EXHIBIT 99.1
WESTERFED FINANCIAL CORPORATION ANNOUNCES
SECOND QUARTER EARNINGS AND
INTRODUCTION OF INTERNET BANKING
Missoula, Montana - July 20, 2000 - WesterFed Financial Corporation
(the "Company") (NASDAQ - WSTR), the holding company for Western Security Bank
(the "Bank"), announced earnings for the quarter ended June 30, 2000 of $2.0
million, or $0.51 per share (cash earnings of $0.59 per share), as compared to
$1.8 million, or $0.39 per share (cash earnings of $0.47 per share) for the same
period last year. Earnings for the six month period ended June 30, 2000 were
$3.9 million, or $0.95 per share (cash earnings of $1.11 per share), as compared
to $3.3 million, or $0.74 per share (cash earnings of $0.90 per share), for the
same period last year. Cash earnings, which represent the amount by which
tangible equity changes each period due to operating results, include reported
earnings plus the non-cash charges for goodwill amortization and amortization
relating to core deposit intangible and certain employee stock plans and related
tax benefit.
The Board of Directors of the Company had also previously authorized a
plan to repurchase up to 7.5% of its outstanding shares of common stock in the
open market during a twelve-month period, depending upon market conditions. As
of June 30, 2000 substantially all of those shares have been repurchased.
WesterFed President and Chief Executive Officer Ralph Holliday stated,
"This quarter the Bank has seen a significant change in its branch structure
with the completion of the sale and closure of eight branches and the opening of
one new branch. Six branches were sold in eastern Montana market areas with
relatively small populations allowing management of the Bank to increase its
marketing and sales efforts in the larger populated market areas of Montana. The
Bank opened one new banking facility in the Missoula market in the rapidly
developing commercial area on North Reserve Street. In order to fund the sale of
the branches the Bank restructured its investment portfolio and sold $47.6
million of investment securities that were held for sale.
We have continued to improve on the Company's efficiency ratio, (the
ratio of non-interest expense to net interest income and non-interest income)
which was 63.89% for the six-month period ended June 30, 2000 as compared to
69.95% for the same period last year, a 8.7% reduction. The efficiency ratio
without intangibles amortization decreased to 60.73% for the six-month period
ended June 30, 2000 as compared to 66.49% for the same period last year, an 8.7%
reduction. Because the increasing interest rate environment has resulted in
lower fee income as loan refinance activity has slowed, we must continue to be
diligent in our efforts to improve on our efficiency ratio until this trend is
reversed. In addition, because of our stock repurchase programs and earnings,
our return on equity has increased 21.5% to 9.27% for the quarter ended June 30,
2000 as compared to 7.63% for the same period last year."
<PAGE>
Holliday further stated "We are pleased to announce that Internet
banking will be available to our customers in August 2000. Internet banking will
allow our customers to transact most of their financial affairs over the
Internet at their convenience any time of the day or night. Our web site can be
found at "www.westernsecuritybank.com". In addition, loan quality remains good,
as non-performing assets to total assets were .31% at June 30, 2000. Loan loss
reserves to total loans were .93% and we believe that this ratio will exceed
1.00% by December 31, 2000."
Total assets decreased $55.3 million to $945.7 million at June 30, 2000
as compared to $1.001 billion at December 31, 1999. Loans receivable and loans
available-for-sale decreased $1.8 million, other non-earning assets decreased
$1.9 million and investment securities, Federal Home Loan Bank stock and all
other interest earning assets decreased $51.6 million. The $1.8 million decrease
in loans receivable and loans available-for-sale is primarily the result of a
$5.0 million decrease in residential loans and a $14.2 million decrease in
dealer finance loans, while commercial and agriculture loans increased $12.4
million, or 7.8%, and other consumer related loans increased $5.5 million. The
$51.6 million decrease in investment securities was primarily the result of the
sale of $47.6 million of investment securities available-for-sale to pay down
Federal Home Loan Bank advances that were used to fund the sale of bank branches
during the quarter. Total deposits decreased $51.8 million, primarily as a
result of the sale of $50.5 million of deposits related to the sale of branches.
Stockholders' equity decreased $900,000 to $88.6 million, due primarily to the
repurchase of 283,000 shares of common stock for a total of $4.0 million and the
payment of dividends totaling $1.3 million, partially offset by earnings of $3.9
million.
<PAGE>
Net income increased $278,000, or 15.8%, to $2.0 million for the
quarter ended June 30, 2000 from $1.8 million for the same period last year. Net
interest income before provision for loan losses for the quarter ended June 30,
2000 decreased $558,000 to $7.5 million as compared to $8.0 million over the
same period last year. Interest expense increased $909,000 while interest income
increased $351,000 for the quarter ended June 30, 2000 as compared to the same
period last year. The provision for loan losses was $450,000 for the quarter.
These provisions were required to maintain the allowance for loan losses at a
level which is considered adequate to absorb losses inherent in the loan
portfolio, especially related to charge-offs incurred with dealer finance loans
and other consumer related loans. Total non-interest income increased $506,000
to $3.0 million during the quarter ended June 30, 2000 from $2.5 million during
the same period last year. There was approximately a $1.0 million net increase
to non-interest income related to gain on the sale of branches and losses on the
sale of investment securities during the quarter ended June 30, 2000.
Non-interest income for the quarter ended June 30, 1999 included $314,000 from
the sale of the Bank's credit card program, life insurance proceeds and the sale
of a building, reduced by the write down of purchased servicing values. Loan
origination income decreased $368,000 while service fees increased $327,000 for
the quarter ended June 30, 2000 as compared to the same period last year. The
decrease in loan origination income was the result of continued interest rate
increases during the current year as compared to a mostly declining, or stable
interest rate environment during the same period last year. The increase in
interest rates resulted in lower volumes of refinance activity on residential
loans during the quarter ended June 30, 2000 as compared to the same period last
year. Non-interest expenses decreased $550,000, or 7.6%, to $6.7 million for the
quarter ended June 30, 2000, down from $7.3 million for the same period last
year. Included in non-interest expense for the quarter ended June 30, 2000 was
approximately $700,000 of additional building, equipment and employee benefit
costs. Included in non-interest expense for the quarter ended June 30, 1999 was
$519,000 related to payment of retirement incentives and other non-recurring
expenses.
Net income increased $554,000, or 16.6%, to $3.9 million for the six
month period ended June 30, 2000 as compared to $3.3 million for the same period
last year. The $554,000 increase in net income was comprised primarily of an
increase in non-interest income of $374,000 and a $1.3 million decrease in
non-interest expense, partially offset by a $110,000 increase in provision for
loan losses and a decrease in net interest income of $524,000. The interest rate
spread was 3.13% at June 30, 2000 as compared to 3.10% at December 31, 1999 and
3.16% at June 30, 1999.
Interest income increased $929,000 to $35.5 million for the six-month
period ended June 30, 2000 from $34.6 million for the same period last year.
This increase was primarily the result of an increase in the average yield on
interest-earning assets to 7.72% during six-month period ended June 30, 2000
from 7.52% during the same period last year.
Interest expense increased $1.5 million to $20.3 million for the
six-month period ended June 30, 2000 from $18.8 million for the same period last
year. This increase was primarily the result of an increase in the average rate
paid on interest-bearing liabilities to 4.62% during six month period ended June
30, 2000 from 4.30% during the six month period ended June 30, 1999.
<PAGE>
The provision for loan losses increased $110,000 to $900,000 for the
six-month period ended June 30, 2000 from $790,000 for the same period last
year. The increased provision is primarily related to dealer finance and other
consumer loans. At June 30, 2000, the Company had $2.9 million of non-performing
assets (representing 0.31% of total assets) compared to $3.1 million at December
31, 1999 (representing 0.31% of total assets) and $2.7 million at March 31, 2000
(representing 0.27% of total assets). The 0.31% is substantially less than the
national composite for thrifts of 0.61% at March 31, 2000, which is the latest
available information reported by the Office of Thrift Supervision. At June 30,
2000, the Company had allowance for loan losses to non-performing assets of
196.87% as compared to 165.36% at December 31, 1999 and 201.87% at March 31,
2000. Management's evaluation of the adequacy of its loan loss reserves, the
quality of the loan portfolio and economic conditions in Montana resulted in the
$900,000 provision for loan losses. Future additions to the Company's allowance
for loan losses and any change in the related ratio of the allowance for loan
losses to non-performing loans are dependent upon the performance and
composition of the Company's loan portfolio, the economy, inflation, changes in
real estate values and interest rates and the view of the regulatory authorities
toward adequate reserve levels.
Non-interest income increased $374,000 to $4.8 million during the
six-month period ended June 30, 2000 from $4.4 million during the same period
last year. The $374,000 increase resulted primarily from the $1.0 million net
gain on sale of branches and investment securities and a $444,000 increase in
service fees, partially offset by a $652,000 decrease in loan origination
income. The increasing interest rate environment that existed during the six
month period ended June 30, 2000 as compared to the lower interest rate
environment during the same period last year resulted in reduced loan refinance
activity. Loans sold decreased to $23.2 million during the six-month period
ended June 30, 2000 as compared to $38.5 million during the same period last
year. Seasonal fluctuations in loan volume and a decline in loan volume due to
increased interest rates could continue to adversely affect origination fees and
gains on sale of loans available-for- sale.
Non-interest expense decreased $1.3 million, or 9.2%, to $12.8 million
during the six month period ended June 30, 2000 from $14.1 million during the
same period last year. Compensation and employee benefits decreased $895,000 and
other operating expenses decreased $404,000. Compensation and employee benefits
for the six month period ended June 30, 1999 included $575,000 related to
payment of early retirement incentives and other compensation not incurred
during the six month period ended June 30, 2000.
<PAGE>
FORWARD LOOKING STATEMENTS
When used in this press release or other public shareholder
communications, or in oral statements made with the approval of an authorized
executive officer, the words or phrases "will likely result," "are expected to,"
"will continue," "is anticipated," "estimate," "project," "significantly" or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. The Company
wishes to caution readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made, and to advise readers that
various factors including regional and national economic conditions, changes in
levels of market interest rates, credit risks of lending activities, competitive
and regulatory factors could affect the Bank's financial performance and could
cause the Company's actual results for future periods to differ materially from
those anticipated or projected.
The Company does not undertake, and specifically disclaims, any
obligation to publicly release the result of any revisions that may be made to
any forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
WesterFed Financial Corporation's only subsidiary, Western Security
Bank, which is Montana's largest savings bank, operates twenty-seven offices in
fourteen Montana communities.
CONTACT: Ralph K. Holliday, President/Chief Executive Officer or James A.
Salisbury, Executive Vice President/Treasurer and Chief Financial
Officer, both of WesterFed Financial Corporation (WSTR) (406) 721-5254
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
WESTERFED FINANCIAL CORPORATION AND SUBSIDIARIES
(Dollars in thousands, except share and per share data)
June 30, December 31,
2000 1999
--------- ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 22,228 $ 20,233
Interest-bearing due from banks 1,506 5,910
-------- ----------
Cash and cash equivalents 23,734 26,143
Interest-bearing deposits 100 100
Investment securities available-for-sale 149,119 187,488
Investment securities, at amortized cost (estimated fair value
of $80,648 at June 30, 2000 and $87,121 at December 31, 1999) 80,326 86,877
Stock in Federal Home Loan Bank of Seattle, at cost 12,645 15,154
Loans available-for-sale 4,756 4,470
Loans receivable, net 614,163 616,281
Interest receivable 6,946 7,492
Premises and equipment, net 25,402 27,477
Core deposit intangible 3,101 3,401
Goodwill 14,430 14,763
Cash surrender value of life insurance policies 8,369 8,164
Other assets 2,572 3,075
-------- ----------
Total assets $945,663 $1,000,885
======== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $606,623 $658,404
Repurchase agreements 5,631 7,731
Borrowed funds 224,501 227,078
Advances from borrowers for taxes and insurance 3,614 3,296
Income taxes - current and deferred 959 597
Accrued interest payable 6,792 6,476
Accrued expenses and other liabilities 8,949 7,778
-------- ----------
Total liabilities 857,069 911,360
-------- ----------
Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized;
none outstanding -- --
Common stock, $.01 par value, 10,000,000 shares authorized;
4,084,842 shares outstanding at June 30, 2000, and
4,351,404 outstanding at December 31, 1999 57 56
Paid-in capital 70,264 70,040
Common stock acquired by ESOP/RRP (1,959) (2,090)
Treasury stock, at cost (33,001) (28,974)
Accumulated other comprehensive loss (2,769) (2,930)
Retained earnings 56,002 53,423
-------- ----------
Total stockholders' equity 88,594 89,525
-------- ----------
Total liabilities and stockholders' equity $945,663 $1,000,885
======== ==========
Book value per common share outstanding $ 21.69 $ 20.57
======== ==========
Tangible book value per common share outstanding $ 17.22 $ 16.40
======== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
WESTERFED FINANCIAL CORPORATION AND SUBSIDIARIES
(Dollars in thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ -----------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $ 13,009 $ 13,115 $ 25,825 $ 26,103
Investment securities 4,631 4,166 9,340 8,025
Interest-bearing deposits 50 99 95 244
Other 129 88 219 178
---------- ---------- ---------- ----------
Total interest income 17,819 17,468 35,479 34,550
---------- ---------- ---------- ----------
Interest expense:
NOW and money market demand 1,029 869 2,021 1,706
Savings 496 522 1,025 1,040
Certificates of deposit 4,988 4,768 9,953 9,753
---------- ---------- ---------- ----------
6,513 6,159 12,999 12,499
Borrowed funds and repurchase agreements 3,839 3,284 7,268 6,315
---------- ---------- ---------- ----------
Total interest expense 10,352 9,443 20,267 18,814
---------- ---------- ---------- ----------
Net interest income 7,467 8,025 15,212 15,736
Provision for loan losses 450 445 900 790
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 7,017 7,580 14,312 14,946
---------- ---------- ---------- ----------
Non-interest income:
Loan origination income 570 938 1,031 1,683
Service fees 1,316 989 2,523 2,079
Net gain (loss) on sale of securities available-for-sale (1,078) 64 (1,075) 89
Other 2,192 503 2,314 568
---------- ---------- ---------- ----------
Total non-interest income 3,000 2,494 4,793 4,419
---------- ---------- ---------- ----------
Non-interest expenses:
Compensation and employee benefits 3,252 3,850 6,208 7,103
Net occupancy expense of premises 649 445 1,041 825
Equipment and furnishings 521 626 999 1,219
Data processing 399 403 857 812
Deposit insurance premium 32 85 67 172
Intangibles amortization 306 337 633 698
Marketing and advertising 196 125 357 244
Other 1,363 1,397 2,620 3,024
---------- ---------- ---------- ----------
Total non-interest expense 6,718 7,268 12,782 14,097
---------- ---------- ---------- ----------
Income before income taxes 3,299 2,806 6,323 5,268
Income taxes 1,265 1,050 2,429 1,928
---------- ---------- ---------- ----------
Net income $ 2,034 $ 1,756 $ 3,894 $ 3,340
========== ========== ========== ==========
Net income per common share:
Basic $ 0.52 $ 0.40 $ 0.98 $ 0.77
========== ========== ========== ==========
Diluted $ 0.51 $ 0.39 $ 0.95 $ 0.74
========== ========== ========== ==========
Dividends per share $ 0.170 $ 0.200 $ 0.335 $ 0.345
========== ========== ========== ==========
Dividend payout ratio - basic 32.69% 50.00% 34.18% 44.81%
========== ========== ========== ==========
Average common and common equivalent shares outstanding:
Basic 3,918,807 4,337,573 3,988,945 4,323,159
========== ========== ========== ==========
Diluted 4,024,432 4,467,867 4,099,490 4,518,077
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Selected Financial Ratios and Other Data:
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ------------------
2000 1999 2000 1999
---------- -------- -------- ---------
<S> <C> <C> <C> <C>
Performance Ratios:
Return on assets (ratio of net income to average total assets) (1) 0.83% 0.70% 0.79% 0.68%
Return on equity (ratio of net income to average equity) (1) 9.27 7.63 8.88 7.28
Interest rate spread information:
Average during period 3.06 3.28 3.10 3.22
End of period 3.13 3.16 3.13 3.16
Net interest margin (1) (4) 3.27 3.46 3.31 3.42
Ratio of non-interest expense to average total assets (1) 2.74 2.91 2.59 2.85
Efficiency ratio (2) 64.18 69.11 63.89 69.95
Efficiency ratio without intangibles (3) 61.26 65.91 60.73 66.49
Asset Quality Ratios:
Non-performing assets to total assets, at end of period 0.31 0.42 0.31 0.42
Total allowance for loan losses to total non-performing
assets (5) 196.87 121.13 196.87 121.13
Capital Ratios:
Stockholders' equity to total assets, at end of period 9.37 9.05 9.37 9.05
Tangible stockholders' equity to tangible assets, at end of period 7.66 7.32 7.66 7.32
Ratio of average interest-earning assets to average
interest-bearing liabilities 104.79 104.61 104.71 104.96
<FN>
(1) Annualized
(2) Ratio of non-interest expense to net interest income and non-interest
income
(3) Ratio of non-interest expense without intangibles to net interest income
and non-interest income
(4) Net interest income divided by average interest-earning assets
(5) Includes non-performing and foreclosed assets
</FN>
</TABLE>
<PAGE>
WESTERFED FINANCIAL CORPORATION
<TABLE>
<CAPTION>
Three Months Ended, Six Months Ended,
--------------------------------------------- ---------------------------------------------
JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 2000 JUNE 30, 1999
---------------------- ---------------------- ---------------------- ----------------------
Average Average Average Average
Out- Out- Out- Out-
standing Interest standing Interest standing Interest standing Interest
Balance Earned/ Yield Balance Earned/ Yield Balance Earned/ Yield Balance Earned/ Yield
(1) Paid /Rate (1) Paid /Rate (1) Paid /Rate (1) Paid /Rate
-------- ------- ----- -------- ------- ----- -------- ------- ----- -------- ------- -----
(Dollars in Thousands) (Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INTEREST EARNING ASSETS:
Loans receivable (2) (3) $625,541 $13,009 8.32% $639,762 $13,115 8.20% $624,107 $25,825 8.28% $636,754 $26,103 8.20%
Investment securities 275,678 4,631 6.72% 271,150 4,166 6.15% 284,286 9,340 6.57% 265,043 8,025 6.06%
Other interest-earning assets (4) 3,327 50 6.01% 9,127 99 4.34% 3,001 95 6.33% 10,264 244 4.75%
Cash surrender value of life insurance 8,313 129 6.21% 6,889 88 5.11% 8,266 219 5.30% 6,896 178 5.16%
-------- ------- ---- -------- ------- ---- -------- ------- ---- -------- ------- ----
Total Interest-Earning Assets $912,859 $17,819 7.81% $926,928 $17,468 7.54% $919,660 $35,479 7.72% $918,957 $34,550 7.52%
======== ======= ==== ======== ======= ==== ======== ======= ==== ======== ======= ====
INTEREST-BEARING LIABILITIES:
Certificates of deposits $348,401 $ 4,988 5.73% $368,717 $ 4,768 5.17% $360,162 $9,953 5.53% $371,060 $9,753 5.26%
Savings accounts 79,345 496 2.50% 89,443 522 2.33% 82,467 1,025 2.49% 89,993 1,040 2.31%
Demand and NOW accounts 117,271 196 0.67% 114,254 195 0.68% 116,944 392 0.67% 112,612 385 0.68%
Money market accounts 79,566 833 4.19% 71,049 674 3.79% 79,016 1,629 4.12% 69,749 1,321 3.79%
-------- ------- ---- -------- ------- ---- -------- ------- ---- -------- ------- ----
Total deposits 624,583 6,513 4.17% 643,463 6,159 3.83% 638,589 12,999 4.07% 643,414 12,499 3.89%
FHLB advances and other borrowed money 246,560 3,839 6.23% 242,646 3,284 5.41% 239,675 7,268 6.06% 232,155 6,315 5.44%
-------- ------- ---- -------- ------- ---- -------- ------- ---- -------- ------- ----
Total Interest-Bearing Liabilities $871,143 $10,352 4.75% $886,109 $ 9,443 4.26% $878,264 $20,267 4.62% $875,569 $18,814 4.30%
======== ======= ==== ======== ======= ==== ======== ======= ==== ======== ======= ====
Net interest income $ 7,467 $ 8,025 $15,212 $15,736
======= ======= ======= =======
Net interest rate spread 3.06% 3.28% 3.10% 3.22%
==== ==== ==== ====
Net interest earning assets $ 41,716 $ 40,819 $41,396 $43,388
======== ======== ======= =======
Net interest margin (5) 3.27% 3.46% 3.31% 3.42%
==== ==== ==== ====
Average interest-earning assets
to average interest-bearing liabilities 104.79% 104.61% 104.71% 104.96%
======= ======= ======= =======
<FN>
(1) Based on average monthly balances.
(2) Calculated net of deferred loan fees, loan discounts and loans in process.
(3) Includes loans held for sale.
(4) Includes primarily short-term liquid assets.
(5) Net interest income divided by average interest-earning assets.
</FN>
</TABLE>
<PAGE>
WESTERFED FINANCIAL CORPORATION
Non-Performing Assets
June 30, December 31,
2000 1999
------------ -------------
(In Thousands)
Non-accruing loans:
Real Estate:
One-to-four family $ 549 $ 549
Multi-family - -
Nonresidential property (except land) 145 348
Land - -
Construction 178 324
Agriculture (non-real estate) 1,128 1,113
Commercial (non-real estate) 41 51
Consumer 556 508
------ -------
Total 2,597 2,893
------ -------
Accruing loans delinquent 90 days or more:
Real Estate:
One-to-four family - 40
Multi-family - -
Nonresidential property (except land) - -
Construction - -
Agriculture (non-real estate) - -
Commercial (non-real estate) - -
Consumer 17 20
------ -------
Total 17 60
------ -------
Foreclosed assets:
Real Estate:
One-to-four family 202 94
Multi-family - -
Commercial - -
Land - 26
Construction - -
Consumer 120 48
------ -------
Total 322 168
------ -------
Total non-performing assets $2,936 $3,121
====== =======
<PAGE>
WESTERFED FINANCIAL CORPORATION
Allowance for Loan Losses
<TABLE>
<CAPTION>
For the Three Month For the Six Month
Period Ended Period Ended
June 30, June 30,
--------------- -------------------
2000 1999 2000 1999
------ ------ ------ ------
(In Thousands) (In Thousands)
<S> <C> <C> <C> <C>
Balance at beginning of period....................................$5,400 $5,009 $5,161 $4,846
------ ------ ------ ------
Charge-Offs:
Real Estate:
One- to four-family............................................. -- (47) (17) (47)
Commercial...................................................... -- -- -- --
Other:
Commercial...................................................... -- -- (10) (1)
Consumer........................................................ (152) (365) (464) (564)
------ ------ ------ ------
Total charge-offs................................................. (152) (412) (491) (612)
------ ------ ------ ------
Recoveries:
Real Estate:
One- to four-family............................................. -- -- -- --
Commercial...................................................... -- -- -- --
Other:
Commercial...................................................... 3 2 8 6
Consumer........................................................ 79 36 202 50
------ ------ ------ ------
Total recoveries.................................................. 82 38 210 56
------ ------ ------ ------
Net charge-offs................................................... (70) (374) (281) (556)
Provisions charged to operations.................................. 450 445 900 790
------ ------ ------ ------
Balance at end of period..........................................$5,780 $5,080 $5,780 $5,080
====== ====== ====== ======
Ratio of net charge-offs during the period to average loans
outstanding during the period................................... 0.01% 0.06% 0.05% 0.09%
====== ====== ====== ======
Ratio of net charge-offs during the period to average non-
performing assets during the period............................. 2.50% 9.21% 10.02% 13.68%
====== ====== ====== ======
Ratio of allowance for loan losses to net loans before
allowance....................................................... 0.93% 0.80% 0.93% 0.80%
====== ====== ====== ======
</TABLE>
