Performance Highlights

  • Net Interest Margin: Net interest margin was 4.04% in the fourth quarter of 2010 versus 4.15% in the fourth quarter of 2009 and 4.16% in the third quarter of 2010;   
  • Capital: The Company's Tier I leverage capital ratio was 9.53% at December 31, 2010 versus 8.68% at December 31, 2009 and 9.33% at September 30, 2010. The Company's tangible common equity ratio (non-GAAP financial measure) was 7.39% at December 31, 2010 versus 6.93% at December 31, 2009 and 7.11% at September 30, 2010;
  • Loan Loss Provision: The fourth quarter 2010 provision for loan losses decreased by $20.3 million to $2.7 million versus the fourth quarter of 2009 and increased by $200 thousand versus the third quarter of 2010. The fourth quarter 2010 provision for loan losses exceeded net charge-offs by $590 thousand;
  • Asset Quality: Although non-accrual loans increased to $15 million or 1.3% of loans outstanding at December 31, 2010 versus $7 million or 0.6% of loans outstanding at December 31, 2009 and $9 million or 0.8% of loans outstanding at September 30, 2010, total accruing loans delinquent 30 days or more declined to 2.28% of loans outstanding at December 31, 2010 versus 3.84% of loans outstanding at December 31, 2009 and 3.90% at September 30, 2010. Net loan charge-offs of $2.1 million were recorded in the fourth quarter of 2010 versus $23.7 million in the fourth quarter of 2009 and $1.3 million in the third quarter of 2010. The allowance for loan losses totaled $33 million at December 31, 2010, $29 million at December 31, 2009 and $32 million at September 30, 2010, representing 2.9%, 2.6%, and 2.9% of total loans, respectively, at such dates. The allowance for loan losses as a percentage of non-accrual loans, excluding non-accrual loans categorized as held for sale, was 223%, 474%, and 357% at December 31, 2010, December 31, 2009 and September 30, 2010, respectively. The Company held no other real estate owned during any of these reporting periods;
  • Operating Efficiency: Total operating expenses for the fourth quarter of 2010 decreased by 39.9% to $9.3 million from the $15.5 million reported in the fourth quarter of 2009 and decreased by 12.0% versus the third quarter of 2010. The Company's operating efficiency ratio improved to 52.0% in 2010 from 89.4% in the comparable 2009 period. The Company's efficiency ratio was 60.7% in the third quarter of 2010;      
  • Loans: Loans outstanding at December 31, 2010 increased by 3% to $1.1 billion versus December 31, 2009 and were up 2% versus September 30, 2010;
  • Core Deposits: Core deposits totaled $976 million at December 31, 2010 versus $995 million at December 31, 2009 and $979 million at September 30, 2010. Core deposits represented 72% of total deposits in the quarter ended December 2010, 74% of total deposits for the quarter ended December 2009 and 71% for the quarter ended September 2010. Demand deposits decreased by 10% to $343 million at December 31, 2010 versus $381 million at December 31, 2009 and increased by 2% from $336 million at September 30, 2010. Demand deposits represented 25% of total deposits at December 31, 2010, 28% at December 31, 2009 and 24% at September 30, 2010;
  • Performance Ratios: Return on average assets and return on average common stockholders' equity were 0.86% and 10.12%, respectively, in the fourth quarter of 2010 and (3.09)% and (44.48)%, respectively, in the comparable 2009 period. For the third quarter of 2010, return on average assets and return on average common stockholders' equity were 0.78% and 9.09%, respectively.

Earnings Summary for the Quarter Ended December 31, 2010

The Company recorded net income of $3.6 million during the fourth quarter of 2010 versus a net loss of $12.7 million in the comparable 2009 period. The improvement in net income in 2010 versus 2009 resulted from a $20.3 million reduction in the provision for loan losses in 2010, a decline of $6.2 million in operating expenses and an $815 thousand increase in non-interest income. Somewhat offsetting these positive factors was a $385 thousand reduction in net interest income in 2010.