BLOOMINGTON, Ind., Oct. 28, 2010 (GLOBE NEWSWIRE) -- Monroe Bancorp (the "Company") (Nasdaq:MROE), the independent Bloomington-based holding company for Monroe Bank (the "Bank"), today reported net income of $239,000 or $0.038 per diluted common share for the quarter ended September 30, 2010 compared to $710,000 or $0.114 per diluted common share for the same period in 2009.
Return on average assets and return on average equity for the third quarter of 2010 were 0.11 percent and 1.69 percent, respectively, compared to 0.34 percent and 4.95 percent, respectively, for the third quarter of 2009.
The Company had a net loss of $510,000 or $0.082 per diluted common share for the first nine months of 2010 compared to net income of $2,592,000 or $0.417 per diluted common share for the same period of 2009.
The chart below summarizes the factors that were the most significant to the decline in earnings between the third quarter of 2010 and the third quarter of 2009 and the year-to-date results for both years.
|
3rd Quarter 2010 |
3rd Quarter 2009 |
Change |
YTD 2010 |
YTD 2009 |
Change |
|
| Net Income (Loss) | $ 239,000 | $ 710,000 | $ (471,000) | $ (510,000) | $ 2,592,000 | $ (3,102,000) |
| Earnings Per Diluted Share | $ 0.038 | $ 0.114 | $ (0.076) | $ (0.082) | $ 0.417 | $ (0.499) |
| Return on Average Assets (ROAA) | 0.11% | 0.34% | -0.23% | -0.08% | 0.42% | -0.50% |
| Return on Average Equity (ROAE) | 1.69% | 4.95% | -3.26% | -1.21% | 6.14% | -7.35% |
| Pre-Tax Income | $ 188,000 | $ 868,000 | $ (680,000) | $ (1,566,000) | $ 3,157,000 | $ (4,723,000) |
| Provision | $ (3,200,000) | $ (2,200,000) | $ (1,000,000) | $(10,900,000) | $ (7,000,000) | $ (3,900,000) |
| Loan Related Expense (e.g., Workout) | (486,000) | (169,000) | (317,000) | (1,164,000) | (511,000) | (653,000) |
| FDIC Expense | (446,000) | (280,000) | (166,000) | (1,132,000) | (1,214,000) | 82,000 |
| Loss on Foreclosed Assets | (37,000) | (761,000) | 724,000 | (308,000) | (874,000) | 566,000 |
| Subordinated Debt Expense | (325,000) | (271,000) | (54,000) | (975,000) | (271,000) | (704,000) |
| Gain on the Sale of AFS Securities | 347,000 | 264,000 | 83,000 | 640,000 | 1,656,000 | (1,016,000) |
| Bank Owned Life Insurance (BOLI) | 164,000 | 163,000 | 1,000 | 1,005,000 | 477,000 | 528,000 |
| Net Impact: | $ (3,983,000) | $ (3,254,000) | $ (729,000) | $(12,834,000) | $ (7,737,000) | $ (5,097,000) |
| All Other Pre-Tax Income | $ 49,000 | $ 374,000 |
The increases reflected above in the provision for loan losses and loan related expenses are the result of asset quality issues that are discussed in detail later in this release. The year over year decline in FDIC expense is largely due to a special assessment applied to the banking industry in the second quarter of 2009 that did not reoccur in 2010. The increase in Bank Owned Life Insurance (BOLI) income is the result of the receipt of the death benefit proceeds under that program. The Company did not purchase additional BOLI during 2010. The Subordinated Debt expense is the result of the Company issuing $13 million of Subordinated Debt at a rate of 10 percent in July of 2009.
"We are pleased that after posting net losses for the first two quarters of 2010 that we were able to return to profitability in the third quarter," said Mark D. Bradford, President and Chief Executive Officer. "At the same time, we recognize the impact of our problem assets remains a very significant drag on our financial performance."
Merger with Old National Bancorp and Financial Results Impacting the Merger Exchange Rate
On October 6, 2010, the Boards of Directors of Monroe Bancorp and Old National Bancorp announced an agreement to merge the two companies. If the merger is approved by the shareholders of Monroe Bancorp and all other closing conditions are satisfied, each shareholder of Monroe Bancorp shall receive 1.275 shares of Old National Bancorp common stock for each share of their Monroe Bancorp common stock owned before the merger, subject to certain adjustments as described in the Merger Agreement. Interested parties should refer to the Merger Agreement for details as to possible adjustments to the 1.275 exchange rate. However, the information presented below is provided to assist in the evaluation of the possible impact of two adjustments that relate directly to the Company's financial performance.
The exchange rate will be reduced if the aggregate amount of the Company's delinquent loans, as defined in the Merger Agreement, exceeds $59,720,000 as of the tenth day prior to the merger. Total delinquencies, as defined in the Merger Agreement, were $53,520,000 at June 30, 2010 and $53,118,000 at September 30, 2010.
The exchange rate will also be reduced if, as of the end of the month prior to the merger, Monroe Bancorp's shareholders' equity (computed in accordance with the terms of the Merger Agreement) is less than $55,640,000. Monroe Bancorp's shareholders' equity, computed in accordance with the terms of the Merger Agreement, was $56,640,000 at June 30, 2010 and $56,985,000 at September 30, 2010.
Financial Performance
Net interest income before the provision for loan losses decreased 5.6 percent to $5,741,000 for the three months ended September 30, 2010 compared to $6,084,000 for the same period in 2009. The decrease is largely attributable to a decrease in loan balances. Total loans (including loans held for sale) were $547,059,000 at September 30, 2010 compared to $608,667,000 at September 30, 2009, a decrease of $61,608,000 or 10.1 percent. The tax-equivalent net interest margin as a percentage of average earning assets for the quarter ended September 30, 2010 was 2.90 percent, compared to 2.98 percent for the quarter ended June 30, 2010 and 3.20 percent for the third quarter of 2009.
Net interest income before the provision for loan losses decreased $1,015,000 or 5.6 percent to $17,056,000 for the nine months ended September 30, 2010 compared to $18,071,000 for the same period in 2009. The decline is largely attributable to the year over year increase in the interest expense of the Subordinated Debt, which was issued in July of 2009 and the reduction in loan balances. The tax-equivalent net interest margin for the first nine months of 2010 was 2.95 percent, compared to 3.20 percent for the first nine months of 2009. A reconciliation of the non-GAAP tax-equivalent net interest margin to the GAAP net interest margin is provided in a table entitled "Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis," included at the end of the attached financial summary.
Noninterest income totaled $3,249,000 for the third quarter of 2010 compared to $2,413,000 for the same period of 2009. Excluding the effect of the Company's deferred compensation plan, discussed in the "Use of Non-GAAP Financial Information" section of this release, noninterest income totaled $3,108,000 for the third quarter of 2010 compared to $2,237,000 for the same period of 2009, an increase of $871,000 or 38.9 percent. The increase in noninterest income was driven by a $724,000 reduction in losses taken on the sale of foreclosed assets.
Noninterest income totaled $8,751,000 for the first nine months of 2010 compared to $8,861,000 for the same period of 2009. Excluding the effect of the Company's deferred compensation plan, noninterest income totaled $8,682,000 for the first nine months of 2010 compared to $8,595,000 for the same period of 2009, an increase of $87,000 or 1.0 percent.
Noninterest expense was $5,602,000 for the three months ended September 30, 2010, compared to $5,429,000 for the same period of 2009. Noninterest expense, adjusted to remove the effect of the Company's deferred compensation plan, was $5,453,000 for the three months ended September 30, 2010, compared to $5,242,000 for the same period of 2009. A reconciliation of the non-GAAP noninterest income and expense, adjusted to remove the effect of the Company's deferred compensation plan, is provided in a table entitled "Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan", included at the end of the attached financial summary. The $211,000 or 4.0 percent increase in noninterest expense is largely the result of a $166,000 increase in FDIC expense and a $150,000 increase in legal expense.
Noninterest expense totaled $16,473,000 for the first nine months of 2010 compared to $16,775,000 for the same period of 2009. Noninterest expense, excluding the effect of the Company's deferred compensation plan, was $16,225,000 for the first nine months of 2010, compared to $16,462,000 for the same period of 2009. The $237,000, or 1.4 percent decrease was driven by a $471,000 decrease in total compensation expense (Salaries, commissions, incentives and benefits) which resulted from staff reductions and other expense control initiatives.
Asset Quality
Nonperforming assets and 90-day past due loans totaled $40,548,000 (4.84 percent of total assets) at September 30, 2010 compared to $38,451,000 (4.55 percent of total assets) at June 30, 2010 and $21,622,000 (2.62 percent of total assets) at September 30, 2009. Net charge-offs for the third quarter of 2010 totaled $4,611,000 or 3.37 percent annualized of total loans compared to $2,904,000 (2.10 percent annualized of total loans) for the second quarter of 2010 and $1,979,000 (1.30 percent annualized of total loans) for the third quarter of 2009.
The Bank employs an internal system called the "Watch List" to bring attention to credits with varying degrees of concern over the prospects of complete repayment, including both principal and all interest. These concerns may be objectively based on the borrower's financial and payment performance or on subjective concerns that Bank management has with the markets and conditions that the borrower operates within. Loans on this list include:
- Loans with well defined weaknesses where the prospect of complete repayment of principal and interest is remote and loans placed on non-accrual where specific reserves and charge-offs are applied as needed, and
- Loans with potential weaknesses (whether borrower specific or due to market/economic considerations) that need to be resolved in order to avoid jeopardizing the complete repayment of principal and interest and the loan is subjected to additional scrutiny and assessment and internal documentation.
Loans on the Watch List tend to be more dependent on collateral if the borrower's repayment capacity is diminished and the Bank devotes additional attention to revaluing the collateral as appropriate in assessing the probability of loss.
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |
| Total Loans (including loans held for sale) $ | 547,059,000 | 552,287,000 | 569,076,000 | 587,365,000 | 608,667,000 |
| Total Watch List Loans $ | 69,457,000 | 76,751,000 | 76,891,000 | 76,208,000 | 79,571,000 |
| Number of Watch List Customers | 76 | 81 | 81 | 69 | 73 |
| Total Watch List $ > 30 Days Past Due | 28,640,000 | 33,147,000 | 31,846,000 | 32,728,000 | 21,823,000 |
| Total Watch List $ Customers Secured by Real Estate | 64,571,000 | 71,385,000 | 71,939,000 | 71,450,000 | 73,704,000 |
| Total Watch List $ Secured by Non R/E | 3,233,000 | 3,652,000 | 3,313,000 | 3,103,000 | 4,196,000 |
| Total Watch List $ Unsecured | 1,653,000 | 1,714,000 | 1,639,000 | 1,655,000 | 1,671,000 |
| Total Non-Accrual Loans $ | 25,518,000 | 25,504,000 | 26,363,000 | 20,603,000 | 15,493,000 |
As of September 30, 2010, 58.8 percent of the Watch List exposure was less than thirty days past due, compared to 56.8 percent as of June 30, 2010 and 72.6 percent as of September 30, 2009. Of the $69,457,000 of loans on the watch list on September 30, 2010, $55,351,000 (79.7 percent) were originated out of our Central Indiana (greater Indianapolis) offices. The balances on the Watch List as of September 30, 2010 were net of prior loan charge-offs totaling $8,797,000.
The chart that follows provides details of watch list loans by collateral type.
|
Total Bank Owned Balance |
Watch List |
% on Watch List |
Non Accrual |
Total $ > 30 Days Late |
|
| Total Loans at 9/30/10 | 547,059,000 | 69,457,000 | 12.7% | 25,518,000 | 30,973,000 |
| Loans in Process | 585,000 | NA | NA | NA | NA |
| Loans Analyzed Below: | 546,474,000 | 69,457,000 | 12.7% | 25,518,000 | 30,973,000 |
| Secured by Real Estate | |||||
| Construction & Development | |||||
| Spec 1-4 Residential Construction | 9,213,000 | 6,252,000 | 67.9% | 5,310,000 | 5,310,000 |
| Pre Sold 1-4 Residential Construction | 1,179,000 | 861,000 | 73.0% | 861,000 | 861,000 |
| Land Development Residential | 28,054,000 | 22,285,000 | 79.4% | 4,566,000 | 4,566,000 |
| Multi-Family Construction | 3,963,000 | -- | -- | -- | -- |
| Total 1-4 Residential Construction and Development: | 42,409,000 | 29,398,000 | 69.3% | 10,737,000 | 10,737,000 |
| Other CRE Owner Occupied Construction | 530,000 | -- | -- | -- | -- |
| Other CRE Non-Owner Occupied Construction | 10,162,000 | 4,825,000 | 47.5% | 2,353,000 | 2,353,000 |
| Land Development Commercial | 1,158,000 | 140,000 | 12.1% | 140,000 | 140,000 |
| Total Commercial Construction and Development: | 11,850,000 | 4,965,000 | 41.9% | 2,493,000 | 2,493,000 |
| Total Construction and Development: | 54,259,000 | 34,363,000 | 63.3% | 13,230,000 | 13,230,000 |
| 1-4 Family | |||||
| 1-4 Family Owner Occupied | 82,276,000 | 2,596,000 | 3.2% | 385,000 | 2,001,000 |
| 1-4 Family Non-Owner Occupied (Rental & Other) | 47,474,000 | 3,028,000 | 6.4% | 845,000 | 1,156,000 |
| Total 1-4 Family: | 129,750,000 | 5,624,000 | 4.3% | 1,230,000 | 3,157,000 |
| Multi Family - Other than Construction | 73,282,000 | -- | -- | -- | 308,000 |
| Other CRE Owner Occupied - Other Than Construction | 91,124,000 | 14,196,000 | 15.6% | 4,259,000 | 6,139,000 |
| Other CRE Non-Owner Occupied - Other Than Construction | 102,455,000 | 7,816,000 | 7.6% | 4,464,000 | 4,632,000 |
| Other CRE Non-Development Land - Other Than Construction | 9,447,000 | 2,571,000 | 27.2% | 165,000 | 561,000 |
| Total Other CRE Loans - Other Than Construction: | 203,026,000 | 24,583,000 | 12.1% | 8,888,000 | 11,332,000 |
| Total Secured by Real Estate: | 460,317,000 | 64,570,000 | 14.0% | 23,348,000 | 28,027,000 |
| Other Secured Loans | |||||
| Business Assets | 49,943,000 | 3,183,000 | 6.4% | 2,114,000 | 2,426,000 |
| Consumer Products | 8,706,000 | 51,000 | 0.6% | 51,000 | 147,000 |
| Financial Assets | 14,820,000 | -- | -- | -- | 234,000 |
| Sub Total: Other Secured Loans: | 73,469,000 | 3,234,000 | 4.4% | 2,165,000 | 2,807,000 |
| Unsecured Loans | |||||
| Unsecured Loans | 12,688,000 | 1,653,000 | 13.0% | 5,000 | 139,000 |
Financial Condition
Total assets grew 1.7 percent from September 30, 2009, reaching $838,122,000 on September 30, 2010. Short-term assets used for liquidity purposes (cash, short-term deposits, Federal Funds sold) and investments increased $61,429,000 which offset the previously discussed $61,608,000 decline in loans. Deposits increased 1.7 percent to $666,201,000 at September 30, 2010 compared to $654,807,000 a year earlier.
About Monroe Bancorp
Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with Monroe Bank as its wholly owned subsidiary. Monroe Bank was established in Bloomington in 1892, and offers a full range of financial, trust and investment services through its locations in Central and South Central Indiana. The Company's common stock is traded on the NASDAQ® Global Stock Market under the symbol MROE.
See attachments for additional financial information. For further information, contact: Mark D. Bradford, President and Chief Executive Officer, (812) 331-3455.
The Monroe Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4316
Use of Non-GAAP Financial Information
To supplement the Company's consolidated condensed financial statements presented on a GAAP basis, the Company has used the following non-GAAP measures of reporting:
(1) The net interest margin is reported on a tax equivalent basis. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate of 34 percent. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. A table entitled "Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis," included at the end of the attached financial summary, reconciles the non-GAAP financial measure "net interest income (tax-equivalent)" with net interest income calculated and presented in accordance with GAAP. The table also reconciles the non-GAAP financial measure "net interest margin (tax-equivalent)" with net interest margin calculated and presented in accordance with GAAP.
(2) Noninterest income and noninterest expense are reported without the effect of income and expenses related to securities held in a rabbi trust for the deferred compensation plan. A table entitled "Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan", included at the end of the attached financial summary, details all the items included in noninterest income and expense associated with the deferred compensation plan / rabbi trust and reconciles the GAAP numbers to the non-GAAP numbers. The activity in the rabbi trust has no effect on the Company's net income, therefore, management believes a more accurate comparison of current and prior year noninterest income and noninterest expense can be made if items related to the rabbi trust are removed.
The Company believes these adjustments are appropriate to enhance an overall understanding of the Company's past financial performance and also its prospects for the future. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the underlying operational results and trends and the Company's marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with generally accepted accounting principles in the United States.
Additional Information for Shareholders
In connection with the proposed merger referenced above, Old National Bancorp ("Old National") has filed with the Securities and Exchange Commission a Registration Statement on Form S-4 that includes a Proxy Statement of Monroe Bancorp ("Monroe") and a Prospectus of Old National, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information. A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Old National and Monroe, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Old National at www.oldnational.com under the tab "Investor Relations" and then under the heading "Financial Information" or from Monroe by accessing Monroe's website at www.monroebank.com under the tab "Shareholder Relations" and then under the heading "Financial Reports."
Old National and Monroe and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Monroe in connection with the proposed merger. Information about the directors and executive officers of Old National is set forth in the proxy statement for Old National's 2010 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 19, 2010. Information about the directors and executive officers of Monroe is set forth in the proxy statement for Monroe's 2010 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 29, 2010. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
Forward-Looking Statements
This release contains forward-looking statements about the Company which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. This release contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company and statements about the proposed merger with Old National. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may" or words of similar meaning. These forward-looking statements, by their nature, are subject to risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) changes in competitive pressures among depository institutions; (2) changes in the interest rate environment; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) changes in general economic conditions, either national or in the markets in which the Company does business; (5) legislative or regulatory changes adversely affecting the business of the Company; (6) changes in real estate values or the real estate markets; (7) the Company's business development efforts in new markets in and around Hendricks and Hamilton Counties; and (8) the potential failure to obtain shareholder and regulatory approval for the merger with Old National or to satisfy other conditions to the merger on the terms set forth in the merger agreement or within the proposed timeframes. Further information on other factors which could affect the financial results of the Company is included in the Company's filings with the Securities and Exchange Commission.
| Monroe Bancorp (MROE) | |||||||
| Financial Summary | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 | |
| BALANCE SHEET * | |||||||
| Cash and Short-Term Interest-Earning Deposits | $ 61,057 | $ 56,019 | $ 35,074 | $ 35,977 | $ 22,447 | $ 35,977 | $ 15,058 |
| Interest-Bearing Time Deposits | 7,750 | 7,750 | 7,750 | -- | -- | -- | -- |
| Federal Funds Sold | 44,024 | 44,456 | 33,602 | 14,154 | 44,089 | 14,154 | 8,663 |
| Securities | 131,185 | 140,878 | 134,653 | 121,250 | 108,301 | 121,250 | 121,530 |
| Total Loans | 547,059 | 552,287 | 569,076 | 587,365 | 608,667 | 587,365 | 633,091 |
| Loans Held for Sale | 7,605 | 5,042 | 2,211 | 3,226 | 3,725 | 3,226 | 3,389 |
| Commercial & Industrial | 80,669 | 77,041 | 80,905 | 81,102 | 90,150 | 81,102 | 104,779 |
| Real Estate: | |||||||
| Commercial & Residential | 357,015 | 366,927 | 377,248 | 393,632 | 391,362 | 393,632 | 398,896 |
| Construction & Vacant Land | 56,118 | 57,547 | 63,024 | 62,351 | 76,620 | 62,351 | 80,917 |
| Home Equity | 31,675 | 31,266 | 30,586 | 31,332 | 30,908 | 31,332 | 28,976 |
| Installment Loans | 13,977 | 14,464 | 15,102 | 15,722 | 15,902 | 15,722 | 16,134 |
| Reserve for Loan Losses | 16,082 | 17,494 | 15,898 | 15,256 | 13,181 | 15,256 | 11,172 |
| Bank Premises and Equipment | 19,223 | 19,470 | 19,704 | 19,879 | 20,127 | 19,879 | 20,750 |
| Federal Home Loan Bank Stock | 2,353 | 2,353 | 2,353 | 2,353 | 2,353 | 2,353 | 2,312 |
| Interest Receivable and Other Assets | 41,553 | 40,012 | 37,196 | 36,729 | 31,078 | 36,729 | 29,567 |
| Total Assets | $ 838,122 | $ 845,731 | $ 823,510 | $ 802,451 | $ 823,881 | $ 802,451 | $ 819,799 |
| Total Deposits | $ 666,201 | $ 684,705 | $ 669,651 | $ 634,254 | $ 654,807 | $ 634,254 | $ 665,179 |
| Noninterest Checking | 92,387 | 106,816 | 93,043 | 90,033 | 88,724 | 90,033 | 84,317 |
| Interest Bearing Checking & NOW | 237,782 | 236,728 | 228,230 | 210,542 | 209,937 | 210,542 | 107,124 |
| Regular Savings | 19,339 | 19,489 | 19,535 | 18,451 | 18,381 | 18,451 | 16,619 |
| Money Market Savings | 21,595 | 22,998 | 35,858 | 36,035 | 40,249 | 36,035 | 108,246 |
| CDs & CDARs Less than $100,000 | 126,854 | 124,316 | 130,355 | 137,774 | 141,912 | 137,774 | 155,127 |
| CDARs Greater than $100,000 & Brokered CDs | 66,093 | 73,941 | 56,826 | 49,500 | 49,896 | 49,500 | 67,949 |
| CDs Greater than $100,000 | 101,839 | 105,374 | 105,649 | 91,861 | 105,143 | 91,861 | 125,741 |
| Other Time | 312 | (4,957) | 155 | 58 | 565 | 58 | 56 |
| Total Borrowings | 105,667 | 99,261 | 90,322 | 106,056 | 103,388 | 106,056 | 93,203 |
| Federal Funds Purchased | -- | -- | -- | -- | -- | -- | -- |
| Securities Sold Under Repurchase Agreement | 67,147 | 60,669 | 51,716 | 61,929 | 61,810 | 61,929 | 59,404 |
| FHLB Advances | 17,272 | 17,344 | 17,358 | 17,371 | 17,430 | 17,371 | 25,523 |
| Loans Sold Under Repurchase Agreement & Other Debt | -- | -- | -- | 5,508 | 2,900 | 5,508 | 28 |
| Subordinated Debentures | 13,000 | 13,000 | 13,000 | 13,000 | 13,000 | 13,000 | -- |
| Subordinated Debentures - Trust Preferred | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 | 8,248 |
| Interest Payable and Other Liabilities | 10,307 | 6,125 | 7,471 | 5,939 | 8,465 | 5,939 | 5,496 |
| Total Liabilities | 782,175 | 790,091 | 767,444 | 746,249 | 766,660 | 746,249 | 763,878 |
| Shareholders' Equity | 55,947 | 55,640 | 56,066 | 56,202 | 57,221 | 56,202 | 55,921 |
| Total Liabilities and Shareholders' Equity | $ 838,122 | $ 845,731 | $ 823,510 | $ 802,451 | $ 823,881 | 802,451 | $ 819,799 |
| Book Value Per Share | $ 8.98 | $ 8.93 | $ 9.00 | $ 9.03 | $ 9.19 | $ 9.03 | $ 8.99 |
| End of Period Shares Issued and Outstanding | 6,229,778 | 6,229,669 | 6,228,547 | 6,227,550 | 6,227,550 | 6,227,550 | 6,227,550 |
| Less: Unearned ESOP Shares | 526 | 1,051 | 1,577 | 2,102 | 3,477 | 2,102 | 7,601 |
| End of Period Shares Used to Calculate Book Value | 6,229,253 | 6,228,618 | 6,226,971 | 6,225,448 | 6,224,073 | 6,225,448 | 6,219,949 |
| * period end numbers | |||||||
| Monroe Bancorp (MROE) | |||||||
| Financial Summary | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| INCOME STATEMENT | Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 |
| Interest Income | $ 8,099 | $ 8,262 | $ 8,284 | $ 8,711 | $ 9,175 | $ 36,441 | $ 42,462 |
| Interest Expense | 2,358 | 2,524 | 2,708 | 2,945 | 3,091 | 12,604 | 18,861 |
| Net Interest Income | 5,741 | 5,738 | 5,576 | 5,766 | 6,084 | 23,837 | 23,601 |
| Loan Loss Provision | 3,200 | 4,500 | 3,200 | 4,850 | 2,200 | 11,850 | 8,880 |
| Total Noninterest Income | 3,249 | 2,792 | 2,710 | 3,122 | 2,413 | 11,983 | 10,033 |
| Service Charges on Deposit Accounts | 704 | 781 | 744 | 874 | 905 | 3,477 | 3,796 |
| Trust Fees | 645 | 603 | 622 | 620 | 637 | 2,313 | 2,387 |
| Commission Income | 229 | 259 | 225 | 246 | 225 | 872 | 874 |
| Gains on Sales of Loans | 426 | 284 | 249 | 259 | 361 | 1,364 | 703 |
| Gains on Sales of Available for Sale Securities | 347 | 187 | 106 | 490 | 264 | 2,146 | 951 |
|
Gains (Losses) on Sales of Trading Securities Associated with Directors' Deferred Comp Plan |
-- | (2) | (1) | -- | (201) | (201) | 13 |
|
Unrealized Gains (Losses) on Trading Securities Associated with Directors' Deferred Comp Plan |
141 | (134) | 64 | 51 | 377 | 518 | (843) |
| BOLI Income | 164 | 681 | 160 | 164 | 163 | 641 | 552 |
| Net Gain (Loss) on Foreclosed Assets | (37) | (333) | 63 | (33) | (761) | (906) | (226) |
| Other Operating Income | 630 | 466 | 478 | 451 | 443 | 1,759 | 1,826 |
| Total Noninterest Expense | 5,602 | 5,453 | 5,417 | 5,155 | 5,429 | 21,930 | 20,732 |
| Salaries & Wages | 1,920 | 2,006 | 2,006 | 2,027 | 2,075 | 8,244 | 8,743 |
| Commissions, Options & Incentive Compensation | 389 | 351 | 314 | 291 | 311 | 1,364 | 1,472 |
| Employee Benefits | 422 | 442 | 562 | 360 | 463 | 1,954 | 2,076 |
| Premises & Equipment | 794 | 825 | 898 | 895 | 899 | 3,652 | 3,373 |
| Advertising | 76 | 87 | 136 | 109 | 138 | 536 | 724 |
| Legal Fees | 265 | 190 | 164 | 83 | 115 | 435 | 566 |
| FDIC Expense | 446 | 419 | 267 | 272 | 280 | 1,485 | 481 |
|
Appreciation (Depreciation) in Directors' Deferred Compensation Plan |
146 | (48) | 140 | 61 | 184 | 364 | (707) |
| Other Operating Expenses | 1,144 | 1,181 | 930 | 1,057 | 964 | 3,896 | 4,004 |
| Income (Loss) Before Income Tax | 188 | (1,423) | (331) | (1,117) | 868 | 2,040 | 4,022 |
| Income Tax Expense (Benefit) | (51) | (776) | (229) | (500) | 158 | 65 | 43 |
| Net Income (Loss) After Tax & Before Extraordinary Items | 239 | (647) | (102) | (617) | 710 | 1,975 | 3,979 |
| Extraordinary Items | -- | -- | -- | -- | -- | -- | -- |
| Net Income (Loss) | $ 239 | $ (647) | $ (102) | $ (617) | $ 710 | $ 1,975 | $ 3,979 |
| Basic Earnings Per Share | $ 0.038 | $ (0.104) | $ (0.016) | $ (0.099) | $ 0.114 | $ 0.317 | $ 0.640 |
| Diluted Earnings Per Share | $ 0.038 | $ (0.104) | $ (0.016) | $ (0.099) | $ 0.114 | $ 0.317 | $ 0.639 |
| Monroe Bancorp (MROE) | ||||||||||||||||
| Financial Summary | ||||||||||||||||
| (dollar amounts in thousands except per share data) | ||||||||||||||||
| Quarters Ended | Years Ended | |||||||||||||||
| ASSET QUALITY | Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 | |||||||||
| Net Charge-Offs (Recoveries) | $ 4,611 | $ 2,904 | $ 2,559 | $ 2,775 | $ 1,979 | $ 7,766 | $ 4,362 | |||||||||
| OREO Expenses | 81 | 287 | (39) | 113 | 795 | 1,095 | 229 | |||||||||
| Total Credit Charges | $ 4,692 | $ 3,191 | $ 2,520 | $ 2,888 | $ 2,774 | $ 8,861 | $ 4,591 | |||||||||
| Non-Accrual Loans | $ 25,518 | $ 25,504 | $ 26,363 | $ 20,603 | $ 15,493 | $ 20,603 | $ 14,329 | |||||||||
| Troubled Debt Restructurings | 3,704 | 3,705 | -- | -- | 1,500 | -- | -- | |||||||||
| Nonperforming Loans | 29,222 | 29,209 | 26,363 | 20,603 | 16,993 | 20,603 | 14,329 | |||||||||
| OREO | 9,767 | 7,161 | 3,810 | 3,768 | 3,225 | 3,768 | 3,257 | |||||||||
| Nonperforming Assets | 38,989 | 36,370 | 30,173 | 24,371 | 20,218 | 24,371 | 17,586 | |||||||||
| 90 Day Past Due Loans Net of Nonperforming Loans | 1,559 | 2,081 | 3,652 | 1,053 | 1,404 | 1,053 | 1,194 | |||||||||
| Nonperforming Assets + 90 Day Past Due | $ 40,548 | $ 38,451 | $ 33,825 | $ 25,424 | $ 21,622 | $ 25,424 | $ 18,780 | |||||||||
| RATIO ANALYSIS - CREDIT QUALITY * | ||||||||||||||||
| NCO/Loans | 3.37% | 2.10% | 1.80% | 1.89% | 1.30% | 1.32% | 0.69% | |||||||||
| Credit Charges/Loans & OREO | 3.37% | 2.28% | 1.76% | 1.95% | 1.81% | 1.50% | 0.72% | |||||||||
| Nonperforming Loans/Loans | 5.34% | 5.29% | 4.63% | 3.51% | 2.79% | 3.51% | 2.26% | |||||||||
| Nonperforming Assets/Loans & OREO | 7.00% | 6.50% | 5.27% | 4.12% | 3.30% | 4.12% | 2.76% | |||||||||
| Nonperforming Assets/Assets | 4.65% | 4.30% | 3.66% | 3.04% | 2.45% | 3.04% | 2.15% | |||||||||
| Nonperforming Assets + 90 Day PD/Assets | 4.84% | 4.55% | 4.11% | 3.17% | 2.62% | 3.17% | 2.29% | |||||||||
| Reserve/Nonperforming Loans | 55.03% | 59.89% | 60.30% | 74.05% | 77.57% | 74.05% | 77.97% | |||||||||
| Reserve/Total Loans | 2.94% | 3.17% | 2.79% | 2.60% | 2.17% | 2.60% | 1.76% | |||||||||
| Equity & Reserves/Nonperforming Assets | 184.74% | 201.08% | 238.50% | 293.21% | 348.21% | 293.21% | 381.51% | |||||||||
| OREO/Nonperforming Assets | 25.05% | 19.69% | 12.63% | 15.46% | 15.95% | 15.46% | 18.52% | |||||||||
| RATIO ANALYSIS - CAPITAL ADEQUACY * | ||||||||||||||||
| Equity/Assets | 6.68% | 6.58% | 6.81% | 7.00% | 6.95% | 7.00% | 6.82% | |||||||||
| Equity/Loans | 10.23% | 10.07% | 9.85% | 9.57% | 9.40% | 9.57% | 8.83% | |||||||||
| RATIO ANALYSIS - PROFITABILITY | ||||||||||||||||
| Return on Average Assets | 0.11% | -0.31% | -0.05% | -0.30% | 0.34% | 0.24% | 0.50% | |||||||||
| Return on Average Equity | 1.69% | -4.61% | -0.74% | -4.29% | 4.95% | 3.49% | 7.11% | |||||||||
| Net Interest Margin (Tax-Equivalent) (1) | 2.90% | 2.98% | 2.98% | 2.99% | 3.20% | 3.15% | 3.30% | |||||||||
| * Based on period end numbers | ||||||||||||||||
| (1) Interest income on tax-exempt securities has been adjusted to a tax-equivalent basis using a marginal income tax rate of 34%. | ||||||||||||||||
| Monroe Bancorp (MROE) | |||||||
| Reconciliation of GAAP Net Interest Margin to Non-GAAP Net Interest Margin on a Tax-Equivalent Basis | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 | |
| Net Interest Income | $ 5,741 | $ 5,738 | $ 5,576 | $ 5,766 | $ 6,084 | $ 23,837 | $ 23,601 |
| Tax Equivalent Adjustment | 9 | 12 | 13 | 21 | 48 | 295 | 717 |
| Net Interest Income - Tax Equivalent | $ 5,750 | $ 5,750 | $ 5,589 | $ 5,787 | $ 6,132 | $ 24,132 | $ 24,318 |
| Average Earning Assets | $ 787,074 | $ 773,724 | $ 761,388 | $ 767,351 | $ 760,949 | $ 766,456 | $ 736,903 |
| Net Interest Margin | 2.89% | 2.97% | 2.97% | 2.98% | 3.17% | 3.11% | 3.20% |
| Net Interest Margin - Tax Equivalent | 2.90% | 2.98% | 2.98% | 2.99% | 3.20% | 3.15% | 3.30% |
| Year-to-Date | |||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | |||
| Net Interest Income | $ 17,056 | $ 11,314 | $ 5,576 | $ 23,837 | $ 18,071 | ||
| Tax Equivalent Adjustment | 34 | 25 | 13 | 295 | 274 | ||
| Net Interest Income - Tax Equivalent | $ 17,090 | $ 11,339 | $ 5,589 | $ 24,132 | $ 18,345 | ||
| Average Earning Assets | $ 774,156 | $ 767,590 | $ 761,388 | $ 766,456 | $ 766,154 | ||
| Net Interest Margin | 2.95% | 2.97% | 2.97% | 3.11% | 3.15% | ||
| Net Interest Margin - Tax Equivalent | 2.95% | 2.98% | 2.98% | 3.15% | 3.20% | ||
| Monroe Bancorp (MROE) | |||||||
| Financial Impact on Net Income of Deferred Compensation Plan | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 | |
| Interest and Dividend Income | $ 8 | $ 90 | $ 81 | $ 13 | $ 11 | $ 60 | $ 106 |
| Realized and Unrealized Gains (Losses) | 141 | (136) | 64 | 51 | 176 | 317 | (829) |
| Other Income | -- | -- | -- | -- | -- | -- | 30 |
| Total Income (Loss) From Plan: | 149 | (46) | 145 | 64 | 187 | 377 | (693) |
| Change in Deferred Compensation Liability | 146 | (48) | 140 | 61 | 184 | 364 | (707) |
| Trustee Fees | 3 | 2 | 5 | 3 | 3 | 13 | 14 |
| Total Expense of Plan: | 149 | (46) | 145 | 64 | 187 | 377 | (693) |
| Net Impact of Plan: | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- | $ -- |
| Reconciliation of GAAP Noninterest Income & Expense to Noninterest Income & Expense Without the Financial Impact of the Deferred Compensation Plan | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 | |
| Total Noninterest Income | $ 3,249 | $ 2,792 | $ 2,710 | $ 3,122 | $ 2,413 | $ 11,983 | $ 10,033 |
| Income of Deferred Comp Plan Included in Noninterest Income | 141 | (136) | 64 | 51 | 176 | 317 | (799) |
| Adjusted Noninterest Income: | 3,108 | 2,928 | 2,646 | 3,071 | 2,237 | 11,666 | 10,832 |
| Total Noninterest Expense | 5,602 | 5,453 | 5,417 | 5,155 | 5,429 | 21,930 | 20,732 |
| Expense of Deferred Compensation Plan | 149 | (46) | 145 | 64 | 187 | 377 | (693) |
| Adjusted Noninterest Expense: | 5,453 | 5,499 | 5,272 | 5,091 | 5,242 | 21,553 | 21,425 |
| Year-to-Date | |||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | |||
| Total Noninterest Income | $ 8,751 | $ 5,502 | $ 2,710 | $ 11,983 | $ 8,861 | ||
| Income of Deferred Comp Plan Included in Noninterest Income | 69 | (72) | 64 | 317 | 266 | ||
| Adjusted Noninterest Income: | 8,682 | 5,574 | 2,646 | 11,666 | 8,595 | ||
| Total Noninterest Expense | 16,473 | 10,870 | 5,417 | 21,930 | 16,775 | ||
| Expense of Deferred Compensation Plan | 248 | 99 | 145 | 377 | 313 | ||
| Adjusted Noninterest Expense: | 16,225 | 10,771 | 5,272 | 21,553 | 16,462 | ||
| Monroe Bancorp (MROE) | |||||||
| Select Average Balance Sheet Information | |||||||
| (dollar amounts in thousands except per share data) | |||||||
| Quarters Ended | Years Ended | ||||||
| Sep 2010 | Jun 2010 | Mar 2010 | Dec 2009 | Sep 2009 | Dec 2009 | Dec 2008 | |
| Total Average Loans | $ 551,073 | $ 558,347 | $ 578,289 | $ 596,948 | $ 616,125 | $ 618,590 | $ 601,875 |
| Average Commercial & Industrial | 78,279 | 78,879 | 80,656 | 84,250 | 91,479 | 95,130 | 99,353 |
| Average Real Estate: | 458,505 | 464,833 | 482,359 | 496,913 | 508,690 | 507,519 | 484,841 |
| Average Commercial & Residential | 365,540 | 373,010 | 389,036 | 392,002 | 398,418 | 395,584 | 357,018 |
| Average Construction & Vacant Land | 61,282 | 61,211 | 62,208 | 73,724 | 79,152 | 81,246 | 101,380 |
| Average Home Equity | 31,683 | 30,612 | 31,115 | 31,187 | 31,120 | 30,689 | 26,443 |
| Average Installment Loans | 14,289 | 14,635 | 15,274 | 15,785 | 15,956 | 15,941 | 17,681 |
| Average Federal Funds Sold | 38,664 | 35,172 | 29,079 | 32,372 | 33,927 | 27,388 | 8,754 |
| Average Federal Home Loan Bank Stock | 2,353 | 2,353 | 2,353 | 2,353 | 2,353 | 2,343 | 2,312 |
| Total Average Deposits | $ 671,641 | $ 669,250 | $ 653,368 | $ 648,825 | $ 650,301 | $ 662,565 | $ 649,540 |
| Average Noninterest Checking | 94,521 | 94,299 | 91,126 | 88,702 | 85,037 | 84,108 | 79,503 |
| Average Interest Bearing Checking & NOW | 237,539 | 229,355 | 218,005 | 218,038 | 200,756 | 183,323 | 127,282 |
| Average Regular Savings | 19,375 | 19,454 | 18,879 | 18,447 | 18,558 | 18,173 | 17,618 |
| Average Money Market Savings | 22,718 | 30,888 | 35,442 | 39,834 | 39,977 | 61,181 | 107,723 |
| Average CDs Less than $100,000 | 172,481 | 174,508 | 169,986 | 172,071 | 184,132 | 187,789 | 159,120 |
| Average CDs Greater than $100,000 | 107,202 | 103,200 | 102,542 | 93,952 | 104,817 | 111,300 | 142,126 |
| Average IRAs and Other Time | 17,805 | 17,546 | 17,388 | 17,781 | 17,024 | 16,691 | 16,168 |
| Average Federal Funds Purchased | 248 | 271 | 137 | 133 | 43 | 331 | 3,149 |
| Average Securities Sold Under Repurchase Agreement | 64,639 | 55,772 | 57,367 | 63,743 | 59,341 | 59,046 | 45,686 |
| Average FHLB Advances | 17,329 | 17,375 | 17,367 | 17,387 | 17,484 | 17,929 | 18,698 |