State Bank Reports Second Quarter Financial Results; Organic Loans Now Represent More Than Half of Total Loans

30 Jul, 2012, 07:00 ET from State Bank Financial Corporation

ATLANTA, July 30, 2012 /PRNewswire/ -- State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the quarter ended June 30, 2012.  Net income for the second quarter was $11.0 million, up from $5.1 million in the first quarter. Fully diluted earnings per share were $.34 for the second quarter compared to $.16 in the first quarter of 2012.

Commenting on these results, Joe Evans, Chairman and CEO, said, "This quarter's results reflect both the fundamental strength of our franchise and the inherent volatility of loss share accounting. Core operating highlights on a linked quarter basis include: lower expenses, lower funding costs and strong organic loan growth, which are all the direct result of solid execution by our State Bank team members. Net income for the quarter also benefited from higher accretion income due to faster than anticipated pay offs and lower than predicted losses on covered loans."

Total assets at quarter-end were $2.67 billion, relatively flat compared to $2.68 billion at the end of the first quarter. Total net loans were $1.49 billion, up $9.0 million from the first quarter. Loans not covered by loss share agreements with the FDIC grew $78.2 million in the second quarter of 2012 to $881.1 million. Noncovered loans now comprise 56.2% of State Bank's total gross loans. A reclassification of March 31, 2012 loan balances now reflects $101.9 million of organic loan growth in the first quarter, versus the $53.6 million previously reported.

Total deposits at quarter-end were $2.17 billion, down from $2.19 billion at the end of the first quarter.  This decrease was the result of continued active management of higher cost interest-bearing deposits with outflows centered in money market balances.  Noninterest-bearing deposits grew by $30.2 million, or 9.7%, in the second quarter. Cost of funds for the quarter was 47 basis points, a five basis point improvement from the first quarter of 2012.

Tangible book value per share increased to $12.99 in the first quarter, up $.37, or 2.9%, from the first quarter. State Bank Financial Corporation continues to be well capitalized, finishing the quarter with a leverage ratio of 15.24% and a Tier I risk-based capital ratio of 31.45%.

Net interest income was $46.4 million in the second quarter of 2012, up from $35.5 million in the first quarter of 2012.  The $10.9 million linked quarter increase was primarily driven by accretion on covered loans rising $8.7 million. The higher accretion was driven by covered loans that paid off earlier and with lower losses than expected based on previous cash flow assumptions. Net interest income also benefited from income on noncovered loans being up $1.9 million and interest expense being down $286 thousand.

Provision for loan losses on noncovered loans was $2.1 million in the second quarter, up from $1.5 million in the first quarter, the result of loan growth and continued stable credit quality metrics in that portfolio. Provision for loan losses on covered loans was $2.9 million in the second quarter, up from negative $1.3 million in the first quarter.

Total noninterest income was negative $1.2 million in the second quarter compared to negative $3.8 million in the first quarter of 2012. Amortization of the indemnification asset was negative $4.0 million for the second quarter. Though down from the first quarter amount of negative $7.0 million, the amortization of the indemnification asset continued to negatively impact noninterest income. While detrimental to near-term earnings, this change reflects a more positive view of covered loan asset quality, and therefore fewer reimbursement claims planned to be made to the FDIC. The amortization of the indemnification asset is linked with increased accretion income on covered loans that are experiencing improving credit quality trends, and amortization is expected to decline over time unless asset quality trends further improve.

Noninterest expense for the second quarter was $22.4 million, down from $23.2 million in the first quarter of 2012 primarily due to lower net other real estate owned costs, which were $458 thousand in the second quarter compared to $2.1 million in the first quarter. Data processing expense was $529 thousand lower in the second quarter due to conversion costs incurred in the first quarter related to the two FDIC assisted transactions announced in the fourth quarter of 2011. These linked quarter positive expense trends were partially offset by higher legal and professional fees, up primarily from consulting costs and investments in customer relationship management technology.

Detailed Results

Supplemental tables displaying financial results for second quarter 2012 and the previous four quarters are included with this press release.

Conference Call

State Bank Vice Chairman and Chief Operating Officer Dan Speight, Vice Chairman, President and Chief Credit Officer Kim Childers, and Executive Vice President and Chief Financial Officer Tom Callicutt will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. EDT. The dial in number is 1.888.612.1053.  Please dial in 10 minutes prior to the start of the call to register. You will be asked to provide your name and affiliation/company to join the call. A replay of the conference call will be available shortly after the call's completion in the investors section on the company's website at www.statebt.com. A slide presentation for today's call is available in the investors section on the company's website at www.statebt.com.

About State Bank Financial Corporation and State Bank and Trust Company

State Bank Financial Corporation (NASDAQ: STBZ) is the holding company for State Bank and Trust Company, one of Georgia's best-capitalized banks, with approximately $2.67 billion in assets as of June 30, 2012. State Bank has locations in Metro Atlanta and Middle Georgia. State Bank Financial Corporation is headquartered in Atlanta, Georgia and State Bank and Trust Company is headquartered in Macon, Georgia.

State Bank was named the best performing community bank in the United States for 2011 by SNL Financial LC for banks between $500 million and $5 billion in assets.

Since 2009 State Bank has been an active acquirer of the assets and deposits of failed banks in Metro Atlanta and Middle Georgia. To date, State Bank has completed 12 transactions facilitated by the Federal Deposit Insurance Corporation.

To learn more about State Bank, visit www.statebt.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of our strategic plan, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, unanticipated losses related to the integration of, and accounting for, acquired assets and assumed liabilities in our FDIC-assisted transactions, access to funding sources, greater than expected noninterest expenses, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, any or all of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

State Bank Financial Corporation

2Q12 Financial Supplement: Table 1

Condensed Consolidated Financial Summary Results

Quarterly (Unaudited)

2Q12 Change vs.

(Dollars in thousands, except per share data)

2Q12

1Q12

4Q11

3Q11

2Q11

1Q12

2Q11

INCOME STATEMENT HIGHLIGHTS

  Total interest income on invested funds

$          3,027

$          3,005

$          3,154

$          3,040

$          2,768

$          22

$          259

  Interest income on noncovered loans,

     including fees

13,722

11,834

12,486

10,096

9,174

1,888

4,548

  Accretion income on covered loans

32,191

23,490

29,408

36,938

25,139

8,701

7,052

  Total interest expense

2,566

2,852

3,595

4,603

6,457

(286)

(3,891)

Net interest income

46,374

35,477

41,453

45,471

30,624

10,897

15,750

  Provision for loan losses (noncovered loans)

2,125

1,535

2,868

1,060

1,593

590

532

  Provision for loan losses (covered loans)

2,902

(1,283)

16,768

2,815

451

4,185

2,451

  Noninterest income

(1,243)

(3,778)

18,783

6,689

7,835

2,535

(9,078)

  Noninterest expense

22,426

23,213

27,227

21,789

23,094

(787)

(668)

Income before income taxes

17,678

8,234

13,373

26,496

13,321

9,444

4,357

  Income tax expense

6,647

3,096

4,284

9,392

4,739

3,551

1,908

Net income

$        11,031

$          5,138

$          9,089

$        17,104

$          8,582

$     5,893

$       2,449

COMMON STOCK DATA

  Basic earnings per share

$             .35

$              .16

$              .29

$              .54

$              .27

$         .19

$           .08

  Diluted earnings per share

.34

.16

.28

.53

.26

.18

.08

  Book value per share at period end

13.24

12.88

12.52

12.27

11.85

.36

1.39

  Tangible book value per share at period end

12.99

12.62

12.26

12.00

11.57

.37

1.42

  Market price at period end

15.16

17.51

15.11

12.62

16.37

(2.35)

(1.21)

  Period end shares outstanding

31,721,236

31,721,236

31,721,236

31,721,236

31,611,581

-

109,655

  Weighted average shares outstanding:

Basic

31,613,581

31,611,603

31,611,581

31,611,581

31,611,358

1,978

2,223

Diluted

32,776,553

32,777,121

32,586,069

32,413,101

32,717,755

(568)

58,798

AVERAGE BALANCE SHEET HIGHLIGHTS

  Noncovered loans, net of unearned income

$      840,428

$      740,905

$      709,071

$      601,610

$      499,463

$   99,523

$   340,965

  Covered loans

707,273

788,511

818,901

768,878

825,879

(81,238)

(118,606)

  Loans, net of unearned income

1,547,701

1,529,416

1,527,972

1,370,488

1,325,342

18,285

222,359

  Assets

2,691,432

2,660,418

2,857,643

2,711,296

2,720,112

31,014

(28,680)

  Deposits

2,190,364

2,203,564

2,404,501

2,298,343

2,306,532

(13,200)

(116,168)

  Liabilities

2,271,111

2,253,317

2,461,147

2,332,119

2,348,973

17,794

(77,862)

  Equity

420,321

407,101

396,496

379,177

371,139

13,220

49,182

  Tangible common equity

412,222

398,751

387,784

370,545

362,274

13,471

49,948

KEY METRICS

  Return on average assets

1.65 %

.78 %

1.26 %

2.50 %

1.27 %

.87 %

.38 %

  Return on average equity

10.56

5.08

9.09

17.90

9.27

5.48

1.29

  Yield on earning assets

9.34

7.60

8.37

9.36

7.27

1.74

2.07

  Cost of funds

.47

.52

.60

.79

1.12

(.05)

(.65)

  Rate on interest-bearing liabilities

.55

.60

.69

.89

1.25

(.05)

(.70)

  Net interest margin

8.85

7.03

7.70

8.50

6.00

1.82

2.85

  Average equity to average assets

15.62

15.30

13.87

13.99

13.64

.32

1.98

  Leverage ratio

15.24

15.06

13.76

14.16

13.49

.18

1.75

  Tier I risk-based capital ratio

31.45

32.92

33.84

33.78

34.80

(1.47)

(3.35)

  Total risk-based capital ratio

32.77

34.22

35.15

35.03

35.46

(1.45)

(2.69)

  Efficiency ratio  (1)

49.63

73.10

45.15

41.73

59.96

(23.47)

(10.33)

  Average loans to average deposits

70.66

69.41

63.55

59.63

57.46

1.25

13.20

  Noninterest-bearing deposits to total deposits

15.85

14.30

12.93

11.70

10.85

1.55

5.00

  Nonperforming loans to total noncovered

    loans (2)

.52

.49

.31

.36

.64

.03

(.12)

  Nonperforming assets to loans + ORE:

Noncovered

.63

.60

.48

.52

.77

.03

(.14)

Covered

8.07

7.87

9.42

10.95

11.21

.20

(3.14)

(1) Calculated on a fully tax-equivalent basis.

(2) The ratio of nonperforming covered loans to total covered loans  is not presented, as there are no covered loans designated as nonperforming.

State Bank Financial Corporation

2Q12 Financial Supplement:  Table 2

Condensed Consolidated Balance Sheet

Quarterly (Unaudited)

2Q Change vs.

(Dollars in thousands)

2Q12

1Q12

4Q11

3Q11

2Q11

1Q12

2Q11

Assets

Cash and amounts due from depository

  institutions

$          6,921

$        11,287

$        13,747

$          8,237

$          9,181

$   (4,366)

$     (2,260)

Interest-bearing deposits in other financial

  institutions

279,060

199,031

206,785

353,760

363,309

80,029

(84,249)

     Cash and cash equivalents

285,981

210,318

220,532

361,997

372,490

75,663

(86,509)

Investment securities available for sale

280,662

322,832

349,929

350,225

349,387

(42,170)

(68,725)

Federal Home Loan Bank stock

4,651

8,802

8,802

8,882

10,604

(4,151)

(5,953)

Loans receivable:

     Noncovered under FDIC loss share

       agreements

881,120

802,955

701,029

650,312

546,154

78,165

334,966

     Covered under FDIC loss share agreements,

       net

687,451

743,838

812,154

770,102

814,361

(56,387)

(126,910)

     Allowance for loan losses (noncovered loans)

(13,317)

(11,681)

(10,207)

(7,670)

(6,914)

(1,636)

(6,403)

     Allowance for loan losses (covered loans)

(67,346)

(56,087)

(59,277)

(14,075)

-

(11,259)

(67,346)

  Net loans

1,487,908

1,479,025

1,443,699

1,398,669

1,353,601

8,883

134,307

Mortgage loans held for sale

1,907

3,719

6,229

1,661

2,516

(1,812)

(609)

Other real estate owned:

     Noncovered under FDIC loss share

       agreements

976

957

1,210

1,072

738

19

238

     Covered under FDIC loss share agreements

60,334

63,572

84,496

94,647

102,822

(3,238)

(42,488)

Premises and equipment, net

38,298

36,971

36,760

36,832

35,741

1,327

2,557

Goodwill

6,562

6,562

6,562

6,562

6,562

-

-

Core deposit intangible, net

1,360

1,636

1,882

1,925

2,161

(276)

(801)

FDIC receivable for loss share agreements, net

419,786

460,593

529,440

358,096

468,361

(40,807)

(48,575)

Other assets

81,804

81,661

86,793

54,792

61,298

143

20,506

Total assets

$   2,670,229

$   2,676,648

$   2,776,334

$   2,675,360

$   2,766,281

$   (6,419)

$   (96,052)

Liabilities and Shareholders' Equity

Noninterest-bearing deposits

343,214

312,967

297,188

$      262,331

$      256,087

$   30,247

$    87,127

Interest-bearing deposits

1,821,922

1,875,908

2,001,277

1,980,652

2,103,343

(53,986)

(281,421)

Total deposits

2,165,136

2,188,875

2,298,465

2,242,983

2,359,430

(23,739)

(194,294)

Securities sold under agreements to repurchase

2,845

1,421

4,749

6,145

4,831

1,424

(1,986)

Notes payable

2,531

2,535

2,539

2,542

2,546

(4)

(15)

Other liabilities

79,663

75,314

73,293

34,559

24,868

4,349

54,795

Total liabilities

2,250,175

2,268,145

2,379,046

2,286,229

2,391,675

(17,970)

(141,500)

Total shareholders' equity

420,054

408,503

397,288

389,131

374,606

11,551

45,448

Total liabilities and shareholders' equity

$   2,670,229

$   2,676,648

$   2,776,334

$   2,675,360

$   2,766,281

$   (6,419)

$   (96,052)

Capital Ratios

Average equity to average assets

15.62 %

15.30 %

13.37 %

13.99 %

13.64 %

.32 %

1.98 %

Leverage ratio

15.24

15.06

13.76

14.16

13.49

.18

1.75

Tier I risk-based capital ratio

31.45

32.92

33.84

33.78

34.80

(1.47)

(3.35)

Total risk-based capital ratio

32.77

34.22

35.15

35.03

35.46

(1.45)

(2.69)

State Bank Financial Corporation

2Q12 Financial Supplement:  Table 3

Condensed Consolidated Income Statement

Quarterly (Unaudited)

2Q12 Change vs.

(Dollars in thousands, except per share data)

2Q12

1Q12

4Q11

3Q11

2Q11

1Q12

2Q11

Total interest income on invested funds

$                3,027

$                3,005

$                3,154

$                3,040

$                2,768

$            22

$          259

Interest income on noncovered loans,

  including fees

13,722

11,834

12,486

10,096

9,174

1,888

4,548

Accretion income on covered loans

32,191

23,490

29,408

36,938

25,139

8,701

7,052

Total interest expense

2,566

2,852

3,595

4,603

6,457

(286)

(3,891)

   Net interest income

46,374

35,477

41,453

45,471

30,624

10,897

15,750

Provision for loan losses (noncovered loans)

2,125

1,535

2,868

1,060

1,593

590

532

Provision for loan losses (covered loans)

2,902

(1,283)

16,768

2,815

451

4,185

2,451

   Net interest income after provision for

     loan losses

41,347

35,225

21,817

41,596

28,580

6,122

12,767

Noninterest income:

   Accretion (amortization) of FDIC receivable

     for loss share agreements

(3,997)

(7,001)

131

1,775

3,722

3,004

(7,719)

   Service charges on deposits

1,199

1,212

1,370

1,383

1,435

(13)

(236)

   Mortgage banking income

311

302

349

260

228

9

83

   Gain (loss) on sale of investment securities

-

93

(20)

(31)

-

(93)

-

   Gains on FHLB stock redemptions

434

-

772

574

1,132

434

(698)

   Gains on acquisitions

-

-

14,890

-

-

-

-

   ATM income

610

585

551

525

541

25

69

   Other

200

1,031

740

2,203

777

(831)

(577)

Total noninterest income

(1,243)

(3,778)

18,783

6,689

7,835

2,535

(9,078)

Noninterest expense:

   Salaries and employee benefits

13,628

12,963

14,333

12,293

11,895

665

1,733

   Occupancy and equipment

2,419

2,457

2,795

2,008

1,997

(38)

422

   Legal and professional fees

2,173

1,517

1,342

1,758

1,574

656

599

   Marketing

366

264

935

844

936

102

(570)

   Federal insurance premiums and other

     regulatory fees

355

418

193

(33)

1,210

(63)

(855)

   Net cost of operations of other real estate

     owned

458

2,078

4,322

1,998

2,485

(1,620)

(2,027)

    Data processing

1,336

1,864

1,387

1,285

1,165

(528)

171

   Core deposit intangible amortization expense

276

246

241

236

247

30

29

   Other

1,415

1,406

1,679

1,400

1,585

9

(170)

Total noninterest expense

22,426

23,213

27,227

21,789

23,094

(787)

(668)

Income before income taxes

17,678

8,234

13,373

26,496

13,321

9,444

4,357

   Income tax expense

6,647

3,096

4,284

9,392

4,739

3,551

1,908

Net income

$              11,031

$                5,138

$                9,089

$              17,104

$                8,582

$       5,893

$       2,449

Basic earnings per share

$                    .35

$                    .16

$                    .29

$                    .54

$                    .27

$           .19

$           .08

Diluted earnings per share

.34

.16

.28

.53

.26

.18

.08

Weighted average common shares

  outstanding:

Basic

31,613,581

31,611,603

31,611,581

31,611,581

31,611,358

1,978

2,223

Diluted

32,776,553

32,777,121

32,586,069

32,413,101

32,717,755

(568)

58,798

State Bank Financial Corporation

2Q12 Financial Supplement:  Table 4

Condensed Consolidated Composition of Loans and Deposits

Quarterly (Unaudited)

2Q12 Change vs.

(Dollars in thousands)

2Q12

1Q12

4Q11

3Q11

2Q11

1Q11

2Q11

Composition of Loans

Noncovered loans:

   Construction, land & land development

$      253,980

$      212,165

$      162,382

$      139,433

$      112,846

$    41,815

$    141,134

   Other commercial real estate

356,476

339,084

307,814

292,559

274,153

17,392

82,323

   Total commercial real estate

610,456

551,249

470,196

431,992

386,999

59,207

223,457

   Commercial & industrial

35,186

38,021

35,817

36,253

40,754

(2,835)

(5,568)

   Owner-occupied real estate

154,533

152,552

139,128

124,885

69,612

1,981

84,921

   Total commercial & industrial

189,719

190,573

174,945

161,138

110,366

(854)

79,353

   Residential real estate

41,449

39,356

33,738

29,293

26,510

2,093

14,939

   Consumer & other

39,496

21,777

22,150

27,889

22,279

17,719

17,217

   Total noncovered loans

881,120

802,955

701,029

650,312

546,154

78,165

334,966

Covered loans:

   Construction, land & land development

136,200

176,164

190,110

184,242

202,420

(39,964)

(66,220)

   Other commercial real estate

208,975

212,783

233,575

229,548

233,557

(3,808)

(24,582)

   Total commercial real estate

345,175

388,947

423,685

413,790

435,977

(43,772)

(90,802)

   Commercial & industrial

29,298

32,722

38,174

39,855

49,277

(3,424)

(19,979)

   Owner-occupied real estate

118,848

128,219

143,523

118,324

126,603

(9,371)

(7,755)

   Total commercial & industrial

148,146

160,941

181,697

158,179

175,880

(12,795)

(27,734)

   Residential real estate

180,167

177,790

189,109

182,021

189,695

2,377

(9,528)

   Consumer & other

13,963

16,160

17,663

16,112

12,809

(2,197)

1,154

   Total covered loans

687,451

743,838

812,154

770,102

814,361

(56,387)

(126,910)

   Total loans

$   1,568,571

$   1,546,793

$   1,513,183

$   1,420,414

$   1,360,515

$    21,778

$    208,056

Composition of Deposits

Noninterest-bearing demand deposits

$      343,214

$      312,967

$      297,188

$      262,331

$      256,087

$    30,247

$      87,127

Interest-bearing transaction accounts

331,550

316,738

359,020

286,130

278,184

14,812

53,366

Savings and money market accounts

1,016,619

1,103,151

1,140,552

1,234,359

1,323,414

(86,532)

(306,795)

Time deposits less than $100,000

222,402

249,047

274,415

245,377

272,250

(26,645)

(49,848)

Time deposits $100,000 or greater

170,844

196,197

213,200

198,790

210,861

(25,353)

(40,017)

Brokered and wholesale time deposits

80,507

10,775

14,090

15,996

18,634

69,732

61,873

   Total deposits

$   2,165,136

$   2,188,875

$   2,298,465

$   2,242,983

$   2,359,430

$   (23,739)

$   (194,294)

State Bank Financial Corporation

2Q12 Financial Supplement:  Table 5

Condensed Consolidated Asset Quality Data

Quarterly (Unaudited)

2Q12 Change vs.

(Dollars in thousands)

2Q12

1Q12

4Q11

3Q11

2Q11

1Q12

2Q11

Nonperforming noncovered assets:

   Nonaccrual loans

$     4,197

$     3,561

$     1,905

$     2,088

$       3,478

$        636

$          719

   Troubled debt restructurings

347

335

256

259

-

12

347

 Total nonperforming noncovered loans

4,544

3,896

2,161

2,347

3,478

648

1,066

   Other real estate owned

976

957

1,210

1,072

738

19

238

 Total nonperforming noncovered assets

5,520

4,853

3,371

3,419

4,216

667

1,304

Nonperforming covered assets:

   Other real estate owned (1)

$   60,334

$   63,572

$   84,496

$   94,647

$   102,822

$   (3,238)

$   (42,488)

Noncovered assets:

   Year-to-date charge-offs

$        555

$          68

$     1,744

$     1,390

$       1,077

$        487

$        (522)

   Year-to-date recoveries

5

7

118

95

86

(2)

(81)

   Year-to-date net charge-offs

$        550

$          61

$     1,626

$     1,295

$          991

$        489

$        (441)

   Annualized YTD net charge-offs to total

     average noncovered loans

.13 %

.03 %

.23 %

.29 %

.40 %

.10 %

(.27)%

Ratios:

Nonperforming loans to total noncovered

  loans (2)

.52 %

.49 %

.31 %

.36 %

.64 %

.03 %

(.12)%

Nonperforming assets to loans + ORE:

   Noncovered

.63

.60

.48

.52

.77

.03

(.14)

   Covered

8.07

7.87

9.42

10.95

11.21

.20

(3.14)

Allowance for loan losses to loans:

   Noncovered

1.51

1.45

1.46

1.18

1.27

.06

.24

   Covered

9.80

7.54

7.30

1.83

-

2.26

9.80

(1) Total nonperforming assets for covered assets consist of other real estate only.  There are no covered loans designated as nonperforming.

(2) The ratio of nonperforming loans to total loans is disclosed for noncovered loans only because there are no covered loans designated as nonperforming.

 

State Bank Financial Corporation

2Q12 Financial Supplement:  Table 6

Condensed Consolidated Average Balances and Yield Analysis

Quarterly (Unaudited)

2Q12 Change vs.

(Dollars in thousands)

2Q12

1Q12

4Q11

3Q11

2Q11

1Q12

2Q11

Selected Average Balances

   Interest-bearing deposits in other

     financial institutions

$    258,178

$    158,949

$    261,853

$    389,013

$    340,966

$   99,229

$   (82,788)

   Taxable investment securities

292,678

333,661

365,388

353,426

373,404

(40,983)

(80,726)

   Nontaxable investment securities, tax

     equivalent basis

12,469

10,199

11,267

11,823

10,540

2,270

1,929

   Noncovered loans receivable (1)

840,428

740,905

709,071

601,610

499,463

99,523

340,965

   Covered loans receivable

707,273

788,511

818,901

768,878

825,879

(81,238)

(118,606)

  Total earning assets

2,111,026

2,032,225

2,166,480

2,124,750

2,050,252

78,801

60,774

  Total nonearning assets

580,406

628,193

691,163

586,546

669,860

(47,787)

(89,454)

  Total assets

2,691,432

2,660,418

2,857,643

2,711,296

2,720,112

31,014

(28,680)

   Interest-bearing transaction accounts

323,126

310,662

309,991

268,364

235,218

12,464

87,908

   Savings & money market deposits

1,052,130

1,115,877

1,204,433

1,294,561

1,301,519

(63,747)

(249,389)

   Time deposits less than $100,000

237,154

262,116

322,617

258,196

294,247

(24,962)

(57,093)

   Time deposits $100,000 or greater

247,466

214,205

261,114

216,408

234,893

33,261

12,573

   FHLB advances

-

-

4,566

-

-

-

-

   Notes payable

2,533

2,537

2,541

2,545

2,550

(4)

(17)

   Securities sold under agreements to

     repurchase

2,776

3,564

4,030

4,098

2,345

(788)

431

  Total interest-bearing liabilities

1,865,185

1,908,961

2,109,292

2,044,172

2,070,772

(43,776)

(205,587)

   Noninterest-bearing demand deposits

330,488

300,704

306,346

260,814

240,655

29,784

89,833

   Other liabilities

75,438

43,652

45,509

27,133

37,546

31,786

37,892

   Shareholders' equity

420,321

407,101

396,496

379,177

371,139

13,220

49,182

  Total liabilities and shareholders'

    equity

2,691,432

2,660,418

2,857,643

2,711,296

2,720,112

31,014

(28,680)

Net Interest Margins (2)

   Interest-bearing deposits in other

     financial institutions

.24 %

.26 %