SOUTHSIDE
BANCSHARES, INC.
(Exact
name of registrant as specified in its charter)
|
|
|
|
TEXAS
|
75-1848732
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
|
|
1201
S. Beckham, Tyler, Texas
|
75701
|
|
|
|
March
31,
|
December
31,
|
||||||
ASSETS
|
2007
|
2006
|
||||||
Cash
and due from banks
|
$ |
45,481
|
$ |
52,537
|
||||
Interest
earning deposits
|
558
|
550
|
||||||
Federal
funds sold
|
7,075
|
1,925
|
||||||
Total
cash and cash equivalents
|
53,114
|
55,012
|
||||||
Investment
securities:
|
||||||||
Available
for sale, at estimated fair value
|
91,753
|
98,952
|
||||||
Held
to maturity, at cost
|
1,352
|
1,351
|
||||||
Mortgage-backed
and related securities:
|
||||||||
Available
for sale, at estimated fair value
|
591,873
|
643,164
|
||||||
Held
to maturity, at cost
|
215,854
|
226,162
|
||||||
Federal
Home Loan Bank stock, at cost
|
20,452
|
25,614
|
||||||
Other
investments, at cost
|
881
|
882
|
||||||
Loans
held for sale
|
2,809
|
3,909
|
||||||
Loans:
|
||||||||
Loans
|
766,374
|
759,147
|
||||||
Less: allowance
for loan losses
|
(7,261 | ) | (7,193 | ) | ||||
Net
Loans
|
759,113
|
751,954
|
||||||
Premises
and equipment, net
|
35,095
|
32,641
|
||||||
Interest
receivable
|
9,468
|
10,110
|
||||||
Deferred
tax asset
|
7,930
|
8,678
|
||||||
Other
assets
|
30,531
|
32,547
|
||||||
TOTAL
ASSETS
|
$ |
1,820,225
|
$ |
1,890,976
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest
bearing
|
$ |
322,157
|
$ |
325,771
|
||||
Interest
bearing
|
987,207
|
956,704
|
||||||
Total
Deposits
|
1,309,364
|
1,282,475
|
||||||
Short-term
obligations:
|
||||||||
Federal
funds purchased
|
–
|
5,675
|
||||||
FHLB
Dallas advances
|
244,834
|
322,241
|
||||||
Other
obligations
|
–
|
1,605
|
||||||
Total
Short-term obligations
|
244,834
|
329,521
|
||||||
Long-term
obligations:
|
||||||||
FHLB
Dallas advances
|
108,869
|
129,379
|
||||||
Long-term
debt
|
20,619
|
20,619
|
||||||
Total
Long-term obligations
|
129,488
|
149,998
|
||||||
Other
liabilities
|
20,983
|
18,378
|
||||||
TOTAL
LIABILITIES
|
1,704,669
|
1,780,372
|
||||||
Off-Balance-Sheet
Arrangements, Commitments and Contingencies (Note 9)
|
||||||||
Shareholders'
equity:
|
||||||||
Common
stock: ($1.25 par, 20,000,000 shares
authorized,
|
||||||||
14,101,466
and 14,075,653 shares issued)
|
17,626
|
17,594
|
||||||
Paid-in
capital
|
101,012
|
100,736
|
||||||
Retained
earnings
|
32,050
|
29,648
|
||||||
Treasury
stock (1,718,737 shares at cost)
|
(22,850 | ) | (22,850 | ) | ||||
Accumulated
other comprehensive loss
|
(12,282 | ) | (14,524 | ) | ||||
TOTAL
SHAREHOLDERS' EQUITY
|
115,556
|
110,604
|
||||||
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ |
1,820,225
|
$ | 1,890,976 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
|
2007
|
2006
|
||||||
Interest
income
|
|
|
||||||
Loans
|
$ |
12,514
|
$ |
10,628
|
||||
Investment
securities – taxable
|
836
|
743
|
||||||
Investment
securities – tax-exempt
|
507
|
599
|
||||||
Mortgage-backed
and related securities
|
10,934
|
10,237
|
||||||
Federal
Home Loan Bank stock and other investments
|
370
|
344
|
||||||
Other
interest earning assets
|
36
|
18
|
||||||
Total
interest income
|
25,197
|
22,569
|
||||||
Interest
expense
|
||||||||
Deposits
|
9,565
|
6,254
|
||||||
Short-term
obligations
|
3,946
|
3,550
|
||||||
Long-term
obligations
|
1,660
|
2,196
|
||||||
Total
interest expense
|
15,171
|
12,000
|
||||||
Net
interest income
|
10,026
|
10,569
|
||||||
Provision
for loan losses
|
117
|
281
|
||||||
Net
interest income after provision for loan losses
|
9,909
|
10,288
|
||||||
Noninterest
income
|
||||||||
Deposit
services
|
3,928
|
3,469
|
||||||
Gain
on sale of securities available for sale
|
429
|
123
|
||||||
Gain
on sale of loans
|
345
|
373
|
||||||
Trust
income
|
464
|
404
|
||||||
Bank
owned life insurance income
|
264
|
244
|
||||||
Other
|
708
|
485
|
||||||
Total
noninterest income
|
6,138
|
5,098
|
||||||
Noninterest
expense
|
||||||||
Salaries
and employee benefits
|
7,104
|
7,420
|
||||||
Occupancy
expense
|
1,168
|
1,173
|
||||||
Equipment
expense
|
228
|
203
|
||||||
Advertising,
travel & entertainment
|
421
|
452
|
||||||
ATM
and debit card expense
|
254
|
170
|
||||||
Director
fees
|
127
|
145
|
||||||
Supplies
|
148
|
184
|
||||||
Professional
fees
|
311
|
315
|
||||||
Postage
|
148
|
150
|
||||||
Telephone
and communications
|
191
|
163
|
||||||
Other
|
1,136
|
1,059
|
||||||
Total
noninterest expense
|
11,236
|
11,434
|
||||||
|
||||||||
Income
before federal income tax expense
|
4,811
|
3,952
|
||||||
Provision
for federal income tax expense
|
1,048
|
724
|
||||||
Net
Income
|
$ |
3,763
|
$ |
3,228
|
||||
Earnings
per common share –basic
|
$ |
0.30
|
$ |
0.26
|
||||
Earnings
per common share –diluted
|
0.29
|
0.25
|
||||||
Dividends
declared per common share
|
0.11
|
0.11
|
Comprehensive
Income
|
Common
Stock
|
Paid-in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other
Compre-
hensive
Income
(Loss)
|
Total
Share-holders
Equity
|
||||||||||||||||||||||
Balance
at December 31, 2005
|
$ |
16,633
|
$ |
87,962
|
$ |
32,054
|
$ | (22,850 | ) | $ | (4,509 | ) | $ |
109,290
|
||||||||||||||
Net
Income
|
$ |
3,228
|
3,228
|
3,228
|
||||||||||||||||||||||||
Other
comprehensive loss, net of tax
|
||||||||||||||||||||||||||||
Unrealized
losses on securities, net of
|
||||||||||||||||||||||||||||
reclassification
adjustment (see Note 4)
|
(5,152 | ) | (5,152 | ) | (5,152 | ) | ||||||||||||||||||||||
Comprehensive
loss
|
$ | (1,924 | ) | |||||||||||||||||||||||||
Common
stock issued (53,740 shares)
|
67
|
360
|
427
|
|||||||||||||||||||||||||
Stock
compensation expense
|
7
|
7
|
||||||||||||||||||||||||||
Tax
benefit of incentive stock options
|
15
|
15
|
||||||||||||||||||||||||||
Dividends
paid on common stock
|
(1,279 | ) | (1,279 | ) | ||||||||||||||||||||||||
Stock
dividend
|
728
|
10,978
|
(11,706 | ) |
–
|
|||||||||||||||||||||||
Balance
at March 31, 2006
|
$ |
17,428
|
$ |
99,322
|
$ |
22,297
|
$ | (22,850 | ) | $ | (9,661 | ) | $ |
106,536
|
||||||||||||||
Balance
at December 31, 2006
|
$ |
17,594
|
$ |
100,736
|
$ |
29,648
|
$ | (22,850 | ) | $ | (14,524 | ) | $ |
110,604
|
||||||||||||||
Net
Income
|
$ |
3,763
|
3,763
|
3,763
|
||||||||||||||||||||||||
Other
comprehensive income, net of tax
|
||||||||||||||||||||||||||||
Unrealized
gains on securities, net of
|
||||||||||||||||||||||||||||
reclassification
adjustment (see Note 4)
|
2,138
|
2,138
|
2,138
|
|||||||||||||||||||||||||
Adjustment to net periodic benefit cost (see Note 4) |
104
|
104 | 104 | |||||||||||||||||||||||||
Comprehensive
income
|
$ |
6,005
|
||||||||||||||||||||||||||
Common
stock issued (25,813 shares)
|
32
|
267
|
299
|
|||||||||||||||||||||||||
Stock
compensation expense
|
7
|
7
|
||||||||||||||||||||||||||
Tax
benefit of incentive stock options
|
2
|
2
|
||||||||||||||||||||||||||
Dividends
paid on common stock
|
(1,361 | ) | (1,361 | ) | ||||||||||||||||||||||||
Balance
at March 31, 2007
|
$ |
17,626
|
$ |
101,012
|
$ |
32,050
|
$ | (22,850 | ) | $ | (12,282 | ) | $ |
115,556
|
Three
Months Ended March 31,
|
||||||||
2007
|
2006
|
|||||||
Restated
|
||||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ |
3,763
|
$ |
3,228
|
||||
Adjustments
to reconcile net income to net cash provided by (used in)
operations:
|
||||||||
Depreciation
|
540
|
558
|
||||||
Amortization
of premium
|
1,253
|
1,602
|
||||||
Accretion
of discount and loan fees
|
(808 | ) | (483 | ) | ||||
Provision
for loan losses
|
117
|
281
|
||||||
Stock
compensation expense
|
7
|
7
|
||||||
Decrease
in interest receivable
|
642
|
139
|
||||||
Decrease in
other assets
|
1,677
|
134 | ||||||
Net
change in deferred taxes
|
(408 | ) | (89 | ) | ||||
(Decrease)
increase in interest payable
|
(242 | ) |
162
|
|||||
Increase
(decrease) in other liabilities
|
1,400
|
(608 | ) | |||||
Decrease
in loans held for sale
|
1,100
|
148
|
||||||
Gain
on sale of available for sale securities
|
(429 | ) | (123 | ) | ||||
Gain
on sale of assets
|
–
|
(1 | ) | |||||
Loss
on sale of other real estate owned
|
1
|
–
|
||||||
Net
cash provided by operating activities
|
8,613
|
4,955 | ||||||
INVESTING
ACTIVITIES:
|
||||||||
Proceeds
from sales of investment securities available for sale
|
4,953
|
34,433
|
||||||
Proceeds
from sales of mortgage-backed securities available for
sale
|
50,684
|
30,651
|
||||||
Proceeds
from maturities of investment securities available for
sale
|
54,601
|
5,922
|
||||||
Proceeds
from maturities of mortgage-backed securities available for
sale
|
25,305
|
25,506
|
||||||
Proceeds
from maturities of mortgage-backed securities held to
maturity
|
10,066
|
7,078
|
||||||
Proceeds
from redemption of Federal Home Loan Bank stock
|
5,501
|
–
|
||||||
Purchases
of investment securities available for sale
|
(51,789 | ) | (15,966 | ) | ||||
Purchases
of mortgage-backed securities available for sale
|
(21,650 | ) | (98,458 | ) | ||||
Purchases of mortgage-backed securities held to maturity | - | (7,533 | ) | |||||
Purchases
of Federal Home Loan Bank stock and other investments
|
(338 | ) | (317 | ) | ||||
Net
increase in loans
|
(7,434 | ) | (26,357 | ) | ||||
Purchases
of premises and equipment
|
(2,994 | ) | (562 | ) | ||||
Proceeds
from sales of premises and equipment
|
–
|
1
|
||||||
Proceeds
from sales of other real estate owned
|
322
|
–
|
||||||
Proceeds
from sales of repossessed assets
|
125
|
59
|
||||||
Net
cash provided by (used in) investing activities
|
67,352
|
(45,543 | ) |
|
|
Three
Months Ended
|
|
|||||
|
|
March
31,
|
|
|||||
|
|
2007
|
|
|
2006
|
|
||
FINANCING
ACTIVITIES:
|
|
|
|
|
Restated
|
|
||
Net
increase in demand and savings accounts
|
|
10,327
|
|
21,690
|
|
|||
Net
increase in certificates of deposit
|
|
|
16,462
|
|
|
50,585
|
|
|
Net
(decrease) increase in federal funds
purchased
|
|
|
(5,675
|
)
|
|
|
11,375
|
|
Proceeds
from FHLB Advances
|
|
|
1,793,395
|
|
|
1,448,600
|
|
|
Repayment
of FHLB Advances
|
|
|
(1,891,312
|
)
|
|
|
(1,490,105
|
)
|
Tax
benefit of incentive stock options
|
|
|
2
|
|
|
|
15
|
|
Proceeds
from the issuance of common stock
|
|
|
299
|
|
|
|
427
|
|
Dividends
paid
|
|
|
(1,361
|
)
|
|
|
(1,279
|
)
|
Net
cash (used in) provided
by financing activities
|
|
|
(77,863
|
)
|
|
|
41,308
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
|
(1,898
|
)
|
|
|
720
|
|
Cash
and cash equivalents at beginning of period
|
|
|
55,012
|
|
|
|
51,829
|
|
Cash
and cash equivalents at end of period
|
|
$
|
53,114
|
|
|
$
|
52,549
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES FOR CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
15,413
|
|
|
$
|
11,838
|
|
Income
taxes paid
|
|
|
500
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF NONCASH INVESTING AND FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Acquisition
of other repossessed assets and real estate
through foreclosure
|
|
$
|
109
|
|
|
$
|
144
|
|
Payment
of 5% stock dividend
|
|
|
–
|
|
|
|
11,706
|
|
Adjustment
to pension liability
|
|
|
(158
|
)
|
|
|
–
|
|
Unsettled trades to issue brokered deposits | - | 4,953 |
For
the three months ended
March
31, 2006
|
||||||||||||
(in
thousands)
|
||||||||||||
|
As
Originally
|
As
|
||||||||||
|
Reported
|
Adjustment
|
Restated
|
|||||||||
|
|
|
||||||||||
(Increase)
decrease in other assets
|
$ | (4,819 | ) | $ |
4,953
|
$ |
134
|
|||||
(Decrease)
increase in other liabilities
|
(8,141 | ) |
7,533
|
(608 | ) | |||||||
Net
cash provided by (used in) operating activities
|
(7,531 | ) |
12,486
|
4,955
|
||||||||
Purchases
of mortgage-backed securities held to maturity
|
-
|
(7,533 | ) | (7,533 | ) | |||||||
Net
cash provided by (used in) investing activities
|
(38,010 | ) | (7,533 | ) | (45,543 | ) | ||||||
Net
increase in certificates of deposit
|
55,538
|
(4,953 | ) |
50,585
|
||||||||
Net
cash (used in) provided by financing activities
|
46,261
|
(4,953 | ) |
41,308
|
||||||||
Supplemental
disclosures of noncash investing and financing activities:
|
||||||||||||
Unsettled
trades to issue brokered deposits
|
-
|
4,953
|
4,953
|
|
|
Three
Months
|
|
|||||
|
|
Ended
March 31,
|
|
|||||
|
|
|
|
|
|
|
||
|
|
2007
|
|
|
2006
|
|
||
Basic
Earnings and Shares:
|
|
|
|
|
|
|
||
Net
Income
|
|
$
|
3,763
|
|
|
$
|
3,228
|
|
|
|
|
|
|
|
|
||
Weighted-average
basic shares outstanding
|
|
|
12,362
|
|
|
|
12,196
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Basic
Earnings Per Share:
|
|
|
|
|
|
|
||
Net
Income
|
|
$
|
0.30
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Diluted
Earnings and Shares:
|
|
|
|
|
|
|
||
Net
Income
|
|
$
|
3,763
|
|
|
$
|
3,228
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Weighted-average
basic shares outstanding
|
|
|
12,362
|
|
|
|
12,196
|
|
Add: Stock
options
|
|
|
421
|
|
|
|
482
|
|
Weighted-average
diluted shares outstanding
|
|
|
12,783
|
|
|
|
12,678
|
|
|
|
|
|
|
|
|
||
Diluted
Earnings Per Share:
|
|
|
|
|
|
|
||
Net
Income
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
Three
Months Ended March 31, 2007
|
||||||||||||
Before-Tax
|
Tax
(Expense)
|
Net-of-Tax
|
||||||||||
Amount
|
Benefit
|
Amount
|
||||||||||
Unrealized
gains on securities:
|
||||||||||||
Unrealized
holding gains arising during period
|
$ |
3,668
|
$ | (1,247 | ) | $ |
2,421
|
|||||
Less: reclassification
adjustment for gains
|
||||||||||||
included
in net income
|
429
|
(146 | ) |
283
|
||||||||
Net
unrealized gains on securities
|
3,239
|
(1,101 | ) |
2,138
|
||||||||
Adjustment
to net periodic benefit cost
|
158 | (54 | ) | 104 | ||||||||
Other
comprehensive income
|
$ |
3,397
|
$ | (1,155 | ) | $ |
2,242
|
Three
Months Ended March 31, 2006
|
||||||||||||
|
Before-Tax
|
Tax
(Expense)
|
Net-of-Tax
|
|||||||||
|
Amount
|
Benefit
|
Amount
|
|||||||||
Unrealized
losses on securities:
|
|
|
|
|||||||||
Unrealized
holding losses arising during period
|
$ | (7,683 | ) | $ |
2,612
|
$ | (5,071 | ) | ||||
Less: reclassification
adjustment for gains
|
||||||||||||
included
in net income
|
123
|
(42 | ) |
81
|
||||||||
Net
unrealized losses on securities
|
(7,806 | ) |
2,654
|
(5,152 | ) | |||||||
|
||||||||||||
Other
comprehensive loss
|
$ | (7,806 | ) | $ |
2,654
|
$ | (5,152 | ) |
|
||||||||
|
Three
Months
Ended
March 31,
|
|||||||
|
|
|
||||||
|
2007
|
2006
|
||||||
|
|
|
||||||
Balance
at beginning of period
|
$ |
7,193
|
$ |
7,090
|
||||
Provision
for loan losses
|
117
|
281
|
||||||
Loans
charged off
|
(593 | ) | (703 | ) | ||||
Recoveries
of loans charged off
|
544
|
525
|
||||||
Balance
at end of period
|
$ |
7,261
|
$ |
7,193
|
||||
|
|
Three
Months Ended March 31,
|
|||||||||||||||
|
Defined
Benefit
|
|
|
|||||||||||||
|
Pension
Plan
|
Restoration
Plan
|
||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Service
cost
|
$ |
309
|
$ |
322
|
$ |
15
|
$ |
18
|
||||||||
Interest
cost
|
590
|
547
|
45
|
49
|
||||||||||||
Expected
return on assets
|
(633 | ) | (581 | ) |
N/A
|
N/A
|
||||||||||
Transition
obligation recognition
|
–
|
–
|
1
|
1
|
||||||||||||
Net
loss recognition
|
136
|
189
|
32
|
50
|
||||||||||||
Prior
service credit amortization
|
(10 | ) |
–
|
(1 | ) |
–
|
||||||||||
Net
periodic benefit cost
|
$ |
392
|
$ |
477
|
$ |
92
|
$ |
118
|
|
|
Number
of Options
|
|
|
Weighted
Average
Grant-Date Fair Value
|
|
||
Nonvested
at beginning of the period
|
|
|
11,678
|
|
|
$
|
4.91
|
|
Vested
|
|
|
(5,842
|
)
|
|
$
|
4.91
|
|
Nonvested
at end of period
|
|
|
5,836
|
|
|
$
|
4.91
|
|
|
Number
of Options
|
Weighted
Average Exercise Prices
|
Weighted
Average
Remaining
Contract Life (Years)
|
Aggregate
Intrinsic Value
(in
thousands)
|
||||||||||||
Outstanding
at December 31, 2006
|
575,482
|
$ |
6.05
|
|
||||||||||||
Exercised
|
(16,894 | ) | $ |
5.72
|
|
|||||||||||
Outstanding
at March 31, 2007
|
558,588
|
$ |
6.06
|
2.57
|
$ |
9,361
|
||||||||||
Exercisable
at March 31, 2007
|
552,752
|
$ |
5.98
|
2.54
|
$ |
9,307
|
|
|
March
31,
|
|
|||||
|
|
2007
|
|
|
2006
|
|
||
Unused
commitments:
|
|
|
|
|
|
|
||
Due
in one year or less
|
|
$
|
79,520
|
|
|
$
|
56,487
|
|
Due
after one year
|
|
|
28,513
|
|
|
|
32,324
|
|
Total
|
|
$
|
108,033
|
|
|
$
|
88,811
|
|
|
|
|
|
|
|
|
|
|
|
·
|
general
economic conditions,
either globally, nationally, in the State of Texas, or in the specific
markets
|
|
in
which we
operate;
|
|
·
|
legislation,
regulatory changes or changes
in monetary or fiscal
policy that
adversely affect the businesses in which we are
engaged;
|
|
·
|
adverse
changes in Government
Sponsored Enterprises (the “GSE”) status or financial condition impacting
the GSE guarantees or ability to pay or issue
debt;
|
|
·
|
economic
or other disruptions
caused by acts of terrorism in the United States, Europe or other
areas;
|
|
·
|
changes
in the interest rate
yield curve such as flat, inverted or steep yield curves, or changes
in
the interest rate environment which impact interest margins and may
impact
prepayments on the mortgage-backed securities
portfolio;
|
|
·
|
unexpected
outcomes of existing
or new litigation involving us;
|
|
·
|
changes
impacting the leverage
strategy;
|
|
·
|
significant
increases in
competition in the banking and financial services
industry;
|
|
·
|
changes
in consumer spending,
borrowing and saving habits;
|
|
·
|
technological
changes;
|
|
·
|
our
ability to increase market share
and control expenses;
|
|
·
|
the
effect of changes in federal
or state tax laws;
|
|
·
|
the
effect of compliance with
legislation or regulatory
changes;
|
|
·
|
the
effect of changes in
accounting policies and practices;
|
|
·
|
the
costs and effects of unanticipated
litigation;
|
|
·
|
risks
of mergers and acquisitions including the related time and cost of
implementing transactions and the potential failure to achieve expected
gains, revenue growth or expense savings;
and
|
|
·
|
failure
of assumptions underlying allowance for loan losses and other
estimates.
|
AVERAGE
BALANCES AND YIELDS
|
||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
|
Three
Months Ended
|
|||||||||||||||||||||||
March
31, 2007
|
March
31, 2006
|
|||||||||||||||||||||||
AVG
BALANCE
|
INTEREST
|
AVG
YIELD
|
AVG
BALANCE
|
INTEREST
|
AVG
YIELD
|
|||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
||||||||||||||||||
INTEREST
EARNING ASSETS:
|
|
|
|
|
|
|
||||||||||||||||||
Loans(1)
(2)
|
$ |
765,575
|
$ |
13,021
|
6.90 | % | $ |
694,114
|
$ |
11,136
|
6.51 | % | ||||||||||||
Loans
Held For Sale
|
3,303
|
41
|
5.03 | % |
4,462
|
53
|
4.82 | % | ||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Investment
Securities (Taxable)(4)
|
68,262
|
836
|
4.97 | % |
67,432
|
743
|
4.47 | % | ||||||||||||||||
Investment
Securities (Tax-Exempt)(3)(4)
|
41,040
|
723
|
7.14 | % |
49,481
|
871
|
7.14 | % | ||||||||||||||||
Mortgage-backed
and Related Securities (4)
|
862,621
|
10,934
|
5.14 | % |
850,730
|
10,237
|
4.88 | % | ||||||||||||||||
Total
Securities
|
971,923
|
12,493
|
5.21 | % |
967,643
|
11,851
|
4.97 | % | ||||||||||||||||
Federal
Home Loan Bank stock and other investments, at cost
|
25,297
|
370
|
5.93 | % |
29,610
|
344
|
4.71 | % | ||||||||||||||||
Interest
Earning Deposits
|
552
|
7
|
5.14 | % |
555
|
9
|
6.58 | % | ||||||||||||||||
Federal
Funds Sold
|
2,337
|
29
|
5.03 | % |
845
|
9
|
4.32 | % | ||||||||||||||||
Total
Interest Earning Assets
|
1,768,987
|
25,961
|
5.95 | % |
1,697,229
|
23,402
|
5.59 | % | ||||||||||||||||
NONINTEREST
EARNING ASSETS:
|
||||||||||||||||||||||||
Cash
and Due From Banks
|
45,106
|
48,536
|
||||||||||||||||||||||
Bank
Premises and Equipment
|
32,547
|
33,519
|
||||||||||||||||||||||
Other
Assets
|
43,813
|
44,294
|
||||||||||||||||||||||
Less: Allowance
for Loan Losses
|
(7,236 | ) | (7,078 | ) | ||||||||||||||||||||
Total
Assets
|
$ |
1,883,217
|
$ |
1,816,500
|
||||||||||||||||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||
INTEREST
BEARING LIABILITIES:
|
||||||||||||||||||||||||
Savings
Deposits
|
$ |
51,168
|
164
|
1.30 | % | $ |
49,916
|
147
|
1.19 | % | ||||||||||||||
Time
Deposits
|
532,308
|
6,361
|
4.85 | % |
406,288
|
3,930
|
3.92 | % | ||||||||||||||||
Interest
Bearing Demand Deposits
|
389,542
|
3,040
|
3.16 | % |
361,161
|
2,177
|
2.44 | % | ||||||||||||||||
Total
Interest Bearing Deposits
|
973,018
|
9,565
|
3.99 | % |
817,365
|
6,254
|
3.10 | % | ||||||||||||||||
Short-term
Interest Bearing Liabilities
|
330,037
|
3,946
|
4.85 | % |
359,283
|
3,550
|
4.01 | % | ||||||||||||||||
Long-term
Interest Bearing Liabilities – FHLB Dallas
|
113,053
|
1,232
|
4.42 | % |
187,904
|
1,811
|
3.91 | % | ||||||||||||||||
Long-term
Debt (5)
|
20,619
|
428
|
8.30 | % |
20,619
|
385
|
7.47 | % | ||||||||||||||||
Total
Interest Bearing Liabilities
|
1,436,727
|
15,171
|
4.28 | % |
1,385,171
|
12,000
|
3.51 | % | ||||||||||||||||
NONINTEREST
BEARING LIABILITIES:
|
||||||||||||||||||||||||
Demand
Deposits
|
315,381
|
310,249
|
||||||||||||||||||||||
Other
Liabilities
|
18,460
|
10,059
|
||||||||||||||||||||||
Total
Liabilities
|
1,770,568
|
1,705,479
|
||||||||||||||||||||||
SHAREHOLDERS’
EQUITY
|
112,649
|
111,021
|
||||||||||||||||||||||
Total
Liabilities and Shareholders’ Equity
|
$ |
1,883,217
|
$ |
1,816,500
|
||||||||||||||||||||
NET
INTEREST INCOME
|
$ |
10,790
|
$ |
11,402
|
||||||||||||||||||||
NET
YIELD ON AVERAGE EARNING ASSETS
|
2.47 | % | 2.72 | % | ||||||||||||||||||||
NET
INTEREST SPREAD
|
1.67 | % | 2.08 | % |
|
Note:
As of March 31, 2007 and 2006, loans totaling $1,261 and $1,899,
respectively, were on nonaccrual status. The policy is to
reverse previously accrued but unpaid interest on nonaccrual loans;
thereafter, interest income is recorded to the extent received when
appropriate.
|
|
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well Capitalized Under Prompt Corrective Actions
Provisions
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As
of March 31, 2007:
|
(dollars
in thousands)
|