Company is Very Well-Capitalized, with Strong Liquidity, Excellent Core Deposit Base
TACOMA, Wash., April 22 /PRNewswire-FirstCall/ -- Columbia Banking System, Inc. (Nasdaq: COLB) today announced net income applicable to common shareholders of $419,000 for the first quarter ended March 31, 2009 compared to $11.0 million for the same quarter of 2008. On a diluted per common share basis, net income for the quarter was $0.02, a decline from $0.61 in 2008. Columbia paid $1.1 million in preferred stock dividends, compared to $470,000 in the fourth quarter, 2008, attributed to our participation in the U.S. Treasury's Capital Purchase Program, completed November 21, 2008. These results also reflect an elevated provision for loan losses of $11.0 million, primarily due to the continued deterioration of the Pacific Northwest economic environment and the resulting impact on Columbia's portfolio of real estate-related construction loans.
"We achieved a profitable first quarter despite the rapidly deteriorating economy and its ensuing challenges," said Melanie Dressel, President and Chief Executive Officer. "Reflecting our continued concern about this general decline and its impact on credit quality, we placed an additional $11 million in our provision for loan losses during the quarter. We continue to focus on our core strategies, expense control and our long-standing business model, which have served us well and, we believe, strongly position us for the future."
Ms. Dressel commented, "We remain very well capitalized, with a total risk-based capital ratio of 14.47% at March 31, 2009, enhancing our ability to lend and increasing our flexibility to pursue strategic opportunities which may arise due to the inevitable market disruptions resulting from the challenging economy. Our liquidity ratio remains strong as well at 35%, which translates into over $1 billion of available funding for the general operation of our bank and to meet the needs of our customers. Our core deposits, which result from the strong relationships we have built with our customers, represent a healthy 80% of our total deposits."
"While economic challenges persist, we have avoided concentration of risk in any one segment due to our diversified loan portfolio," Ms. Dressel noted. "Over 37% of our loans are commercial business loans, only 11% are real estate construction-related, and less than 9% of our loans are in the for-sale housing segment. Nonperforming assets to total assets ended the quarter at 3.99%. Until the economy stabilizes, we anticipate our annual provision for loan losses and net charge-offs to remain elevated."
Revenue (net interest income plus noninterest income) was $34.9 million for the first quarter of 2009, down 14% from $40.5 million one year ago. The decrease was primarily due to lower interest earned on our loan portfolio due to the decline in interest rates during the 4th quarter of 2008. Return on average assets and return on average common equity for the quarter was 0.20% and 0.49%, respectively, compared to 1.39% and 12.60%, respectively, for the same period in 2008.
At March 31, 2009, Columbia's total assets were $3.05 billion compared to $3.10 billion at December 31, 2008. Total loans were $2.19 billion at March 31, 2009, down 2% from December 31, 2008, and total securities increased $15.4 million to $556.0 million at March 31, 2009. Total deposits decreased 2% from December 31, 2008, ending at $2.34 billion at the end of the first quarter, 2009. Core deposits, defined as demand, savings, money market accounts and certificates of deposit under $100,000, totaled $1.87 billion at March 31, 2009, comprising 80.0% of total deposits, up slightly from first quarter, 2008. Ms. Dressel commented, "We are actively managing our loan and deposit portfolios, which have declined as we reposition the loan portfolio to further manage risk and maintain diligence around our deposit pricing."
Operating Results
Quarter ended March 31, 2009
Net Interest Income
Net interest income for the first quarter of 2009 was $27.9 million, a decrease of 8% from $30.3 million for the same quarter in 2008, primarily due to a decrease in earning assets from the prior year. Columbia's net interest margin decreased to 4.26% in the first quarter of 2009, from 4.38% for the same quarter last year. The net interest margin was negatively impacted by interest reversals for the first quarter ended March 31, 2009 related to nonaccrual loans totaling $625,000. Excluding the impact of interest reversals, net interest margin for the quarter would have been 4.35%.
Average interest-earning assets were $2.77 billion during the quarter, a decrease of 4.5% compared with $2.91 billion during the same quarter of 2008. The yield on average interest-earning assets decreased 144 basis points (a basis point equals 1/100 of 1%) to 5.45% during the quarter compared with 6.89% during the same quarter of 2008. During the same period, average interest-bearing liabilities decreased to $2.14 billion, or 9%, from $2.34 billion in 2008. The cost of average interest-bearing liabilities decreased 157 basis points to 1.54% during the quarter, from 3.11% in the same quarter of 2008.
Noninterest Income
Noninterest income was $7.0 million, down from the first quarter of last year, which included a one-time redemption of Visa and MasterCard shares and a net gain on the sale of investment securities in the amount of $2.0 million and $882,000 respectively. After removing these nonrecurring items, noninterest income declined 5%, primarily due to a reduction in merchant services fees and other noninterest income. Service charges and other fees were $3.6 million for the quarter, a 1% increase from one year ago.
Noninterest Expense
Total noninterest expense for the first quarter was $23.2 million, a decrease of 2% from $23.6 million for the same quarter in 2008. Decreases of 12% in compensation and employees benefits, and 7% in occupancy expenses, were significantly offset by increases in legal and professional fees, and FDIC regulatory premium expenses which have more than doubled. Columbia's efficiency ratio was 63.59% for the first quarter of 2009, compared to 62.36% for the first quarter of 2008. Despite our success in managing expenses, the efficiency ratio increased as a result of lower net interest income due to interest rate reductions during the second half of 2008.
Nonperforming Assets and Loan Loss Provision
As of March 31, 2009, non-performing assets were $121.7 million, compared to $15.0 million at March 31, 2008 and $109.6 million at December 31, 2008. Residential construction loans continue to be the primary driver of nonperforming assets, representing $70.3 million, or 58%, of nonperforming assets. Commercial real estate loans account for another $36.9 million, or 30% of non-performing loans. These commercial real estate non-performing assets are primarily centered in condominium development loans of approximately $14.9 million and two retail development loans of approximately $14.9 million. The increase in the Commercial Real Estate category reflects the continued weakness in the for-sale housing industry, as $5.2 million of the $5.5 million increase in this category was related to a condominium project located along the Oregon coast.
In the residential construction segment, there was a modest reduction in non-performing assets of $2.2 million. For the quarter, the Company received $4.3 million in payments, transferred $1.7 million to OREO, returned approximately $745,000 to accrual status and had net charge-offs of $6.3 million. Approximately $3.0 million of these net charge-offs were related to credits where the bank had previously written down the loan amount; however, due to continued declines in residential real estate values, we continue to take the prudent step of marking these assets down as we receive updated information concerning the various projects we have financed. This decline in value reflects the market dynamics in the Pacific Northwest, which saw a significant decline in housing values toward the end of 2008 and during the first part of 2009. Prior to December and January, declines in housing values had been modest, ranging from 0.5% to 1.5% per month. This accelerated to 2.5% in December, 2008 and to 3.5% for the month of January, 2009. Given this trend, we reevaluated several non-performing loans and took appropriate action based upon the updated market information. As the market conditions change over the course of 2009, we will continually reevaluate our non-performing assets to ensure they are appropriately valued.
For the first quarter, Columbia continued to be successful in reducing its exposure to construction related assets, which declined $39.8 million from December 31, 2008. Construction related assets now account for approximately 11.5% of the loan portfolio, down from a peak of 19.3% as of June 30, 2008. This represents a $187.8 million reduction in construction related assets in the past nine months, demonstrating management's resolve to reduce Columbia's exposure in this segment of the portfolio.
For the quarter ended March 31, 2009, net loan charge-offs were approximately $9.5 million compared to $761,000 for the same period a year ago, and $6.3 million during the fourth quarter of 2008. Charge-offs outside of the residential construction portfolio was centered in the commercial business portfolio and was primarily related to one credit with a net charge-off of approximately $2.3 million. This credit is housing related, as the loan was secured by an assignment of a deed of trust on a housing related development. Within the commercial business portfolio, we have extended approximately $12.0 million in commitments as of March 31, 2009 to finance companies which have in turn financed residential related developments. Of this amount, approximately $7.4 million is associated with the credit in which we took the $2.3 million net charge-off during the first quarter.
Organizational Update
Ms. Dressel said, "We continue to execute on our efficiency initiatives, which are designed to reduce current expense while maintaining our level of customer service and our competitive position when the economy rebounds. During the first quarter, we consolidated three branches, primarily due to their proximity to our other locations. We are pleased with the progress of our Tillamook office, which opened during the fourth quarter of 2008. Our long standing strategy continues to focus on improving efficiencies without jeopardizing the strength of our customer relationships, which are the foundation of our bank. We are confident that our healthy core deposits, the diversity of our loan and deposit portfolios and our relationships with our customers, employees and communities will result in long-term benefits for our shareholders."
Cash Dividend Announcement
The Board of Directors has announced a quarterly cash dividend of $0.01 per common share, down from $0.04 per common share in the previous quarter. The cash dividend will be paid on May 20, 2009 to shareholders of record as of the close of business on May 6, 2009.
William T. Weyerhaeuser, Chairman of the Board, commented, "We reviewed our dividend in light of our current market valuation, our dividend yield, payout ratio and our desire to conserve capital during this challenging economy. This dividend decision is difficult, but prudent, as we deal with this uncertain economic cycle. We hope to return to higher dividend levels as more normalized market conditions resume, subject, of course, to regulatory restrictions. We believe this action is in the best long-term interest of our shareholders."
Conference Call
Columbia Banking System management will discuss the company's first quarter 2009 results on a conference call scheduled for Thursday, April 23, 2009 at 1:00 p.m. PDT (4:00 p.m. EDT). Interested parties may listen to this discussion by calling 1-888-318-7969; Conference ID code #94453464.
A conference call replay will be available from approximately 4:00 p.m. PDT on April 23, 2009 through midnight PDT on Thursday, April 30, 2009. The conference call replay can be accessed by dialing 1-800-642-1687 and entering Conference ID code 94453464.
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is the holding company of Columbia Bank, a Washington state-chartered full-service commercial bank which was selected by Washington CEO magazine as one of 2008's "Washington's Best 100 Companies to Work For". With the 2007 acquisitions of Mountain Bank Holding Company and Town Center Bancorp and the 2008 internal merger of its subsidiary, Bank of Astoria, into Columbia Bank, Columbia Banking System has 50 banking offices in Pierce, King, Cowlitz, Kitsap, Thurston and Whatcom counties in Washington State, and Clackamas, Clatsop, Tillamook and Multnomah counties in Oregon. Included in Columbia Bank are former branches of Mt. Rainier National Bank, doing business as Mt. Rainier Bank, with 5 branches in King and Pierce counties. Columbia Bank does business under the Bank of Astoria name at the Bank of Astoria's former branches located in Astoria, Warrenton, Seaside and Cannon Beach in Clatsop County and in Manzanita and Tillamook in Tillamook County. More information about Columbia can be found on its website at www.columbiabank.com.
Note Regarding Forward-Looking Statements
This news release includes forward looking statements, which management believes are a benefit to shareholders. These forward looking statements describe Columbia's management's expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of Columbia's style of banking and the strength of the local economy. The words "will," "believe," "expect," "should," and "anticipate" and words of similar construction are intended in part to help identify forward looking statements. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in Columbia's filings with the SEC, factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities: (1) local, national and international economic conditions are less favorable than expected or have a more direct and pronounced effect on Columbia than expected and adversely affect Columbia's ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates reduce interest margins more than expected and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new branches are lower than expected; (4) costs or difficulties related to the integration of acquisitions are greater than expected; (5) competitive pressure among financial institutions increases significantly; (6) legislation or regulatory requirements or changes adversely affect the businesses in which Columbia is engaged.
FINANCIAL STATISTICS
Columbia Banking System, Inc. Three Months Ended
Unaudited March 31,
----------
(in thousands except per share) 2009 2008
---- ----
Earnings
--------
Net interest income $27,903 $30,327
Provision for loan and lease losses $11,000 $2,076
Noninterest income $6,974 $10,157
Noninterest expense $23,181 $23,554
Net income $1,512 $10,977
Net income applicable to common shareholders $419 $10,977
Per Common Share
-----------------
Net income (basic) $0.02 $0.61
Net income (diluted) $0.02 $0.61
Averages
--------
Total assets $3,057,861 $3,186,013
Interest-earning assets $2,774,259 $2,906,172
Loans $2,217,908 $2,304,588
Securities $543,403 $582,056
Deposits $2,324,853 $2,455,190
Core deposits $1,867,001 $1,932,813
Interest-bearing deposits $1,869,155 $2,004,095
Interest-bearing liabilities $2,135,045 $2,338,159
Noninterest-bearing deposits $455,698 $451,095
Shareholders' equity $419,752 $350,271
Financial Ratios
----------------
Return on average assets 0.20% 1.39%
Return on average common equity 0.49% 12.60%
Return on average tangible common equity (1) 1.14% 18.33%
Average equity to average assets 13.73% 10.99%
Net interest margin 4.26% 4.38%
Efficiency ratio (tax equivalent) (2) 63.59% 62.36%
March 31, December 31,
----------
Period end 2009 2008 2008
---------- ---- ---- ----
Total assets $3,045,757 $3,246,586 $3,097,079
Loans $2,185,755 $2,300,465 $2,232,332
Allowance for loan and lease
losses $44,249 $27,914 $42,747
Securities $555,974 $598,470 $540,525
Deposits $2,344,406 $2,526,514 $2,382,151
Core deposits $1,873,626 $1,997,975 $1,941,047
Shareholders' equity $415,717 $351,667 $415,385
Book value per common share $18.73 $19.45 $18.82
Tangible book value per
common share $13.19 $13.77 $13.23
Nonperforming assets
--------------------
Nonaccrual loans $109,292 $14,368 $106,163
Restructured loans 8,048 468 587
Other personal property owned - 187 -
Other real estate owned 4,312 - 2,874
----- --- -----
Total nonperforming assets $121,652 $15,023 $109,624
-------- ------- --------
Nonperforming loans to
period-end loans 5.37% 0.64% 4.78%
Nonperforming assets to
period-end assets 3.99% 0.46% 3.54%
Allowance for loan and lease
losses to period-end loans 2.02% 1.21% 1.91%
Allowance for loan and lease
losses to nonperforming loans 37.71% 188.15% 40.04%
Allowance for loan and lease
losses to nonperforming assets 36.37% 185.81% 38.99%
Net loan charge-offs $9,498 (3) $761 (4) $25,028 (5)
(1) Annualized net income, excluding core deposit intangible asset
amortization and preferred dividends divided by average daily
shareholders' equity, excluding average goodwill and average core
deposit intangible asset.
(2) Noninterest expense divided by the sum of net interest income and
noninterest income on a tax equivalent basis, excluding gain/loss on
sale of investment securities, net cost of operation of other real
estate, proceeds from redemption of Visa and Mastercard shares and
reversal of previously accrued Visa litigation expense.
(3) For the three months ended March 31, 2009.
(4) For the three months ended March 31, 2008.
(5) For the twelve months ended December 31, 2008.
FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited March 31,
---------
(in thousands) 2009 2008
---- ----
Loan Portfolio Composition
--------------------------
Commercial business $812,557 37.2% $780,177 33.9%
Real Estate:
One-to-four family residential 54,831 2.5% 62,733 2.7%
Five or more family residential
and commercial 861,531 39.4% 843,148 36.7%
------- ---- ------- ----
Total Real Estate 916,362 41.9% 905,881 39.4%
Real Estate Construction:
One-to-four family residential 186,307 8.5% 282,797 12.3%
Five or more family residential
and commercial 64,712 3.0% 155,362 6.8%
------ --- ------- ---
Total Real Estate Construction 251,019 11.5% 438,159 19.1%
Consumer 209,882 9.6% 180,016 7.8%
------- --- ------- ---
Subtotal loans 2,189,820 100.2% 2,304,233 100.2%
Less: Deferred loan fees (4,065) -0.2% (3,768) -0.2%
------ ---- ------ ----
Total loans $2,185,755 100.0% $2,300,465 100.0%
========== ===== ========== =====
Loans held for sale $3,747 $5,944
====== ======
March 31,
---------
2009 2008
---- ----
Deposit Composition
-------------------
Core deposits:
Demand and other non-interest
bearing $474,736 20.2% $508,955 20.1%
Interest bearing demand 454,723 19.4% 471,980 18.7%
Money market 528,990 22.6% 584,834 23.1%
Savings 133,517 5.7% 116,486 4.6%
Certificates of deposit less
than $100,000 281,660 12.0% 315,720 12.5%
------- ---- ------- ----
Total core deposits 1,873,626 79.9% 1,997,975 79.1%
Certificates of deposit greater
than $100,000 314,721 13.4% 411,491 16.3%
Wholesale certificates of
deposit (CDARS(R)) 95,817 4.1% - 0.0%
Wholesale certificates of
deposit 60,242 2.6% 117,048 4.6%
------ --- ------- ---
Total deposits $2,344,406 100.0% $2,526,514 100.0%
========== ===== ========== =====
QUARTERLY FINANCIAL STATISTICS
Columbia Banking System, Inc. Three Months Ended
Unaudited ------------------
(in thousands Mar 31 Dec 31 Sept 30 Jun 30 Mar 31
except per share) 2009 2008 2008 2008 2008
---- ---- ---- ---- ----
Earnings
--------
Net interest
income $27,903 $29,319 $29,593 $30,274 $30,327
Provision
for loan
and lease
losses $11,000 $13,250 $10,500 $15,350 $2,076
Noninterest
income $6,974 $6,334 $(10,946) $9,305 $10,157
Noninterest
expense $23,181 $21,813 $23,391 $23,367 $23,554
Net income
(loss) $1,512 $1,814 $(8,759) $1,936 $10,977
Net income
(loss)
applicable
to common
shareholders $419 $1,344 $(8,759) $1,936 $10,977
Per Common Share
----------------
Net income
(loss)
(basic) $0.02 $0.07 $(0.49) $0.11 $0.61
Net income
(loss)
(diluted) $0.02 $0.07 $(0.49) $0.11 $0.61
Averages
--------
Total assets $3,057,861 $3,061,867 $3,106,556 $3,182,877 $3,186,013
Interest-
earning
assets $2,774,259 $2,767,854 $2,830,894 $2,902,449 $2,906,172
Loans $2,217,908 $2,214,918 $2,241,574 $2,297,661 $2,304,588
Securities $543,403 $535,763 $558,990 $584,780 $582,056
Deposits $2,324,853 $2,297,422 $2,365,222 $2,413,225 $2,455,190
Core
deposits $1,867,001 $1,865,402 $1,925,780 $1,923,973 $1,932,813
Interest-
bearing
deposits $1,869,155 $1,837,166 $1,896,767 $1,950,123 $2,004,095
Interest-
bearing
liabilities $2,135,045 $2,193,437 $2,259,655 $2,319,556 $2,338,159
Noninterest-
bearing
deposits $455,698 $460,257 $468,455 $463,102 $451,095
Shareholders'
equity $419,752 $368,184 $344,158 $354,895 $350,271
Financial Ratios
----------------
Return on
average
assets 0.20% 0.24% -1.12% 0.24% 1.39%
Return on
average
common
equity 0.49% 1.60% -10.10% 2.19% 12.60%
Return on
average
tangible
common
equity 1.14% 2.75% -13.89% 3.56% 18.33%
Average
equity to
average
assets 13.73% 12.02% 11.08% 11.15% 10.99%
Net interest
margin 4.26% 4.39% 4.34% 4.39% 4.38%
Efficiency
ratio (tax
equivalent) 63.59% 57.62% 60.34% 59.31% 62.36%
Period end
----------
Total
assets $3,045,757 $3,097,079 $3,104,980 $3,169,607 $3,246,586
Loans $2,185,755 $2,232,332 $2,216,133 $2,275,719 $2,300,465
Allowance
for loan
and lease
losses $44,249 $42,747 $35,814 $41,724 $27,914
Securities $555,974 $540,525 $551,062 $549,755 $598,470
Deposits $2,344,406 $2,382,151 $2,355,821 $2,398,924 $2,526,514
Core
deposits $1,873,626 $1,941,047 $1,944,779 $1,933,256 $1,997,975
Shareholders'
equity $415,717 $415,385 $336,435 $344,270 $351,667
Book value
per common
share $18.73 $18.82 $18.54 $19.01 $19.45
Tangible
book value
per common
share $13.19 $13.23 $12.94 $13.35 $13.77
Nonperforming assets
--------------------
Nonaccrual
loans $109,292 $106,163 $76,164 $71,730 $14,368
Restructured
loans 8,048 587 746 540 468
Other personal
property
owned - - - - 187
Other real
estate owned 4,312 2,874 1,288 - -
----- ----- ----- --- ---
Total
nonperforming
assets $129,700 $109,624 $78,198 $72,270 $15,023
-------- -------- ------- ------- -------
Nonperforming
loans to
period-end loans 5.37% 4.78% 3.47% 3.18% 0.64%
Nonperforming
assets to
period-end assets 3.99% 3.54% 2.52% 2.28% 0.46%
Allowance for loan
and lease losses to
period-end loans 2.02% 1.91% 1.62% 1.83% 1.21%
Allowance for loan
and lease losses
to nonperforming
loans 37.71% 40.04% 46.57% 57.73% 188.15%
Allowance for loan
and lease losses
to nonperforming
assets 36.37% 38.99% 45.80% 57.73% 185.81%
Net loan charge-
offs $9,498 $6,317 $16,410 $1,540 $761
CONSOLIDATED CONDENSED STATEMENTS OF INCOME Three Months
Columbia Banking System, Inc. Ended
(Unaudited) March 31,
---------
(in thousands except per share) 2009 2008
------------------------------- ---- ----
Interest Income
Loans $29,801 $41,303
Taxable securities 4,208 4,980
Tax-exempt securities 2,013 2,001
Federal funds sold and deposits in banks 7 149
---------------------------------------- --- ---
Total interest income 36,029 48,433
Interest Expense
Deposits 6,892 14,835
Federal Home Loan Bank and Federal Reserve Bank
borrowings 765 2,582
Long-term obligations 351 487
Other borrowings 118 202
---------------- --- ---
Total interest expense 8,126 18,106
---------------------- ----- ------
Net Interest Income 27,903 30,327
Provision for loan and lease losses 11,000 2,076
----------------------------------- ------ -----
Net interest income after provision for loan and
lease losses 16,903 28,251
Noninterest Income
Service charges and other fees 3,614 3,568
Merchant services fees 1,770 1,916
Redemption of Visa and Mastercard shares - 1,962
Gain on sale of investment securities, net - 882
Bank owned life insurance ("BOLI") 501 505
Other 1,089 1,324
----- ----- -----
Total noninterest income 6,974 10,157
Noninterest Expense
Compensation and employee benefits 11,852 13,396
Occupancy 3,045 3,259
Merchant processing 814 866
Advertising and promotion 692 581
Data processing 961 815
Legal and professional fees 967 (51)
Taxes, licenses and fees 796 751
Regulatory premiums 1,007 502
Net cost of operation of other real estate 47 (23)
Other 3,000 3,458
----- ----- -----
Total noninterest expense 23,181 23,554
------------------------- ------ ------
Income before income taxes 696 14,854
Provision (benefit) for income taxes (816) 3,877
------------------------------------ ---- -----
Net Income $1,512 $10,977
========== ====== =======
Net Income Applicable to Common Shareholders (1) $419 $10,977
================================================ ==== =======
Earnings per common share
Basic $0.02 $0.61
Diluted $0.02 $0.61
Dividends paid per common share $0.04 $0.17
Weighted average number of common shares outstanding 17,980 17,850
Weighted average number of diluted common shares
outstanding 17,987 17,978
(1) For 2009, net income less preferred dividends ($961) and
amortization of preferred stock discount ($132)
CONSOLIDATED CONDENSED BALANCE SHEETS
Columbia Banking System, Inc.
(Unaudited) March 31, December 31,
(in thousands) 2009 2008
-------------- ---- ----
ASSETS
Cash and due from banks $61,201 $84,787
Interest-earning deposits with banks 317 3,943
------------------------------------ --- -----
Total cash and cash equivalents 61,518 88,730
Securities available for sale at fair value
(amortized cost of $538,835 and $525,110,
respectively) 544,367 528,918
Federal Home Loan Bank stock at cost 11,607 11,607
Loans held for sale 3,747 1,964
Loans, net of deferred loan fees of ($4,065) and
($4,033), respectively 2,185,755 2,232,332
Less: allowance for loan and lease losses 44,249 42,747
----------------------------------------- ------ ------
Loans, net 2,141,506 2,189,585
Interest receivable 11,388 11,646
Premises and equipment, net 61,123 61,139
Other real estate owned 4,312 2,874
Goodwill 95,519 95,519
Core deposit intangible, net 5,638 5,908
Other assets 105,032 99,189
------------ ------- ------
Total Assets $3,045,757 $3,097,079
============ ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $474,736 $466,078
Interest-bearing 1,869,670 1,916,073
---------------- --------- ---------
Total deposits 2,344,406 2,382,151
Federal Home Loan Bank and Federal Reserve Bank
borrowings 183,000 200,000
Securities sold under agreements to repurchase 25,000 25,000
Other borrowings 275 201
Long-term subordinated debt 25,620 25,603
Other liabilities 51,739 48,739
----------------- ------ ------
Total liabilities 2,630,040 2,681,694
Commitments and contingent liabilities
March 31, December 31,
2009 2008
---- ----
Preferred stock (no par value,
76,898 aggregate liquidation
preference)
Authorized shares 2,000 2,000
Issued and outstanding 77 77 73,875 73,743
Common Stock (no par value)
Authorized shares 63,033 63,033
Issued and outstanding 18,254 18,151 233,704 233,192
Retained earnings 102,753 103,061
Accumulated other comprehensive
income 5,385 5,389
------- ----- -----
Total shareholders'
equity 415,717 415,385
------- ------- -------
Total Liabilities and
Shareholders' Equity $3,045,757 $3,097,079
===================== ========== ==========
Contacts: Melanie J. Dressel, President and
Chief Executive Officer
(253) 305-1911
Gary R. Schminkey, Executive Vice President
and Chief Financial Officer
(253) 305-1966
