SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
January 27, 2000
- -------------------------------------------------------------------------------
(Date of earliest event reported)
Progress Financial Corporation
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-14815 25-2413363
- -------------------------------------------------------------------------------
(State of other jurisdiction (Commission File Number) (IRS Employe
of incorporation) Identified No.)
4 Sentry Parkway, Suite 230, Blue Bell, Pennsylvania 19422-0764
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(610)-825-8800
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(Registrant's telephone number, including area code)
Not Applicable
- -------------------------------------------------------------------------------
(Former name,former address and former fiscal year,if changed since last report)
Exhibit Index appears on page 4
<PAGE>
Item 5. Other Events
On January 27, 2000, Progress Financial Corporation reported fourth
quarter net income of $1.9 million or diluted earnings per share of $.34
compared with net income of $1.5 million or diluted earnings per share of $.26
for the fourth quarter of 1998. For further information see the press release
attached as Exhibit 99(a) and incorporated herein by reference.
Also on January 27, 2000, Progress Financial Corporation declared
increased quarterly cash dividend of $.05 per share to shareholders of record on
January 31, 2000, which will be paid on February 14, 2000. For further
information, see the press release attached as Exhibit 99(b) and incorporated
herein by reference.
On January 27, 2000, Progress Financial Corporation distributed an
earnings package to analysts. For further information see the attached Exhibit
99(c) and incorporated herein by reference.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PROGRESS FINANCIAL CORPORATION
Dated: February 29, 2000 By: /s/ Michael B. High
-----------------------------
Michael B. High
Senior Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
99(a) Press Release on Fourth Quarter 1999 earnings
issued on January 27, 2000
99(b) Press Release on dividend declaration issued on
January 27, 2000
99(c) Analyst package distributed on January 27, 2000
<PAGE>
Exhibit 99(a)
99(a)
Press Release on Fourth Quarter 1999
earnings issued on January 27, 2000
<PAGE>
Exhibit 99 (a)
NEWS RELEASE
Contact: Michael B. High, CFO/Senior Vice President
(610) 941-4804
Dorothy Jaworski, Director of Investor Relations
(484) 322-4822
For immediate release:
Progress Financial Corporation Announces Fourth Quarter Earnings
of $1.9 Million, a 29% Increase Over Fourth Quarter 1998
Blue Bell, PA, January 27, 2000 - Progress Financial Corporation (the
"Company" - Nasdaq: PFNC) today reported fourth quarter 1999 net income of $1.9
million, or diluted earnings per share of $.34, compared to net income of $1.5
million, or diluted earnings per share of $.26 for the fourth quarter of 1998.
Commenting on the fourth quarter results, W. Kirk Wycoff, President and
CEO, stated, "We are pleased to announce a 29% increase in fourth quarter 1999
earnings over 1998. Our margin increased fifteen basis points primarily due to
increased loan volume. The Company recognized $931,000 of income during the
period primarily related to VerticalNet Inc. common stock previously acquired
through the exercise of client warrants. Fee based income increased $1.9
million, primarily due to mutual fund, annuity and insurance commissions and
teleservices income. These increases were partially offset by a $925,000
increase in the provision for possible loan and lease losses to increase our
reserve coverage and due to charge-offs in the leasing portfolio and the
deterioration of a loan to a commercial manufacturer."
Average earning assets for the fourth quarter of 1999 were $668.2
million compared to $595.5 million for the same period in 1998. The growth in
assets relates to higher loan production across all key divisions and higher
lease production. Average loans and leases increased $72.6 million to $478.5
million compared to the same quarter of 1998. Consequently, tax-equivalent net
interest income for the fourth quarter of 1999 increased $1.0 million or 16%
over the same period in 1998. The net interest margin increased by fifteen basis
points primarily due to increases in the volume of commercial business,
commercial real estate and construction loans and because Progress Bank is asset
sensitive and our spread responded positively to the recent increases in
interest rates.
<PAGE>
Loans and leases outstanding totaled $503.7 million at December 31,
1999, including commercial real estate loans of $162.6 million, which
increased $28.2 million or 21% from December 31, 1998. In addition, commercial
business loans totaled $119.8 million, an increase of $27.1 million or 29% from
December 31, 1998.
Loans and Leases Outstanding *
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31,
-----------------------------------------------------------------------------------------------------
1999 1998
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Actual % of Total Actual % of Total
Commercial Business $119,807 23.79% $ 92,737 21.87%
Commercial Real Estate 162,588 32.28 134,380 31.69
Lease Financing 86,985 17.27 73,499 17.34
Residential Mortgages 40,554 8.05 50,086 11.81
Construction 58,813 11.68 44,546 10.51
Consumer 34,918 6.93 28,738 6.78
Total $503,665 100.00% $423,986 100.00%
* Includes loans held for sale
</TABLE>
The Company reported non-performing assets of $5.8 million at December 31,
1999 up from $3.7 million at December 31, 1998, which includes $2.2 million for
the aforementioned deterioration in a manufacturing customer's credit. The
Company's non-performing assets to total assets ratio at December 31, 1999 was
.75% compared to .57% at December 31, 1998. During the quarter ended December
31, 1999, the Company recorded a $1.2 million provision for possible loan and
lease losses compared with $300,000 for the comparable period in 1998. The
increase of $925,000 was the result of the charge-off policy implemented in the
second quarter for the lease portfolio, the deterioration in a manufacturing
customer's credit and the bank's need to increase its reserve coverage from
prior years. At December 31, 1999, the lease portfolio delinquency stood at 2.1%
compared to 7.0% for the comparable period in 1998. As a result, the company
expects a lower level of charge offs in this portfolio for 2000. As of December
31, 1999, the allowance for possible loan and lease losses increased by $1.4
million to $5.9 million from $4.5 million at December 31, 1998.The ratio of the
allowance for possible loan and lease losses to total loans and leases was 1.18%
at December 31, 1999 compared to 1.06% at December 31, 1998.
Non-interest income for the quarter ended December 31, 1999 amounted to
$6.9 million, compared to $2.3 million for the same period in 1998. The Company
recognized $931,000 of pre-tax income ($614,000 after tax) during the period
primarily related to VerticalNet Inc. common stock previously acquired through
the exercise of client warrants. During the 1999 fourth quarter, the Company
earned $902,000 in mutual fund, annuity and insurance commissions. Teleservices
fee income of $796,000 represents an increase of $551,000 over the fourth
quarter of 1998 due to new inbound clients. Service charges on deposits
increased $152,000 over the fourth quarter of 1998.
Total non-interest expense was $9.9 million for the quarter ended December
31, 1999 compared to $5.8 million for the quarter ended December 31, 1998. The
increase in non-interest expense for the quarter ended December 31, 1999 over
the comparable quarter in 1998 was primarily due to increases in salaries and
employee benefits of $2.0 million to $4.9 million as a result of additional
employees of the newly formed financial services and insurance subsidiary
Progress Financial Resources, the staffing of Progress Capital Management, Inc.
to pursue our SBIC license, and from other new positions established within the
Company. Occupancy and furniture, fixtures and equipment expenses increased
$387,000 mainly due to three new branch openings in the second and fourth
quarters and recent acquisitions. Professional services expense increased
$401,000 primarily due to the increased usage of an interactive voice response
system in handling new inbound clients and the outsourcing of the internal audit
function. Other expenses increased $1.2 million primarily due to increased
advertising and loss on disposition of equipment.
Total assets increased to $765.5 million at December 31, 1999 from $646.8
million at December 31, 1998. Total deposits increased 28% to $521.4 million at
December 31, 1999 from $408.2 million at December 31, 1998. Deposit growth is
the result of the continuing expansion of our retail delivery network in Bucks,
Chester and Montgomery Counties and aggressive advertising.
Progress Financial Corporation is a unitary thrift holding company
headquartered in Blue Bell, Pennsylvania. The business of the Company consists
primarily of the operation of Progress Bank, which serves businesses and
consumers through fourteen full service offices. The Company also offers a
diversified array of financial services including equipment leasing through
Progress Leasing Company, with offices in Blue Bell, Pennsylvania and Timonium,
Maryland, and financial planning services and investments through Progress
Financial Resources, Inc., headquartered in Philadelphia, Pennsylvania. In
addition, the Company conducts commercial mortgage banking and brokerage
services through Progress Realty Advisors, Inc. with locations in Blue Bell,
Pennsylvania; Richmond and Chesapeake, Virginia; Woodbridge, New Jersey;
Wilmington, Delaware; and Raleigh, North Carolina. The Company also conducts
business-to-business telemarketing through Procall Teleservices, Inc.;
construction and development of assisted living communities through Progress
Development Corporation, and venture capital activities managed by Progress
Capital Management, Inc. The Company's common stock is traded on the Nasdaq
Stock Market, National Market under the Symbol "PFNC".
FINANCIAL DATA ATTACHED
<PAGE>
Progress Financial Corporation
Financial Highlights
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------ -----------------------------
<S> <C> <C> <C> <C>
1999 1998 1999 1998
---------------- ------------- ------------- ---------------
Reported Results:
Basic net income per common share (1) $ .35 $ .28 $ 1.21 $ .97
Diluted net income per common share (1) .34 .26 1.15 .88
Dividends per common share (1) .05 .04 .18 .14
Book value per share (1) 8.67 7.82 8.67 7.82
Tangible book value per share (1) 7.78 6.85 7.78 6.85
Basic average common shares outstanding (1) 5,573,076 5,339,935 5,503,259 5,124,681
Diluted average common shares outstanding(1) 5,788,924 5,855,871 5,809,921 5,627,588
Net interest margin (FTE) 4.29% 4.14% 4.24% 4.32%
Net interest spread (FTE) 3.67 3.49 3.63 3.66
Return on average assets 1.08 .96 .98 .89
Return on average equity 17.33 14.41 15.47 13.78
Efficiency ratio 59.28 63.80 65.24 66.85
Average equity to average assets 6.23 6.63 6.33 6.42
Ratio of allowance for possible loan and lease losses
to total loan and leases receivable 1.18 1.06 1.18 1.06
Ratio of non-performing assets to total assets .75 .57 .75 .57
Ratio of allowance for possible loan losses to non-performing
loans and leases 103.96 121.91 103.96 121.91
Selected Average Balances:
Loans, gross $478,535 $405,907 $454,479 $373,545
Earning assets 668,187 595,527 635,453 530,093
Total assets 720,182 629,942 680,857 562,555
Deposits 502,207 397,523 452,998 364,226
Equity 44,899 41,759 43,131 36,140
</TABLE>
(1) Per share amounts have been restated to reflect the 5% stock dividend
distributed to shareholders on August 31, 1999.
<PAGE>
Progress Financial Corporation
Consolidated Statements of Financial Condition
(Dollars in Thousands)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
------------- --------------
Assets:
Cash and due from banks:
<S> <C> <C>
Non-interest bearing $15,648 $14,189
Interest bearing 24,278 6,498
Loans held for sale (fair value: $0 in 1999 and $25,326 in 1998) -- 25,250
Trading securities 3,267 --
Investments:
Available for sale at fair value (amortized cost: $23,571 in 1999 and $18,208 in 1998) 30,632 17,909
Held to maturity at amortized cost (fair value: $32,914 in 1999 and $12,547 in 1998) 34,309 12,401
Mortgage-backed securities:
Available for sale at fair value (amortized cost: $123,958 in 1999 and $146,910 in 1998) 118,886 146,459
Loans and leases, net (net of reserve: $5,927 in 1999 and $4,490 in 1998) 497,738 394,246
Premises and equipment, net 16,443 10,707
Other assets 24,333 19,154
-------- --------
Total assets $765,534 $646,813
======== ========
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing $ 65,305 $ 54,934
Interest-bearing 456,134 353,228
Short-term borrowings 50,767 45,941
Other liabilities 19,068 15,250
Long-term Debt:
Federal Home Loan Bank advances 85,000 83,000
Other debt 27,000 38,475
------- -------
Total liabilities 703,274 590,828
------- -------
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding
solely junior subordinated debentures of the Corporation 14,451 14,431
Stockholders' equity:
Common stock, $1 par value; 12,000,000 shares authorized; 5,680,000 and
5,263,000 and shares issued at December 31, 1999 and 1998, respectively,
including treasury shares of 152,000
and 177,000 and unallocated shares held by the Employee Stock Ownership Plan of 14,000, and 5,680 5,263
24,000 at December 31, 1999 and 1998, respectively.
Other common stockholders' equity, net 40,895 36,786
Net accumulated other comprehensive income (loss) 1,234 (495)
------- -------
Total stockholders' equity 47,809 41,554
------- -------
Total liabilities, Corporation-obligated mandatorily redeemable capital securities of
subsidiary trust holding solely junior subordinated debentures of the Corporation and $765,534 $646,813
stockholders' equity ======== ========
</TABLE>
<PAGE>
Progress Financial Corporation
Consolidated Statements of Operations
(Dollars in Thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
<S> <C> <C> <C> <C>
1999 1998 1999 1998
Interest income:
Loans and leases, including fees $10,860 $9,414 $40,952 $35,468
Mortgage-backed securities 2,055 2,474 8,008 8,686
Investment securities 838 355 2,346 1,017
Other 223 110 868 158
------- ------ ------- -------
Total interest income 13,976 12,353 52,174 45,329
Interest expense:
Deposits 4,808 3,830 16,759 14,466
Short-term borrowings 432 633 2,199 3,164
Long-term borrowings 1,570 1,678 6,474 4,820
------ ------ ------ -------
Total interest expense 6,810 6,141 25,432 22,450
------ ------ ------ -------
Net interest income 7,166 6,212 26,742 22,879
Provision for possible loan and lease losses 1,225 300 3,548 959
------ ------ ------ -------
Net interest income after provision for possible loan and lease 5,941 5,912 23,194 21,920
losses ------ ------ ------ -------
Non-interest income:
Service charges on deposits 584 432 2,097 1,663
Lease financing fees 333 350 1,531 1,414
Mutual fund, annuity and insurance commissions 902 -- 2,669 --
Teleservices fee income 796 245 3,406 1,034
Loan brokerage and advisory fees 688 690 2,385 2,108
Gain (loss) from sale of securities (125) 96 (347) 533
Client warrant income 931 73 4,188 73
Fees and other 2,756 369 5,064 1,835
------ ------ ------ ------
Total non-interest income 6,865 2,255 20,993 8,660
------ ------ ------ ------
Non-interest expense:
Salaries and employee benefits 4,912 2,962 17,586 11,272
Occupancy 475 285 1,606 1,280
Data processing 354 275 1,175 1,073
Furniture, fixtures and equipment 479 282 1,623 1,085
Professional services 707 306 2,222 1,117
Capital securities expense 399 398 1,595 1,593
Other 2,529 1,292 8,166 5,256
------ ------ ------ ------
Total non-interest expense 9,855 5,800 33,973 22,676
------ ------ ------ ------
Income before income taxes and cumulative effect of accounting change 2,951 2,367 10,214 7,904
Income tax expense 990 850 3,543 2,878
------ ------ ------ ------
Income before cumulative effect of accounting change 1,961 1,517 6,671 5,026
Cumulative effect of accounting change (net of tax benefit of $26) -- -- -- (46)
------ ------ ------ ------
Net Income $1,961 $1,517 $6,671 $4,980
====== ====== ====== ======
Basic income per common share before cumulative effect of accounting $.35 $.28 $1.21 $.98
change ====== ====== ====== ======
Diluted income per common share before cumulative effect of accounting $.34 $.26 $1.15 $.89
change ====== ====== ====== ======
Basic net income per common share $.35 $.28 $1.21 $.97
====== ====== ====== ======
Diluted net income per common share $.34 $.26 $1.15 $.88
====== ====== ====== ======
Dividends per common share $.05 $.04 $.18 $.14
====== ====== ====== ======
Basic average common shares outstanding 5,573,076 5,339,935 5,503,259 5,124,681
========= ========= ========= =========
Diluted average common shares outstanding 5,788,924 5,855,871 5,809,921 5,627,588
========= ========= ========= =========
###
</TABLE>
<PAGE>
Exhibit 99(b)
Press Release on dividend declaration
issued on January 27, 2000
<PAGE>
Exhibit 99(b)
NEWS RELEASE
Contact: Michael B. High--(610) 941-4804
CFO/Senior Vice President
Progress Financial Corporation
4 Sentry Parkway - Suite 200
Blue Bell, PA 19422
For immediate release:
Progress Financial Corporation Declares Cash Dividend
Blue Bell, PA, January 27, 2000 - The Board of Directors of Progress
Financial Corporation (the "Company" - Nasdaq: PFNC) has declared its regular
quarterly cash dividend on its common stock, according to W. Kirk Wycoff,
Chairman, President and Chief Executive Officer. The cash dividend of $.05 per
share will be paid on February 14, 2000 to shareholders of record on January 31,
2000.
Progress Financial Corporation is a unitary thrift holding company
headquartered in Blue Bell, Pennsylvania. The business of the Company consists
primarily of the operation of Progress Bank, which serves businesses and
consumers through fourteen full service offices. The Company also offers a
diversified array of financial services including equipment leasing through
Progress Leasing Company, with offices in Blue Bell, Pennsylvania and Timonium,
Maryland, and financial planning services and investments through Progress
Financial Resources, Inc., headquartered in Philadelphia, Pennsylvania. In
addition, the Company conducts commercial mortgage banking and brokerage
services through Progress Realty Advisors, Inc. with locations in Blue Bell,
Pennsylvania; Richmond and Chesapeake, Virginia; Woodbridge, New Jersey;
Wilmington, Delaware; and Raleigh, North Carolina. The Company also conducts
business-to-business telemarketing through Procall Teleservices, Inc.;
construction and development of assisted living communities through Progress
Development Corporation, and venture capital activities managed by Progress
Capital Management, Inc. The Company's common stock is traded on the Nasdaq
Stock Market, National Market under the Symbol "PFNC".
####
<PAGE>
Exhibit 99(c)
Analyst package distributed on January 27, 2000
<PAGE>
<TABLE>
<CAPTION>
Three months ended Twelve months ended
December 31, December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Percent Percent
1999 1998 change 1999 1998 change
- ------------------------------------------------------------------------------------------------------------------------------------
Per Common Share Data
- ----------------------
Net income:
Basic 0.35 $0.28 25.00% $1.21 $0.97 24.74%
Diluted 0.34 $0.26 30.77% $1.15 $0.88 30.68%
Cash dividends declared 0.05 $0.04 25.00% $0.18 $0.14 28.57%
Book value $8.67 $7.82 10.87% $8.67 $7.82 10.87%
Tangible book value $7.78 $6.85 13.58% $7.78 $6.85 13.58%
Average shares outstanding:
Basic 5,573,076 5,339,935 4.37% 5,503,259 5,124,681 7.39%
Diluted 5,788,924 5,855,871 -1.14% 5,809,921 5,627,588 3.24%
Financial Ratios
- ----------------
Return on average shareholders' equity 17.33% 14.41% 20.23% 15.47% 13.78% 12.24%
Return on average total assets 1.08% 0.96% 13.07% 0.98% 0.89% 10.68%
Average yield on earning assets 8.34% 8.23% 1.34% 8.24% 8.55% -3.63%
Average rate on interest bearing liabilities 4.67% 4.74% -1.48% 4.61% 4.89% -5.73%
Net interest spread 3.67% 3.49% 5.16% 3.63% 3.66% -0.82%
Net interest margin (FTE) 4.29% 4.14% 3.62% 4.24% 4.32% -1.85%
Efficiency ratio 59.28% 63.80% -7.08% 65.24% 66.85% -2.40%
Risk-based capital - Tier 1 8.90% 9.56% -6.90% 8.90% 9.56% -6.90%
- Total capital 10.01% 10.58% -5.39% 10.01% 10.58% -5.39%
Tier 1 leverage ratio 6.30% 6.60% -4.55% 6.30% 6.60% -4.55%
Average shareholders' equity/average total asssets 6.23% 6.63% -6.03% 6.33% 6.42% -1.40%
Asset Quality (dollars in thousands)
- ------------------------------------
Allowance for loan losses $5,927 $4,490 32.00% $5,927 $4,490 32.00%
Allowance for loan losses/Loans 1.18% 1.06% 11.32% 1.18% 1.06 11.32%
Net charge-offs(recoveries) $482 $421 14.49% $2,111 $332 535.84%
Net charge-offs/Average loans (annualized) 0.40% 0.41% -2.89% 0.46% 0.09% 422.61%
Nonperforming assets $5,767 $3,683 56.58% $5,767 $3,683 56.58%
Nonperforming assets/Total loans plus OREO 1.16% 0.88% 31.82% 1.16% 0.88% 31.82%
Nonperforming assets/Total assets 0.75% 0.57% 31.72% 0.75% 0.57% 31.72%
Allowance for loan losses/Nonperforming loans 103.96% 121.91% -14.72% 103.96% 121.91% -14.72%
Average Balances (in thousands)
- -------------------------------
Loans and leases(gross of reserves) $478,535 $405,907 17.89% $454,479 $373,545 21.67%
Earning assets 668,187 595,527 12.20% 635,453 530,093 19.88%
Total assets 720,182 629,942 14.33% 680,857 562,555 21.03%
Deposits 502,207 397,523 26.33% 452,998 364,226 24.37%
Interest bearing liabilities 578,754 513,900 12.62% 551,224 459,079 20.07%
Shareholders' equity 44,899 41,759 7.52% 43,131 36,140 19.34%
Period End Balances (in thousands)
- ----------------------------------
Loans and leases(gross of reserves) $497,738 $419,496 18.65% $497,738 $419,496 18.65%
Total assets 765,534 646,813 18.35% 765,534 646,813 18.35%
Deposits 521,439 408,162 27.75% 521,439 408,162 27.75%
Total liabilities 703,274 590,828 19.03% 703,274 590,828 19.03%
Shareholders' equity 47,809 41,554 15.05% 47,809 41,554 15.05%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Three months Three months Three months Three months Twelve months
ended ended ended ended ended
December 31, September 30, June 30, March 31, December 31,
------------------ ----------------- ------------------- ------------------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
% % % % %
1999 1998 change 1999 1998 change 1999 1998 change 1999 1998 change 1999 1998 change
------ ----- ------- ---- ----- ------ ----- ---- ------ ---- ---- ------ ---- ---- ------
TAX EQUIVALENT INCOME STATEMENT
($in thousands,
except per share data)
Net interest income(FTE) $7,230 $6,212 16% $6,810 $6,015 13% $6,647 $5,461 22% $6,260 $5,191 21% $26,947 $22,879 18%
FTE adjustment (64) - - (48) - - (48) - - (45) - - (205) - -
------------------- --------------------- ------------------- ------------------ -------------------
Net interest income 7,166 6,212 15% 6,762 6,015 12% 6,599 5,461 21% 6,215 5,191 20% 26,742 22,879 17%
Provision for losses on loans 1,225 300 308% 658 233 182% 1,216 224 443% 449 202 122% 3,548 959 270%
Non-Interest Income:
Service charges on deposits 584 432 35% 572 455 26% 521 409 27% 420 367 14% 2,097 1,663 26%
Lease financing fees 333 350 -5% 334 315 6% 477 384 24% 387 365 6% 1,531 1,414 8%
Mutual fund, annuity
and insurance commissions 902 - - 713 - - 574 - - 480 - - 2,669 - -
Teleservices fee income 796 245 225% 1,377 277 397% 990 338 193% 243 174 40% 3,406 1,034 229%
Loan brokerage and
advisory fees 688 690 0% 522 583 -10% 652 390 67% 523 445 18% 2,385 2,108 13%
Gain(loss) from sale
of securities (125) 96 -230% (66) 100 166% 4 122 -97% (160) 215-174% (347) 533 -165%
Client warrant income 931 73 - 2,775 - - 482 - - - - - 4,188 73 -
Fees and other income 2,756 369 647% 889 536 66% 550 619 -11% 869 239 264% 5,064 1,763 187%
--------------------- ------------------ --------------------- ----------------- ------------------
Total non-interest income 6,865 2,255 204% 7,116 2,266 214% 4,250 2,262 88% 2,762 1,805 53% 20,993 8,588 144%
Non-Interest Expenses:
Salaries and employee
benefits 4,912 2,929 68% 4,895 2,952 66% 4,275 2,773 54% 3,504 2,618 34% 17,586 11,272 56%
Occupancy 475 285 67% 470 337 39% 316 353 -10% 345 305 13% 1,606 1,280 25%
Data processing 354 275 29% 339 287 18% 264 262 1% 218 249 -12% 1,175 1,073 10%
Furniture, fixtures
and equipment 479 282 70% 429 267 61% 425 282 51% 290 254 14% 1,623 1,085 50%
Loan and real estate
owned expenses, net 275 174 58% 188 145 30% 130 156 -17% 127 117 9% 720 592 22%
Professional services 707 306 131% 568 431 32% 580 189 207% 367 191 92% 2,222 1,117 99%
Capital securites expense 399 398 0% 399 398 0% 399 399 0% 398 398 0% 1,595 1,593 0%
Other 2,254 1,151 96% 2,465 1,110 122% 1,532 1,316 16% 1,195 1,087 10% 7,446 4,664 60%
------------------ ------------------ ----------------- ----------------- ------------------
Total non-interest
expenses 9,855 5,800 70% 9,753 5,927 65% 7,921 5,730 38% 6,444 5,219 23% 33,973 22,676 50%
------------------ ------------------ ------------------ ----------------- -------------------
Income Before Income Taxes 2,951 2,367 25% 3,467 2,121 63% 1,712 1,769 -3% 2,084 1,575 32% 10,214 7,832 30%
Provision for income
tax expense 990 850 16% 1,210 775 56% 582 648 -10% 761 579 31% 3,543 2,852 24%
------------------ ------------------- ------------------ ----------------- -------------------
Net income $1,961 $1,517 29% $2,257 $1,346 68% $1,130 $1,121 1% $1,323 $996 33% $6,671 $4,980 34%
================== =================== ================== ================= ===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
QUARTERLY INCOME STATEMENT
(Unaudited)
($ in thousands, except per share) Fourth Third Second First Year-
1999 Quarter Quarter Quarter Quarter to-date
--------------- --------------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
FTE interest income $14,040 $13,216 $12,781 $12,342 $52,379
Interest expense 6,810 6,406 6,134 6,082 25,432
--------------- --------------- ------------ ------------ ----------
FTE net interest income 7,230 6,810 6,647 6,260 26,947
Less: FTE adjustment (64) (48) (48) (45) (205)
--------------- --------------- ------------ ------------ ----------
Net Interest Income 7,166 6,762 6,599 6,215 26,742
Provision for Losses on Loans 1,225 658 1,216 449 3,548
Non-Interest Income:
Service charges on deposits 584 572 521 420 2,097
Lease financing fees 333 334 477 387 1,531
Mutual fund, annuity and insurance commissions 902 713 574 480 2,669
Teleservices fee income 796 1,377 990 243 3,406
Loan brokerage and advisory fees 688 522 652 523 2,385
Gain(loss) from sale of securities (125) (66) 4 (160) (347)
Client warrant income 931 2,775 482 - 4,188
Fees and other income 2,756 889 550 869 5,064
--------------- --------------- ------------- ------------ ----------
Total non-interest income 6,865 7,116 4,250 2,762 20,993
Non-Interest Expenses:
Salaries and employee benefits 4,912 4,895 4,275 3,504 17,586
Occupancy 475 470 316 345 1,606
Data processing 354 339 264 218 1,175
Furniture, fixtures and equipment 479 429 425 290 1,623
Loan and real estate owned expenses, net 275 188 130 127 720
Professional services 707 568 580 367 2,222
Capital securites expense 399 399 399 398 1,595
Other 2,254 2,465 1,532 1,195 7,446
--------------- --------------- ----------- ----------- ---------
Total non-interest expenses 9,855 9,753 7,921 6,444 33,973
Income Before Income Taxes 2,951 3,467 1,712 2,084 10,214
Provision for income tax expense 990 1,210 582 761 3,543
--------------- --------------- ----------- ----------- ---------
Net Income $1,961 $2,257 $1,130 $1,323 $6,671
=============== =============== =========== =========== =========
Other Data:
EPS - Basic 0.35 0.40 0.21 0.25 1.21
EPS - Diluted 0.34 0.39 0.19 0.23 1.15
ROA 1.08% 1.31% 0.68% 0.82% 0.98%
ROE 17.33% 20.73% 10.60% 12.88% 15.47%
Net interest margin (FTE) 4.29% 4.24% 4.29% 4.13% 4.24%
Dividends declared on common stock 0.05 0.05 0.04 0.04 0.18
FTE employees 316 292 295 268 316
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
QUARTERLY INCOME STATEMENT
(Unaudited)
($ in thousands, except per share) Fourth Third Second First Full
1998 Quarter Quarter Quarter Quarter Year
-------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
FTE interest income $12,353 $12,266 $10,778 $9,932 $45,329
Interest expense 6,141 6,251 5,317 4,741 22,450
------- ------- ------- ------ -------
FTE net interest income 6,212 6,015 5,461 5,191 22,879
Less: FTE adjustment - - - - -
------- ------- ------- ------- -------
Net Interest Income 6,212 6,015 5,461 5,191 22,879
Provision for Losses on Loans 300 233 224 202 959
Non-Interest Income:
Service charges on deposits 432 455 409 367 1,663
Lease financing fees 350 315 384 365 1,414
Mutual fund, annuity and insurance commissions - - - - -
Teleservices fee income 245 277 338 174 1,034
Loan brokerage and advisory fees 690 583 390 445 2,108
Gain(loss) from sale of securities 96 100 122 215 533
Client waarant income 73 - - - 73
Fees and other income 369 536 619 239 1,763
------- ------- ------ ------ -------
Total non-interest income 2,255 2,266 2,262 1,805 8,588
Non-Interest Expenses:
Salaries and employee benefits 2,929 2,952 2,773 2,618 11,272
Occupancy 285 337 353 305 1,280
Data processing 275 287 262 249 1,073
Furniture, fixtures and equipment 282 267 282 254 1,085
Loan and real estate owned expenses, net 174 145 156 117 592
Professional services 306 431 189 191 1,117
Capital securites expense 398 398 399 398 1,593
Other 1,151 1,110 1,316 1,087 4,664
------- ------- ------ ------ ------
Total non-interest expenses 5,800 5,927 5,730 5,219 22,676
Income Before Income Taxes 2,367 2,121 1,769 1,575 7,832
Provision for income tax expense 850 775 648 579 2,852
------- ------- ------ ------ ------
Net Income $1,517 $1,346 $1,121 $996 $4,980
======= ======= ======= ====== ======
Other Data:
EPS - Basic $0.28 $0.25 $0.22 $0.22 $0.97
EPS - Diluted $0.26 $0.23 $0.20 $0.19 $0.88
ROA 0.96% 0.88% 0.85% 0.84% 0.89%
ROE 14.41% 12.70% 12.89% 15.60% 13.78%
Net interest margin (FTE) 4.24% 4.16% 4.38% 4.66% 4.32%
Dividends declared on common stock $0.04 $0.04 $0.03 $0.03 $0.14
FTE employees 226 220 228 228 226
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ASSET QUALITY
(Unaudited)
1999 1998
-------------------------------------------- -------------------------------------------
($ in thousands) Year- Fourth Third Second First Full Fourth Third Second First
Allowance for Loan Losses to-date Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Quarter
--------------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at beginning of period $4,490 $5,184 $4,984 $4,854 $4,490 $3,863 $4,611 $4,307 $4,120 $3,863
Provision 3,548 1,225 658 1,216 449 959 300 233 224 202
Charge-offs 2,554 638 572 1,184 160 755 544 51 108 52
Recoveries (443) (156) (114) (98) (75) (423) (123) (122) (71) (107)
Net loan charge-offs 2,111 482 458 1,086 85 332 421 (71) 37 (55)
Balance at end of period $5,927 $5,927 $5,184 $4,984 $4,854 $4,490 $4,490 $4,611 $4,307 $4,120
Allowance as percentage of loans 1.18% 1.18% 1.11% 1.09% 1.11% 1.06% 1.06% 1.19% 1.16% 1.19%
Net charge-offs/average loans 0.46% 0.10% 0.10% 0.24% 0.02% 0.09% 0.10% -0.02% 0.01% -0.02%
Allowance as percentage of
non-performing loans 103.96% 103.96% 137.87% 104.36% 110.15% 121.91% 121.91% 161.68% 197.39% 215.14%
Non-performing assets
Non-accrual loans and leases $5,701 $5,701 $3,760 $4,776 4,407 $3,683 $3,683 $2,852 $2,182 $1,915
Other real estate owned 66 66 - - - - - - 300 300
Total non-performing assets $5,767 $5,767 $3,760 $4,776 $4,407 $3,683 $3,683 $2,852 $2,482 $2,215
Non-performing assets to:
Loans and leases plus OREO 1.16% 1.16% 0.81% 1.06% 1.02% 0.88% 0.88% 0.74% 0.68% 0.64%
Total assets 0.75% 0.75% 0.53% 0.72% 0.66% 0.57% 0.57% 0.46% 0.41% 0.46%
Loans past due 90 days $2,336 $2,336 $7,282 $5,210 $2,123 $4,030 $4,030 $3,723 $2,277 $4,118
Total under-performing loans $8,103 $8,103 $11,042 $9,986 $6,530 $7,713 $7,713 $6,575 $4,759 $6,333
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE BALANCE SHEET DATA
(Unaudited)
1999 1998
------------------------------------------- ----------------------------------------
($ in thousands) Fourth Third Second First Year Fourth Third Second First Full
Average balances Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter Year
------------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cash and due from banks (Interest-earning) $ 18,322 $ 21,726 $ 13,326 $ 16,294 $ 16,907 10,135 $ 821 $ 1,211 $ 2,187 $ 3,990
Trading securitires 343 - - - 86 - - - - -
Loans,net of unearned discounts:
Commercial business 110,450 105,225 104,634 95,429 103,934 85,656 79,806 75,298 68,313 77,268
Commercial mortgage 154,760 143,340 133,390 114,799 136,572 131,170 122,657 118,898 113,784 121,628
Residential real estate 42,018 44,109 47,136 49,358 45,656 51,496 55,259 56,059 56,744 54,890
Construction loans 54,856 52,724 48,784 44,280 50,161 40,483 32,766 27,602 25,596 31,611
Consumer 33,872 31,274 30,229 28,956 31,083 27,903 26,113 25,314 25,535 26,217
Lease financing 82,579 77,263 74,213 73,389 76,861 63,258 63,396 57,432 57,698 60,446
Loans held for sale - 9,121 9,175 22,550 10,212 5,941 - - - 1,485
-------- ------- ------- ------- ------- -------- ------- ------- ------- -------
Total loans 478,535 463,056 447,561 428,761 454,479 405,907 379,997 360,603 347,670 373,545
Investment securities(available for sale) 21,692 9,936 7,513 17,288 14,617 12,806 9,629 6,933 5,823 8,798
Investment securities(held to maturity) 31,488 28,685 28,297 13,843 25,578 12,312 11,655 9,291 5,276 9,232
Mortgage-backed securities 117,807 113,832 124,458 139,048 123,786 154,367 171,276 121,954 90,518 134,528
-------- ------- ------- ------- ------- -------- ------- ------- ------- -------
Earning assets 668,182 637,235 621,155 615,234 635,453 595,527 573,378 499,992 451,474 530,093
Cash and due from banks
(non-interest bearing) 13,119 14,209 15,349 13,770 14,091 12,078 9,847 9,138 9,310 10,093
Other non-earning assets 38,876 34,329 27,618 24,347 31,313 22,337 25,780 18,854 22,501 22,369
-------- ------- -------- -------- ------- -------- ------- ------- ------- -------
Total assets $720,182 $685,773 $664,122 $653,351 $680,857 $629,942 $609,005 $527,984 $483,285 $562,555
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Deposits:
Demand $66,247 $57,660 $54,101 $52,049 $57,514 $47,623 $41,458 $39,054 $37,934 $41,517
Interest bearing:
NOW and Supernow accounts 79,772 79,027 79,942 78,084 79,206 67,487 52,265 47,736 38,570 51,515
Money Market Accounts 37,053 34,767 34,632 36,142 35,649 35,867 33,221 33,246 32,553 33,722
Passbook and Stmt Savings 31,282 31,857 32,161 31,753 31,763 30,583 31,338 32,017 31,317 31,314
Time deposits 287,853 256,916 231,197 219,496 248,866 215,963 212,222 201,299 195,151 206,158
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total interest bearing deposits 435,960 402,567 377,932 365,475 395,484 349,900 329,046 314,298 297,591 322,709
Federal Home Loan Bank borrowings 88,000 88,000 88,000 88,000 88,000 84,117 83,709 60,508 47,942 69,069
Other borrowings 54,794 61,940 74,642 79,586 67,740 79,883 84,397 57,807 47,116 67,301
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Interest bearing liabilities 578,754 552,507 540,574 533,061 551,224 513,900 497,152 432,613 392,649 459,079
Non-interest bearing liabilities 15,834 17,973 12,234 12,150 14,547 12,232 13,939 7,015 12,399 11,397
Capital securities 14,448 14,443 14,438 14,433 14,441 14,428 14,423 14,420 14,418 14,422
Total shareholders' equity 44,899 43,190 42,775 41,658 43,131 41,759 42,033 34,882 25,885 36,140
-------- ------- ------- ------- ------- ------- ------- ------- ------- --------
Total Liabilities and Stockholders'Equity $720,182 $685,773 $664,122 $653,351 $680,857 $629,942 $609,005 $527,984 $483,285 $562,555
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(Unaudited)
1999 1998
----------------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fourth Third Second First Year- Fourth Third Second First Full
Average yields and rates Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter Year
----------------------------------------------- ---------------------------------------------
Interest - earning assets
Interest-earning deposits 4.83% 5.20% 5.03% 4.80% 5.13% 4.31% 4.35% 5.30% 4.27% 3.96%
Investment securities 6.72% 6.25% 6.43% 6.08% 6.34% 5.61% 5.56% 6.17% 5.15% 5.64%
Mortgage-backed securities 6.92% 6.48% 6.35% 6.20% 6.47% 6.36% 6.62% 6.17% 6.61% 6.46%
Single family residential loans 7.22% 7.23% 7.34% 7.37% 7.29% 7.57% 7.76% 7.43% 7.80% 7.64%
Commercial real estate loans 8.61% 8.56% 8.62% 8.67% 8.62% 8.53% 8.98% 8.85% 8.98% 8.83%
Construction loans 10.18% 10.05% 10.09% 10.00% 10.09% 10.30% 11.09% 11.38% 10.81% 10.86%
Commercial business loans 8.51% 8.37% 8.47% 8.77% 8.53% 9.21% 9.53% 10.04% 10.06% 9.69%
Lease financing 11.01% 11.28% 11.44% 11.03% 11.19% 11.76% 11.67% 12.49% 12.44% 12.07%
Consumer loans 7.82% 7.87% 7.83% 8.00% 7.88% 8.06% 8.30% 8.57% 8.51% 8.35%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total interest - earning assets 8.34% 8.23% 8.25% 8.14% 8.24% 8.23% 8.49% 8.65% 8.92% 8.55%
Interest - bearing liabilities
Interest - bearing deposits
NOW and SuperNOW 2.91% 2.74% 2.66% 2.77% 2.77% 2.83% 2.85% 2.59% 2.29% 2.69%
Money Market 2.90% 2.81% 2.73% 2.69% 2.79% 2.79% 2.99% 3.04% 3.05% 2.96%
Passbook and Statement Savings 1.85% 1.87% 1.90% 1.98% 1.90% 1.98% 2.03% 2.52% 2.73% 2.32%
Time deposits 5.25% 5.19% 5.14% 5.25% 5.21% 5.41% 5.52% 5.55% 5.56% 5.51%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total interest - bearing deposits 4.38% 4.24% 4.12% 4.18% 4.24% 4.34% 4.51% 4.53% 4.57% 4.48%
FHLB borrowings 5.62% 5.48% 5.57% 5.33% 5.56% 5.57% 5.85% 5.95% 5.77% 5.79%
Other borrowings 5.47% 5.68% 5.53% 5.90% 5.58% 5.61% 6.00% 6.05% 6.10% 5.93%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total interest-bearing liabilities 4.67% 4.60% 4.55% 4.63% 4.61% 4.74% 4.99% 4.93% 4.90% 4.89%
Interest Rate Spread 3.67% 3.63% 3.70% 3.51% 3.63% 3.49% 3.50% 3.72% 4.02% 3.66%
Net Interest Margin 4.29% 4.24% 4.29% 4.13% 4.24% 4.14% 4.16% 4.38% 4.66% 4.32%
Avg Int-earning assets to
int-bearing liabilities 115.45% 115.34% 114.91% 115.42% 115.28% 115.88% 115.33% 115.57% 114.98% 115.47%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PERIOD END BALANCE SHEET DATA
(Unaudited)
1999 1998
---------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fourth Third Second First Fourth Third Second First
($ in thousands) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
---------------------------------------- -----------------------------------------
Assets
Cash and due from bank(interest bearing) $27,545 $16,460 $11,743 $22,248 $6,498 $695 $922 $2,644
Loans and lease(net) 497,738 461,601 451,967 431,113 419,496 384,361 365,536 343,523
Investment securities:
Held-to-maturity:
Book 34,309 28,721 28,459 18,747 12,401 12,265 11,222 7,700
Market 32,914 27,660 27,963 18,926 12,547 12,374 11,295 7,733
Available-for-sale 30,632 24,493 7,165 17,366 17,909 10,389 8,050 4,304
Mortgage backed securities 118,886 119,926 117,629 130,132 146,459 157,624 174,298 92,118
-------- ------- ------- ------- ------- ------- ------- -------
Earning assets 709,110 651,201 616,963 619,606 602,763 565,334 560,028 450,289
Cash and due from bank(non-interest bearing) 15,648 13,356 14,113 15,663 14,189 8,900 12,183 8,247
Other non earning assets 40,776 39,526 34,731 30,915 29,861 43,134 27,641 25,139
-------- -------- -------- -------- -------- -------- -------- --------
Total assets $765,534 $704,083 $665,807 $666,184 $646,813 $617,368 $599,852 $483,675
======== ======== ======== ======== ======== ======== ======== ========
Liabilities and shareholders' equity
Deposits:
Demand $65,305 $56,516 $57,201 $55,454 $54,934 $45,459 $53,375 $37,391
Interest bearing 456,134 435,040 387,927 377,644 353,228 333,376 311,934 306,189
-------- -------- -------- -------- -------- -------- -------- --------
Total deposits 521,439 491,556 445,128 433,098 408,162 378,835 365,309 343,580
Federal Home Loan Bank borrowings 88,000 88,000 88,000 88,000 88,000 93,551 80,240 45,900
Other borrowings 74,767 53,349 66,160 77,344 79,416 78,854 90,020 41,957
-------- -------- -------- -------- -------- -------- -------- --------
Interest bearing liabilities 684,206 632,905 599,288 598,442 575,578 551,240 535,569 431,437
Other Liabilities 19,068 12,427 9,337 11,654 15,250 9,964 8,282 11,185
-------- -------- -------- -------- -------- -------- -------- --------
Total liabilities 703,274 645,332 608,625 610,096 590,828 561,204 543,851 442,622
Capital Securities 14,451 14,446 14,436 14,411 14,431 14,426 14,421 14,418
Total shareholders' equity 47,809 44,305 42,746 41,677 41,554 41,738 41,580 26,635
-------- -------- -------- -------- -------- -------- -------- --------
Total Liabilities, cap sec, and equity $765,534 $704,083 $665,807 $666,184 $646,813 $617,368 $599,852 $483,675
======== ======== ========= ======== ======== ======== ======== ========
Other selected balances
Total intangible assets
Goodwill only 4,914 5,090 5,190 5,053 5,130 4,402 4,498 4,580
Amount included in shareholders' equity
for net unrealized gains on investments
available-for-sale 1,234 (1,557) (1,896) (871) (495) (256) (10) 272
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Data
(Unaudited)
1999 1998
------------------------------------------------ -------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fourth Third Second First Year- Fourth Third Second First Year-
Quarter Quarter Quarter Quarter to-date Quarter Quarter Quarter Quarter to-date
------------------------------------------------ -------------------------------------------------
Per common share
Shares outstanding:
Average-basic 5,573,076 5,634,130 5,457,518 5,353,839 5,503,259 5,339,935 5,484,234 5,097,084 4,564,724 5,124,681
Average-diluted 5,788,924 5,865,209 5,834,341 5,755,678 5,809,921 5,855,871 5,978,048 5,643,241 5,072,994 5,627,588
Period-end 5,513,345 5,591,692 5,647,096 5,398,933 5,513,345 5,314,591 5,416,362 5,502,743 4,607,216 5,314,591
Book value $8.67 $7.54 $7.57 $7.72 $8.67 $7.82 $7.71 $7.56 $5.78 $7.82
Tangible Book Value $7.78 $6.63 $6.65 $6.78 $7.78 $6.85 $6.89 $6.74 $4.79 $6.85
Price:
High 13 1/4 15 1/16 16 27/64 15 1/8 16 27/64 14 11/16 17 51/64 20 41/64 16 25/32 20 41/64
Low 12 1/8 12 5/8 13 37/64 11 27/64 11 27/64 10 61/64 12 9/64 16 3/32 13 53/64 10 61/64
Close 12 5/8 13 1/8 13 59/64 13 11/16 12 5/8 11 25/32 12 3/8 17 11/32 16 7/32 11 25/32
Capital ratios
($ in thousands)
Risk-based capital:
Tier 1 capital $47,112 $44,414 $42,798 $41,467 $47,112 $41,614 $39,967 $38,905 $32,200 $41,614
% risk adjusted assets 8.90% 9.10% 8.96% 9.08% 8.90% 9.56% 9.65% 10.59% 9.44% 9.56%
Total capital $53,006 $49,584 $47,767 $46,279 $53,006 $46,068 $44,534 $43,168 $36,285 $46,068
% risk adjusted assets 10.01% 10.15% 10.00% 10.13% 10.01% 10.58% 10.75% 11.75% 10.63% 10.58%
Tier 1 leverage ratio 6.30% 6.44% 6.58% 6.37% 6.30% 6.60% 6.63% 6.65% 6.81% 6.60%
Average shareholders' equity to
total average assets 6.23% 6.30% 6.44% 6.37% 6.33% 6.63% 6.90% 6.60% 5.35% 6.42%
</TABLE>
