Old Second Bancorp, Inc. Announces Fourth Quarter 2011 Results

Old Second Bancorp, Inc. (the “Company” or “Old Second”) (NASDAQ: OSBC), parent company of Old Second National Bank (the “Bank”), today announced results of operations for the fourth quarter of 2011. The Company reported a net loss of $3.0 million, compared to a net loss of $76.6 million ($11.6 million pretax loss before deferred tax asset valuation allowance adjustment) in the fourth quarter of 2010. The Company’s net loss available to common shareholders of $4.2 million, or $0.30 per diluted share, for the fourth quarter of 2011 and a loss of $0.79 per diluted share for the year, compared to a net loss available to common shareholders of $77.8 million, or $5.48 per diluted share, in the fourth quarter of 2010 and a loss of $8.03 in 2010.

The Company’s $1.4 million provision for loan losses for the fourth quarter of 2011 compared favorably to the $14.0 million provision in the fourth quarter of 2010. The allowance for loan losses was 37.42% of nonperforming loans as of December 31, 2011, compared to 33.34% a year earlier and 42.95% as of September 30, 2011.

“We continue to exceed the capital ratio objectives that we agreed to with the OCC,” said Bill Skoglund, Chairman and CEO. “As of December 31, 2011, the Bank’s leverage ratio was 9.34%, up 124 basis points from December 31, 2010, and 59 basis points above the 8.75% objective in our OCC agreement. The Bank’s total capital ratio was 12.97%, up 134 basis points from December 31, 2010, and 172 basis points above the objective of 11.25% in our OCC agreement.”

“Consecutive quarterly declines in nonperforming assets over the course of 2011 reflect our hard work and progress,” added Skoglund. “While uncertainty remains in the broader economy, we have seen recurring signs of stabilization in our key markets, which we believe will be an important contributor to our continuing improvement. Further, we are pleased to provide outstanding service to our valued customers and to work with them to achieve their long-term financial objectives.”

2011 Financial Highlights/Overview

Earnings
  • Fourth quarter net loss before taxes of $3.0 million compared to a net loss before taxes of $11.6 million in the same quarter of 2010.
  • Fourth quarter net loss to common stockholders of $4.2 million compared to a net loss to common stockholders of $77.8 million ($11.6 million loss before the valuation allowance adjustment against deferred tax assets) in the same quarter of 2010.
  • The tax-equivalent net interest margin was 3.44% during the fourth quarter of 2011 compared to 3.55% in the same quarter of 2010, and reflected a decrease of 19 basis points compared to the third quarter of 2011.
  • Noninterest income of $36.0 million was $8.9 million lower for the year ended December 31 2011 as compared to 2010 reflecting lower securities gains, deposit service charges, and mortgage sale revenues. Results for 2010 also included nonrecurring revenues on bank-owned life insurance and litigation related income. Excluding the nonrecurring revenue recorded in 2010, noninterest income decreased by $5.3 million or 12.8% compared to full year 2010.
  • Noninterest expenses of $97.6 million were $3.0 million or 3.0% lower in the year ended December 31, 2011 than in the same period in 2010 reflecting flat or reduced expenses in most categories except general bank insurance and legal fees.

Capital
  • Bank leverage capital ratio increased to 9.34% from 8.10% at December 31, 2010.
  • Bank total capital ratio increased to 12.97% from 11.63% at December 31, 2010.
  • Company leverage ratio increased to 4.98% from 4.74% at December 31, 2010.
  • Company total capital ratio increased to 12.38% from 11.46% at December 31, 2010.
  • As expected due to net losses in 2011, Company tangible common equity to tangible assets decreased from 0.15% in the third quarter of 2011 to (.08)% in the fourth quarter of 2011 and declined from 0.40% at year end 2010.

Asset Quality/Balance Sheet Overview
  • Nonperforming loans declined $89.9 million (39.3%) during 2011 to $138.9 million as of December 31, 2011, from $228.9 million as of December 31, 2010 and declined $398,000 (0.3%) during the quarter from $139.3 million as of September 30, 2011.
  • The provision for loan loss expense decreased to $1.4 million for the fourth quarter ended December 31, 2011, compared to $14.0 million in the same period in 2010.
  • Loans that were classified as performing but 30 to 89 days past due and still accruing interest decreased to $12.1 million at December 31, 2011, from $13.9 million at December 31, 2010.
  • Securities available-for-sale increased $158.9 million during 2011 to $307.6 million from $148.6 million at December 31, 2010 with no impact on the current liquidity profile and under limits specified in our Investment Policy. At $154.0 million or 50.1% of the total portfolio, U. S. Government agency mortgage backed securities are the largest component of the total portfolio.

Non-GAAP Presentations: Management has traditionally disclosed certain non-GAAP ratios to evaluate and measure the Company’s performance, including a net interest margin calculation. The net interest margin is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding balance sheet profitability. Management also presents an efficiency ratio that is non-GAAP. The efficiency ratio is calculated by dividing adjusted noninterest expense by the sum of net interest income on a tax equivalent basis and adjusted noninterest income. Management believes this measure provides investors with information regarding the Company’s operating efficiency and how management evaluates performance internally. Consistent with industry practice, management also disclosed the tangible common equity to tangible assets and the Tier 1 common equity to risk weighted assets in the discussion immediately above and in the following tables. The tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Forward Looking Statements: This report may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or other indications that the particular statements are not based upon facts but are rather based upon the Company’s beliefs as of the date of this release. Actual events and results may differ significantly from those described in such forward-looking statements, due to changes in the economy, interest rates or other factors. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. For additional information concerning the Company and its business, including other factors that could materially affect the Company’s financial results, please review our filings with the Securities and Exchange Commission.
       
Financial Highlights (unaudited)
In thousands, except share data As of and for the As of and for the
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
Summary Statements of Operations:
Net interest and dividend income $ 15,017 $ 18,156 $ 63,950 $ 78,613
Provision for loan losses 1,387 14,000 8,887 89,668
Noninterest income 9,162 11,100 36,008 44,910
Noninterest expense 25,793 26,853 97,569 100,636
Provision for income taxes - 65,027 - 41,868
Net loss (3,001 ) (76,624 ) (6,498 ) (108,649 )
Net loss available to common stockholders (4,207 ) (77,768 ) (11,228 ) (113,187 )
 
Key Ratios (annualized):
Return on average assets (0.62 %) (13.29 %) (0.32 %) (4.48 %)
Return to common stockholders on average assets (0.86 %) (13.49 %) (0.56 %) (4.66 %)
Return on average equity (15.37 %) (192.49 %) (8.15 %) (61.79 %)
Return on average common equity (247.56 %) (350.13 %) (120.30 %) (106.41 %)
Net interest margin (non-GAAP tax equivalent)1 3.44 % 3.55 % 3.54 % 3.64 %
Efficiency ratio (non-GAAP tax equivalent)1 75.17 % 64.67 % 73.57 % 62.15 %
Tangible common equity to tangible assets2 (0.08 %) 0.40 % (0.08 %) 0.40 %
Tier 1 common equity to risk weighted assets2 (0.05 %) 0.52 % (0.05 %) 0.52 %

Company total capital to risk weighted assets3
12.38 % 11.46 % 12.38 % 11.46 %

Company tier 1 capital to risk weighted assets3
6.21 % 6.09 % 6.21 % 6.09 %
Company tier 1 capital to average assets 4.98 % 4.74 % 4.98 % 4.74 %

Bank total capital to risk weighted assets3
12.97 % 11.63 % 12.97 % 11.63 %

Bank tier 1 capital to risk weighted assets3
11.70 % 10.34 % 11.70 % 10.34 %
Bank tier 1 capital to average assets 9.34 % 8.10 % 9.34 % 8.10 %
 
Per Share Data:
Basic loss per share ($0.30 ) ($5.48 ) ($0.79 ) ($8.03 )
Diluted loss per share ($0.30 ) ($5.48 ) ($0.79 ) ($8.03 )
Dividends declared per share

 

$0.00

 

$0.00

 

$0.00

 

$0.02
Common book value per share

 

$0.22

 

$1.01

 

$0.22

 

$1.01
Tangible common book value per share ($0.11 )

 

$0.61
($0.11 )

 

$0.61
Ending number of shares outstanding 14,034,991 13,911,475 14,034,991 13,911,475
Average number of shares outstanding 14,034,991 13,911,475 14,019,920 13,918,309
Diluted average shares outstanding 14,216,163 14,193,303 14,220,822 14,104,228
 
End of Period Balances:
Loans $ 1,368,985 $ 1,690,129 $ 1,368,985 $ 1,690,129
Deposits 1,740,781 1,908,528 1,740,781 1,908,528
Stockholders' equity 74,001 83,958 74,001 83,958
Total earning assets 1,751,662 1,933,296 1,751,662 1,933,296
Total assets 1,941,417 2,123,921 1,941,417 2,123,921
 
Average Balances:
Loans $ 1,402,351 $ 1,774,787 $ 1,527,311 $ 1,900,604
Deposits 1,731,793 1,998,044 1,806,924 2,107,883
Stockholders' equity 77,488 157,931 79,725 175,850
Total earning assets 1,741,388 2,038,479 1,817,586 2,189,354
Total assets 1,933,572 2,287,517 2,015,464 2,426,356

1 Tabular disclosures of the tax equivalent calculation including the net interest margin and efficiency ratio for the quarters ending December 31, 2011, and 2010, respectively, are presented on page 20.

2 The information to reconcile GAAP measures and the ratios of Tier 1 capital, total capital, tangible common equity or Tier 1 common equity, as applicable, to average total assets, risk-weighted assets or tangible assets, as applicable, are presented on page 21.

3 The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Those agencies define the basis for these calculations including the prescribed methodology for the calculation of the amount of risk-weighted assets.
       
Financial Highlights, continued (unaudited)
In thousands, except share data
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
 
Asset Quality
Charge-offs $ 10,192 $ 8,715 $ 41,169 $ 85,009
Recoveries   950     2,859     7,971     7,109  
Net charge-offs $ 9,242   $ 5,856   $ 33,198   $ 77,900  
Provision for loan losses 1,387 14,000 8,887 89,668
Allowance for loan losses to loans 3.80 % 4.51 % 3.80 % 4.51 %
 
As of
December 31,
2011 2010
Nonaccrual loans1 $ 126,786 $ 212,225
Restructured loans 11,839 15,637
Loans past due 90 days   318     1,013  
Nonperforming loans 138,943 228,875
Other real estate 93,290 75,613
Receivable from swap terminations   -     3,520  
Nonperforming assets $ 232,233   $ 308,008  
 

1 Includes $16.2 million and $23.2 million in nonaccrual restructured loans at December 31, 2011, and 2010, respectively.

 
 
Major Classifications of Loans As of
December 31,
2011 2010
Commercial and industrial $ 98,099 $ 149,552
Real estate - commercial 704,492 821,101
Real estate - construction 71,436 129,601
Real estate - residential 477,200 557,635
Installment 3,789 4,949
Overdraft 457 739
Lease financing receivables 2,087 2,774
Other   11,498     24,487  
1,369,058 1,690,838
Unearned origination fees, net   (73 )   (709 )
$ 1,368,985   $ 1,690,129  
 
 
Major Classifications of Deposits As of
December 31,
2011 2010
Noninterest bearing $ 361,963 $ 330,846
Savings 196,870 180,127
NOW accounts 275,957 304,287
Money market accounts 288,508 297,702
Certificates of deposits of less than $100,000 390,530 491,234
Certificates of deposits of $100,000 or more   226,953     304,332  
$ 1,740,781   $ 1,908,528  
 
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
   
(unaudited) (audited)
December 31, December 31,
2011 2010
Assets
Cash and due from banks $ 2,692 $ 28,584
Interest bearing deposits with financial institutions 48,257 69,492
Federal funds sold   -     682  
Cash and cash equivalents 50,949 98,758
Securities available-for-sale 307,564 148,647
Federal Home Loan Bank and Federal Reserve Bank stock 14,050 13,691
Loans held-for-sale 12,806 10,655
Loans 1,368,985 1,690,129
Less: allowance for loan losses   51,997     76,308  
Net loans 1,316,988 1,613,821
Premises and equipment, net 50,477 54,640
Other real estate owned, net 93,290 75,613
Mortgage servicing rights, net 3,487 3,897
Core deposit and other intangible asset, net 4,678 5,525
Bank-owned life insurance (BOLI) 52,595 50,966
Other assets   34,534     47,708  
Total assets $ 1,941,418   $ 2,123,921  
 
Liabilities
Deposits:
Noninterest bearing demand $ 361,963 $ 330,846
Interest bearing:
Savings, NOW, and money market 761,335 782,116
Time   617,483     795,566  
Total deposits 1,740,781 1,908,528
Securities sold under repurchase agreements 901 2,018
Other short-term borrowings - 4,141
Junior subordinated debentures 58,378 58,378
Subordinated debt 45,000 45,000
Notes payable and other borrowings 500 500
Other liabilities   21,856     21,398  
Total liabilities 1,867,416 2,039,963
 
Stockholders' Equity
Preferred stock 70,863 69,921
Common stock 18,628 18,467
Additional paid-in capital 65,999 65,209
Retained earnings 17,107 28,335
Accumulated other comprehensive loss (3,702 ) (3,130 )
Treasury stock   (94,893 )   (94,844 )
Total stockholders' equity   74,002     83,958  
Total liabilities and stockholders' equity $ 1,941,418   $ 2,123,921  
 
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except share data)
       
(unaudited)
Three Months Ended Year to Date
December 31, December 31,
2011 2010 2011 2010
Interest and Dividend Income (unaudited)
Loans, including fees $ 18,319 $ 23,006 $ 80,084 $ 99,297
Loans held-for-sale 144 118 342 413
Securities, taxable 1,298 1,052 3,989 4,766
Securities, tax exempt 104 151 487 1,795
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock 74 67 290 251
Federal funds sold - 1 1 3
Interest bearing deposits with financial institutions   33     54     230     156  
Total interest and dividend income 19,972 24,449 85,423 106,681
Interest Expense
Savings, NOW, and money market deposits 304 663 1,579 4,067
Time deposits 3,258 4,326 14,478 18,795
Securities sold under repurchase agreements 1 1 1 28
Other short-term borrowings - - - 18
Junior subordinated debentures 1,176 1,093 4,577 4,309
Subordinated debt 212 206 822 838
Notes payable and other borrowings   4     4     16     13  
Total interest expense   4,955     6,293     21,473     28,068  
Net interest and dividend income 15,017 18,156 63,950 78,613
Provision for loan losses   1,387     14,000     8,887     89,668  
Net interest and dividend income (expense) after provision for loan losses 13,630 4,156 55,063 (11,055 )
Noninterest Income
Trust income 1,661 1,594 6,817 6,849
Service charges on deposits 2,114 2,021 8,135 8,563
Secondary mortgage fees 323 503 1,055 1,537
Mortgage servicing (loss) gain, net of changes in fair value (120 ) 813 (341 ) (63 )
Net gain on sales of mortgage loans 1,791 2,980 5,458 9,696
Securities gains, net 43 353 631 2,727
Increase in cash surrender value of bank-owned life insurance 499 464 1,629 1,674
Death benefit realized on bank-owned life insurance - 5 - 943
Debit card interchange income 745 697 3,004 2,783
Lease revenue from other real estate owned 1,098 371 3,635 1,760
Net gain (loss) on sales of other real estate owned 378 (83 ) 1,311 614
Litigation related income - 11 - 2,656
Other income   630     1,371     4,674     5,171  
Total noninterest income 9,162 11,100 36,008 44,910
Noninterest Expense
Salaries and employee benefits 8,521 9,697 34,015 36,867
Occupancy expense, net 1,184 1,144 5,112 5,142
Furniture and equipment expense 1,261 1,502 5,601 6,196
FDIC insurance 970 1,076 4,854 4,879
General bank insurance 824 148 3,320 586
Amortization of core deposit and other intangible asset 136 282 847 1,129
Advertising expense 375 413 1,106 1,461
Debit card interchange expense 333 349 1,424 1,345
Legal fees 1,211 1,047 4,118 3,236
Other real estate expense 7,738 7,774 24,356 26,401
Other expense   3,240     3,421     12,816     13,394  
Total noninterest expense   25,793     26,853     97,569     100,636  
Loss before income taxes (3,001 ) (11,597 ) (6,498 ) (66,781 )
Provision for income taxes   -     65,027     -     41,868  
Net loss $ (3,001 ) $ (76,624 ) $ (6,498 ) $ (108,649 )
Preferred stock dividends and accretion   1,206     1,144     4,730     4,538  
Net loss available to common stockholders $ (4,207 ) $ (77,768 ) $ (11,228 ) $ (113,187 )
 
Basic loss per share $ (0.30 ) $ (5.48 ) $ (0.79 ) $ (8.03 )
Diluted loss per share (0.30 ) (5.48 ) (0.79 ) (8.03 )
Dividends declared per share - - - 0.02
 
ANALYSIS OF AVERAGE BALANCES,
TAX EQUIVALENT INTEREST AND RATES
Three Months ended December 31, 2011, and 2010
(Dollar amounts in thousands - unaudited)
           
2011 2010
Average Average
Balance Interest Rate Balance Interest Rate
Assets
Interest bearing deposits $ 54,881 $ 33 0.24 % $ 80,913 $ 54 0.26 %
Federal funds sold - - - 1,627 1 0.24
Securities:
Taxable 243,264 1,298 2.13 140,434 1,052 3.00
Non-taxable (tax equivalent)   12,793     159 4.97   16,587     232 5.59
Total securities 256,057 1,457 2.28 157,021 1,284 3.27
Dividends from FRB and FHLB stock 14,050 74 2.11 13,690 67 1.96
Loans and loans held-for-sale 1   1,416,400     18,489 5.11   1,785,228     23,138 5.07
Total interest earning assets 1,741,388 20,053 4.51 2,038,479 24,544 4.72
Cash and due from banks 7,757 - - 39,480 - -
Allowance for loan losses (58,404 ) - - (75,847 ) - -
Other noninterest bearing assets   242,831     - -   285,405     - -
Total assets $ 1,933,572   $ 2,287,517  
 
Liabilities and Stockholders' Equity
NOW accounts $ 262,522 $ 75 0.11 % $ 379,966 $ 191 0.20 %
Money market accounts 288,118 165 0.23 306,651 348 0.45
Savings accounts 193,640 64 0.13 178,763 124 0.28
Time deposits   632,850     3,258 2.04   799,148     4,326 2.15
Interest bearing deposits 1,377,130 3,562 1.03 1,664,528 4,989 1.19
Securities sold under repurchase agreements 2,093 1 0.19 3,709 1 0.11
Other short-term borrowings 2,275 - - 3,406 - -
Junior subordinated debentures 58,378 1,176 8.06 58,378 1,093 7.49
Subordinated debt 45,000 212 1.84 45,000 206 1.79
Notes payable and other borrowings   500     4 3.13   500     4 3.13
Total interest bearing liabilities 1,485,376 4,955 1.33 1,775,521 6,293 1.41
Noninterest bearing deposits 354,663 - - 333,516 - -
Other liabilities 16,045 - - 20,549 - -
Stockholders' equity   77,488     - -   157,931     - -
Total liabilities and stockholders' equity $ 1,933,572   $ 2,287,517  
Net interest income (tax equivalent) $ 15,098 $ 18,251
Net interest income (tax equivalent)
to total earning assets 3.44 % 3.55 %
Interest bearing liabilities to earning assets   85.30 %   87.10 %

1. Interest income from loans is shown on a tax equivalent basis as discussed in the table on page 20 and includes fees of $516,000 and $600,000 for the fourth quarter of 2011 and 2010, respectively. Nonaccrual loans are included in the above stated average balances.

Note: Tax equivalent basis is calculated using a marginal tax rate of 35%.
 
ANALYSIS OF AVERAGE BALANCES,
TAX EQUIVALENT INTEREST AND RATES
Twelve Months ended December 31, 2011, and 2010
(Dollar amounts in thousands - unaudited)
           
2011 2010
Average Average
Balance Interest Rate Balance Interest Rate
Assets
Interest bearing deposits $ 92,830 $ 230 0.24 % $ 64,894 $ 156 0.24 %
Federal funds sold 533 1 0.19 2,009 3 0.15
Securities:
Taxable 161,986 3,989 2.46 154,485 4,766 3.09
Non-taxable (tax equivalent)   13,220     749 5.67   45,435     2,761 6.08
Total securities 175,206 4,738 2.70 199,920 7,527 3.77
Dividends from FRB and FHLB stock 13,963 290 2.08 13,467 251 1.86
Loans and loans held-for-sale 1   1,535,054     80,513 5.17   1,909,064     99,791 5.16
Total interest earning assets 1,817,586 85,772 4.66 2,189,354 107,728 4.86
Cash and due from banks 27,402 - - 37,670 - -
Allowance for loan losses (69,471 ) - - (74,487 ) - -
Other noninterest bearing assets   239,947     - -   273,819     - -
Total assets $ 2,015,464   $ 2,426,356  
 
Liabilities and Stockholders' Equity
NOW accounts $ 264,470 $ 422 0.16 % $ 402,954 $ 1,125 0.28 %
Money market accounts 295,212 835 0.28 356,627 2,243 0.63
Savings accounts 191,857 322 0.17 185,175 699 0.38
Time deposits   701,189     14,478 2.06   840,647     18,795 2.24
Interest bearing deposits 1,452,728 16,057 1.11 1,785,403 22,862 1.28
Securities sold under repurchase agreements 1,957 1 0.05 14,883 28 0.19
Other short-term borrowings 2,742 - - 5,095 18 0.35
Junior subordinated debentures 58,378 4,577 7.84 58,378 4,309 7.38
Subordinated debt 45,000 822 1.80 45,000 838 1.84
Notes payable and other borrowings   500     16 3.16   500     13 2.56
Total interest bearing liabilities 1,561,305 21,473 1.37 1,909,259 28,068 1.47
Noninterest bearing deposits 354,196 - - 322,480 - -
Other liabilities 20,238 - - 18,767 - -
Stockholders' equity   79,725     - -   175,850     - -
Total liabilities and stockholders' equity $ 2,015,464   $ 2,426,356  
Net interest income (tax equivalent) $ 64,299 $ 79,660
Net interest income (tax equivalent)
to total earning assets 3.54 % 3.64 %
Interest bearing liabilities to earning assets   85.90 %   87.21 %

1. Interest income from loans is shown on a tax equivalent basis as discussed in the table on page 20 and includes fees of $2.2 million and $2.5 million for the year ended December 31, 2011 and 2010, respectively. Nonaccrual loans are included in the above stated average balances.

Note: Tax equivalent basis is calculated using a marginal tax rate of 35%.

The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (Dollar amounts in thousands- unaudited)

   
Three Months Ended Year to Date
December 31, December 31,
2011   2010 2011   2010
Net Interest Margin
Interest income (GAAP) $ 19,972 $ 24,449 $ 85,423 $ 106,681
Taxable equivalent adjustment:
Loans 26 14 87 81
Securities   55     81     262     966  
Interest income (TE) 20,053 24,544 85,772 107,728
Interest expense (GAAP)   4,955     6,293     21,473     28,068  
Net interest income (TE) $ 15,098   $ 18,251   $ 64,299   $ 79,660  
Net interest income (GAAP) $ 15,017   $ 18,156   $ 63,950   $ 78,613  
Average interest earning assets $ 1,741,388 $ 2,038,479 $ 1,817,586 $ 2,189,354
Net interest margin (GAAP) 3.42 % 3.53 % 3.52 % 3.59 %
Net interest margin (TE) 3.44 % 3.55 % 3.54 % 3.64 %
 
 
Efficiency Ratio
Noninterest expense $ 25,793 $ 26,853 $ 97,569 $ 100,636
Less amortization of core deposit and
other intangible asset 136 282 847 1,129
Less other real estate expense   7,738     7,774     24,356     26,401  
Adjusted noninterest expense 17,919 18,797 72,366 73,106
Net interest income (GAAP) 15,017 18,156 63,950 78,613
Taxable-equivalent adjustment:
Loans 26 14 87 81
Securities   55     81     262     966  
Net interest income (TE) 15,098 18,251 64,299 79,660
Noninterest income 9,162 11,100 36,008 44,910
Less death benefit related to
bank-owned life insurance - 5 - 943
Less litigation settlement income - 11 - 2,656
Less securities gain , net 43 353 631 2,727
Less gain (loss) on sale of OREO   378     (83 )   1,311     614  
Adjusted noninterest income, plus
net interest income (TE) 23,839 29,065 98,365 117,630
Efficiency ratio 75.17 % 64.67 % 73.57 % 62.15 %
 

 
(unaudited)
As of December 31,
2011   2010
(dollars in thousands)
Tier 1 capital
Total stockholders' equity $ 74,002 $ 83,958
Tier 1 adjustments:
Trust preferred securities 25,901 29,029
Cumulative other comprehensive loss 3,702 3,130
Disallowed intangible assets (4,678 ) (5,525 )
Disallowed deferred tax assets (2,592 ) (2,064 )
Other   (349 )   (390 )
Tier 1 capital $ 95,986   $ 108,138  
 
Total capital
Tier 1 capital $ 95,986 $ 108,138
Tier 2 additions:
Allowable portion of allowance for loan losses 19,736 22,875

Additional trust preferred securities disallowed for tier 1 capital
30,724 27,596
Subordinated debt 45,000 45,000
Other Tier 2 capital components   (7 )   (7 )
Total capital $ 191,439   $ 203,602  
 
Tangible common equity
Total stockholders' equity $ 74,002 $ 83,958
Less: Preferred equity 70,863 69,921
Intangible assets   4,678     5,525  
Tangible common equity $ (1,539 ) $ 8,512  
 
Tier 1 common equity
Tangible common equity $ (1,539 ) $ 8,512
Tier 1 adjustments:
Cumulative other comprehensive loss 3,702 3,130
Other   (2,941 )   (2,454 )
Tier 1 common equity $ (778 ) $ 9,188  
 
Tangible assets
Total assets $ 1,941,418 $ 2,123,921
Less:
Intangible assets   4,678     5,525  
Tangible assets $ 1,936,740   $ 2,118,396  
 
Total risk-weighted assets
On balance sheet $ 1,511,815 $ 1,723,519
Off balance sheet   34,824     53,051  
Total risk-weighted assets $ 1,546,639   $ 1,776,570  
 
Average assets
Total average assets for leverage $ 1,925,953 $ 2,279,538

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX