By RICHMOND, Va., Jan. 26, 2012/PRNewswire/ -- Union First Market Bankshares Corporation (the "Company") (Nasdaq: UBSH) today reported net income of $8.4 millionand earnings per share of $0.28for its fourth quarter ended December 31, 2011. The quarterly results represent a decrease of $711,000in net income or $0.05in earnings per share from the third quarter, but an increase of $3.9 millionin net income or $0.13in earnings per share from the quarter ended December 31, 2010. Net income available to common shareholders, which deducts dividends and discount accretion on preferred stock from net income, was $7.3 millioncompared to $3.9 millionfor the prior year's fourth quarter. The fourth quarter decrease in net income was largely attributable to a decline in net interest income.
"Asset quality trends remained positive as we continued to make progress on our efforts to reduce our non-performing assets. During the fourth quarter, we saw a significant number of new account openings as customers searched for a better place to bank and survey results indicated customer satisfaction with Union reached a new high," said G. William Beale, chief executive officer of Union First Market Bankshares. "Finally, I was pleased that the Company was able to redeem the assumed CPP during the quarter, which clearly shows the financial strength of our bank. Our community banking management philosophy has benefited our shareholders, customers, and the communities we serve through these challenging economic times."
Select highlights:
- In December, the Company redeemed the Preferred Stock issued to the United States Treasury (the "Treasury") under the Capital Purchase Program ("CPP"). The Preferred Stock was assumed by the Company as part of the 2010 merger with First Market Bank, FSB ("FMB").
- The Company's results generated a Return on Average Equity ("ROE") of 7.49% and 6.90% and Return on Average Assets ("ROA") of 0.84% and 0.79% for the quarter and year ended December 31, 2011, respectively. ROE and ROA were 5.50% and 0.61%, respectively, for the year ended December 31, 2010.
- Provision for loan losses decreased $1.2 millionfrom the most recent quarter, and decreased $7.6 millionfor the year ending December 31, 2011.
- Nonperforming assets (which includes nonaccrual loans and other real estate owned ("OREO")) decreased $9.3 millionor 10.8% during the fourth quarter of 2011 and decreased $20.7 millionfor the year, or 21.1%.
- Total deposits grew $105.0 million, or 3.4%, for the year ended December 31, 2011, and grew $40.2 million, or 1.3%, during the fourth quarter.
During the fourth quarter of 2011, the Company received approval from the Treasury and its regulators to redeem the Preferred Stock issued to the Treasury under CPP. The Preferred Stock was assumed by the Company as part of the 2010 merger with FMB. On December 7, 2011, the Company paid approximately $35.7 millionto the Treasury in full redemption of the Preferred Stock. The repayment of the Preferred Stock accelerated the amortization of the related discount of approximately $982,000, which reduced earnings available to common shareholders by $0.02per share. In addition, the repayment will allow the Company to retain capital of approximately $1.8 millionannually previously paid in a dividend on the preferred shares redeemed.
Fourth quarter net income increased $3.9 million, or 89.0%, compared to the same quarter in the prior year. The increase is largely a result of decreases in the provision for loan losses and the FDIC assessment due to changes in assessment base and rate. These improvements were partially offset by a decline in interest income, which outpaced a lower cost of interest bearing liabilities, losses on sales of OREO and other bank property, a decline in gains on sales of loans related to lower origination volume in the mortgage segment, and higher salary and benefits expense related to additional personnel.
Net income for the year ended December 31, 2011increased $7.5 million, or 32.8%, from the prior year. The increase was principally a result of favorable net interest income and the absence of nonrecurring prior year acquisition costs. All comparative results to the prior year exclude FMB results for the month of January 2010.
NET INTEREST INCOME
On a linked quarter basis, tax-equivalent net interest income was $39.6 million, a decrease of $956,000, or 2.4%, from the third quarter of 2011. This decrease was principally due to a decline in income from interest-earning assets outpacing lower costs on interest-bearing liabilities. Fourth quarter tax-equivalent net interest margin declined 17 basis points to 4.37% from 4.54% compared to the most recent quarter. The change in net interest margin was principally attributable to the protracted low rate environment as cash flows from securities investments and loans were reinvested at lower yields and new and existing loans were originated or refinanced at lower rates. The Federal Open Market Committee's commitment to keep rates exceptionally low for an extended period and the resulting flatter yield curve has negatively impacted the bank's net interest margin as lower deposit rates cannot offset lower earning asset yields. In addition, the average balance of the loan portfolio declined by nearly 1% compared to the most recent quarter, primarily in the consumer loan portfolio. Should the existing rate environment hold for future quarters, the Company expects to see continued pressure on net interest margin.
The following table shows average interest-earning assets, interest-bearing liabilities, the related income/expense and change for the periods shown:
Linked quarter results | ||||||
Dollars in thousands | ||||||
Three Months Ended | ||||||
12/31/11 | 09/30/11 | Change | ||||
Average interest-earning assets | $ 3,591,739 | $ 3,538,752 | $ 52,987 | |||
Interest income | $ 47,386 | $ 48,673 | $ (1,287) | |||
Yield on interest-earning assets | 5.23% | 5.46% | (23) | bps | ||
Average interest-bearing liabilities | $ 2,906,758 | $ 2,873,721 | $ 33,037 | |||
Interest expense | $ 7,828 | $ 8,159 | $ (331) | |||
Cost of interest-bearing liabilities | 1.07% | 1.13% | (6) | bps | ||
For the three months ended December 31, 2011, tax-equivalent net interest income decreased $736,000, or 1.8%, when compared to the same period last year. The tax-equivalent net interest margin decreased 18 basis points to 4.37% from 4.55% in the prior year. This decrease was principally due to a decline in income from interest-earning assets outpacing lower costs on interest-bearing liabilities. Lower interest-earning asset income was principally due to lower yields on loans and investment securities as new loans are originated at lower rates and cash flows from securities investments and loans are reinvested at lower yields. The improvement in cost of funds was related to declining rates primarily on certificates of deposit and money market accounts.
The following table shows average interest-earning assets, interest-bearing liabilities, the related income/expense and change for the periods shown:
Year-over-year results | ||||||
Dollars in thousands | ||||||
Three Months Ended | ||||||
12/31/11 | 12/31/10 | Change | ||||
Average interest-earning assets | $ 3,591,739 | $ 3,514,367 | $ 77,372 | |||
Interest income | $ 47,386 | $ 49,834 | $ (2,448) | |||
Yield on interest-earning assets | 5.23% | 5.63% | (40) | bps | ||
Average interest-bearing liabilities | $ 2,906,758 | $ 2,895,213 | $ 11,545 | |||
Interest expense | $ 7,828 | $ 9,540 | $ (1,712) | |||
Cost of interest-bearing liabilities | 1.07% | 1.31% | (24) | bps | ||
For the year ended December 31, 2011, tax-equivalent net interest income increased $5.0 million, or 3.2%, when compared to the same period last year. The tax-equivalent net interest margin increased 1 basis point to 4.57% from 4.56% in the prior year. The change in the net interest margin was a result of improvement in the cost of funds primarily related to declining rates on certificates of deposit and money market accounts, partially offset by declining yields on loans and loans held for sale, and aided by the increase in interest-earning assets due to the acquisition of FMB in the first quarter of 2010 and the acquisition of the Harrisonburgbranch in the second quarter of 2011.
The following table shows average interest-earning assets, interest-bearing liabilities, the related income/expense and change for the periods shown:
Year-over-year results | ||||||
Dollars in thousands | ||||||
Year Ended | ||||||
12/31/11 | 12/31/10 | Change | ||||
Average interest-earning assets | $ 3,518,643 | $ 3,412,495 | $ 106,148 | |||
Interest income | $ 193,399 | $ 193,904 | $ (505) | |||
Yield on interest-earning assets | 5.50% | 5.68% | (18) | bps | ||
Average interest-bearing liabilities | $ 2,875,242 | $ 2,838,200 | $ 37,042 | |||
Interest expense | $ 32,713 | $ 38,245 | $ (5,532) | |||
Cost of interest-bearing liabilities | 1.14% | 1.35% | (21) | bps | ||
Acquisition Activity - Net Interest Margin
The favorable impact of acquisition accounting fair value adjustments on net interest income was $1.5 million($1.3 million- FMB; $274,000- Harrisonburgbranch) and $7.0 million($6.2 million- FMB; $748,000- Harrisonburgbranch) for the three and twelve months ended December 31, 2011, respectively. If not for this favorable impact, the net interest margin for the fourth quarter would have been 4.20%, compared to 4.34% from the third quarter of 2011.
The Harrisonburgbranch
The acquired loan portfolio of the Harrisonburgbranch was marked-to-market with a fair value discount to market rates. Performing loan discount accretion is recognized as interest income over the estimated remaining life of the loans. The Company also assumed certificates of deposit at a premium to market. These were marked-to-market with estimates of fair value on acquisition date. The resulting premium to market is amortized as a decrease to interest expense over the estimated lives of the certificates of deposit.
FMB
The acquired loan and investment security portfolios of FMB were marked-to-market with a fair value discount to market rates. Performing loan and investment security discount accretion is recognized as interest income over the estimated remaining life of the loans and investment securities. The Company also assumed borrowings (Federal Home Loan Bank ("FHLB") and subordinated debt) and certificates of deposit. These liabilities were marked-to-market with estimates of fair value on acquisition date. The resulting discount/premium to market is accreted/amortized as an increase/decrease to net interest income over the estimated lives of the liabilities. Additional credit quality deterioration above the original credit mark is recorded as additional provisions for loan losses.
The fourth quarter, year-to-date, and remaining estimated discount/premium are reflected in the following table (dollars in thousands):
Harrisonburg Branch | First Market Bank | ||||||||||||||
Loan Accretion | Certificates of Deposit | Loan Accretion | Investment Securities | Borrowings | Certificates of Deposit | ||||||||||
For the quarter ended December 31, 2011 | $ 239 | $ 35 | $ 1,146 | $ 93 | $ (122) | $ 140 | |||||||||
For the year ended December 31, 2011 | 625 | 123 | 5,571 | 387 | (489) | 763 | |||||||||
For the years ending: | |||||||||||||||
2012 | 589 | 11 | 3,624 | 201 | (489) | 222 | |||||||||
2013 | 148 | 7 | 2,377 | 15 | (489) | - | |||||||||
2014 | 37 | 4 | 1,478 | - | (489) | - | |||||||||
2015 | 26 | - | 570 | - | (489) | - | |||||||||
2016 | 27 | - | 28 | - | (163) | - | |||||||||
Thereafter | 143 | - | - | - | - | - | |||||||||
Acquisition Activity - Other Operating Expenses
Acquisition related expenses associated with the acquisition of the Harrisonburgbranch were $426,000for the year ended December 31, 2011 and are recorded in "Other operating expenses" in the Company's condensed consolidated statements of income. Such costs principally included system conversion and operations integration charges that have been expensed as incurred. There were no acquisition related expenses related to the Harrisonburgbranch in 2010 or in the third and fourth quarters of 2011. The Company expects no further expenses from the Harrisonburgbranch acquisition.
ASSET QUALITY/LOAN LOSS PROVISION
Overview
During the fourth quarter, the Company continued to experience encouraging improvement in asset quality. The reduced levels of nonperforming loans and OREO were favorable even though current economic conditions did not improve materially. While future economic conditions remain uncertain, the Company's continued lower levels of provisions for loan losses and increasing allowance to nonperforming assets and loans coverage ratios demonstrate that its dedicated efforts to improve asset quality are having a positive impact. The magnitude of any change in the real estate market and its impact on the Company is still largely dependent upon continued recovery of commercial real estate and residential housing, and the pace at which the local economies in the Company's operating markets recover.
Nonperforming Assets ("NPAs")
At December 31, 2011, nonperforming assets totaled $77.1 million, a decrease of $9.4 millionfrom the third quarter and a decrease of $20.7 millioncompared to a year ago. In addition, nonperforming assets as a percentage of total outstanding loans declined 33 basis points, from 3.07% in the third quarter and 71 basis points from 3.45% in the fourth quarter of the prior year to 2.74% at December 31, 2011. The current quarter decrease in NPAs from the third quarter related to net decreases in both nonaccrual loans, excluding purchased impaired loans, of $7.2 millionand OREO of $2.2 million.
Nonperforming assets at December 31, 2011included $44.8 millionin nonaccrual loans (excluding purchased impaired loans), a net decrease of $7.2 million, or 13.85%, from the prior quarter. The decrease was a result of net customer payments of approximately $6.6 million, charge-offs of $2.3 million, loans returning to accruing status of $2.0 million, and transfers to OREO of $1.7 million, partially offset by additions of $5.4 million. The nonperforming loans added during the quarter were principally related to commercial real estate as borrowers continued to experience financial difficulties with the protracted economic recovery depleting their cash reserves and other repayment sources.
Nonaccrual loans include land loans of $13.3 million, other commercial loans of $10.6 million, commercial construction loans of $10.3 million, commercial real estate loans of $7.9 million, and other loans of $2.7 million. At December 31, 2011, the coverage ratio of the allowance for loan losses to nonperforming loans was 88.0%, an increase from 62.2% a year earlier and from 79.5% at September 30, 2011. Impairment analyses provided appropriate reserves on these nonperforming loans while appropriate reserves on homogenous pools continue to be maintained. The increase in the coverage ratio is primarily related to a decline in nonperforming loans.
Nonperforming assets at December 31, 2011also included $32.3 millionin OREO, a net decrease of $2.2 million, or 6.38%, from the prior quarter. The net decrease was a result of sales of $3.7 millionat a net loss of approximately $700,000, or 19.9%, additions of $2.7 million, and a fair value impairment write-down of approximately $500,000. The additions were principally related to residential real estate; sales from OREO were principally related to residential real estate, commercial property, and raw land. Several of the OREO properties sold during the quarter resulted in losses as management strategically accepted lower offers on the properties in an effort to reduce NPAs.
The OREO portfolio is composed of land development of $11.3 million, residential real estate of $11.0 million, land of $6.4 million, commercial real estate of $2.6 million, and land previously held for development of bank branch sites of $1.0 million. Included in land development is $8.8 millionrelated to a residential community in the Northern Neck region of Virginia, which includes developed residential lots, a golf course, and undeveloped land. Foreclosed properties were adjusted to their fair values at the time of each foreclosure and any losses were taken as loan charge-offs against the allowance for loan losses at that time. OREO asset valuations are also evaluated at least quarterly and any necessary write downs to fair values are recorded as impairment.
Charge-offs
For the quarter ended December 31, 2011, net charge-offs of loans were $4.2 million, or 0.59%, on an annualized basis, compared to $1.9 million, or 0.27%, for the third quarter of 2011 and $8.5 million, or 1.19%, for the same quarter last year. Net charge-offs in the current quarter included commercial loans of $2.4 million, other consumer loans of $1.4 million, and home equity lines of credit of $449,000. At December 31, 2011, total accruing past due loans were $39.3 million, or 1.40%, of total loans, a decrease from 1.61% at September 30, 2011and from 1.95% a year ago.
Provision
The provision for loan losses for the current quarter was $2.4 million, a decrease of $1.2 millionfrom the third quarter of this year and a $7.1 milliondecrease from the same quarter a year ago. The lower provision for loan losses compared to the most recent quarter reflects improvements in asset quality, tempered by charge-offs of approximately $2.8 million, or 67% of net charge-offs, that were specifically reserved for in prior periods. The current level of the allowance for loan losses reflects specific reserves related to nonperforming loans, current risk ratings on loans, net charge-off activity, loan growth, delinquency trends, and other credit risk factors that the Company considers in assessing the adequacy of the allowance for loan losses.
The allowance for loan losses as a percentage of the total loan portfolio, including net loans acquired in the FMB and the Harrisonburgbranch acquisitions, was 1.40% at December 31, 2011, 1.47% at September 30, 2011, and 1.35% at December 31, 2010. The allowance for loan losses as a percentage of the total loan portfolio, adjusted for acquired loans, was 1.83% at December 31, 2011, a decrease from 1.94% at September 30, 2011and from 1.88% a year ago. While the allowance for loan losses as a percentage of the adjusted loan portfolio declined, the coverage ratios significantly improved, which further shows that management's proactive diligence in working through problem credits is having a significant impact on asset quality. The lower allowance for loan losses as a percentage of loans compared to the loan portfolio, adjusted for acquired loans, is related to the elimination of FMB's allowance for loan losses at acquisition. In acquisition accounting, there is no carryover of previously established allowance for loan losses.
NONINTEREST INCOME
On a linked quarter basis, noninterest income increased $179,000, or 1.6%, to $11.7 millionfrom $11.5 millionin the third quarter. During the fourth quarter, the Company recorded a loss of $351,000on disposal of bank owned property and incurred losses on sales of OREO of $737,000, compared to a gain on sale of other real estate owned of $134,000in the prior quarter. Gains on sales of mortgage loans increased $847,000, or 17.4%, and were driven by higher volume in mortgage loan originations. Increases in mortgage loan refinancing volume accounted for most of the volume increase as refinanced loans as a percentage of originations in the mortgage segment increased from 35.7% in the third quarter to 52.2%. Also during the quarter, the Company recorded gains on sales of investment securities of $430,000, compared to $499,000in the prior quarter. In addition, during the prior quarter, the Company incurred a credit related other than temporary impairment ("OTTI") loss of $400,000, which was recognized in earnings. Excluding mortgage segment operations, sales of bank owned real estate, property, and securities transactions, noninterest income increased $214,000or 3.3%.
For the quarter ended December 31, 2011, noninterest income decreased $1.4 million, or 10.4%, to $11.7 millionfrom $13.1 millionin the prior year's same quarter. During the fourth quarter, the Company recorded losses on sales of OREO of $737,000, and recorded a loss on disposal of $351,000of bank owned property, compared to a gain on sale of bank owned real estate of $448,000in the prior year's same quarter. Gains on sales of mortgage loans decreased $742,000, or 11.5%, due to lower origination volume a year earlier. Also during the current quarter, the Company sold securities for a gain of $430,000. Excluding the mortgage segment operations, sales of bank owned real estate and property and securities transactions, noninterest income increased $298,000, or 4.6%, from the same period a year ago.
For the year ended December 31, 2011, noninterest income decreased $3.5 million, or 7.4%, to $43.8 millionfrom $47.3 milliona year ago. Gains on sales of bank owned property declined $1.4 million. Of this amount, the Company recorded a current year loss on disposal of $351,000of bank owned property and a current year loss on sale of $626,000of a branch building, and a prior year gain on sale of an investment property of $448,000. Gains on sales of OREO declined $1.3 millionprimarily related to current year losses on sales of property. Gains on sales of mortgage loans decreased $2.3 milliondriven by lower origination volume. Also during the year, the Company incurred a credit related OTTI loss of $400,000, which was recognized in earnings. Account service charges and other fees increased $1.2 million. Other charges and fees increased $1.4 million, primarily related to an increase in debit card fees of $763,000, ATM fees of $463,000, and brokerage commissions of $273,000, offset by a decline in account service charges of $279,000, largely related to overdraft fee volume. Also during the year, the Company recorded gains on sales of securities of $913,000. Excluding the mortgage segment operations, sales of bank owned real estate, property, and securities transactions, noninterest income increased $1.0 million, or 4.1%, from the same period a year ago.
NONINTEREST EXPENSE
On a linked quarter basis, noninterest expense increased $1.8 million, or 5.0%, to $36.4 millionfrom $34.6 millionwhen compared to the third quarter. Other operating expenses increased $1.5 million, or 12.3%. Included in the other operating expenses increase was a valuation write-down of OREO of $529,000, higher marketing and advertising costs of $545,000, primarily related to television campaigns to promote online banking functionality, and other loan and real estate owned related expenses of $357,000. Salaries and benefits expense increased $266,000due to the origination volume related commission expense. Excluding the mortgage segment operations, noninterest expense increased $1.0 million, or 3.4%, compared to the third quarter of this year.
For the quarter ended December 31, 2011, noninterest expense decreased $717,000, or 1.9%, to $36.4 millionfrom $37.1 millionfor the fourth quarter of 2010. Other operating expenses decreased $1.4 million, or 9.2%. This expense decrease included $1.2 millionof post acquisition lease and contract termination fees, costs related to the consolidation of bank affiliates, and conversion costs of acquired branches that occurred in the fourth quarter of the prior year. Increases in current year other operating expenses included a valuation adjustment write-down of OREO of $529,000, higher marketing and advertising expenses of $336,000, primarily related to television campaigns to promote online banking functionality, and higher franchise taxes of $299,000which were levied to include all of the former FMB branches. Partially offsetting higher other operating expenses was lower FDIC assessment expense of $508,000due to change in assessment base and rate. Salaries and benefits increased $698,000related to additional personnel in branch additions and profit sharing expense, partially offset by the lower origination volume related commission expense in the mortgage segment. Excluding the mortgage segment operations and prior period acquisition, termination, and conversion costs, noninterest expense increased $1.4 million, or 4.6%, compared to the fourth quarter of this year.
For the year ended December 31, 2011, noninterest expense decreased $1.4 million, or 1.0%, to $141.6 million, from $143.0 milliona year ago. Other operating expenses decreased $5.1 million, or 9.0%. Included in the reduction of other operating expenses were prior year costs associated with the acquisitions and mergers of $8.7 millionduring 2010 compared to $426,000in 2011, lower amortization on the acquired deposit portfolio of $1.1 million, and lower FDIC assessment expense of $340,000due to lower assessment base and rate. Increases in current year other operating expenses included valuation adjustments and higher costs to maintain the Company's portfolio of OREO of $1.6 million, higher franchises taxes of $1.2 millionlevied to include all of the former FMB branches, higher communication expenses of $1.0 millionrelated to increased online customer activity and additional branch locations. Salary and benefits expense increased $3.7 million, primarily related to additional personnel, offset by lower origination volume related commission expense in the mortgage segment. Excluding mortgage segment operations and current and prior year acquisition costs, noninterest expense increased $8.4 million, or 7.3%, from the same period a year ago.
BALANCE SHEET
At December 31, 2011, total cash and cash equivalents were $96.7 million, a decrease of $53.1 millionfrom September 30, 2011, and an increase of $35.5 millionfrom December 31, 2010. During the fourth quarter, the Company paid the Treasury $35.7 millionto redeem the Preferred Stock issued to the Treasury and assumed in the FMB acquisition, and increased investment in securities $34.3 million. At December 31, 2011, net loans were $2.8 billion, an increase of $2.1 million, virtually unchanged from the prior quarter. Net loans decreased $19.7 million, or 0.7%, from December 31, 2010. Mortgage loans held for sale of $74.8 millionincreased by $13.0 millionfrom the prior quarter related to an increase in refinance volume and was flat from the prior year's same quarter. At December 31, 2011, total assets were $3.9 billion, a decrease of $7.4 millioncompared to the third quarter, and an increase of $69.8 millionfrom $3.8 billionat December 31, 2010.
Total deposits grew $105.0 million, or 3.4%, for the year ended December 31, 2011, and grew $40.2 million, or 1.3%, during the fourth quarter. Of this amount, interest bearing deposits increased $48.4 millioncompared to the third quarter driven by higher volumes in money market and NOW accounts partially offset by runoff in certificates of deposit under $100,000. Similarly, interest bearing deposits increased $55.4 millionfrom December 31, 2010, as money market and NOW accounts balances increases were partially offset by runoff in certificates of deposit. Total borrowings, including repurchase agreements, decreased $7.3 millionon a linked quarter basis and decreased $29.5 millionfrom December 31, 2010as the Company reduced reliance on short-term sources of funds. The Company's equity to assets ratio was 10.79% and 11.16% at December 31, 2011and 2010, respectively. The decrease in the equity to assets ratio was due to the Company's redemption of the CPP described above. The Company's tangible common equity to tangible assets ratio was 8.91% and 8.22% at December 31, 2011and 2010, respectively.
MORTGAGE SEGMENT INFORMATION
On a linked quarter basis, the mortgage segment net income for the fourth quarter increased $191,000, or 41.3%, to $654,000from $463,000in the third quarter, related to favorable pricing on sales of loans and origination volume. Originations increased by $10.6 millionfrom $176.0 millionto $186.6 million, or 6.0%, from the third quarter as a result of an increase in refinance originations. Refinanced loans represented 52.2% of the originations during the fourth quarter compared to 35.7% during the third quarter. Gains on the sale of loans increased $847,000, or 17.4%, and salary and benefit expenses increased $434,000largely on loan volume driven commission expense. Loan related expenses were $298,000, increasing $135,000, or 82.1% from the prior quarter as a result of a write off of uncollectible appraisals and other loan related expenses.
For the three months ended December 31, 2011, the mortgage segment net income decreased $200,000from $854,000 to $654,000, or 23.4%, compared to the same period last year as residential mortgage activity and average loan size declined. Originations decreased by $50.1 millionfrom $236.7 millionto $186.6 million, or 21.2%, from the fourth quarter last year. Refinance loans represented 52.2% of originations during the fourth quarter of 2011 compared to 56.1% during the same period a year ago. Net interest income declined by $381,000, or 55.1% due to an increase in warehouse line of credit borrowing rates. The decline in originations led to a decrease in gains on the sale of loans of $742,000, or 11.5%. Noninterest expenses decreased $780,000. Of this amount, salaries and benefits decreased $882,000primarily as a result of loan volume driven commission expense.
For the year ended December 31, 2011, the mortgage segment net income decreased $1.5 million, or 48.5%, to $1.6 millionfrom $3.1 millionduring the same period last year. Originations decreased by $149.3 millionfrom $808.7 millionto $659.4 million, or 18.5%, compared to the same period last year due to declines in residential mortgage activity and an evolving regulatory environment, which increased demands on production. Gains on the sale of loans decreased $2.3 million, or 10.5%, driven largely by the decline in origination volume. Refinanced loans represented 37.4% of originations during the year compared to 43.1% during the same period a year ago. Net interest income declined $907,000, or 40.8%, from the prior year as a result of increases to the warehouse line of credit borrowing rate. Salary and benefit expenses decreased $1.2 millionprimarily due to lower commission expense on decreased origination volume, partially offset by higher salaries expense required to meet evolving regulatory, compliance, and production demands. Other operating expenses increased $322,000, or 12.5%, primarily related to increased costs associated with the processing, underwriting, and compliance components of origination.
ABOUT UNION FIRST MARKET BANKSHARES CORPORATION
Headquartered in Richmond, Virginia, Union First Market Bankshares Corporation is the holding company for Union First Market Bank, which has 99 branches and more than 160 ATMs throughout Virginia. Non-bank affiliates of the holding company include: Union Investment Services, Inc., which provides full brokerage services; Union Mortgage Group, Inc., which provides a full line of mortgage products, and Union Insurance Group, LLC, which offers various lines of insurance products. Union First Market Bank also owns a non-controlling interest in Johnson Mortgage Company, LLC.
Additional information is available on the Company's website at . Shares of the Company's common stock are traded on the NASDAQ Global Select Market under the symbol UBSH.
FORWARD-LOOKING STATEMENTS
Certain statements in this report may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise and are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," "intend," "will," or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of and changes in: general economic and bank industry conditions, the interest rate environment, legislative and regulatory requirements, competitive pressures, new products and delivery systems, inflation, changes in the stock and bond markets, accounting standards or interpretations of existing standards, mergers and acquisitions, technology, and consumer spending and savings habits. More information is available on the Company's website, and on the Securities and Exchange Commission's website, . The information on the Company's website is not a part of this press release. The Company does not intend or assume any obligation to update or revise any forward-looking statements that may be made from time to time by or on behalf of the Company.
UNION FIRST MARKET BANKSHARES CORPORATION AND SUBSIDIARIES | ||||||||||
KEY FINANCIAL RESULTS | ||||||||||
(in thousands, except share data) | ||||||||||
Three Months Ended | Year Ended | |||||||||
12/31/11 | 09/30/11 | 12/31/10 | 12/31/11 | 12/31/10 | ||||||
Results of Operations | ||||||||||
Interest and dividend income | $ 46,319 | $ 47,606 | $ 48,768 | $ 189,073 | $ 189,821 | |||||
Interest expense | 7,828 | 8,160 | 9,541 | 32,713 | 38,245 | |||||
Net interest income | 38,491 | 39,446 | 39,227 | 156,360 | 151,576 | |||||
Provision for loan losses | 2,400 | 3,600 | 9,500 | 16,800 | 24,368 | |||||
Net interest income after provision for loan losses | 36,091 | 35,846 | 29,727 | 139,560 | 127,208 | |||||
Noninterest income | 11,723 | 11,544 | 13,078 | 43,777 | 47,298 | |||||
Noninterest expenses | 36,352 | 34,637 | 37,069 | 141,628 | 143,001 | |||||
Income before income taxes | 11,462 | 12,753 | 5,736 | 41,709 | 31,505 | |||||
Income tax expense | 3,102 | 3,682 | 1,312 | 11,264 | 8,583 | |||||
Net income | $ 8,360 | $ 9,071 | $ 4,424 | $ 30,445 | $ 22,922 | |||||
Interest earned on loans (FTE) | $ 41,584 | $ 42,777 | $ 43,505 | $ 168,991 | $ 170,286 | |||||
Interest earned on securities (FTE) | 5,734 | 5,874 | 6,325 | 24,284 | 23,527 | |||||
Interest earned on earning assets (FTE) | 47,386 | 48,673 | 49,834 | 193,399 | 193,904 | |||||
Net interest income (FTE) | 39,558 | 40,514 | 40,294 | 160,686 | 155,659 | |||||
Interest expense on certificates of deposit | 4,183 | 4,205 | 5,810 | 17,658 | 22,995 | |||||
Interest expense on interest-bearing deposits | 5,572 | 5,923 | 7,685 | 24,347 | 30,742 | |||||
Core deposit intangible amortization | 1,448 | 1,496 | 1,936 | 6,122 | 7,263 | |||||
Net income - community bank segment | $ 7,707 | $ 8,607 | $ 3,570 | $ 28,833 | $ 19,794 | |||||
Net income - mortgage segment | 654 | 463 | 854 | 1,612 | 3,128 | |||||
Key Ratios | ||||||||||
Return on average assets (ROA) | 0.84% | 0.93% | 0.46% | 0.79% | 0.61% | |||||
Return on average equity (ROE) | 7.49% | 8.02% | 4.07% | 6.90% | 5.50% | |||||
Efficiency ratio | 72.39% | 67.93% | 70.87% | 70.77% | 71.91% | |||||
Efficiency ratio - community bank segment | 71.08% | 66.06% | 69.43% | 68.83% | 70.93% | |||||
Net interest margin (FTE) | 4.37% | 4.54% | 4.55% | 4.57% | 4.56% | |||||
Net interest margin, core (FTE)(1) | 4.20% | 4.34% | 4.29% | 4.37% | 4.24% | |||||
Yields on earning assets (FTE) | 5.23% | 5.46% | 5.63% | 5.50% | 5.68% | |||||
Cost of interest-bearing liabilities (FTE) | 1.07% | 1.13% | 1.31% | 1.14% | 1.35% | |||||
Noninterest expense less noninterest income / average assets | 2.49% | 2.36% | 2.47% | 2.53% | 2.55% | |||||
Per Share Data | ||||||||||
Earnings per common share, basic | $ 0.28 | $ 0.33 | $ 0.15 | $ 1.07 | $ 0.83 | |||||
Earnings per common share, diluted | 0.28 | 0.33 | 0.15 | 1.07 | 0.83 | |||||
Cash dividends paid per common share | 0.07 | 0.07 | 0.07 | 0.28 | 0.25 | |||||
Market value per share | 13.29 | 10.72 | 14.78 | 13.29 | 14.78 | |||||
Book value per common share | 16.17 | 16.04 | 15.16 | 16.17 | 15.16 | |||||
Tangible book value per common share | 13.08 | 12.88 | 11.88 | 13.08 | 11.88 | |||||
Price to earnings ratio, diluted | 11.96 | 8.19 | 24.84 | 12.42 | 17.81 | |||||
Price to book value per common share ratio | 0.82 | 0.67 | 0.98 | 0.82 | 0.98 | |||||
Price to tangible common share ratio | 1.02 | 0.83 | 1.24 | 1.02 | 1.24 | |||||
Weighted average common shares outstanding, basic | 26,011,465 | 25,986,677 | 25,902,835 | 25,981,222 | 25,222,565 | |||||
Weighted average common shares outstanding, diluted | 26,036,922 | 26,001,900 | 25,949,521 | 26,009,839 | 25,268,216 | |||||
Common shares outstanding at end of period | 26,134,830 | 26,057,501 | 26,004,197 | 26,134,830 | 26,004,197 | |||||
Three Months Ended | Year Ended | |||||||||
12/31/11 | 09/30/11 | 12/31/10 | 12/31/11 | 12/31/10 | ||||||
Financial Condition | ||||||||||
Assets | $ 3,907,087 | $ 3,914,457 | $ 3,837,247 | $ 3,907,087 | $ 3,837,247 | |||||
Loans, net of unearned income | 2,818,583 | 2,818,342 | 2,837,253 | 2,818,583 | 2,837,253 | |||||
Earning Assets | 3,561,106 | 3,573,844 | 3,485,870 | 3,561,106 | 3,485,870 | |||||
Goodwill | 59,400 | 59,400 | 57,567 | 59,400 | 57,567 | |||||
Core deposit intangibles, net | 20,714 | 22,162 | 26,827 | 20,714 | 26,827 | |||||
Deposits | 3,175,105 | 3,134,876 | 3,070,059 | 3,175,105 | 3,070,059 | |||||
Stockholders' equity | 421,639 | 451,581 | 428,085 | 421,639 | 428,085 | |||||
Tangible common equity | 341,092 | 334,874 | 308,440 | 341,092 | 308,440 | |||||
Averages | ||||||||||
Assets | $ 3,929,529 | $ 3,876,740 | $ 3,854,718 | $ 3,861,628 | $ 3,752,569 | |||||
Loans, net of unearned income | 2,804,500 | 2,831,924 | 2,830,435 | 2,818,022 | 2,750,756 | |||||
Loans held for sale | 68,587 | 48,664 | 93,325 | 53,463 | 68,414 | |||||
Securities | 619,228 | 597,489 | 580,590 | 595,261 | 550,074 | |||||
Earning assets | 3,591,739 | 3,538,752 | 3,514,367 | 3,518,643 | 3,412,495 | |||||
Deposits | 3,156,596 | 3,105,792 | 3,086,478 | 3,098,818 | 2,975,045 | |||||
Certificates of deposit | 1,158,561 | 1,160,662 | 1,295,227 | 1,177,448 | 1,284,516 | |||||
Interest-bearing deposits | 2,617,459 | 2,583,864 | 2,589,313 | 2,585,466 | 2,506,414 | |||||
Borrowings | 289,299 | 289,857 | 305,900 | 289,776 | 331,786 | |||||
Interest-bearing liabilities | 2,906,758 | 2,873,721 | 2,895,213 | 2,875,242 | 2,838,200 | |||||
Stockholders' equity | 442,580 | 448,618 | 430,748 | 441,040 | 416,577 | |||||
Tangible common equity | 336,076 | 331,170 | 310,144 | 326,090 | 298,221 | |||||
Asset Quality | ||||||||||
Allowance for Loan Losses (ALLL) | ||||||||||
Beginning balance | $ 41,290 | $ 39,631 | $ 37,395 | $ 38,406 | $ 30,484 | |||||
Add: Recoveries | 569 | 674 | 367 | 2,130 | 2,103 | |||||
Less: Charge-offs | 4,789 | 2,615 | 8,856 | 17,866 | 18,549 | |||||
Add: Provision for loan losses | 2,400 | 3,600 | 9,500 | 16,800 | 24,368 | |||||
Ending balance | $ 39,470 | $ 41,290 | $ 38,406 | $ 39,470 | $ 38,406 | |||||
ALLL / total outstanding loans | 1.40% | 1.47% | 1.35% | 1.40% | 1.35% | |||||
ALLL / total outstanding loans, adjusted for acquired(2) | 1.83% | 1.94% | 1.88% | 1.83% | 1.88% | |||||
Net charge-offs / total outstanding loans | 0.59% | 0.27% | 1.19% | 0.56% | 0.58% | |||||
Nonperforming Assets | ||||||||||
Nonaccrual loans | $ 44,834 | $ 51,965 | $ 61,716 | $ 44,834 | $ 61,716 | |||||
Other real estate owned | 32,263 | 34,464 | 36,122 | 32,263 | 36,122 | |||||
Total nonperforming assets (NPAs) | 77,097 | 86,429 | 97,838 | 77,097 | 97,838 | |||||
Loans > 90 days and still accruing | 19,911 | 12,159 | 17,993 | 19,911 | 17,993 | |||||
Total nonperforming assets and past due loans | $ 97,008 | $ 98,588 | $ 115,831 | $ 97,008 | $ 115,831 | |||||
NPAs / total outstanding loans | 2.74% | 3.07% | 3.45% | 2.74% | 3.45% | |||||
NPAs / total assets | 1.97% | 2.21% | 2.55% | 1.97% | 2.55% | |||||
ALLL / nonperforming loans | 88.04% | 79.46% | 62.23% | 88.04% | 62.23% | |||||
ALLL / nonperforming assets | 51.20% | 47.77% | 39.25% | 51.20% | 39.25% | |||||
Other Data | ||||||||||
Mortgage loan originations | $ 186,559 | $ 176,040 | $ 236,653 | $ 659,441 | $ 808,663 | |||||
% of originations that are refinances | 52.20% | 35.70% | 56.10% | 37.40% | 43.10% | |||||
End of period full-time employees | 1,045 | 1,047 | 1,005 | 1,045 | 1,005 | |||||
Number of full-service branches | 99 | 99 | 90 | 99 | 90 | |||||
Number of full automatic transaction machines (ATMs) | 165 | 167 | 159 | 165 | 159 | |||||
Three Months Ended | Year Ended | |||||||||
12/31/11 | 09/30/11 | 12/31/10 | 12/31/11 | 12/31/10 | ||||||
Alternative Performance Measures | ||||||||||
Cash basis earnings(3) | ||||||||||
Net income | $ 8,360 | $ 9,071 | $ 4,424 | $ 30,445 | $ 22,922 | |||||
Plus: Core deposit intangible amortization, net of tax | 941 | 972 | 1,258 | 3,979 | 4,721 | |||||
Plus: Trademark intangible amortization, net of tax | 65 | 65 | 65 | 260 | 239 | |||||
Cash basis operating earnings | $ 9,366 | $ 10,108 | $ 5,747 | $ 34,684 | $ 27,882 | |||||
Average assets | $ 3,929,529 | $ 3,876,740 | $ 3,854,718 | $ 3,861,628 | $ 3,752,569 | |||||
Less: Average trademark intangible | 482 | 582 | 882 | 631 | 933 | |||||
Less: Average goodwill | 59,400 | 59,400 | 57,566 | 58,494 | 57,566 | |||||
Less: Average core deposit intangibles | 21,408 | 22,890 | 27,767 | 23,654 | 28,470 | |||||
Average tangible assets | $ 3,848,239 | $ 3,793,868 | $ 3,768,503 | $ 3,778,849 | $ 3,665,600 | |||||
Average equity | $ 442,580 | $ 448,618 | $ 430,748 | $ 441,040 | $ 416,577 | |||||
Less: Average trademark intangible | 482 | 582 | 882 | 631 | 933 | |||||
Less: Average goodwill | 59,400 | 59,400 | 57,566 | 58,494 | 57,566 | |||||
Less: Average core deposit intangibles | 21,408 | 22,890 | 27,767 | 23,654 | 28,470 | |||||
Less: Average preferred equity | 25,215 | 34,576 | 34,389 | 32,171 | 31,387 | |||||
Average tangible common equity | $ 336,075 | $ 331,170 | $ 310,144 | $ 326,090 | $ 298,221 | |||||
Cash basis operating earnings per share, diluted | $ 0.36 | $ 0.39 | $ 0.22 | $ 1.33 | $ 1.10 | |||||
Cash basis operating return on average tangible assets | 0.97% | 1.06% | 0.61% | 0.92% | 0.76% | |||||
Cash basis operating return on average tangible common equity | 11.06% | 12.11% | 7.35% | 10.64% | 9.35% | |||||
(1) The core net interest margin, fully taxable equivalent ("FTE") excludes the impact of acquisition accounting accretion and amortization adjustments in net interest income. | ||||||||||
(2) The allowance for loan losses, adjusted for acquired loans (non-GAAP) ratio includes the allowance for loan losses to the total loan portfolio less acquired loans without additional credit deterioration above the original credit mark (which have been provided for in the ALLL subsequent to acquisition). GAAP requires the acquired allowance for loan losses not be carried over in an acquisition or merger. We believe the presentation of the allowance for loan losses, adjusted for acquired loans ratio is useful to investors because the acquired loans were purchased at a market discount with no allowance for loan losses carried over to the Company. Therefore, acquired loans without additional credit deterioration above the original credit mark are adjusted out of the loan balance denominator. | ||||||||||
Gross Loans | $ 2,818,583 | $ 2,818,342 | $ 2,837,253 | $ 2,818,583 | $ 2,837,253 | |||||
less acquired loans without additional credit deterioration | (661,531) | (692,156) | (793,730) | (661,531) | (793,730) | |||||
Gross Loans, adjusted for acquired | 2,157,052 | 2,126,186 | 2,043,523 | 2,157,052 | 2,043,523 | |||||
Allowance for loan losses | 39,470 | 41,290 | 38,406 | 39,470 | 38,406 | |||||
ALLL / gross loans, adjusted for acquired | 1.83% | 1.94% | 1.88% | 1.83% | 1.88% | |||||
(3) As a supplement to GAAP, management also
reviews operating performance based on its
"cash basis earnings" to fully analyze
its core business. Cash basis earnings
exclude amortization expense attributable to
intangibles (goodwill and core deposit intangibles)
that do not qualify as regulatory capital.
Financial ratios based on cash basis earnings
exclude the amortization of nonqualifying
intangible assets from earnings and the unamortized
balance of nonqualifying intangibles from
assets and equity. | ||||||||||
UNION FIRST MARKET BANKSHARES CORPORATION AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(Dollars in thousands) | ||||
December 31, | December 31, | |||
2011 | 2010 | |||
ASSETS | (Unaudited) | (Audited) | ||
Cash and cash equivalents: | ||||
Cash and due from banks | $ 69,786 | $ 58,951 | ||
Interest-bearing deposits in other banks | 26,556 | 1,449 | ||
Money market investments | 155 | 158 | ||
Federal funds sold | 162 | 595 | ||
Total cash and cash equivalents | 96,659 | 61,153 | ||
Securities available for sale, at fair value | 640,827 | 572,441 | ||
Loans held for sale | 74,823 | 73,974 | ||
Loans, net of unearned income | 2,818,583 | 2,837,253 | ||
Less allowance for loan losses | 39,470 | 38,406 | ||
Net loans | 2,779,113 | 2,798,847 | ||
Bank premises and equipment, net | 90,589 | 90,680 | ||
Other real estate owned | 32,263 | 36,122 | ||
Core deposit intangibles, net | 20,714 | 26,827 | ||
Goodwill | 59,400 | 57,567 | ||
Other assets | 112,699 | 119,636 | ||
Total assets | $ 3,907,087 | $ 3,837,247 | ||
LIABILITIES | ||||
Noninterest-bearing demand deposits | $ 534,535 | $ 484,867 | ||
Interest-bearing deposits: | ||||
NOW accounts | 412,605 | 381,512 | ||
Money market accounts | 904,893 | 783,431 | ||
Savings accounts | 179,157 | 153,724 | ||
Time deposits of $100,000 and over | 511,614 | 563,375 | ||
Other time deposits | 632,301 | 703,150 | ||
Total interest-bearing deposits | 2,640,570 | 2,585,192 | ||
Total deposits | 3,175,105 | 3,070,059 | ||
Securities sold under agreements to repurchase | 62,995 | 69,467 | ||
Other short-term borrowings | - | 23,500 | ||
Trust preferred capital notes | 60,310 | 60,310 | ||
Long-term borrowings | 155,381 | 154,892 | ||
Other liabilities | 31,657 | 30,934 | ||
Total liabilities | 3,485,448 | 3,409,162 | ||
Commitments and contingencies | ||||
STOCKHOLDERS' EQUITY | ||||
Preferred stock, $10.00 par value, $1,000 liquidation value, shares authorized 500,000; issued and outstanding, 35,595 shares. | - | 35,595 | ||
Common stock, $1.33 par value, shares authorized 36,000,000; issued and outstanding, 26,134,830 shares, 26,004,197 shares, and 26,004,197 shares, respectively. | 34,672 | 34,532 | ||
Surplus | 187,493 | 185,763 | ||
Retained earnings | 189,824 | 169,801 | ||
Discount on preferred stock | - | (1,177) | ||
Accumulated other comprehensive income | 9,650 | 3,571 | ||
Total stockholders' equity | 421,639 | 428,085 | ||
Total liabilities and stockholders' equity | $ 3,907,087 | $ 3,837,247 | ||
UNION FIRST MARKET BANKSHARES CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Dollars in thousands, except per share amounts) | ||||||||
Three Months Ended | Year Ended | |||||||
December 31 | December 31 | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Interest and dividend income: | ||||||||
Interest and fees on loans | $ 41,480 | $ 43,342 | $ 168,479 | $ 169,549 | ||||
Interest on Federal funds sold | - | - | 1 | 17 | ||||
Interest on deposits in other banks | 68 | 5 | 123 | 77 | ||||
Interest and dividends on securities: | ||||||||
Taxable | 2,982 | 3,740 | 13,387 | 13,958 | ||||
Nontaxable | 1,789 | 1,681 | 7,083 | 6,220 | ||||
Total interest and dividend income | 46,319 | 48,768 | 189,073 | 189,821 | ||||
Interest expense: | ||||||||
Interest on deposits | 5,572 | 7,686 | 24,346 | 30,742 | ||||
Interest on Federal funds purchased | - | 14 | 7 | 33 | ||||
Interest on short-term borrowings | 469 | 162 | 1,307 | 1,790 | ||||
Interest on long-term borrowings | 1,787 | 1,679 | 7,053 | 5,680 | ||||
Total interest expense | 7,828 | 9,541 | 32,713 | 38,245 | ||||
Net interest income | 38,491 | 39,227 | 156,360 | 151,576 | ||||
Provision for loan losses | 2,400 | 9,500 | 16,800 | 24,368 | ||||
Net interest income after provision for loan losses | 36,091 | 29,727 | 139,560 | 127,208 | ||||
Noninterest income: | ||||||||
Service charges on deposit accounts | 2,258 | 2,283 | 8,826 | 9,105 | ||||
Other service charges, commissions and fees | 3,296 | 3,115 | 12,825 | 11,395 | ||||
Gains on securities transactions, net | 430 | (4) | 913 | 58 | ||||
Other-than-temporary impairment losses | - | - | (400) | - | ||||
Gains on sales of loans | 5,708 | 6,450 | 19,840 | 22,151 | ||||
Gains(losses)onsalesofotherrealestateandbankpremises,net | (1,088) | 252 | (2,060) | 628 | ||||
Other operating income | 1,119 | 982 | 3,833 | 3,961 | ||||
Total noninterest income | 11,723 | 13,078 | 43,777 | 47,298 | ||||
Noninterest expenses: | ||||||||
Salaries and benefits | 18,342 | 17,644 | 71,652 | 67,913 | ||||
Occupancy expenses | 2,797 | 2,964 | 11,104 | 11,417 | ||||
Furniture and equipment expenses | 1,823 | 1,720 | 6,920 | 6,594 | ||||
Other operating expenses | 13,390 | 14,741 | 51,952 | 57,077 | ||||
Total noninterest expenses | 36,352 | 37,069 | 141,628 | 143,001 | ||||
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) | ||||||||||||||||||
For the Three Months Ended December 31, | ||||||||||||||||||
2011 | 2010 | 2009 | ||||||||||||||||
Average Balance | Interest Income / Expense | Yield / Rate (1) | Average Balance | Interest Income / Expense | Yield / Rate (1) | Average Balance | Interest Income / Expense | Yield / Rate (1) | ||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Securities: | ||||||||||||||||||
Taxable | $ 447,327 | $ 2,982 | 2.64% | $ 423,417 | $ 3,740 | 3.50% | $ 285,076 | $ 2,746 | 3.82% | |||||||||
Tax-exempt | 171,901 | 2,752 | 6.35% | 157,173 | 2,585 | 6.53% | 116,957 | 2,075 | 7.04% | |||||||||
Total securities (2) | 619,228 | 5,734 | 3.67% | 580,590 | 6,325 | 4.32% | 402,033 | 4,821 | 4.76% | |||||||||
Loans, net (3) (4) | 2,804,500 | 40,949 | 5.79% | 2,830,435 | 42,673 | 5.98% | 1,880,505 | 28,365 | 5.98% | |||||||||
Loans held for sale | 68,587 | 635 | 3.67% | 93,325 | 832 | 3.54% | 47,354 | 490 | 4.11% | |||||||||
Federal funds sold | 451 | - | 0.24% | 3,240 | 1 | 0.03% | 340 | - | 0.22% | |||||||||
Money market investments | 26 | - | 0.00% | 202 | - | 0.00% | 191 | - | 0.00% | |||||||||
Interest-bearing deposits in other banks | 98,947 | 68 | 0.27% | 6,575 | 3 | 0.19% | 16,064 | 12 | 0.30% | |||||||||
Other interest-bearing deposits | - | - | 0.00% | - | - | 0.00% | 2,598 | - | 0.00% | |||||||||
Total earning assets | 3,591,739 | 47,386 | 5.23% | 3,514,367 | 49,834 | 5.63% | 2,349,085 | 33,688 | 5.69% | |||||||||
Allowance for loan losses | (41,304) | (37,865) | (33,410) | |||||||||||||||
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||
2011 | 2010 | 2009 | ||||||||||||||||
Average Balance | Interest Income / Expense | Yield / Rate (1) | Average Balance | Interest Income / Expense | Yield / Rate (1) | Average Balance | Interest Income / Expense | Yield / Rate (1) | ||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Securities: | ||||||||||||||||||
Taxable | $ 427,443 | $ 13,387 | 3.13% | $ 407,975 | $ 13,958 | 3.42% | $ 261,078 | $ 10,606 | 4.06% | |||||||||
Tax-exempt | 167,818 | 10,897 | 6.49% | 142,099 | 9,569 | 6.73% | 118,676 | 8,506 | 7.17% | |||||||||
Total securities (2) | 595,261 | 24,284 | 4.08% | 550,074 | 23,527 | 4.28% | 379,754 | 19,112 | 5.03% | |||||||||
Loans, net (3) (4) | 2,818,022 | 166,869 | 5.92% | 2,750,756 | 167,615 | 6.09% | 1,873,606 | 111,139 | 5.93% | |||||||||
Loans held for sale | 53,463 | 2,122 | 3.97% | 68,414 | 2,671 | 3.90% | 46,454 | 1,931 | 4.16% | |||||||||
Federal funds sold | 351 | 1 | 0.24% | 12,910 | 17 | 0.13% | 313 | 1 | 0.20% | |||||||||
Money market investments | 96 | - | 0.00% | 171 | - | 0.00% | 135 | - | 0.00% | |||||||||
Interest-bearing deposits in other banks | 51,450 | 123 | 0.24% | 29,444 | 74 | 0.25% | 50,994 | 135 | 0.26% | |||||||||
Other interest-bearing deposits | - | - | 0.00% | 726 | - | 0.00% | 2,598 | - | 0.00% | |||||||||
Total earning assets | 3,518,643 | 193,399 | 5.50% | 3,412,495 | 193,904 | 5.68% | 2,353,854 | 132,318 | 5.62% | |||||||||
Allowance for loan losses | (40,105) | (34,539) | (29,553) | |||||||||||||||
Total non-earning assets | 383,090 | 374,613 | 254,507 | |||||||||||||||
Total assets | $ 3,861,628 | $ 3,752,569 | $ 2,578,808 | |||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
Checking | $ 385,715 | 621 | 0.16% | $ 345,927 | $ 765 | 0.22% | $ 201,520 | 314 | 0.16% | |||||||||
Money market savings | 849,676 | 5,430 | 0.64% | 724,802 | 6,422 | 0.89% | 429,501 | 7,905 | 1.84% | |||||||||
Regular savings | 172,627 | 638 | 0.37% | 151,169 | 560 | 0.37% | 99,914 | 384 | 0.38% | |||||||||
Certificates of deposit: (5) | ||||||||||||||||||
$100,000 and over | 573,276 | 9,045 | 1.58% | 639,406 | 12,000 | 1.88% | 456,644 | 15,063 | 3.30% | |||||||||
Under $100,000 | 604,172 | 8,613 | 1.43% | 645,110 | 10,995 | 1.70% | 492,186 | 15,786 | 3.21% | |||||||||
Total interest-bearing deposits | 2,585,466 | 24,347 | 0.94% | 2,506,414 | 30,742 | 1.23% | 1,679,765 | 39,452 | 2.35% | |||||||||
Other borrowings (6) | 289,776 | 8,366 | 2.89% | 331,786 | 7,503 | 2.26% | 300,739 | 9,320 | 3.10% | |||||||||
Total interest-bearing liabilities | 2,875,242 | 32,713 | 1.14% | 2,838,200 | 38,245 | 1.35% | 1,980,504 | 48,772 | 2.46% | |||||||||
SOURCE Union First Market Bankshares Corporation
| distribué par | Ce noodl a été diffusé par Union First Market Bankshares Corporation et initialement mise en ligne sur le site http://www.ubsh.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-26 19:30:21 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
