“While we have more to accomplish, I am confident that we are on the right course to continue delivering value for our shareholders and to create long-term benefits for all of our stakeholders.”
STRONG BANK RESULTS BUILT ON SUCCESS OF PERFORMANCE IMPROVEMENT PROJECT AND LOWER CREDIT COSTS
Bank net income for 2010 was $58.5 million compared to $41.1 million, excluding the PMRS charges in 2009. The primary drivers for the $17.4 million increase in net income over adjusted net income for the prior year were (on an after-tax basis):
- $11 million decrease in noninterest expense primarily due to additional cost savings derived from the completion of the PIP in 2010;
- $7 million lower provision for loan losses;
- $6 million increase in noninterest income primarily due to the non-recurrence of 2009 impairment charges of $9 million on mortgage-related securities, which was offset by lower fee and other income in 2010 as a result of the Regulation E impact on overdraft fees and a 2009 gain on the sale of one commercial loan.