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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Pennsylvania Commerce Bancorp (MM) | NASDAQ:COBH | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 19.93 | 0 | 01:00:00 |
From Jun 2019 to Jun 2024
Pennsylvania Commerce Bancorp, Inc. (NASDAQ Global Select Market Symbol: COBH), parent company of Commerce Bank/Harrisburg, reported increased total assets, loans, and deposits for the first quarter of 2009 announced Gary L. Nalbandian, Chairman, President and CEO.
First Quarter Financial Highlights
Quarter Ended
% 03/31/09 03/31/08 Change Total assets $ 2.12 Billion $ 1.96 Billion 8 % Total deposits $ 1.67 Billion $ 1.58 Billion 6 % Total loans (net) $ 1.43 Billion $ 1.20 Billion 19 % Total revenues $ 24.8 Million $ 24.6 Million 1 % Net income $ 837,000 $ 3.2 Million (74 )% Diluted net income per share $ 0.13 $ 0.49 (73 )%Chairman’s Statement
In commenting on the Company’s financial results, Chairman Nalbandian stated “our focus on community banking produced a 25% increase in core consumer deposits and a 19% increase in loans as we continued to support the credit needs of our communities.”
2009 is our last year under the Commerce Bank network as we embark on an exciting new plan to expand into the metro Philadelphia market. In June 2009, Commerce Bank/Harrisburg will rebrand to become Metro Bank. We continue to prepare for our merger with Republic First Bancorp. The new company will have $3.2 billion in assets and 45 offices in Pennsylvania and New Jersey.
Mr. Nalbandian noted the following highlights from the first quarter ended March 31, 2009:
Income Statement
Three months ended March 31,(dollars in thousands, exceptper share data)
2009 2008 %Change Total revenues $ 24,836 $ 24,5761
%
Total expenses 20,627 18,9019
%
Net income 837 3,206 (74)%
Diluted net income per share $ 0.13 $ 0.49 (73)%
Total revenues (net interest income plus noninterest income) for the first quarter increased $260,000 to $24.8 million, up 1% over the first quarter of 2008.
Net income totaled $837,000 for the first quarter of 2009, a decrease of $2.4 million, or 74%, from net income of $3.2 million for the first quarter of 2008. Net income per fully diluted share for the quarter was $0.13, a 73% decrease from the $0.49 recorded for the same period a year ago.
The decrease in net income is a direct result of higher provisions to the Bank’s allowance for loan losses combined with an increase in noninterest expenses associated with planning and training for the conversion of core processing, item processing and network infrastructure services to a new service provider. Also impacting first quarter 2009 results were expenses associated with our pending acquisition of and merger with Republic First Bancorp.
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2009 totaled $19.3 million, an increase of $754,000, or 4%, over the $18.6 million recorded a year ago.
The net interest margin for the first quarter of 2009 was 3.83%, down 24 basis points from the first quarter of 2008. Average interest earning assets for the quarter were up $202 million, or 11%, over the first quarter of 2008; however, the interest income associated with this increase was offset by a decrease in the yield on those earning assets as a result of a 200 basis point (bp) reduction in short-term market interest rates by the Federal Reserve Bank.
Average interest-bearing liabilities for the first quarter of 2009 were up $159 million, or 10%, over the same period one year ago. Total interest expense for the quarter was down $3.6 million, or 38%, from the first quarter of 2008 as a result of a 91 bp reduction in the Company’s cost of funds.
Net interest income, on a tax equivalent basis, totaled $19.9 million in the first quarter of 2009, an increase of $947,000, or 5%, over the first quarter one year ago. Net interest margin on a fully-taxable equivalent basis was 3.94% for the first quarter vs. 4.15% for the same period one year ago.
Net Interest Income and Rate/Volume Analysis
As shown below, the increase in net interest income on a tax equivalent basis was due primarily to volume increases in the Company’s earning assets, as well as a decrease in the cost of funding sources.
(dollars in thousands)
Net Interest Income March 31 Volume Rate Total % 2009 vs. 2008 Increase Change Increase Increase Quarter $ 851 $ 96 $ 947 5 %Noninterest Income
Noninterest income for the first quarter of 2009 totaled $5.5 million, down $494,000, or 8%, from $6.0 million a year ago.
Three months ended March 31, (dollars in thousands) 2009 2008 % Change Deposit charges and service fees $ 5,646 $ 5,676 (1 )% Other income 480 317 51 Subtotal 6,126 5,993 2 % Loss on sale of student loans (627 ) 0 - Total noninterest income $ 5,499 $ 5,993 (8 )%The decline in total noninterest income compared to the same period one year ago is the result of a $627,000 loss recognized on the sale of $12.2 million of student loans during the first quarter of 2009. Excluding this loss, core noninterest income increased by $133,000, or 2%, over the first quarter of 2008.
Non-interest Expenses
Non-interest expenses for the first quarter of 2009 were $20.6 million, up $1.7 million, or 9%, over $18.9 million recorded one year ago. The breakdown of non-interest expenses for the quarter are shown in the following table:
Three months ended March 31, (dollars in thousands) 2009 2008 % Change Salaries and employee benefits $ 9,999 $ 8,881 13 % Occupancy and equipment 3,035 3,126 (3 )% Advertising and marketing 520 837 (38 )% Data Processing 2,034 1,705 19 % Regulatory assessments and related fees 782 1,138 (31 )% Core system/conversion/branding 588 - Merger/acquisition 230 - Other expenses 3,439 3,214 7 % Total noninterest expenses $ 20,627 $ 18,901 9 %Included in non-interest expenses for the first quarter of 2009 was $588,000 related to planning and training for the conversion of core processing, item processing and network infrastructure services from our current service provider, TD Bank, to our new service provider, Fiserv Solutions, Inc. This conversion is planned for mid-2009. Also included in non-interest expenses for the quarter was $230,000 associated with the Company’s pending acquisition of Republic First Bancorp which is expected to close upon regulatory approval. The increase in salary and benefit expenses includes the impact of additional staffing in operations and information technology to handle the conversion processes as well as functions that are currently performed by TD Bank but will be performed in-house, post-conversion. Of particular note is that regulatory assessment costs were down $356,000, or 31%, for the first quarter of 2009 from the level incurred for the same period one year ago. The above-listed totals for regulatory assessments and related fees include FDIC Insurance assessments of $735,000 and $427,000 for the first quarters of 2009 and 2008, respectively. This represents an increase of $308,000, or 72%. Excluding these assessments, all other regulatory related expenses decreased by $664,000, or 94%.
Balance Sheet
March 31,(dollars in thousands) 2009 2008 %
Increase
Total assets $ 2,115,301 $ 1,957,843 8 % Total loans (net) 1,430,105 1,203,231 19 % Total deposits 1,668,617 1,580,099 6 % Total core deposits 1,658,100 1,545,575 7 %Lending
Total gross loans increased $231.5 million, or 19%, to $1.45 billion from $1.21 billion one year ago, with the growth represented across all loan categories. The composition of the Company’s loan portfolio is as follows:
% of % of $ %(dollars in thousands)
03/31/09 Total 03/31/08 Total Increase Increase Commercial $ 448,898 31 % $ 377,149 31 % $ 71,749 19 % Owner occupied 271,151 19 269,629 22 1,522 1 % Total commercial 720,049 50 646,778 53 73,271 11 % Consumer/residential 318,476 22 309,873 26 8,603 3 % Commercial real estate 407,811 28 258,207 21 149,604 58 % Gross loans $ 1,446,336 100 % $ 1,214,858 100 % $ 231,478 19 %Asset Quality
The Company’s asset quality ratios are highlighted below:
Quarter Ended March 31, December 31, March 31, 2009 2008 2008 Non-performing assets/total assets 1.44 % 1.30 % 0.22 % Net loan charge-offs/average total loans 0.26 % 0.04 % 0.01 % Loan loss allowance/gross loans 1.12 % 1.16 % 0.96 % Non-performing loan coverage 55 % 62 % 309 % Non-performing assets/capital and reserves 22 % 21 % 4 %Non-performing assets and loans past due 90 days at March 31, 2009 totaled $30.4 million, or 1.44%, of total assets, as compared to $27.9 million, or 1.30% of total assets, at December 31, 2008 and $4.3 million, or 0.22%, of total assets one year ago. The Company’s first quarter provision for loan losses totaled $3.2 million, as compared to $975,000 recorded in the first quarter of 2008. The increase in the provision for loan losses over the prior year is a result of the Company’s strong loan growth of $232 million over the past twelve months as well as the increase in the level of non-performing loans from March 31, 2008 to March 31, 2009. The allowance for loan losses totaled $16.2 million as of March 31, 2009, an increase of $4.6 million, or 40%, over the total allowance at March 31, 2008. The allowance represented 1.12% and 0.96% of gross loans outstanding at March 31, 2009 and 2008, respectively.
Total net charge-offs for the first quarter were $3.7 million vs. $90,000 for the first quarter of 2008. Two separate loan charge-offs, totaling $3.6 million, accounted for 97% of total net charge-offs for the quarter. The Bank had made a specific reserve allocation of $1.8 million on one those loans during the fourth quarter of 2008.
Core Deposits
Change in core deposits by type of account is as follows:
March 31,1st Quarter
% 2009 Cost of(dollars in thousands)
2009 2008 Change Funds Demand non-interest-bearing $ 310,219 $ 295,340 5 % 0.00 % Demand interest-bearing 749,760 693,514 8 0.93 Savings 337,660 368,557 (8 ) 0.65 Subtotal 1,397,639 1,357,411 3 0.66 Time 260,461 188,164 38 3.33 Total core deposits $ 1,658,100 $ 1,545,575 7 % 1.08 %Change in core deposits by type of customer is as follows:
March 31, % of March 31, % of % (dollars in thousands) 2009 Total 2008 Total Change Consumer $ 802,077 48 % $ 642,235 42 % 25 % Commercial 528,375 32 560,568 36 (6 )% Government 327,648 20 342,772 22 (4 )% Total $ 1,658,100 100 % $ 1,545,575 100 % 7 %Consumer core deposits grew by $159.8 million, or 25%, over the past twelve months.
Investments
At March 31, 2009, the Company’s investment portfolio totaled $470.6 million. Detailed below is information regarding the composition and characteristics of the Company’s investment portfolio at March 31, 2009:
Available Held to Product Description for Sale Maturity Total (in thousands) Mortgage-backed securities: Federal government agencies pass through certificates $ 61,786 $ 68,647 $ 130,433Collateralized mortgage obligations (government agency or investment grade rated)
262,080 39,478 301,558 U.S. Government agencies/other 5,002 33,617 38,619 Total $ 328,868 $ 141,742 $ 470,610 Duration (in years) 3.4 3.0 3.3 Average life (in years) 4.2 3.5 4.0 Quarterly average yield 4.06 % 5.02 % 4.18 %At March 31, 2009, the after tax depreciation of the Company’s available for sale portfolio was $14.6 million as compared to $17.3 million at December 31, 2008 and $9.6 million at March 31, 2008. The improvement in the unrealized pre-tax loss from year end was the result of improving fair values in both agency and non agency securities.
Capital
Stockholders’ equity at March 31, 2009 totaled $119.0 million, an increase of $8.7 million, or 8%, over stockholders’ equity of $110.3 million at March 31, 2008. Return on average stockholders’ equity (ROE) for the first quarter of March 31, 2009 and 2008, respectively, is shown below:
Three Months EndedMarch 31,
2009 2008 2.91 % 11.39 %The Company’s capital ratios at March 31, 2009 were as follows:
Regulatory Guidelines Commerce “Well Capitalized” Leverage Ratio 7.59 % 5.00 % Tier 1 9.51 % 6.00 Total Capital 10.46 % 10.00Stockholder Returns
As of March 31, 2009 Russell 2000 NASDAQ Bank FinancialS & P 500
Commerce Index Services IndexIndex
1 Year (31 )% (39 )% (40 )% (38 )% 5 Years ( 6 )% (10 )% ( 9 )% ( 5 )% 10 Years 5 % 1 % 3 % ( 3 )%FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION
The Company may, from time to time, make written or oral “forward-looking statements”, including statements contained in the Company’s filings with the Securities and Exchange Commission (including the annual report on Form 10-K and the exhibits thereto), in its reports to stockholders and in other communications by the Company, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Company’s control). The words “may”, “could”, “should”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan” and similar expressions are intended to identify forward-looking statements. The following factors, among others, including those discussed in the Company’s Form 10-K, could cause the Company’s financial performance to differ materially from that expressed in such forward-looking statements:
Because such forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. The foregoing list of important factors is not exclusive and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. The Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company. For information, concerning events or circumstances after the date of this report, refer to the Company’s filings with the Securities and Exchange Commission (“SEC”).
Pennsylvania Commerce Bancorp, Inc. Selected Consolidated Financial Data (Unaudited) At or for the Three Months Ended March 31,
%
(in thousands, except per share amounts) 2009 2008 Change Income Statement Data: Net interest income $ 19,337 $ 18,583 4 % Provision for loan losses 3,200 975 228 Noninterest income 5,499 5,993 (8 ) Total revenues 24,836 24,576 1 Noninterest operating expenses 20,627 18,901 9 Net income 837 3,206 (74 ) Per Common Share Data: Net income: Basic $ 0.13 $ 0.50 (74 )% Net income: Diluted 0.13 0.49 (73 ) Book Value $ 18.17 $ 17.26 5 % Weighted average shares outstanding: Basic 6,465 6,327 Diluted 6,518 6,495 Balance Sheet Data: Total assets $ 2,115,301 $ 1,957,843 8 % Loans (net) 1,430,105 1,203,231 19 Allowance for loan losses 16,231 11,627 40 Investment securities 470,610 555,604 (15 ) Total deposits 1,668,617 1,580,099 6 Core deposits 1,658,100 1,545,575 7 Stockholders' equity 118,997 110,336 8 Capital: Stockholders' equity to total assets 5.63 % 5.64 % Leverage ratio 7.59 7.59 Risk based capital ratios: Tier 1 9.51 9.99 Total Capital 10.46 10.77 Performance Ratios: Cost of funds 1.20 % 2.11 % Deposit cost of funds 0.87 1.43 Net interest margin 3.83 4.07 Return on average assets 0.16 0.66 Return on average total stockholders' equity 2.91 11.39 Asset Quality: Net charge-offs to average loans outstanding 0.26 % 0.01 % Nonperforming assets to total period-end assets 1.44 0.22 Allowance for loan losses to total period-end loans 1.12 0.96 Allowance for loan losses to nonperforming loans 55 309 Nonperforming assets to capital and reserves 22 % 4 % Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Average Balances and Net Interest Income (unaudited) Quarter ending, March 2009 December 2008 March 2008 Average Average Average Average Average Average Balance Interest Rate Balance Interest Rate Balance Interest Rate (dollars in thousands) Earning Assets Investment securities: Taxable $ 525,370 $ 5,477 4.17 % $ 546,047 $ 6,467 4.74 % $ 616,294 $ 7,927 5.14 % Tax-exempt 1,623 26 6.41 1,622 25 6.17 1,621 25 6.17 Total securities 526,993 5,503 4.18 547,669 6,492 4.74 617,915 7,952 5.15 Federal funds sold 0 0 0.00 0 0 0.00 0 0 0.00 Loans receivable: Mortgage and construction 753,190 10,740 5.70 723,049 11,153 6.05 579,577 9,992 6.83 Commercial loans and lines of credit 369,236 4,663 5.05 373,748 5,268 5.52 332,486 5,865 6.98 Consumer 270,078 3,409 5.12 265,847 3,909 5.85 226,889 3,717 6.59 Tax-exempt 96,328 1,536 6.38 99,502 1,617 6.50 56,742 985 6.94 Total loans receivable 1,488,832 20,348 5.48 1,462,146 21,947 5.91 1,195,694 20,559 6.83 Total earning assets $ 2,015,825 $ 25,851 5.14 % $ 2,009,815 $ 28,439 5.59 % $ 1,813,609 $ 28,511 6.26 % Sources of Funds Interest-bearing deposits: Regular savings $ 345,498 $ 552 0.65 % $ 363,773 $ 761 0.83 % $ 349,976 $ 1,200 1.38 % Interest checking and money market 722,248 1,663 0.93 753,670 2,249 1.19 706,625 3,360 1.91 Time deposits 249,374 2,047 3.33 193,063 1,575 3.25 166,221 1,650 3.99 Public funds time 10,307 70 2.75 8,830 72 3.24 22,920 237 4.16 Total interest-bearing deposits 1,327,427 4,332 1.32 1,319,336 4,657 1.40 1,245,742 6,447 2.08 Short-term borrowings 308,065 426 0.55 325,477 603 0.72 230,749 1,911 3.28 Other borrowed money 50,000 548 4.38 50,000 561 4.39 50,000 555 4.39 Junior subordinated debt 29,400 661 8.99 29,400 661 8.99 29,400 661 8.99 Total interest-bearing liabilities 1,714,892 5,967 1.41 1,724,213 6,482 1.49 1,555,891 9,574 2.46 Noninterest-bearing funds (net) 300,933 285,602 257,718 Total sources to fund earning assets $ 2,015,825 $ 5,967 1.20 % $ 2,009,815 $ 6,482 1.28 % $ 1,813,609 $ 9,574 2.11 %Net interest income and margin on a tax-equivalent basis
$ 19,884 3.94 % $ 21,957 4.31 % $ 18,937 4.15 % Tax-exempt adjustment 547 574 354 Net interest income and margin $ 19,337 3.83 % $ 21,383 4.20 % $ 18,583 4.07 % Other Balances: Cash and due from banks $ 38,763 $ 42,237 $ 46,913 Other assets 75,055 70,996 89,927 Total assets 2,129,643 2,123,048 1,950,449 Demand deposits (noninterest-bearing) 285,580 272,871 270,345 Other liabilities 12,702 13,581 11,041 Stockholders' equity 116,469 112,383 113,172 Pennsylvania Commerce Bancorp, Inc. and Subsidiaries Summary of Allowance for Loan Losses and Other Related Data (unaudited) 3/31/2009 3/31/2008 Year-ended (dollar amounts in thousands) Three Months Ended 12/31/2008 Balance at beginning of period $ 16,719 $ 10,742 $ 10,742 Provisions charged to operating expense 3,200 975 7,475 19,919 11,717 18,217 Recoveries on loans charged-off: Commercial 3 124 145 Consumer 1 6 25 Real estate 0 0 0 Total recoveries 4 130 170 Loans charged-off: Commercial (3,685 ) (165 ) (1,426 ) Consumer (7 ) (38 ) (173 ) Real estate 0 (17 ) (69 ) Total charged-off (3,692 ) (220 ) (1,668 ) Net charge-offs (3,688 ) (90 ) (1,498 ) Balance at end of period $ 16,231 $ 11,627 $ 16,719
Net charge-offs as a percentage of average loans outstanding
0.26 % 0.01 % 0.11 %Allowance for loan losses as a percentage of period-end loans
1.12 % 0.96 % 1.16 % Summary of Nonperforming Loans and Assets (unaudited) The following table presents information regarding nonperforming loans and assets as of March 31, 2009 and for the preceding four quarters (dollar amounts in thousands). March 31, December 31, September 30, June 30, March 31, 2009 2008 2008 2008 2008 Nonaccrual loans: Commercial $ 8,479 $ 6,863 $ 7,083 $ 2,577 $ 1,158 Consumer 724 492 164 125 120 Real Estate: Construction 7,870 7,646 731 735 284 Real Estate 12,348 12,121 3,657 3,433 2,183 Total nonaccrual loans 29,421 27,122 11,635 6,870 3,745Loans past due 90 days or more and still accruing
0 0 33 6,036 15 Renegotiated loans 0 0 0 0 0 Total nonperforming loans 29,421 27,122 11,668 12,906 3,760 Foreclosed real estate 989 743 535 421 588 Total nonperforming assets $ 30,410 $ 27,865 $ 12,203 $ 13,327 $ 4,348 Nonperforming loans to total loans 2.03 % 1.88 % 0.84 % 0.98 % 0.31 % Nonperforming assets to total assets 1.44 % 1.30 % 0.57 % 0.65 % 0.22 % Nonperforming loan coverage 55 % 62 % 119 % 95 % 309 %Allowance for loan losses as a percentage of total period-end loans
1.12 % 1.16 % 1.00 % 0.93 % 0.96 % Nonperforming assets / capital plus allowance for loan losses 22 % 21 % 10 % 11 % 4 %
1 Year Pennsylvania Commerce Bancorp (MM) Chart |
1 Month Pennsylvania Commerce Bancorp (MM) Chart |
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