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
Date of Report (Date of earlier event reported) October 24, 2000
COVEST BANCSHARES, INC.
(Exact name of Registrant as specified in its charter)
Delaware 0-20160 36-3820609
(State or other (Commission File No.) (IRS Employer
jurisdiction of Number)
Incorporation)
749 Lee Street, Des Plaines, Illinois 60016
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) 847-294-6500
Item 5. Other Events
On Tuesday, October 24, 2000, the Company issued a press release pertaining to
Third Quarter 2000 results. The text of the press release is attached
hereto as Exhibit 99.1.
Item 7. Exhibit 99.1
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 hereunto duly authorized.
Dated: October 24, 2000
COVEST BANCSHARES, INC.
By: /s/ JAMES L. ROBERTS
-----------------------------
James L. Roberts
President and
Chief Executive Officer
By: /s/ PAUL A. LARSEN
-----------------------------
Paul A. Larsen
Executive Vice President and
Chief Financial Officer
CoVest Bancshares, Inc. Reports 8 Percent Increase in Net Income
DES PLAINES, IL October 24, 2000 - CoVest Bancshares, Inc.'s (Nasdaq/COVB)
net income was $1,157,000 for the third quarter of 2000, up 8% over $1,068,000
for the same period last year. Basic earnings per share were $0.29, a 12%
increase compared to $0.26 per share for the third quarter of 1999. Diluted
earnings per share were $0.29, a 16% increase compared to $0.25 per share for
third quarter 1999.
For the first nine months of 2000, the Company earned $3,379,000 versus
$2,893,000 for the like period in 1999. Basic earnings per share were $0.84
compared to $0.70 per share for the first nine months of 2000. Diluted
earnings per share were $0.82, a 22% increase compared to $0.67 per share for
the first nine months of 1999.
Return on average equity and return on average assets during the third quarter
were 9.93% and 0.83% respectively during 2000 compared to 9.29% and 0.79% in
1999.
The Company's efficiency ratio was 59.31% compared to 59.32% in the third
quarter of 1999. The Company's goal is to maintain an efficiency ratio in the
60% range.
Cash earnings (net income adjusted for the after tax impact of amortization of
goodwill) for the third quarter of 2000 were approximately $1,188,000, or $0.30
(basic) and $0.30 (diluted) earnings per share, compared to $1,094,000 or $0.27
(basic) and $0.26 (diluted) earnings per share for the same period in 1999.
Net interest income increased by $217,000, or 5%, for the third quarter of 2000
compared to the third quarter of 1999. A $27 million increase in average
earning assets for the third quarter of 2000 versus the third quarter of 1999
accounted for part of this increase. The Company's net interest margin averaged
3.26% for the third quarter of 2000, a 3 basis point decrease from 3.29% in
1999. The net spread averaged 2.58% for the third quarter of 2000, a 21
basis point decrease from 2.79% during the third quarter of 1999. The yield on
average earning assets increased by 65 basis points while the cost of interest-
bearing liabilities increased by 86 basis points. The Company expects the net
interest margin to remain relatively stable during the next several quarters.
The provision for possible loan losses was $250,000 for the third quarter of
2000 versus $454,000 for the like period in 1999. On a year to date basis, the
provision has decreased from $841,000 for the first nine months of 1999 to
$760,000 for the first nine months of 2000.
Non-interest income decreased $298,000, or 31%, to $651,000 from the comparable
quarter last year. Loan charges and servicing fees decreased by $89,000 as the
volume of loans remained the same. Mortgage Center income was down 41%, to
$122,000 in the third quarter of 2000 compared to $206,000 in the similar
quarter in 1999. The volume of new loans generated dropped due to higher
interest rates, which had a major impact on mortgage loan refinancings and
new loan generation. As of August 21, 2000, the Mortgage Center operation
was merged with the regular banking operations and the McHenry Mortgage Center
was closed. Deposit related charges and fees increased by $14,000 during the
third quarter of 2000 as compared to the third quarter of 1999. During the
third quarter of 2000, other income decreased by $158,000, or 89%, to $19,000
from the comparable quarter last year. This included a gain on the sale of
other real estate owned of $94,332 in 1999 and the write off of leasehold
improvements of $69,574 related to the closing of the Mortgage Center in 2000.
Non-interest expense decreased $49,000, or 2% for the third quarter of 2000 from
the comparable quarter in 1999. Total compensation and benefit costs increased
$165,000 for the quarter ended September 30, 2000 versus September 30, 1999.
There were decreases in commission expenses of $36,000 due to a lower volume of
loan originations; the cost of Federal Deposit Insurance premiums decreased
by $31,000 because of a lower assessment level; data processing expenses
decreased by $22,000 as Y2K expenses were not present during 2000; and
miscellaneous expenses decreased by $92,000. Total expenses of $40,000
related to the closing of the Mortgage Center was incurred during the third
quarter of 2000. The Company's goal is to maintain an efficiency ratio in the
60% range.
The Company's assets increased to $579 million as of September 30, 2000, as
compared to $568 million at December 31, 1999. Net loans receivable increased
$24.2 million to $487 million as of September 30, 2000 versus $463 million
outstanding as of December 31, 1999. Multi-family loans increased by $29.5
million and commercial loans increased by $23.7 million. This increase was
offset by a decrease in leases, commercial real estate, and mortgage loans of
approximately $31.5 million. Limited growth in the loan portfolio is
expected during the remainder of 2000. Total securities have decreased by
$15.2 million as a result of the sales maturities and security paydowns. These
funds were used to repay FHLB advances. Deposits increased 17% to $466 million
as of September 30, 2000 compared to $398 million as of December 31, 1999.
In March 2000, the Bank introduced a High Yield Account. This account has a
market sensitive rate of interest that is indexed to the 91-day Treasury Bill
weekly auction rate. All balances over $2,500 are tiered to this market
interest rate. The Company is focused on growing High Yield Account balances
and attracting new commercial deposit accounts. At September 30, 2000, the
account had a $114 million balance, a 28% increase from year-end 1999.
Additional deposit growth has been centered in non-interest bearing deposits
that grew by approximately 32% or $6.2 million and purchased certificates of
deposit, which increased by approximately 92% or $40.5 million. The increase
in purchased money certificates of deposits has been used to pay down FHLB
borrowings.
Stockholders' equity totaled $47 million at September 30, 2000. The number of
common shares outstanding was 3,918,021 and the book value per common share
outstanding was $11.96.
At September 30, 2000, the Allowance for Possible Loan Losses was $5.5 million
as compared to $4.8 million at December 31, 1999.
At September 30, 2000, total non-performing assets amounted to $3,030,000, or
0.52% of total assets compared to $766,000, or 0.13% of total assets at December
31, 1999. Most of this increase is related to one commercial real estate
borrower for $1.9 million.
CoVest Bancshares, Inc. is a bank holding company for CoVest Banc, a national
bank servicing customers with three full-service offices located in the
northwest suburbs of the greater Chicago area. The Bank offers a wide range of
retail and commercial banking services to the communities it serves. In
addition, the bank provides other financial investments through its
subsidiary, CoVest Investments, Inc.
SAFE HARBOR STATEMENT
This report contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends such forward-
looking statements to be covered by the safe harbor provisions for forward-
looking statements contained in the Private Securities Reform Act of 1995,
and is including this statement for purposes of these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and
describe future plans, strategies and expectations of the Company, are
generally identifiable by use of the words "believe," "expect," "intend,"
"anticipate," "estimate," "project" or similar expressions. The Company's
ability to predict results or the actual effect of future plans or strategies
is inherently uncertain. Factors which could have a material adverse affect on
the operations and future prospects of the Company and the subsidiary
include, but are not limited to, changes in: interest rates, general economic
conditions, legislative/regulatory changes, monetary and fiscal policies of the
U.S. Government, including policies of the U.S. Treasury and the Federal
Reserve Board, the quality or composition of the loan or securities portfolios,
demand for loan products, deposit flows, competition, demand for financial
services in the Company's market area, our implementation of new technologies,
our ability to develop and maintain secure and reliable electronic systems
and accounting principles, policies and guidelines. These risks and
uncertainties should be considered in evaluating forward-looking statements and
undue reliance should not be placed on such statements. Further information
concerning the Company and its business, including additional factors that
could materially affect the Company's financial results, is included in the
Company's filings with the Securities and Exchange Commission.
COVEST BANCSHARES INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 % CHANGE
------------ ------------ --------
Earnings:
Net Interest Income (FTE) $4,426,000 $4,250,000 4%
Net Income $1,157,000 $1,068,000 8%
Per Share
Earnings $0.29 $0.26 12%
Diluted Earnings $0.29 $0.25 16%
Key Ratios:
Return on Average Assets 0.83% 0.79% 5%
Return on Average Equity 9.93% 9.29% 7%
Net Interest Margin 3.26% 3.29% -1%
Efficiency Ratio 59.31% 59.32% 0%
Average Stockholders' Equity to
Average Assets 8.33% 8.54% -3%
Risk-Based Capital Ratios:
Tier I
Company 11.5% 11.5% 0%
Bank 11.1% 11.1% 0%
Total
Company 12.8% 12.7% 1%
Bank 12.4% 12.3% 1%
Common Stock Data:
Cash Dividends Declared Per Share $0.08 $0.08 0%
Book Value Per Share $11.96 $11.13 7%
Price/Earnings Ratio 9.71X 14.43X -33%
COVEST BANCSHARES INC.
FINANCIAL HIGHLIGHTS
(Unaudited)
NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 % CHANGE
------------ ------------ ---------
Earnings:
Net Interest Income (FTE) $13,012,000 $12,328,000 6%
Net Income $3,379,000 $2,893,000 17%
Per Share
Earnings $0.84 $0.70 20%
Diluted Earnings $0.82 $0.67 22%
Key Ratios:
Return on Average Assets 0.80% 0.72% 11%
Return on Average Equity 9.70% 8.30% 17%
Net Interest Margin 3.19% 3.18% 0%
Efficiency Ratio 59.89% 65.80% -9%
Average Stockholders' Equity to
Average Assets 8.27% 8.63% -4%
Risk-Based Capital Ratios:
Tier I
Company 11.5% 11.5% 0%
Bank 11.1% 11.1% 0%
Total
Company 12.8% 12.7% 1%
Bank 12.4% 12.3% 1%
Common Stock Data:
Cash Dividends Declared Per Share $0.24 $0.24 0%
Book Value Per Share $11.96 $11.13 7%
Price/Earnings Ratio 9.71X 14.43X -33%
COVEST BANCSHARES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except
per share data)
SEP 30, DEC 31,
2000 1999
--------- ---------
ASSETS
------
CASH ON HAND AND IN BANKS $ 12,731 $ 9,027
INTEREST BEARING DEPOSITS 7 1,590
--------- ---------
Cash and Cash Equivalents 12,738 10,617
SECURITIES:
Securities Available-for-Sale 40,365 51,702
Mortgage-Backed and Related
Securities Available-for-Sale 14,572 18,759
Federal Home Loan Bank and
Federal Reserve Bank Stock 6,843 6,529
-------- --------
TOTAL SECURITIES 61,780 76,990
LOANS RECEIVABLE:
Commercial Loans 41,130 17,426
Multi-Family Loans 155,635 126,109
Commercial Real Estate Loans 67,028 74,284
Construction Loans 47,480 46,177
Commercial/Municipal Leases 9,036 22,029
Mortgage Loans 118,917 130,160
Consumer Loans 52,816 51,239
Mortgage Loans Held for Sale 287 106
-------- --------
TOTAL LOANS RECEIVABLE 492,329 467,530
Allowance for Possible Loan Losses ( 5,474) ( 4,833)
-------- --------
LOANS RECEIVABLE, NET 486,855 462,697
ACCRUED INTEREST RECEIVABLE 3,475 3,437
PREMISES AND EQUIPMENT 10,125 10,669
GOODWILL 1,595 1,749
MORTGAGE SERVICING RIGHTS 126 148
OTHER ASSETS 1,922 2,189
-------- --------
TOTAL ASSETS $578,616 $568,496
======== ========
COVEST BANCSHARES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Continued)
(Unaudited)
(Dollars in thousands, except
per share data)
SEP 30, DEC 31,
2000 1999
--------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
LIABILITIES:
Deposits:
Non-Interest Bearing $ 25,938 $ 19,691
Interest Bearing Checking 22,096 21,930
Savings Accounts 44,158 49,700
Money Market Accounts 113,733 88,779
Certificates of Deposit 163,557 165,578
Jumbo CDs 11,771 8,204
Purchased CDs 84,684 44,173
-------- --------
465,937 398,055
Short-Term Borrowings and Securities
Sold U/A to Repurchase 33,858 85,004
Long-Term Advances from Federal
Home Loan Bank 24,000 29,000
Advances from Borrowers for
Taxes and Insurance 2,729 4,640
Accrued Expenses and Other Liabilities 5,239 5,523
--------- ---------
TOTAL LIABILITIES 531,763 522,222
STOCKHOLDERS' EQUITY:
Common Stock, par value $.01 per share;
7,500,000 authorized shares; 4,403,803
shares issued at 9/30/00 and 12/31/99
respectively 44 44
Additional Paid-in Capital 17,727 17,919
Retained Earnings 35,927 33,514
Treasury Stock, 485,782 shares and
299,796 shares, held at cost 9/30/00
and 12/31/99 respectively (6,204) (4,312)
Unearned Stock Award 0 (14)
Accumulated Other Comprehensive
Loss (641) (877)
--------- --------
TOTAL STOCKHOLDERS' EQUITY 46,853 46,274
--------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $578,616 $568,496
======== ========
<TABLE>
<CAPTION>
COVEST BANCSHARES INC.
CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME THREE MONTHS ENDED NINE MONTHS ENDED
(Unaudited) SEP 30, SEP 30, SEP 30, SEP 30,
(Dollars in thousands, except 2000 1999 2000 1999
per share data) --------- --------- --------- ---------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and Leases Receivable $10,050 $ 8,254 $28,871 $23,518
Interest Bearing Deposits at Banks 10 25 288 596
Mortgage-Backed and Related Securities 261 358 868 1,253
Taxable Securities 465 677 1,527 1,962
Tax Exempt Securities 95 171 288 505
Other Interest and Dividend Income 132 110 369 354
--------- --------- --------- ---------
Total Interest Income 11,013 9,595 32,211 28,188
INTEREST EXPENSE
Deposits 5,760 3,773 15,582 11,110
Advances from Federal Home Loan Bank 670 1,486 3,206 4,710
Other Borrowed Money 204 174 559 300
--------- --------- --------- ---------
Total Interest Expense 6,634 5,433 19,347 16,120
NET INTEREST INCOME 4,379 4,162 12,864 12,068
Provision for Possible Loan Losses 250 454 760 841
NET INTEREST INCOME AFTER PROVISION --------- --------- -------- ---------
FOR POSSIBLE LOAN LOSSES 4,129 3,708 12,104 11,227
NON-INTEREST INCOME
Loan Servicing Fees 197 286 790 763
Mortgage Center Income 122 206 330 1,237
Deposit Related Charges and Fees 281 267 770 755
Gain/(Loss) on Sale of Securities -0- (17) (96) (15)
Insurance and Annuity Commissions 32 30 123 128
Other 19 177 164 337
--------- --------- --------- ---------
TOTAL Non-Interest Income 651 949 2,081 3,205
NON-INTEREST EXPENSE
Compensation and Benefits 1,478 1,313 4,588 4,799
Commissions and Incentives 159 195 416 610
Occupancy and Equipment 488 515 1,500 1,564
Federal Insurance Premium 21 52 61 158
Data Processing 217 239 654 727
Advertising 148 154 350 349
Other Real Estate Owned (2) -0- (8) 2
Amortization of Goodwill 51 51 153 154
Amortization of Mortgage Servicing Rights 10 8 21 43
Other 413 505 1,216 1,643
--------- --------- --------- ----------
TOTAL NON-INTEREST EXPENSE 2,983 3,032 8,951 10,049
--------- --------- --------- ----------
INCOME BEFORE INCOME TAXES 1,797 1,625 5,234 4,383
Income Tax Provision (640) (557) (1,855) (1,490)
--------- --------- --------- ----------
NET INCOME $ 1,157 $ 1,068 $ 3,379 $ 2,893
========= ========= ========= ==========
Basic Earnings Per Share $0.29 $0.26 $0.84 $0.70
Diluted Earnings Per Share $0.29 $0.25 $0.82 $0.67
Comprehensive Income $ 1,763 $ 984 $ 3,615 $ 1,840
</TABLE>
<TABLE>
<CAPTION>
COVEST BANCSHARES INC.
AVERAGE BALANCE SHEET
(Unaudited)
(Dollars in thousands)
The following table sets forth certain information related to the Company's average balance sheet.
It reflects the average yield on assets and average cost of liabilities for the periods indicated, as
derived by dividing income or expense by the average daily balance of assets or liabilities,
respectively, for the periods indicated.
THREE MONTHS ENDED
-----------------------------------------------------------------------------------
SEPT 30, 2000 SEPT 30, 1999
----------------------------------------- ---------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
BALANCE INTEREST YIELD/COST BALANCE INTEREST YIELD/COST
INTEREST-EARNING ASSETS: ----------------------------------------- ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commercial Loans (A)(B) $32,443 $ 693 8.54% $ 13,160 $ 238 7.23%
Multi-Family Loans (B) 146,186 2,973 8.13 99,598 1,968 7.90
Commercial Real Estate (A)(B) 67,087 1,386 8.26 64,989 1,352 8.32
Construction Loans (B) 44,970 1,271 11.31 43,270 987 9.12
Commercial/Muni Leases 10,787 166 6.17 29,178 459 6.30
Mortgage Loans (A)(B) 125,082 2,343 7.49 125,775 2,273 7.23
Consumer Loans (A) 52,530 1,222 9.30 45,176 977 8.65
Securities 48,148 735 6.11 72,018 1,046 5.81
Mortgage-Backed and
Related Securities 15,086 261 6.93 20,875 358 6.86
Other Investments 625 10 6.57 2,082 25 4.80
----------------------------------------- ----------------------------------
Total Interest-Earning Assets $542,944 $11,060 8.15% $516,121 $ 9,683 7.50%
Non-Interest Earning Assets 16,503 21,987
----------------------------------------- ----------------------------------
TOTAL ASSETS $559,447 $538,108
========================================= =======================================
INTEREST-BEARING LIABILITIES:
Interest-Bearing Checking $ 23,300 $ 66 1.13% $ 21,813 $ 58 1.06%
Savings 45,967 289 2.52 52,056 328 2.52
Money Market 107,699 1,611 5.98 86,816 1,007 4.64
Certificates of Deposits 159,864 2,379 5.95 171,456 2,262 5.28
Jumbo CDs 11,662 185 6.35 8,962 118 5.27
Purchased CDs 72,302 1,230 6.80 0 0 0.00
FHLB Advances 42,750 670 6.27 107,283 1,486 5.54
Other Borrowed Funds 12,578 204 6.49 13,336 174 5.22
----------------------------------------- ------------------------------------
Total Interest-Bearing
Liabilities $476,122 $ 6,634 5.57% $461,722 $ 5,433 4.71%
Non-Interest Bearing Deposits 24,026 17,964
Other Liabilities 12,715 12,455
----------------------------------------- ----------------------------------
TOTAL LIABILITIES $512,863 $492,141
----------------------------------------- ----------------------------------
Stockholders' Equity 46,584 45,967
----------------------------------------- ----------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $559,447 $538,108
========================================= ==================================
NET INTEREST INCOME $ 4,426 $ 4,250
----------------------------------------- ----------------------------------
NET INTEREST RATE SPREAD (C) 2.58% 2.79%
----------------------------------------- ----------------------------------
NET INTEREST MARGIN (D) 3.26% 3.29%
----------------------------------------- ----------------------------------
(A) Includes cash basis loans.
(B) Includes deferred fees/costs.
(C) Interest Rate Spread is calculated by subtracting the average cost of interest-bearing liabilities from the
average rate on interest-earning assets.
(D) Net Interest Margin is calculated by dividing net interest income by average interest-earning assets.
</TABLE>
<TABLE>
<CAPTION>
COVEST BANCSHARES INC.
AVERAGE BALANCE SHEET
(Unaudited)
(Dollars in thousands)
The following table sets forth certain information related to the Company's average balance sheet.
It reflects the average yield on assets and average cost of liabilities for the periods indicated, as
derived by dividing income or expense by the average daily balance of assets or liabilities,
respectively, for the periods indicated.
NINE MONTHS ENDED
-----------------------------------------------------------------------------------
SEPT 30, 2000 SEPT 30, 1999
----------------------------------------- ---------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
BALANCE INTEREST YIELD/COST BALANCE INTEREST YIELD/COST
INTEREST-EARNING ASSETS: ----------------------------------------- ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commercial Loans (A)(B) $24,635 $ 1,492 8.08% $ 11,008 $ 544 6.59%
Multi-Family Loans (B) 135,595 8,048 7.91 78,981 4,646 7.84
Commercial Real Estate (A)(B) 70,879 4,420 8.31 65,221 4,148 8.48
Construction Loans (B) 43,776 3,569 10.87 39,956 2,684 8.96
Commercial/Muni Leases 15,077 710 6.28 31,344 1,479 6.29
Mortgage Loans (A)(B) 127,637 7,130 7.45 132,911 7,196 7.22
Consumer Loans (A) 52,002 3,505 8.99 44,270 2,820 8.50
Securities 51,393 2,329 6.04 71,348 3,082 5.76
Mortgage-Backed and
Related Securities 16,690 868 6.93 24,536 1,253 6.80
Other Investments 6,526 288 5.90 17,047 596 4.66
----------------------------------------- ----------------------------------
Total Interest-Earning Assets $544,210 $32,359 7.93% $516,622 $ 28,448 7.34%
Non-Interest Earning Assets 17,211 21,902
----------------------------------------- ----------------------------------
TOTAL ASSETS $561,421 $538,524
========================================= =======================================
INTEREST-BEARING LIABILITIES:
Interest-Bearing Checking $ 22,811 $ 190 1.11% $ 22,346 $ 177 1.05%
Savings 47,961 899 2.50 52,216 975 2.49
Money Market 98,645 4,225 5.71 83,345 2,769 4.43
Certificates of Deposits 162,460 7,007 5.75 173,015 6,814 5.25
Jumbo CDs 9,903 445 5.99 9,629 375 5.20
Purchased CDs 57,037 2,816 6.58 0 0 0.00
FHLB Advances 70,168 3,206 6.09 115,714 4,710 5.43
Other Borrowed Funds 12,364 559 6.03 8,248 300 4.85
----------------------------------------- ------------------------------------
Total Interest-Bearing
Liabilities $481,349 $19,347 5.36% $464,513 $ 16,120 4.63%
Non-Interest Bearing Deposits 22,303 16,251
Other Liabilities 11,312 11,296
----------------------------------------- ----------------------------------
TOTAL LIABILITIES $514,964 $492,060
----------------------------------------- ----------------------------------
Stockholders' Equity 46,457 46,464
----------------------------------------- ----------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $561,421 $538,524
========================================= ==================================
NET INTEREST INCOME $13,012 $ 12,328
----------------------------------------- ----------------------------------
NET INTEREST RATE SPREAD (C) 2.57% 2.71%
----------------------------------------- ----------------------------------
NET INTEREST MARGIN (D) 3.19% 3.18%
----------------------------------------- ----------------------------------
(A) Includes cash basis loans.
(B) Includes deferred fees/costs.
(C) Interest Rate Spread is calculated by subtracting the average cost of interest-bearing liabilities from the
average rate on interest-earning assets.
(D) Net Interest Margin is calculated by dividing net interest income by average interest-earning assets.
</TABLE>
