
loans
Residential $ 265,301 $ 261,849 $ 262,958 $ 268,748 $ 261,652 $ 259,520
Commercial 136,289 135,707 135,062 135,802 132,032 128,270
Construction,
development
and land
loans 53,286 47,910 60,135 70,340 63,583 55,583
Total real
estate loans 454,876 445,466 458,155 474,890 457,267 443,373
Commercial
loans 94,444 86,848 71,020 74,135 77,925 85,492
Consumer and
other loans 960 741 754 699 1,443 1,042
--------- --------- --------- ---------- --------- ---------
Total loans
before
unearned fees
and costs 550,280 533,055 529,929 549,724 536,635 529,907
Unearned fees
and costs 567 620 644 690 715 743
--------- --------- --------- ---------- --------- ---------
Total loans $ 550,847 $ 533,675 $ 530,573 $ 550,414 $ 537,350 $ 530,650
========= ========= ========= ========== ========= =========
"We are pleased with the growth achieved for the quarter and are optimistic
that the Corporation will continue to build its loans outstanding volume
from this level through the fourth quarter. Our pipelines are strong; we
expect that increased activity in the commercial sectors of the portfolio
will support our strategic goals of increased loan volume and improving our
earning-asset mix," said Mr. Weagley, President. "Notwithstanding a slow
down in the general markets, we believe that our increased business
development efforts should position us for further growth. Our emphasis
will continue to be on the commercial mortgage, construction and commercial
loan sectors of the portfolio." At September 30, 2007, the Corporation had
$26.8 million in overall undispersed loan commitments, $12.0 million of
which it expected to fund over the next 90 days. This includes $10.7
million in commitments for commercial and commercial real estate loans.
Asset Quality
Selected credit quality ratios
(unaudited)
(dollars in thousands)
As of or
for the
quarter
ended: 9/30/07 6/30/07 3/31/07 12/31/06 9/30/06 6/30/06
------- --------- --------- --------- --------- ---------
Non-accrual
loans $ 986 $ 1,070 $ 1,207 $ 475 $ 315 $ 431
Past due
loans 90
days or
more and
still
accruing
interest 0 0 0 225 346 2,000
Total non
performing
loans 986 1,070 1,207 700 661 2,431
Other real
estate
owned
("OREO") 586 586 0 0 0 0
Repossessed
assets
other than
real-estate 0 0 0 0 0 0
------- --------- --------- --------- --------- ---------
Total non
performing
assets $ 1,572 $ 1,656 $ 1,207 $ 700 $ 661 $ 2,431
Non performing
assets as a
percentage
of total
assets 0.16% 0.17% 0.12% 0.07% 0.06% 0.23%
Non performing
loans as a
percentage
of total
loans 0.29% 0.31% 0.23% 0.13% 0.12% 0.46%
Net
charge-offs
(recoveries) 139 86 2 34 29 2
Net
charge-offs
as a
percentage
of average
loans for
the period 0.03% 0.02% 0.00% 0.01% 0.01% 0.00%
Allowance
for loan
losses as a
percentage
of period
end loans 0.91% 0.93% 0.93% 0.90% 0.91% 0.93%
------- --------- --------- --------- --------- ---------
Total
Assets 987,790 1,001,622 1,048,966 1,051,384 1,030,426 1,072,713
Total Loans 550,847 533,675 530,573 550,414 537,350 530,650
Average
loans for
the
quarter 538,798 532,799 540,971 543,707 532,452 510,126
Allowance
for loan
losses 5,021 4,974 4,958 4,960 4,908 4,935
------- --------- --------- --------- --------- ---------
At September 30, 2007, non-performing assets totaled $1.6 million or 0.16%
of total assets at September 30, 2007, as compared with $700,000 or 0.07%
at December 31, 2006 and $661,000 or 0.06% at September 30, 2006. The
allowance for loan losses as a percent of total non-performing assets
amounted to 319.4% for the third quarter of 2007 as compared 708.6% at
December 31, 2006 and 742.5% at September 30, 2006. Non-performing assets
at September 30, 2007 consisted of a commercial mortgage, a construction
loan, term commercial loan, commercial line of credit and two residential
mortgages.
During the third quarter of 2007, there were provisions to the allowance
for loan losses in the amount of $100,000. The provisions were primarily
related to loan growth and $55,000 in charges offs made during the period,
including a write-down on foreclosed property. At September 30, 2007, the
Corporation had other real estate owned amounting to $586,000.
At September 30, 2007, the total allowance for loan losses amounted to
approximately $5.0 million, or 0.91% of total loans.
Net Interest Income
Selected financial ratios
As of or for the quarter 9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 6/30/
ended: 2007 2007 2007 2006 2006 2006
------ ------ ------ ------ ------ ------
Return on average assets
(annualized) 0.40% 0.40% 0.50% 0.88% 0.50% 0.54%
Return on average equity
(annualized) 4.21% 4.15% 5.37% 9.46% 5.48% 5.75%
Net interest margin (tax
equivalent basis) 2.63% 2.43% 2.55% 2.62% 2.70% 2.92%
Loan/Deposit ratio 84.62% 78.71% 73.42% 75.73% 73.44% 68.65%
Stockholders' equity/total
assets 9.49% 9.57% 9.36% 9.28% 9.38% 8.78%
Efficiency ratio 89.3% 92.8% 92.8% 94.5% 78.3% 75.6%
Book value per share $ 6.85 $ 6.89 $ 7.06 $ 7.02 $ 6.96 $ 6.78
For the three-months ended September 30, 2007, total interest income on a
fully taxable-equivalent basis declined by $840,000, or 5.91%, to $13.4
million, as compared to the three-months ended September 30, 2006. For the
three-month period ended September 30, 2007, total interest expense
declined by $225,000 or 2.93%, to $7.5 million, as compared to the same
quarterly period last year.
For the nine-months ended September 30, 2007, total interest income on a
fully taxable-equivalent basis declined by $860,000, or 2.07%, to $40.7
million, as compared to the nine-months ended September 30, 2006. For the
nine-month period ended September 30, 2007, total interest expense
increased by $1.7 million or 8.22%, to $23.0 million, as compared to the
same period last year.
The Corporation recorded net interest income on a fully taxable equivalent
basis of $5.9 million for the three-months ended September 30, 2007 and
$6.5 million for the comparable period of 2006. The decrease in net
interest income for the three-months ended September 30, 2007 related
principally to the decrease in interest income during this period.
The Corporation recorded net interest income on a fully taxable equivalent
basis of $17.7 million for the nine-months ended September 31, 2007 and
$20.3 million for the comparable period of 2006. The decrease in net
interest income for the nine-months ended September 30, 2007 related
principally to an increase in interest expense of $1.7 million coupled with
a decrease of $860,000 in interest income during this period.
The interest rate environment did not improve in the third quarter, making
it difficult for the Corporation to reduce its overall cost of funds. The
Corporation sought to improve its net interest margin by allowing a runoff
of certain high rate deposits. The result, while still a decline in margin
from the comparison period in 2006 and from earlier this year, was an
improvement of the margin on a linked sequential basis from the second
quarter of 2007. Recent action by the Federal Open Market Committee and
recent turmoil in the markets has brought short-term rates down and should
benefit the Corporation's strategies to seek to continue to reduce
liability costs in the fourth quarter. However, due to the uncertainty of
the timing and direction of interest rates in general, the Corporation
expects that its net interest margin for 2007 will continue to come under
pressure should the markets continue to exhibit volatility. This pressure
could dampen earnings performance as compared to prior periods.
For both the three and nine-month periods the increase in interest expense
reflects the impact of higher short-term interest rates and the sustained
flatness of the yield curve that prevailed during 2007. This, coupled with
intense competition for deposits in the Corporation's marketplace,
continued to place pressure on funding costs. For the three-months ended
September 30, 2007, the Corporation reduced its average borrowings by $3.4
million (including subordinated debentures) as compared to the comparable
quarter ended September 30, 2006. The average balance of interest-bearing
liabilities, including borrowings, decreased $58.2 million from the third
quarter 2006 and decreased $32.2 million compared to the second quarter
2007. The positive effect of the reduction in this type of funding source
as well as a reduction in time deposits was offset by an increase in the
average cost of funds, which rose (on an annualized basis) by 18 basis
points to 3.94% from 3.76% during the quarter ended September 30, 2006 and
on a linked sequential quarter increased 3 basis point as compared to the
second quarter of 2007.
For the nine-months ended September 30, 2007, the average balance of
interest-bearing liabilities, including borrowings, declined by $31.1
million, or 3.81%, to $784.9 million compared to nine months ended
September 30, 2006. However, the decline in the volume of interest-bearing
liabilities was offset by an increase in the average cost of funds, which
rose (on an annualized basis) by 44 basis points to 3.91% from 3.47% at
September 30, 2006.
Average interest-earning assets for the three-months ended September 30,
2007 decreased by $64.7 million, or 6.70%, to $900.9 million, reflecting a
decline in securities and an increase in loans. The annualized average
yield on earning assets for the third quarter of 2007 increased 5 basis
points over the annualized average yield during the comparable quarterly
period in 2006. While the loan portfolio increased on average $6.3
million, the 1 basis point increase in yield was not sufficient to offset
the decline in volume and associated yield in the investment portfolio.
Reductions in net interest income and the net interest margin were due to
tighter spreads on deposits caused by the current interest rate environment
and shifts in deposit mix driven by customer preference for higher rates.
For the nine-months ended September 30, 2007, average interest-earning
assets declined by $39.0 million, or 4.02%, to $931.6 million, reflecting a
decline in securities and an increase in loans. The annualized average
yield on earning assets for the nine-months period of 2007 improved 12
basis points over the annualized average yield during the comparable
nine-months period in 2006. While the loan portfolio increased on average
$22.4 million, the 14 basis point increase in yield was not sufficient to
offset the decline in volume and associated yield in the investment
portfolio. The increase in yield did in part offset the effect of the rise
in the average cost of funds over the same period. Reductions in net
interest income and the net interest margin were due to a higher cost of
deposits caused by the current interest rate environment and shifts in
deposit mix driven by customer preference for higher rates.
For the three-months ended September 30, 2007, the Corporation's net
interest spread declined 13 basis points to 2.00% (annualized) as compared
to 2.13% (annualized) for the comparable three-month period in 2006 and the
Corporation's net interest margin (net interest income as a percentage of
earning assets, calculated on an annualized basis) declined by 7 basis
points from 2.70% to 2.63%. On a linked sequential quarter basis, the net
interest margin improved to 2.63% from 2.43% for the second quarter of
2007.
For the nine-months ended September 30, 2007, the Corporation's net
interest spread declined 32 basis points to 1.92% (annualized) as compared
to 2.24% (annualized) for the comparable nine-month period in 2006 and the
Corporation's net interest margin declined by 26 basis points from 2.79% to
2.53%.
Other Income
Quarterly Condensed Consolidated Non Interest Income (unaudited)
(dollars in thousands)
9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 6/30/
For the quarter ended: 2007 2007 2007 2006 2006 2006
------- ------- ------- ------- ------- -------
Service charges on deposit
accounts $ 312 $ 306 $ 288 $ 295 $ 307 $ 307
Commissions from mortgage
broker activities 15 25 46 45 32 10
Loan related fees (LOC) 49 26 35 41 30 39
Commissions from sale of
mutual funds and annuities 131 60 63 60 40 53
Debit card and ATM fees 126 130 131 134 136 142
BOLI income 223 230 223 183 213 203
Net gain on sale of
investments 14 341 588 801 212 77
Other service charges and
fees 41 59 36 59 37 42
------- ------- ------- ------- ------- -------
Total non interest income $ 911 $ 1,177 $ 1,410 $ 1,618 $ 1,007 $ 873
9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 6/30/
For the period ended : 2007 2007 2007 2006 2006 2006
------- ------- ------- ------- ------ --------
Service charges on
deposit accounts $ 906 $ 594 $ 288 $ 1,218 $ 923 $ 616
Commissions from
mortgage broker
activities 86 71 46 106 61 29
Loan related fees (LOC) 110 61 35 157 116 86
Commissions from sale of
mutual funds and
annuities 254 123 63 205 145 105
Debit card and ATM fees 387 261 131 541 407 271
BOLI income 676 453 223 780 597 384
Gain (loss) on sale of
investments 943 929 588 (2,565) (3,366) (3,578)
Other service charges
and fees 136 95 36 191 132 95
------- ------- ------- ------- ------ --------
Total non interest
income $ 3,498 $ 2,587 $ 1,410 $ 633 $ (985) $ (1,992)
Total other income decreased $96,000 for the third quarter of 2007 compared
with the comparable quarter of 2006, primarily as a result of decreases in
gains on securities sold. Excluding net securities gains and losses in the
respective periods, the Corporation recorded other income of $897,000 in
the three-months ended September 30, 2007, compared to $795,000 in the
three-months ended September 30, 2006. This increase was primarily
attributable to a $101,000 increase in commissions from sales of mutual
funds and annuities. Net securities gains on securities available for
sale, which amounted to $14,000 for the current quarter, were sold in the
ordinary course of business.
For the nine-months ended September 30, 2007, total other income increased
$4.5 million as compared with the nine-months of 2006, primarily as a
result of increases in gains on securities sold. Excluding net securities
gains and losses in the respective periods, the Corporation recorded other
income of $2.6 million in the nine-months ended September 30, 2007,
compared to $2.4 million in the nine-months ended September 30, 2006. This
increase was primarily attributable to a $188,000 increase in commissions
from sales of mutual funds and annuities and bank owned life insurance
income. This was offset in part by lower overdraft fees and service charge
income on deposit accounts. Net securities gains on securities available
for sale, which amounted to $943,000 for the current nine-months, were sold
in the ordinary course of business.
Other Expense
Quarterly Condensed Consolidated Non Interest Expense (unaudited)
(dollars in thousands)
For the quarter 9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 6/30/
ended: 2007 2007 2007 2006 2006 2006
------- ------- ------- ------- ------- -------
Employee salaries and
wages $ 3,632 $ 2,133 $ 2,372 $ 2,303 $ 2,214 $ 2,311
Employee
incentive/bonus
compensation 0 0 0 0 0 0
Employee stock option
expense 46 35 24 41 45 44
Health insurance and
other employee
benefits (687) 543 575 561 561 548
Payroll taxes 183 181 234 167 184 186
Other employee
related expenses 14 16 9 32 21 27
Incremental direct
cost of loan
origination (81) (74) (72) (88) (70) (79)
------- ------- ------- ------- ------- -------
Total salaries, wages
and employee
benefits $ 3,107 $ 2,834 $ 3,142 $ 3,016 $ 2,955 $ 3,037
Occupancy expense 728 674 797 700 595 568
Depreciation of
premises and
equipment 406 391 388 482 430 420
Supplies stationary
and printing 87 115 159 144 159 178
Marketing expenses 152 109 163 266 164 187
Data processing
expenses 151 148 165 196 181 168
Legal, auditing and
other professional
fees 311 599 539 403 223 220
Bank regulatory
related expenses 60 60 60 57 60 79
Postage and delivery 73 75 84 96 82 78
ATM related expenses 63 77 61 53 58 58
Amortization of CDI 26 27 29 29 28 31
Other expenses 916 947 841 1,214 800 742
------- ------- ------- ------- ------- -------
Total non interest
expense $ 6,080 $ 6,056 $ 6,428 $ 6,656 $ 5,735 $ 5,766
Other expense for the third quarter of 2007 totaled $6.1 million, an
increase of $345,000 or 6.02% over the comparable period in 2006. Included
in the current quarter period are unusual charges for termination benefits,
which amounted to $1.6 million and the recording of a curtailment benefit
in the amount of $1.2 million related to the freezing of the Corporation's
Defined Benefit Pension Plan. Salary and benefit expense increased by
$152,000 or 5.14% to $3.1 million. Such expenses included $400,000 in
employment termination expenses. Full time equivalent staffing levels were
180 at September 30, 2007 compared to 210 as of September 30, 2006 and 214
at December 31, 2006. The change in staffing levels was primarily due to
the previously announced 10% workforce reduction in the first quarter
period 2007. The Corporation also recorded increases in occupancy and
premise expense and other general and administrative expenses. The increase
in occupancy and bank premise expense was largely attributable to the
expansion of the branch network in connection with the opening of the
Boonton Mountain Lakes office and the Corporation's newest location in
Florham Park. The Corporation is currently undergoing a branch
rationalization strategy and has determined that it will not open its
Florham Park location and is holding the site for sale. It is currently
reviewing several other locations for closure. Other general and
administrative expense increased $193,000, associated with increases in
professional consulting, compliance, audit fees, and insurance expense. The
amortization of core deposit intangibles ("CDI") accounted for $26,000 and
$28,000, respectively, of other expense in the current and year-earlier
third quarters, with the increase reflecting the CDI amortization stemming
from the acquisition of Red Oak Bank in May 20, 2005.
For the nine-months ended September 30, 2007, total salaries and benefits
decreased by $191,000 or 2.06% to $9.1 million. Full time equivalent
staffing levels were 180 at September 30, 2007 compared to 212 as of
September 30, 2006 and 214 at December 31, 2006. The change in staffing
levels was primarily due to the previously announced 10% workforce
reduction in the first quarter period 2007.
The previously announced reduction in workforce resulted in a one-time, pre
tax charge of $140,000 in the first quarter of 2007 related to termination
benefits. The salary and benefit reductions, as a result of the reduction
in workforce, are expected to amount to $1.1 million on an annualized
basis.
Other expense for the nine-months ended September 30, 2007 totaled $18.6
million, an increase of $862,000, or 4.87%, over the comparable period in
2006. Higher operating expenses during the nine-month period resulted
included the one time charges for primarily from increases in occupancy and
premise expense and other general and administrative expenses. The $318,000
increase in occupancy and bank premise expense was largely attributable to
the expansion of the branch network in connection with the Red Oak
acquisition in 2005, while other general and administrative expense
increased $1.053 million associated with increases in professional
consulting, compliance, audit fees, insurance and stationary and printing
expense. CDI amortization accounted for $82,000 and $91,000, respectively,
of other expense in the current nine-month period and the comparable nine-
month period in 2006.
The Corporation's other expenses totaled $6.1 million and $18.6 million for
the three and nine-months ended September 30, 2007, respectively, and were
equivalent to 0.61% and 1.82% of average assets, respectively.
Income Tax Expense
The effective tax rate continues to be less than statutory rates. During
the second quarter of 2006, the Corporation effected an internal entity
reorganization. This reorganization resulted in continued tax savings in
both the current third quarter and the nine-month period ended September 30
, 2007, which offset some declines in the level of tax advantaged
investments during the quarter in comparison to the prior year. Tax-free
income generated from the Corporation's municipal and other tax advantaged
investments continues to reduce the effective tax rate.
The Corporation recorded an income tax benefit of $786,000 in the third
quarter of 2007, compared to a benefit of $78,000 in for the third quarter
of 2006. The change was primarily due to the impact of a reduction in
pre-tax income and the tax benefits from the entity restructuring. For the
three months ended September 30, 2007 pre-tax income declined to $212,000
compared with $1.2 million for the three-months ended September 30, 2006.
Balance Sheet Summary
Quarterly Condensed Consolidated
Balance Sheets (unaudited)
(dollars in thousands )
At quarter
ended: 9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
-------- --------- --------- --------- --------- ---------
Cash and
due from
banks $ 15,277 $ 24,363 $ 19,245 $ 34,088 $ 18,431 $ 17,007
Fed funds
and money
market 0 0 35,374 10,275 7,884 30,228
Investments 343,979 366,224 381,493 381,733 393,006 425,389
Loans 550,847 533,675 530,573 550,414 537,350 530,650
Allowance
for loan
losses (5,021) (4,974) (4,958) (4,960) (4,908) (4,935)
Restricted
investment
in bank
stocks,
at cost 7,347 8,299 7,832 7,805 6,924 6,952
Premises
and
equipment,
net 17,662 18,400 18,314 18,829 18,621 18,425
Goodwill 16,804 16,804 16,804 16,804 16,804 16,804
Core
deposit
intangible 426 452 479 508 542 571
Bank owned
life
insurance 22,044 21,822 21,591 21,368 21,185 20,972
Other
assets 18,425 16,557 22,219 14,520 14,587 10,650
TOTAL
ASSETS $987,790 $1,001,622 $1,048,966 $1,051,384 $1,030,426 $1,072,713
Deposits 650,999 678,011 722,648 726,771 731,727 772,963
Other
borrowings 237,744 221,994 220,327 211,589 197,953 202,520
Other
liabilities 5,317 5,804 7,828 15,411 4,069 3,012
Stockholders'
equity 93,730 95,813 98,163 97,613 96,677 94,218
TOTAL
LIABILITIES
AND
STOCKHOLDERS'
EQUITY $987,790 $1,001,622 $1,048,966 $1,051,384 $1,030,426 $1,072,713
Condensed Consolidated Average Balance Sheets (unaudited)
(dollars in thousands)
For three
month
period
ended: 9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
-------- --------- --------- --------- --------- ---------
Investments,
fed funds,
and other $362,119 $ 404,975 $ 415,980 $ 408,684 $ 433,175 $ 425,846
Loans 538,798 532,799 540,971 543,707 532,452 510,126
Allowance
for loan
losses (4,984) (4,986) (4,959) (4,918) (4,939) (4,936)
All other
assets 90,533 92,038 94,773 88,008 85,271 88,349
TOTAL
ASSETS $986,466 $1,024,826 $1,046,765 $1,035,481 $1,045,959 $1,019,385
Deposits-
interest
bearing 557,555 578,819 592,073 586,388 612,376 556,021
Deposits-
non interest
bearing 128,449 130,701 135,161 140,745 132,094 137,102
Other
borrowings 200,257 211,228 215,198 207,524 203,675 228,014
Other
liabilities 5,372 6,159 6,867 4,004 2,858 2,782
Stockholders'
equity 94,833 97,919 97,466 96,820 94,956 95,466
TOTAL
LIABILITIES
AND
STOCKHOLDERS'
EQUITY $986,466 $1,024,826 $1,046,765 $1,035,481 $1,045,959 $1,019,385
The Corporation had total assets of $987.8 million at September 30, 2007, a
decrease of $42.6 million from September 30, 2006 and a $63.6 million
decrease from December 31, 2006. The decrease in assets was primarily
through reductions in cash and securities. At September 30, 2007 the
Corporation experienced a decline of $40.9 million in its deposits and
borrowings compared to September 30, 2006. Net loans totaled $545.8
million at September 30, 2007, up $13.4 million from September 30, 2006. At
September 30, 2007, securities totaled $344.0 million, a decline of $49.0
million, or 12.47%, from September 30, 2006.
Securities
Investment securities reflected a decline of $49.0 million at September 30,
2007 compared to the comparable period in 2006. The decline is consistent
with maintaining the balance sheet strategies the Corporation has
previously outlined in seeking to reduce the size of its investment
securities portfolio while increasing loans as a percentage of the
earning-asset mix. Securities totaled $344.0 million at September 30 2007,
representing 34.8% of total assets, compared to $393.0 million,
representing 38.1% of total assets, at September 30, 2006.
Reflecting the lower balance of the securities portfolio and a moderation
in the U.S. Treasury yield curve at September 30, 2007, the net unrealized
loss on securities available for sale increased to $4.0 million, net of
tax, from $2.5 million at December 31, 2006 and $2.6 million at September
30, 2006.
Deposits/Funding Sources
Deposit Mix
(dollars in thousands)
At quarter
ended: 9/30/2007 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
--------- --------- --------- ---------- --------- ---------
Checking
accounts
Non
interest
bearing $ 121,451 $ 127,479 $ 128,394 $ 136,284 $ 134,774 $ 131,722
Interest
bearing 110,177 126,112 131,337 107,359 74,316 101,376
Savings
deposits 93,222 92,792 95,542 99,823 107,038 114,094
Money market
accounts 167,442 171,923 173,569 184,102 197,816 161,418
Time Deposits 158,707 159,705 193,806 199,203 217,783 264,353
--------- --------- --------- ---------- --------- ---------
Total
Deposits $ 650,999 $ 678,011 $ 722,648 $ 726,771 $ 731,727 $ 772,963
========= ========= ========= ========== ========= =========
Deposits totaled $651 million at September 30, 2007, a decrease of $80.7
million from September 30, 2006. The decrease in deposits primarily
reflects a decline in money market deposits, savings deposits and time
deposits, offsetting an increase in interest bearing checking deposits.
The declines were a result of a moderation in the yield curve and a
decision to reduce the Corporation's dependence on more rate sensitive high
costing funds, which were subject to maturity and repricing in favor of
lower costing wholesale funds available. More volatile certificates of
deposit of $100,000 or more declined as well as part of this strategy.
Borrowings totaled $237.7 million at September 30, 2007, reflecting an
increase of $39.8 million, or 20.1%, from September 30, 2006. Federal Home
Loan Bank of New York advances represented approximately $101.7 million of
the September 30, 2007 total, with repurchase agreements representing $75.9
million at the same date. Overnight customer repurchase transactions
covering commercial customer sweep accounts comprised $32.9 million of the
securities sold under repurchase agreements figure at September 30, 2007 as
compared with $24.9 million at September 30, 2006. The Corporation had
$35.0 million in borrowings called during the second quarter; these
borrowings were subsequently replaced with overnight funding.
Stockholders' Equity
Total stockholders' equity amounted to $93.7 million or 9.49% of total
assets at September 30, 2007, compared to $97.6 million or 9.28% of total
assets at December 31, 2006. The change in stockholders' equity at
September 30, 2007 reflects a change in other comprehensive income related
to, among other things, a change in unrealized losses on securities and the
impact of the recording of a pension curtailment associated with the
reduction in workforce (under which the Corporation recorded a $813,000 net
of tax charge to the other comprehensive income component of stockholders'
equity.) Book value per common share was $6.85 at September 30, 2007,
compared to $6.96 at September 30, 2006. Tangible book value (total
stockholders' equity less goodwill and other intangible assets) per common
share was $5.59 at September 30, 2007 and $5.71 at September 30, 2006.
During the three months ended September 30, 2007 the Corporation purchased
292,174 shares of common stock at an average cost of $12.20 per share.
As of September 30, 2007, the Corporation has purchased 635,427 common
shares at an average cost per share of $11.76 under the stock buyback
program amended on March 27, 2006 for the repurchase of up to 705,392
shares of the Corporation's outstanding common stock. The repurchased
shares were recorded as Treasury Stock, which resulted in a decrease in
stockholder's equity. On September 27, 2007 the Board approved an increase
in its current share buyback program to an additional 5% of outstanding
shares, enhancing its current authorization by 684,627 shares. Any
purchases by the Corporation may be made, from time to time, in the open
market, in privately negotiated transactions or otherwise. At September
30, 2007, there were 754,592 shares available for repurchase under the
Corporation's stock buyback program.
At September 30, 2007, the Corporation's capital ratios continued to exceed
the minimum Federal requirements for a bank holding company, and Union
Center National Bank's capital ratios continued to exceed each of the
minimum levels required for classification as a "well capitalized
institution" under the Federal Deposit Insurance Corporation Improvement
Act ("FDICIA").
At September 30, 2007, the Corporation's Tier 1 Capital Leverage ratio was
8.85%, the Corporation's total Tier 1 Risk Based Capital ratio was 13.09 %
and the Corporation's total Risk Based Capital ratio was 13.86%. Total Tier
1 capital decreased to approximately $85.8 million at September 30, 2007
from $88.0 million at December 31, 2006 but decreased from $97.4 million at
September 30, 2006. The reduction in Tier 1 Capital at September 30, 2007
and December 31, 2006 compared to September 30, 2006 reflects the
Corporation's redemption of Trust Preferred securities by its subsidiary
Center Bancorp, Inc. Statutory Trust I on December 18, 2006. The Trust
redeemed $10 million of its floating rate capital trust pass through
securities due December 18, 2031.
SUMMARY SELECTED YEAR-TO-DATE STATISTICAL INFORMATION AND FINANCIAL DATA
(Dollars in Thousands, Except per Share Data)
Summary of financial condition data through
stockholders equity 9/30/2007 9/30/2006
---------- ----------
Interest income $ 39,332 $ 39,917
Interest expense 23,005 21,257
Net interest income 16,327 18,660
Provision for loan losses 200 0
Net interest income after provision for loan losses 16,127 18,660
Other income 3,498 (985)
Other expense 18,564 17,702
Income before income tax expense 1,061 (27)
Income tax (benefit) expense (2,263) (1,634)
Net income $ 3,324 $ 1,607
Statement of Financial Condition Data
Investments $ 343,979 $ 393,006
Total loans 550,847 537,350
Goodwill and other intangibles 17,230 17,346
Total assets 987,790 1,030,426
Deposits 650,999 731,727
Borrowings 237,744 197,953
Stockholders' equity $ 93,730 $ 96,677
Summary of Income
Dividends
Cash Dividends $ 3,714 $ 3,612
Dividend payout ratio 111.73% 224.77%
Cash Dividends Per Share
Cash Dividends $ 0.27 $ 0.26
Earnings Per Share
Basic $ 0.24 $ 0.11
Diluted $ 0.24 $ 0.11
Weighted Average Common Shares Outstanding
Basic 13,894,888 13,980,411
Diluted 13,950,298 14,060,089
Operating Ratios
Return on average assets 0.43% 0.20%
Average stockholders' equity to average assets 9.49% 9.17%
Return on average equity 4.58% 2.22%
Return on average tangible stockholders' equity 5.58% 2.71%
Book Value
Book value per common share $ 6.85 $ 6.96
Tangible book value per common share $ 5.59 $ 5.71
Non-Financial Information
Common stockholders of record 689 738
Staff-full time equivalent 180 212
9/30/2007 9/30/2006
---------- ----------
Common shares outstanding 13,692,534 13,885,936
Stockholders' equity $ 93,730 $ 96,677
Less: Goodwill and other intangible assets 17,230 17,346
Tangible Stockholders' Equity $ 76,500 $ 79,331
Tangible Book Value $ 5.59 $ 5.71
Net Income $ 3,324 $ 1,607
Average Stockholders' Equity 96,730 96,398
Less: Average Goodwill and other intangible assets 17,272 17,393
Average Tangible Stockholders' Equity 79,458 79,005
Return on Average Tangible Stockholders' Equity 5.58% 2.71%
About Center Bancorp
Center Bancorp, Inc., through its wholly owned subsidiary, Union Center
National Bank, Union, New Jersey, currently operates 15 banking locations.
Banking centers are located in Union Township (6 locations), Berkeley
Heights, Boonton/Mountain Lakes, Madison, Millburn/Vauxhall, Morristown (3
locations), Springfield, and Summit, New Jersey. Construction will begin
shortly on a new banking location in Florham Park, New Jersey and plans are
underway to add a branch in Cranford, New Jersey as well. The Bank also
operates remote ATM locations in the Union, Chatham and Madison New Jersey
Transit train stations, Union Hospital and the Boys and Girls Club of
Union.
Union Center National Bank is the largest commercial bank headquartered in
Union County; it was chartered in 1923 and is a full-service banking
company.
For further information regarding Center Bancorp, Inc., call
1-(800)-862-3683. For information regarding Union Center National Bank,
visit our web site at http://www.centerbancorp.com
Non-GAAP Financial Measures
The Corporation's reference to its total other income, exclusive of gains
or losses recorded on securities sales, may constitute a "non-GAAP
financial measure." The Corporation has provided a reconciliation by also
reporting its total other income for the applicable periods. The
Corporation believes that the above-mentioned reference enhances the
public's ability to compare results between the applicable periods in 2006
and 2007. Tangible stockholders' equity represents a non-GAAP financial
measure and equals total stockholders' equity minus recorded goodwill and
other intangible assets. The Corporation has provided reconciliation by
also reporting its total stockholders' equity. The Corporation believes
that a disclosure of tangible stockholders' equity may be helpful for those
investors who seek to evaluate the Corporation's total stockholders' equity
without giving effect to intangible assets. Tangible book value is also a
non-GAAP financial measure and represents total stockholders' equity less
goodwill and other intangible assets, calculated on a per common share
basis. The Corporation has provided reconciliation by also reporting its
total book value per share. The Corporation believes that a disclosure of
tangible book value per share may be helpful for those investors who seek
to evaluate the Corporation's book value per share without giving effect to
goodwill and other intangible assets.
Forward-Looking Statements
All non-historical statements in this press release (including statements
regarding growth in loan volume, changes in earning asset mix, the funding
of loan commitments, cost reduction strategies and future net interest
margin) constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements may use such forward-looking terminology as "expect," "look,"
"believe," "plan," "anticipate," "may," "will" or similar statements or
variations of such terms or otherwise express views concerning trends and
the future. Such forward-looking statements involve certain risks and
uncertainties. These include, but are not limited to, the direction of
interest rates, continued levels of loan quality and origination volume,
continued relationships with major customers including sources for loans,
as well as the effects of international, national, regional and local
economic conditions and legal and regulatory barriers and structure,
including those relating to the deregulation of the financial services
industry, and other risks cited in reports filed by the Corporation with
the Securities and Exchange Commission. Actual results may differ
materially from such forward-looking statements. Center Bancorp, Inc.
assumes no obligation for updating any such forward-looking statement at
any time.
CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
September 30, December 31,
(Dollars in Thousands) 2007 2006
------------- -------------
(unaudited)
ASSETS
Cash and due from banks $ 15,277 $ 34,088
Federal funds sold and securities purchased
under agreement to resell 0 10,275
------------- -------------
Total cash and cash equivalents 15,277 44,363
Investment securities available-for-sale 229,517 250,603
Investment securities held to maturity
(approximate market value of $113,340
in 2007 and $130,900 in 2006) 114,462 131,130
------------- -------------
Total investment securities 343,979 381,733
Loans, net of unearned income 550,847 550,414
Less -- Allowance for loan losses 5,021 4,960
------------- -------------
Net Loans 545,826 545,454
Restricted investment in bank stocks, at cost 7,347 7,805
Premises and equipment, net 17,662 18,829
Accrued interest receivable 5,163 4,932
Bank owned life insurance 22,044 21,368
Other Assets 13,262 9,588
Goodwill and other intangible assets 17,230 17,312
------------- -------------
Total assets $ 987,790 $ 1,051,384
============= =============
LIABILITIES
Deposits:
Non-interest bearing $ 121,884 $ 136,453
Interest-bearing
Time deposits $100 and over 68,085 83,623
Interest-bearing transactions, savings
and time deposits $100 and less 461,030 506,695
------------- -------------
Total deposits 650,999 726,771
Overnight Federal funds and securities sold
under agreement to repurchase 87,906 29,443
Short-term borrowings 10,202 2,000
Long-term borrowings 134,481 174,991
Subordinated debentures 5,155 5,155
Accounts payable and accrued liabilities 5,317 15,411
------------- -------------
Total liabilities 894,060 953,771
------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock, no par value:
Authorized 5,000,000 shares; none issued -- --
Common stock, no par value:
Authorized 20,000,000 shares; issued
15,190,984 shares at September 30, 2007
and December 31, 2006; outstanding
13,692,534 shares at September 30, 2007
and 13,910,450 shares at December 31, 2006,
respectively 86,908 77,130
Additional paid in capital 4,912 4,535
Retained earnings 15,805 25,989
Treasury stock, at cost (1,498,450 shares at
September 30, 2007 and
1,280,534 shares at December 31, 2006) (9,788) (6,631)
Accumulated other comprehensive loss (4,107) (3,410)
------------- -------------
Total stockholders' equity 93,730 97,613
------------- -------------
Total liabilities and stockholders' equity $ 987,790 $ 1,051,384
============= =============
CENTER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30 September 30
========================== ==========================
(Dollars in
Thousands, Except
Per Share Data) 2007 2006 2007 2006
============ ============ ============ ============
(unaudited) (unaudited)
Interest income:
Interest and fees
on loans $ 8,460 $ 8,345 $ 25,087 $ 23,483
Interest and
dividends on
investment
securities:
Taxable interest
income 3,390 3,666 10,344 12,067
Non-taxable
interest income 792 945 2,399 2,971
Dividends 254 442 981 1,011
Interest on Federal
funds sold and
securities
purchased under
agreement to resell 40 234 521 385
------------ ------------ ------------ ------------
Total interest
income 12,936 13,632 39,332 39,917
------------ ------------ ------------ ------------
Interest expense:
Interest on
certificates of
deposit $100 or
more 1,132 1,180 3,022 3,883
Interest on other
deposits 3,954 4,049 12,704 8,938
Interest on
borrowings 2,369 2,451 7,279 8,436
------------ ------------ ------------ ------------
Total interest
expense 7,455 7,680 23,005 21,257
------------ ------------ ------------ ------------
Net interest
income 5,481 5,952 16,327 18,660
Provision for
loan losses 100 0 200 0
------------ ------------ ------------ ------------
Net interest income
after provision
for loan losses 5,381 5,952 16,127 18,660
------------ ------------ ------------ ------------
Other income:
Service charges,
commissions and
fees 438 443 1,293 1,330
Other income 105 99 332 309
Annuity and
insurance 131 40 254 145
Bank owned life
insurance 223 213 676 597
Net Gain (loss) on
securities sold 14 212 943 (3,366)
------------ ------------ ------------ ------------
Total other income
(loss) 911 1,007 3,498 (985)
------------ ------------ ------------ ------------
Other expense:
Salaries and
employee
benefits 3,107 2,955 9,083 9,274
Occupancy, net 692 563 2,044 1,690
Premises and
equipment 442 461 1,340 1,376
Professional and
consulting 311 223 1,449 776
Stationery and
printing 87 159 361 548
Marketing and
advertising 152 164 424 465
Computer expense 151 181 464 545
Other 1,138 1,029 3,399 3,028
------------ ------------ ------------ ------------
Total other expense 6,080 5,735 18,564 17,702
------------ ------------ ------------ ------------
Income (loss)
before income
tax expense
(benefit) 212 1,224 1,061 (27)
Income tax
benefit (786) (78) (2,263) (1,634)
------------ ------------ ------------ ------------
Net income $ 998 $ 1,302 $ 3,324 $ 1,607
============ ============ ============ ============
Earnings per share:
Basic $ 0.07 $ 0.09 $ 0.24 $ 0.11
Diluted $ 0.07 $ 0.09 $ 0.24 $ 0.11
------------ ------------ ------------ ------------
Weighted average
common shares
outstanding:
Basic 13,864,272 13,896,165 13,894,888 13,980,411
Diluted 13,938,892 13,989,262 13,950,298 14,060,089
============ ============ ============ ============
All common share and per common share amounts have been adjusted to
reflect the 5 percent stock dividend declared on March 29, 2007 paid
on June 1, 2007.
Average Statements of Condition with Interest and Average Rates
Three Months Ended September 30,
----------------------------------------------------
2007 2006
------------------------ --------------------------
Aver- Aver-
(Tax-Equivalent Interest age Interest age
Basis, Dollars Average Income/ Yield/ Average Income/ Yield/
in Thousands) Balance Expense Rate Balance Expense Rate
--------- ------- ---- ----------- ------- ----
Assets:
Interest-earning
assets:
Investment
securities:(1)
Taxable $ 261,005 $ 3,423 5.25% $ 285,968 $ 3,709 5.19%
Tax-exempt 90,124 1,309 5.81 122,772 1,814 5.91
Loans, net of
unearned income(2) 538,798 8,460 6.28 532,452 8,345 6.27
Federal funds sold
and securities
purchased under
agreement to resell 3,238 40 4,94 17,489 234 5.35
Restricted investment
in bank stocks 7,752 138 7.12 6,946 108 6.22
--------- ------- ---- ----------- ------- ----
Total
interest-earning
assets 900,917 13,370 5.94 965,627 14,210 5.89
========= ======= ==== =========== ======= ====
Non-interest-earning
assets:
Cash and due from
banks 16,691 18,083
Bank owned life
insurance 21,910 21,059
Intangible assets 17,245 17,363
Other assets 34,687 28,766
Allowance for loan
losses (4,984) (4,939)
--------- ------- ---- ----------- ------- ----
Total non-interest
earning assets 85,549 80,332
--------- ------- ---- ----------- ------- ----
Total assets $ 986,466 $ 1,045,959
========= ======= ==== =========== ======= ====
Liabilities and
stockholders' equity
Interest-bearing
liabilities:
Money market deposits $ 140,221 $ 1,643 4.69% $ 165,757 $ 1,614 3.89%
Savings deposits 67,644 375 2.22 86,544 438 2.02
Time deposits 177,667 2,095 4.72 238,731 2,671 4.48
Other
interest-bearing
deposits 172,023 973 2.26 121,344 506 1.67
Short-term borrowings
and FHLB advances 195,102 2,264 4.64 188,210 2,109 4.48
Subordinated
debentures 5,155 105 8.15 15,465 342 8.85
--------- ------- ---- ----------- ------- ----
Total
interest-bearing
liabilities 757,812 7,455 3.94 816,051 7,680 3.76
========= ======= ==== =========== ======= ====
Non-interest-bearing
liabilities:
Demand deposits 128,118 131,692
Other
non-interest-bearing
deposits 331 402
Other liabilities 5,372 2,858
--------- ------- ---- ----------- ------- ----
Total
non-interest-bearing
liabilities 133,821 134,952
Stockholders' equity 94,833 94,956
--------- ------- ---- ----------- ------- ----
Total liabilities and
stockholders' equity $ 986,466 $ 1,045,959
========= ======= ==== =========== ======= ====
Net interest income
(tax-equivalent
basis) $ 5,915 $ 6,530
--------- ------- ---- ----------- ------- ----
Net interest spread 2.00% 2.13%
--------- ------- ---- ----------- ------- ----
Net interest income
as percent of
earning-assets (net
interest margin) 2.63% 2.70%
--------- ------- ---- ----------- ------- ----
Tax-equivalent
adjustment(3) (434) (578)
--------- ------- ---- ----------- ------- ----
Net interest income $ 5,481 $ 5,952
========= ======= ==== =========== ======= ====
(1) Average balances for available-for-sale securities are based on
amortized cost
(2) Average balances for loans include loans on non-accrual status
(3) The tax-equivalent adjustment was computed based on a statutory
Federal income tax rate of 34 percent
Average Statements of Condition with Interest and Average Rates
Nine months Ended September 30,
--------------------------------------------------------
2007 2006
--------------------------- ---------------------------
Aver- Aver-
Interest age Interest age
(Tax-Equivalent Average Income/ Yield/ Average Income/ Yield/
Basis, Dollars Balance Expense Rate Balance Expense Rate
in Thousands) ----------- -------- ---- ----------- -------- ----
Assets:
Interest-earning
assets:
Investment
securities:(1)
Taxable $ 275,504 $ 10,449 5.06% $ 320,886 $ 12,268 5.10%
Tax-exempt 97,512 4,257 5.82 116,018 5,041 5.79
Loans, net of
unearned
income(2) 537,515 25,087 6.22 515,156 23,483 6.08
Federal funds
sold and
securities
purchased under
agreement to
resell 13,256 521 5.24 10,041 385 5.11
Restricted
investment in
bank stocks 7,784 402 6.89 8,479 399 6.27
----------- -------- ---- ----------- -------- ----
Total
interest-earning
assets 931,571 40,716 5.83 970,580 41,576 5.71
=========== ======== ==== =========== ======== ====
Non-interest-
earning assets:
Cash and due from
banks 19,037 20,554
Bank owned life
insurance 21,689 19,876
Intangible assets 17,272 17,393
Other assets 34,539 28,320
Allowance for
loan losses (4,977) (4,937)
----------- -------- ---- ----------- -------- ----
Total
non-interest
earning assets 87,560 81,206
----------- -------- ---- ----------- -------- ----
Total assets $ 1,019,131 $ 1,051,786
=========== ======== ==== =========== ======== ====
Liabilities and
stockholders'
equity
Interest-bearing
liabilities:
Money market
deposits $ 141,613 $ 4,856 4.57% $ 108,251 $ 2,572 3.17%
Savings deposits 70,829 1,129 2.13 94,862 1,395 1.96
Time deposits 191,364 6,770 4.72 239,473 7,470 4.16
Other
interest-bearing
deposits 172,217 2,971 2.30 120,961 1,384 1.53
Short-term
borrowings and
FHLB advances 203,685 6,969 4.56 236,914 7,429 4.18
Subordinated
debentures 5,155 310 8.02 15,465 1,007 8.68
----------- -------- ---- ----------- -------- ----
Total
interest-bearing
liabilities 784,863 23,005 3.91 815,926 21,257 3.47
=========== ======== ==== =========== ======== ====
Non-interest-
bearing
liabilities:
Demand deposits 131,031 134,222
Other
non-interest-
bearing deposits 381 1,825
Other liabilities 6,126 3,415
----------- -------- ---- ----------- -------- ----
Total
non-interest-
bearing
liabilities 137,538 139,462
Stockholders'
equity 96,730 96,398
----------- -------- ---- ----------- -------- ----
Total liabilities
and
stockholders'
equity $ 1,019,131 $ 1,051,786
=========== ======== ==== ===
