Unizan Financial (NASDAQ:UNIZ)
Historical Stock Chart
From Jul 2019 to Jul 2024
Unizan Financial Corp. Announces Negotiations to Extend the
Huntington Merger Agreement and Reports Third Quarter 2004 Financial Results
CANTON, Ohio, Nov. 3 /PRNewswire-FirstCall/ -- Unizan Financial Corp.
(NASDAQ:UNIZ), today announced that it is negotiating an extension of its
pending merger agreement with Huntington Bancshares Incorporated (NASDAQ:HBAN).
Huntington today announced that it intends to withdraw its current application
with the Federal Reserve Bank (FRB) to acquire Unizan and to resubmit the
application for regulatory approval of the merger pending the successful
resolution of the regulatory concerns as outlined in Huntington's press release
(which can be found on the Company's Web site at http://www.huntington.com/ ).
UNIZAN REPORTS THIRD QUARTER 2004 FINANCIAL RESULTS
Unizan Financial Corp. also announced its third quarter financial results. Net
income for the third quarter of 2004 was $2.9 million, or $0.13 per diluted
share. This compares with net income of $6.8 million, or $0.31 per diluted
share, for the third quarter of 2003, and net income of $3.1 million, or $0.14
per diluted share for the second quarter of 2004. During the third quarter of
2004, Unizan recognized a pre-tax gain of $488 thousand on the sale of its
Wooster Financial Center. Also during the quarter, Unizan recognized $476
thousand of pre-tax merger-related professional fees and certain severance and
benefit expenses. As part of its evaluation of the adequacy of its allowance
for loan losses, Unizan recognized a provision expense of $3.8 million during
the third quarter of 2004.
Net income for the nine months ended September 30, 2004 was $8.4 million or
$0.38 per diluted share compared to $20.7 million or $0.93 per diluted share
for the same period in 2003. During 2004, Unizan recognized salary expense of
$5.1 million pre-tax, or $3.3 million after-tax, in relation to the exercise of
certain stock options and an additional expense of $2.5 million pre-tax, or
$1.8 million after-tax, for merger-related professional fees and severance
accrual. The salary charge and merger-related expenses impacted net income by
$0.23 per diluted share for the first nine months of 2004.
Net interest income - Net interest income was $16.1 million for the three
months ended September 30, 2004, down 13.7% from the previous quarter and down
4.1% from the same quarter last year. Net interest income has declined due to a
lower level of outstanding earning assets compared with prior periods.
Additionally, the yields have been impacted by a change in the mix and duration
of outstanding assets and liabilities. The net interest margin was 2.75% for
the third quarter of 2004 compared to 3.09% for the second quarter of 2004 and
2.73% for the third quarter of 2003. Net interest income was negatively
impacted during the third quarter of 2004 by faster than projected amortization
of the purchase accounting adjustments associated with the mark- to-market of
UNB Corp.'s loan portfolio at the time of the merger of equals between UNB
Corp. and BancFirst Ohio Corp. in March of 2002. During the third quarter of
2004, $1.2 million of amortization was recognized compared with $616 thousand
expected based on the projected life of the portfolio.
Provision for loan losses - The provision for loan losses was $3.8 million for
the three months ended September 30, 2004, compared to $3.0 million in the
previous quarter and $1.0 million in the third quarter of 2003. Net charge-
offs for the three months ended September 30, 2004, were $2.3 million compared
to $2.6 million for the second quarter of 2004 and $1.3 million for the same
period in 2003. The increase in net charge-offs from the third quarter of 2003
was mainly attributed to an increase in commercial real estate, government
guaranteed and residential real estate charge-offs.
Other income - Other income, excluding net securities activity, was $7.3
million for the third quarter of 2004 compared with $8.0 million for the same
period in 2003 and $7.0 million for the second quarter of 2004.
Gains on sales of loans totaled $1.0 million, compared with $1.8 million in the
third quarter of 2003 and $686 thousand in the second quarter of 2004. During
the third quarter of 2004, gains from the sale of the guaranteed portion of
Small Business Administration (SBA) and other government guaranteed loans were
$898 thousand, compared with $909 thousand of gains in the third quarter of
2003 and $480 thousand of gains in the second quarter of 2004. Second quarter
2004 gains from the sale of the guaranteed portion of SBA loans were impacted
by the temporary suspension and limitation placed on the SBA 7(a) loan program
during the first quarter of 2004. In April 2004, legislation establishing
temporary provisions to extend SBA programs was enacted.
On October 1, 2004, the SBA issued a policy announcing the expiration of
certain temporary provisions established in April regarding its programs. The
key changes include a reduction in the maximum guarantee limit to $1.0 million
from $1.5 million along with slightly higher borrower and lender fees.
Gains from the sale of residential mortgage loans in the third quarter of 2004
were $110 thousand compared with $887 thousand of gains recognized in the third
quarter of 2003 and $206 thousand of gains in the second quarter of 2004. With
the recent rise in rates and fewer customers who can benefit from refinancing,
fees associated with the mortgage related business have declined as refinancing
activity slowed.
Net security activity in the third quarter of 2004 resulted in a loss of $60
thousand compared to gains of $181 thousand in the prior quarter and $1.8
million in the third quarter of 2003.
Other expense - Other expense was $15.7 million for the three months ended
September 30, 2004, down $2.9 million or 15.4% from the previous quarter and
essentially equal to the same quarter last year. The principal reason for the
decrease in other expense compared to the second quarter of 2004 was the
recognition of $1.4 million in salary expense related to the settlement of
options in cash or with shares held less than six months and the recognition of
$823 thousand of expense for merger-related professional fees and severance
accrual during the second quarter.
Provision for income taxes - The effective tax rate for the three months ended
September 30, 2004 was 26.3% compared to 28.4% in the previous quarter and
31.3% in the same quarter last year. The Company's effective tax rates for
the second and third quarter of 2004 were impacted by tax-exempt income being a
larger portion of pre-tax income which had the effect of reducing the effective
tax rate from the third quarter of 2003.
Balance sheet - Total assets at September 30, 2004 were $2.59 billion compared
to $2.75 billion a year ago and $2.68 billion at the end of the second quarter
2004. Assets declined 3.1% compared to the prior quarter and 5.6% compared to
the prior year. Compared to the prior year, securities declined by 17.5% while
loans decreased by 1.7%. For the period of September 30, 2003 to September 30,
2004, residential real estate and home equity loans showed modest increases
that were more than offset by declines in commercial real estate, commercial
and aircraft loans. For the period of June 30, 2004 to September 30, 2004,
total loans declined by 11.9% on an annualized basis. The decline in the third
quarter of 2004 was across all loan portfolios. The decline in aircraft was
mainly due to the closing of the aircraft lending centers. No new originations
of aircraft loans are expected. The decline in commercial real estate and
commercial loans is the result of fewer lending officers originating new loans.
The modest decline in consumer and residential real estate lending is primarily
attributable to focused efforts on existing client retention and limited new
client campaigns due to the delay and uncertainty regarding the pending merger.
Total deposits decreased by $192,257 or 9.6% compared to the prior year. A
total of $15.4 million of this decline was due to the sale of the Wooster
Financial Center. Of the deposits sold, $10.3 million were certificates of
deposits with the remaining distributed between demand and savings. From
September 30, 2003 to September 30, 2004, interest bearing demand deposits
declined by 18.6%, savings deposits, including money market accounts, declined
by 1.0% and certificate of deposits declined by 13.8% while non-interest
bearing deposits increased 1.0%. During the first half of 2003, Unizan Bank
executed a deposit gathering strategy utilizing introductory rates within the
interest bearing demand and money market deposit products. A portion of the
funds gathered were rate sensitive and have shifted to other higher yielding
alternatives. The decline in certificate of deposits was partially due to the
maturity of $60.2 million of brokered certificates of deposits and is
consistent with management's overall strategy to change the deposit mix.
Asset quality - Non-performing loans to total loans increased to 1.53% at
September 30, 2004 from 1.29% at September 30, 2003 and increased from 1.42% at
June 30, 2004. Non-performing loans at September 30, 2004 were $29.2 million
compared to $24.9 million at September 30, 2003 and $27.8 million at June 30,
2004.
Non-performing loans, excluding the portion of the loans guaranteed by the
government, at September 30, 2004 were $22.2 million compared to $18.2 million
at September 30, 2003 and $21.7 million at June 30, 2004. The $4.0 million
increase in non-performing loans from September 30, 2003 was mainly due to a
$2.3 million increase in non-performing aircraft loans and a $1.3 million
increase in non-performing commercial real estate loans. The $446 thousand or
2.1% increase in non-performing loans since June 30, 2004, is primarily
attributed to a $2.2 million increase to non-performing aircraft loans, a net
$569 thousand increase in non-performing government guaranteed loans, offset by
a $1.5 million decline in non-performing commercial loans, and a $986 thousand
decrease in non-performing residential real estate loans.
About Unizan
Unizan Financial Corp., a $2.6 billion holding company, is a financial services
organization headquartered in Canton, Ohio. The company operates 43
full-service retail financial centers in five metropolitan markets in Ohio -
Canton, Columbus, Dayton, Newark and Zanesville. Through Unizan Financial
Corp.'s subsidiaries, Unizan Bank, National Association; Unizan Financial
Services Group, National Association; Unizan Banc Financial Services, Inc.; and
Unizan Financial Advisors, Inc., the company offers its client base corporate
and retail banking, Internet banking and wealth management products and
services. Additionally, the company operates government guaranteed loan
programs through its business lending centers in Cincinnati, Cleveland,
Columbus and Dayton, Ohio; Detroit, Michigan; Mt. Arlington, New Jersey and
Indianapolis, Indiana. For more information on Unizan Financial Corp. and its
subsidiaries, visit the company on the Web at http://www.unizan.com/ .
About Huntington
Huntington Bancshares Incorporated is a $32 billion regional bank holding
company headquartered in Columbus, Ohio. Through its affiliated companies,
Huntington has more than 138 years of serving the financial needs of its
customers. Huntington provides innovative retail and commercial financial
products and services through more than 300 regional banking offices in
Indiana, Kentucky, Michigan, Ohio and West Virginia. Huntington also offers
retail and commercial financial services online at huntington.com; through its
technologically advanced, 24-hour telephone bank; and through its network of
approximately 700 ATMs. Selected financial service activities are also
conducted in other states including: Dealer Sales offices in Florida, Georgia,
Tennessee, Pennsylvania, and Arizona; Private Financial Group offices in
Florida; and Mortgage Banking offices in Florida, Maryland, and New Jersey.
International banking services are made available through the headquarters
office in Columbus and an office located in the Cayman Islands and an office
located in Hong Kong.
Unizan Financial Corp.
CONSOLIDATED BALANCE SHEETS
(In thousands except per share data)
09/30/04 06/30/04 03/31/04
ASSETS
Federal funds sold and interest
bearing deposits with banks $8,408 $5,446 $5,080
Securities, net 404,104 408,021 487,316
Federal Home Loan Bank stock, at
cost 35,788 35,410 35,061
Loans originated and held for sale 2,353 2,118 4,744
Loans:
Commercial, financial and
agricultural 266,262 269,219 258,677
Aircraft 117,497 126,824 134,889
Commercial real estate 610,061 646,900 662,289
Residential real estate 441,338 446,738 449,057
Consumer 465,591 469,236 464,323
Total Loans less unearned
income 1,900,749 1,958,917 1,969,235
Less allowance for loan losses 26,387 24,922 24,611
Net loans 1,874,362 1,933,995 1,944,624
Total earning assets 2,351,402 2,409,912 2,501,436
Cash and cash equivalents 61,072 81,111 71,924
Premises and equipment, net 22,787 23,891 24,641
Goodwill 91,971 91,971 91,971
Other intangible assets 16,157 17,025 17,836
Accrued interest receivable and
other assets 76,500 77,546 77,987
Total Assets $2,593,502 $2,676,534 $2,761,184
LIABILITIES
Deposits:
Non-interest bearing deposits $213,621 $221,027 $214,844
Demand - interest bearing 229,938 242,709 257,012
Savings 517,295 494,598 531,437
Certificates and other time
deposits 856,914 908,903 942,850
Total deposits 1,817,768 1,867,237 1,946,143
Total borrowings 439,400 483,485 483,093
Accrued taxes, expenses and other
liabilities 26,148 23,786 25,262
Total Liabilities 2,283,316 2,374,508 2,454,498
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
100,000,000 shares authorized;
22,123,069 shares issued) 22,123 22,123 22,123
Paid-in capital 221,141 223,200 228,806
Retained earnings 74,560 74,654 74,461
Stock held by deferred compensation
plan, 122,209; 119,274;
118,616; 118,616 and 115,808
shares at cost, respectively (2,112) (2,039) (2,016)
Treasury stock, 64,059; 327,256;
368,389; 440,276 and 474,665 (1,647) (9,282) (14,392)
shares at cost, respectively
Accumulated other comprehensive
loss (3,879) (6,630) (2,296)
Total Shareholders'
Equity 310,186 302,026 306,686
Total Liabilities and
Shareholders' Equity $2,593,502 $2,676,534 $2,761,184
Unizan Financial Corp.
CONSOLIDATED BALANCE SHEETS
(In thousands except per share data)
12/31/03 9/30/03
ASSETS
Federal funds sold and interest
bearing deposits with banks $1,942 $4,517
Securities, net 474,636 489,758
Federal Home Loan Bank stock, at
cost 34,716 34,369
Loans originated and held for sale 2,679 8,138
Loans:
Commercial, financial and
agricultural 261,167 272,129
Aircraft 133,277 136,388
Commercial real estate 658,699 634,344
Residential real estate 450,398 425,030
Consumer 464,943 465,324
Total Loans less unearned
income 1,968,484 1,933,215
Less allowance for loan losses 24,611 24,612
Net loans 1,943,873 1,908,603
Total earning assets 2,482,457 2,469,997
Cash and cash equivalents 56,558 86,869
Premises and equipment, net 25,353 26,049
Goodwill 91,971 91,971
Other intangible assets 18,661 19,500
Accrued interest receivable and
other assets 76,860 76,402
Total Assets $2,727,249 $2,746,176
LIABILITIES
Deposits:
Non-interest bearing deposits $206,501 $211,404
Demand - interest bearing 276,037 282,391
Savings 531,134 522,703
Certificates and other time
deposits 962,120 993,797
Total deposits 1,975,792 2,010,295
Total borrowings 421,885 406,436
Accrued taxes, expenses and other
liabilities 26,749 26,920
Total Liabilities 2,424,426 2,443,651
SHAREHOLDERS' EQUITY
Common stock ($1.00 stated value,
100,000,000 shares authorized;
22,123,069 shares issued) 22,123 22,123
Paid-in capital 223,613 223,863
Retained earnings 74,993 75,355
Stock held by deferred compensation
plan, 122,209; 119,274;
118,616; 118,616 and 115,808
shares at cost, respectively (2,016) (1,966)
Treasury stock, 64,059; 327,256;
368,389; 440,276 and 474,665 (11,515) (12,126)
shares at cost, respectively
Accumulated other comprehensive
loss (4,375) (4,724)
Total Shareholders' Equity 302,823 302,525
Total Liabilities and
Shareholders' Equity $2,727,249 $2,746,176
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except per share data)
Three months ended
09/30/04 06/30/04 03/31/04
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $21 $13 $8
Interest and dividends on securities 3,040 4,269 4,597
Interest and fees on loans and loans
held for sale 26,693 27,573 27,674
Total interest income 29,754 31,855 32,279
Interest expense:
Interest on deposits 9,058 8,816 9,150
Interest on borrowings 4,576 4,366 4,337
Total interest expense 13,634 13,182 13,487
Net interest income 16,120 18,673 18,792
Provision for loan losses 3,750 2,950 1,000
Net interest income
after provision for
loan losses 12,370 15,723 17,792
Other income:
Trust, financial planning, brokerage
and insurance sales 1,793 2,050 1,953
Customer service fees 1,854 1,848 1,844
Gains on sale of loans 1,008 686 1,245
Security gains/(losses), net (60) 181 71
Other operating income 2,626 2,419 1,901
Total other income 7,221 7,184 7,014
Other expense:
Salaries, wages, pension and
benefits 8,211 10,494 12,774
Occupancy expense 875 795 867
Furniture and equipment expense 520 572 534
Taxes other than income taxes 557 610 630
Intangible amortization expense 868 811 825
Other operating expense 4,652 5,252 5,784
Total other expense 15,683 18,534 21,414
Income before income taxes 3,908 4,373 3,392
Provision for income taxes 1,029 1,242 980
Net Income $2,879 $3,131 $2,412
Earnings per share:
Basic $0.13 $0.14 $0.11
Diluted $0.13 $0.14 $0.11
Dividends per share $0.135 $0.135 $0.135
Weighted average number of shares:
Basic 21,910,942 21,771,251 21,733,289
Diluted 22,052,059 21,989,444 21,972,349
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except per share data)
Three months ended
12/31/03 9/30/03
Interest income:
Interest on federal funds sold and
interest bearing deposits with banks $8 $11
Interest and dividends on
securities 4,127 4,290
Interest and fees on loans and
loans held for sale 28,401 28,238
Total interest income 32,536 32,539
Interest expense:
Interest on deposits 9,764 10,576
Interest on borrowings 4,164 5,148
Total interest expense 13,928 15,724
Net interest income 18,608 16,815
Provision for loan losses 1,492 1,026
Net interest income
after provision for
loan losses 17,116 15,789
Other income:
Trust, financial planning,
brokerage and insurance sales 1,691 1,695
Customer service fees 2,107 1,996
Gains on sale of loans 993 1,796
Security gains/(losses), net (502) 1,821
Other operating income 1,834 2,535
Total other income 6,123 9,843
Other expense:
Salaries, wages, pension and
benefits 10,659 8,146
Occupancy expense 828 844
Furniture and equipment expense 562 586
Taxes other than income taxes 504 505
Intangible amortization expense 839 844
Other operating expense 5,598 4,744
Total other expense 18,990 15,669
Income before income taxes 4,249 9,963
Provision for income taxes 1,685 3,121
Net Income $2,564 $6,842
Earnings per share:
Basic $0.12 $0.32
Diluted $0.12 $0.31
Dividends per share $0.135 $0.135
Weighted average number of shares:
Basic 21,656,687 21,632,719
Diluted 21,940,831 22,134,304
NOTE: Per share data is based on the weighted average number of shares
outstanding adjusted for stock dividends or splits calculated under the
treasury method using the average and end of period stock market price for
basic and diluted shares, respectively.
Unizan Financial Corp.
COMPARATIVE STATEMENTS OF INCOME
(In thousands except per share data)
Nine Months Ended
09/30/04 09/30/03
Interest income:
Interest on federal funds
sold and interest bearing
deposits with banks $42 $165
Interest and dividends on
securities 11,906 16,618
Interest and fees on loans
and loans held for sale 81,940 89,541
Total interest income 93,888 106,324
Interest expense:
Interest on deposits 27,024 33,248
Interest on borrowings 13,279 14,953
Total interest expense 40,303 48,201
Net interest income 53,585 58,123
Provision for loan losses 7,700 3,341
Net interest
income after
provision for
loan losses 45,885 54,782
Other income:
Trust, financial planning,
brokerage and insurance
sales 5,796 5,508
Customer service fees 5,546 5,257
Gains on sale of loans 2,939 6,132
Security gains, net 192 2,275
Other operating income 6,946 5,307
Total other income 21,419 24,479
Other expense:
Salaries, wages, pension and benefits 31,479 26,560
Occupancy expense 2,537 2,604
Furniture and equipment
expense 1,626 1,753
Taxes other than income taxes 1,797 1,547
Intangible amortization
expense 2,504 2,548
Other operating expense 15,688 14,167
Total other expense 55,631 49,179
Income before income taxes 11,673 30,082
Provision for income taxes 3,251 9,423
Net Income $8,422 $20,659
Earnings per share:
Basic $0.39 $0.95
Diluted $0.38 $0.93
Dividends per share $0.405 $0.405
Weighted average number of
shares:
Basic 21,805,547 21,692,316
Diluted 22,005,003 22,294,153
NOTE: Per share data is based on the weighted average number of
shares outstanding adjusted for stock dividends or splits calculated
under the treasury method using the average and end of period stock
market price for basic and diluted shares, respectively.
Unizan Financial Corp.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
2004 2004 2004
EARNINGS 3rd Qtr 2nd Qtr 1st Qtr
Net Interest Income FTE (1) $16,400 18,959 19,061
Provision for loan losses 3,750 2,950 1,000
Other income 7,281 7,003 6,943
Security gains/(losses), net (60) 181 71
Other expenses 15,683 18,534 21,414
FTE adjustment (1) 280 286 269
Net income $2,879 3,131 2,412
Net income per share - diluted $0.13 0.14 0.11
PERFORMANCE RATIOS
Return on average assets (ROA) 0.44% 0.46% 0.36%
Return on average common equity (ROE) 3.71% 4.12% 3.17%
Tangible return on average tangible
assets 0.55% 0.57% 0.45%
Tangible return on avg. tangible
common equity 6.85% 7.49% 6.05%
Net interest margin FTE 2.75% 3.09% 3.08%
Efficiency ratio (2) 62.03% 59.60% 60.52%
MARKET DATA
Book value/common share $14.06 13.86 14.10
Tangible book value/common share 9.16 8.86 9.05
Period-end common share mkt value 27.61 26.10 24.91
Market as a % of book 196.4% 188.3% 176.7%
Cash dividends/common share $0.135 0.135 0.135
Common stock dividend payout ratio 103.27% 93.80% 121.68%
Average basic common shares 21,910,942 21,771,251 21,733,289
Average diluted common shares 22,052,059 21,989,444 21,972,349
Period end common shares 22,059,010 21,795,813 21,754,680
Common stock market capitalization $609,049 568,871 541,909
ASSET QUALITY
Gross charge-offs $2,952 3,372 1,683
Net charge-offs 2,285 2,639 1,000
Delinquency Ratio 1.60% 1.45% 1.67%
Allowance for loan losses $26,387 24,922 24,611
Non-accrual loans 26,628 22,173 23,152
Past due 90 days or more & accruing 2,546 5,612 5,488
Other assets owned 2,254 3,850 1,793
Nonperforming assets (NPAs) 31,428 31,635 30,433
Restructured loans 2,461 2,496 2,530
Net charge-off ratio 0.47% 0.54% 0.20%
Allowance/loans 1.39% 1.27% 1.25%
NPL to loans 1.53% 1.42% 1.45%
NPA to loans + other assets 1.65% 1.61% 1.54%
Allowance to NPLs 90.45% 89.70% 85.93%
AVERAGE BALANCES
Assets $2,615,839 2,713,206 2,728,886
Deposits 1,845,818 1,895,935 1,954,707
Loans 1,935,094 1,964,587 1,971,090
Earning assets 2,376,178 2,469,808 2,486,312
Shareholders' equity 308,618 305,902 306,128
ENDING BALANCES
Assets $2,593,502 2,676,534 2,761,184
Deposits 1,817,768 1,867,237 1,946,143
Loans 1,900,749 1,958,917 1,969,235
Goodwill and other intangible assets 108,128 108,996 109,807
Earning assets 2,351,402 2,409,912 2,501,436
Total shareholders' equity 310,186 302,026 306,686
Unizan Financial Corp.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
2003 2003
EARNINGS 4th Qtr 3rd Qtr
Net Interest Income FTE (1) 18,909 17,103
Provision for loan losses 1,492 1,026
Other income 6,625 8,022
Security gains/(losses), net (502) 1,821
Other expenses 18,990 15,669
FTE adjustment (1) 301 288
Net income 2,564 6,842
Net income per share - diluted 0.12 0.31
PERFORMANCE RATIOS
Return on average assets (ROA) 0.38% 0.99%
Return on average common equity (ROE) 3.35% 9.06%
Tangible return on average tangible
assets 0.48% 1.12%
Tangible return on avg. tangible
common equity 6.40% 15.61%
Net interest margin FTE 3.04% 2.73%
Efficiency ratio (2) 62.59% 54.98%
MARKET DATA
Book value/common share 13.97 13.97
Tangible book value/common share 8.86 8.83
Period-end common share mkt value 20.25 19.95
Market as a % of book 145.0% 142.8%
Cash dividends/common share 0.135 0.135
Common stock dividend payout ratio 114.12% 43.22%
Average basic common shares 21,656,687 21,632,719
Average diluted common shares 21,940,831 22,134,304
Period end common shares 21,682,793 21,648,404
Common stock market capitalization 439,077 431,886
ASSET QUALITY
Gross charge-offs 2,265 1,901
Net charge-offs 1,494 1,330
Delinquency Ratio 1.61% 1.65%
Allowance for loan losses 24,611 24,612
Non-accrual loans 20,566 19,888
Past due 90 days or more & accruing 5,333 5,032
Other assets owned 2,143 2,095
Nonperforming assets (NPAs) 28,042 27,015
Restructured loans 2,565 2,598
Net charge-off ratio 0.31% 0.27%
Allowance/loans 1.25% 1.27%
NPL to loans 1.32% 1.29%
NPA to loans + other assets 1.42% 1.40%
Allowance to NPLs 95.03% 98.76%
AVERAGE BALANCES
Assets 2,706,490 2,732,860
Deposits 1,994,244 2,039,429
Loans 1,947,729 1,946,693
Earning assets 2,466,001 2,483,198
Shareholders' equity 303,902 299,681
ENDING BALANCES
Assets 2,727,249 2,746,176
Deposits 1,975,792 2,010,295
Loans 1,968,484 1,933,215
Goodwill and other intangible assets 110,632 111,471
Earning assets 2,482,457 2,469,997
Total shareholders' equity 302,823 302,525
(1) - FTE defined as fully tax-equivalent
(2) - Excludes amortization of intangibles and impairment of goodwill
expenses. Third quarter 2004 excludes $488 pre-tax gain on sale of
Wooster Financial Center and $476 pre-tax merger related
professional fees and severance accrual. Second quarter 2004
excludes $1,427 pre-tax stock option expense and $823 pre-tax merger
related professional fees and severance accrual. First quarter 2004
excludes $3,638 pre-tax stock option expense and $1,203 pre-tax
merger related professional fees. Fourth quarter 2003 excludes
$2,159 pre-tax expense related to a severance agreement.
Certain previously reported amounts may have been reclassified to conform
to current reporting presentation.
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Three Months Ended September 30, 2004
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $9,113 $21 0.92 %
Securities 431,971 3,309 3.05
Total loans (2) 1,935,094 26,704 5.49
Total interest-earning assets (3) 2,376,178 30,034 5.03
Nonearning assets:
Cash and due from banks 58,010
Other nonearning assets 206,434
Allowance for loan losses (24,783)
Total assets $2,615,839
Interest bearing liabilities:
Demand deposits $231,466 $308 0.53 %
Savings deposits 505,279 1,561 1.23
Time deposits 886,615 7,189 3.23
Subordinated note (4) 20,619 505 9.74
Company obligated mandatorily
redeemable trust preferred (4) - - -
Other borrowings 418,646 4,071 3.87
Total interest bearing liabilities 2,062,625 13,634 2.63
Noninterest bearing liabilities:
Demand deposits 222,458
Other liabilities 22,138
Shareholders' equity 308,618
Total liabilities and equity $2,615,839
Net interest income and interest
rate spread (3) $16,400 2.40 %
Net interest margin (5) 2.75 %
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Three Months Ended September 30, 2003
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $5,592 $11 0.78 %
Securities 530,913 4,548 3.40
Total loans (2) 1,946,693 28,268 5.76
Total interest-earning assets (3) 2,483,198 32,827 5.24
Nonearning assets:
Cash and due from banks 62,423
Other nonearning assets 211,902
Allowance for loan losses (24,663)
Total assets $2,732,860
Interest bearing liabilities:
Demand deposits $289,340 $598 0.82 %
Savings deposits 529,680 1,420 1.06
Time deposits 1,017,192 8,558 3.34
Subordinated note (4) - - -
Company obligated mandatorily
redeemable trust preferred (4) 20,000 505 10.02
Other borrowings 343,660 4,643 5.36
Total interest bearing
liabilities 2,199,872 15,724 2.84
Noninterest bearing liabilities:
Demand deposits 203,217
Other liabilities 30,090
Shareholders' equity 299,681
Total liabilities and equity $2,732,860
Net interest income and interest
rate spread (3) $17,103 2.40 %
Net interest margin (5) 2.73 %
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Nine Months Ended September 30, 2004
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $6,535 $42 0.86 %
Securities 480,472 12,703 3.53
Total loans (2) 1,956,844 81,978 5.60
Total interest-earning assets (3) 2,443,851 94,723 5.18
Nonearning assets:
Cash and due from banks 58,164
Other nonearning assets 208,312
Allowance for loan losses (24,607)
Total assets $2,685,720
Interest bearing liabilities:
Demand deposits $245,507 $997 0.54 %
Savings deposits 513,807 4,058 1.05
Time deposits 920,700 21,969 3.19
Subordinated note (4) 20,619 1,514 9.81
Company obligated mandatorily
redeemable trust preferred (4) - - -
Other borrowings 436,032 11,765 3.60
Total interest bearing
liabilities 2,136,665 40,303 2.52
Noninterest bearing liabilities:
Demand deposits 218,612
Other liabilities 23,554
Shareholders' equity 306,889
Total liabilities and equity $2,685,720
Net interest income and interest
rate spread (3) $54,420 2.66 %
Net interest margin (5) 2.97 %
Unizan Financial Corp.
Average Balance Sheet and Related Yields
Nine Months Ended September 30, 2003
Average Income/
(dollars in thousands) Balance Expense Rate (1)
Interest-earning assets
Interest bearing deposits and
federal funds sold $19,778 $165 1.12 %
Securities 530,491 17,371 4.38
Total loans (2) 1,953,226 89,606 6.13
Total interest-earning assets (3) 2,503,495 107,142 5.72
Nonearning assets:
Cash and due from banks 59,170
Other nonearning assets 213,549
Allowance for loan losses (25,025)
Total assets $2,751,189
Interest bearing liabilities:
Demand deposits $284,634 $1,931 0.91 %
Savings deposits 489,716 4,043 1.10
Time deposits 1,045,657 27,274 3.49
Subordinated note (4) - - -
Company obligated mandatorily
redeemable trust preferred (4) 20,000 1,514 10.12
Other borrowings 381,575 13,439 4.71
Total interest bearing
liabilities 2,221,582 48,201 2.90
Noninterest bearing liabilities:
Demand deposits 193,231
Other liabilities 35,132
Shareholders' equity 301,244
Total liabilities and equity $2,751,189
Net interest income and interest
rate spread (3) $58,941 2.82 %
Net interest margin (5) 3.15 %
(1) Calculated on an annualized basis.
(2) Loan fees are included in interest income on loans.
(3) Interest income is computed on a fully tax equivalent (FTE) basis,
using a tax rate of 35%.
(4) As of December 31, 2003, based on new accounting guidance issued under
FASB Interpretation No. 46, the amounts previously reported as
"company obligated mandatorily redeemable trust preferred" have been
recaptioned "subordinated note". The deconsolidation of the Trust
increased the Company's balance sheet by $619, the difference
representing the Company's common ownership in the Trust.
(5) The net interest margin represents net interest income as a percentage
of average interest-earning assets.
Unizan Financial Corp.
NONPERFORMING AND UNDERPERFORMING ASSETS
(dollars in thousands)
09/30/04 06/30/04 03/31/04
Non-performing loans:
Commercial $1,683 $3,180 $1,294
Commercial real estate 5,620 5,433 5,713
Government guaranteed 9,438 7,926 9,334
Aircraft 2,450 291 2,003
Residential real estate 8,577 9,563 8,713
Direct installment loans 63 45 161
Indirect installment loans 160 155 212
Home equity 1,183 1,192 1,210
Total non-performing loans $29,174 $27,785 $28,640
Less: Government guaranteed amount 7,023 6,080 6,965
Total non-performing loans excluding
government guaranteed amount $22,151 $21,705 $21,675
Total non-performing loans $29,174 $27,785 $28,640
Other assets owned 2,254 3,850 1,793
Total non-performing assets $31,428 $31,635 $30,433
Less: Government guaranteed amount 7,759 6,816 7,541
Total non-performing assets excluding
government guaranteed amount $23,669 $24,819 $22,892
Restructured loans $2,461 $2,496 $2,530
Ratio of:
Non-performing loans to total loans 1.53% 1.42% 1.45%
Non-performing assets to total assets 1.21% 1.18% 1.10%
Non-performing assets to total loans +
other assets 1.65% 1.61% 1.54%
Allowance to total loans 1.39% 1.27% 1.25%
Allowance to non-performing loans 90.45% 89.70% 85.93%
Ratio of (excluding government
guaranteed amount):
Non-performing loans to total loans 1.17% 1.11% 1.10%
Non-performing assets to total assets 0.91% 0.93% 0.83%
Non-performing assets to total loans +
other assets 1.24% 1.26% 1.16%
Allowance to non-performing loans 119.12% 114.82% 113.55%
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES
09/30/04 06/30/04 03/31/04
Average loans and leases:
Commercial $195,561 $198,914 $188,992
Commercial real estate 636,693 653,138 664,241
Government guaranteed 64,643 61,280 61,676
Aircraft 121,690 132,578 133,725
Residential real estate 444,772 448,009 453,362
Indirect installment loans 108,903 116,422 123,426
Home equity 326,582 317,320 307,116
Other consumer 36,250 36,926 38,552
Total average loans and leases $1,935,094 $1,964,587 $1,971,090
Net charge-offs (recoveries):
Commercial $175 $425 $(17)
Commercial real estate 772 712 261
Government guaranteed 353 141 255
Aircraft (47) 548 -
Residential real estate 236 (21) (50)
Indirect installment loans 416 384 371
Home equity 164 196 11
Other consumer 216 254 169
Total $2,285 $2,639 $1,000
09/30/04 06/30/04 03/31/04
Net charge-offs (recoveries) to
average loans and leases
(annualized):
Commercial 0.36% 0.85% -0.04%
Commercial real estate 0.49% 0.44% 0.16%
Government guaranteed 2.18% 0.92% 1.65%
Aircraft -0.15% 1.65% 0.00%
Residential real estate 0.21% -0.02% -0.04%
Indirect installment loans 1.53% 1.32% 1.20%
Home equity 0.20% 0.25% 0.01%
Other consumer 2.38% 2.75% 1.75%
Total 0.47% 0.54% 0.20%
Unizan Financial Corp.
NONPERFORMING AND UNDERPERFORMING ASSETS
(dollars in thousands)
12/31/03 9/30/03
Non-performing loans:
Commercial $1,292 $1,348
Commercial real estate 4,112 4,294
Government guaranteed 8,939 8,573
Aircraft 247 134
Residential real estate 9,838 8,911
Direct installment loans 37 118
Indirect installment loans 212 331
Home equity 1,222 1,211
Total non-performing loans $25,899 $24,920
Less: Government guaranteed amount 6,537 6,765
Total non-performing loans excluding
government guaranteed amount $19,362 $18,155
Total non-performing loans $25,899 $24,920
Other assets owned 2,143 2,095
Total non-performing assets $28,042 $27,015
Less: Government guaranteed amount 6,969 7,314
Total non-performing assets excluding
government guaranteed amount $21,073 $19,701
Restructured loans $2,565 $2,598
Ratio of:
Non-performing loans to total loans 1.32% 1.29%
Non-performing assets to total assets 1.03% 0.98%
Non-performing assets to total loans
+ other assets 1.42% 1.40%
Allowance to total loans 1.25% 1.27%
Allowance to non-performing loans 95.03% 98.76%
Ratio of (excluding government
guaranteed amount):
Non-performing loans to total loans 0.98% 0.94%
Non-performing assets to total assets 0.77% 0.72%
Non-performing assets to total loans
+ other assets 1.07% 1.02%
Allowance to non-performing loans 127.11% 135.57%
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES
12/31/03 9/30/03
Average loans and leases:
Commercial $193,154 $216,557
Commercial real estate 648,784 622,248
Government guaranteed 62,591 58,665
Aircraft 133,267 135,368
Residential real estate 439,369 443,603
Indirect installment loans 130,478 140,271
Home equity 298,712 283,578
Other consumer 41,374 46,403
Total average loans and leases $1,947,729 $1,946,693
Net charge-offs (recoveries):
Commercial $57 $43
Commercial real estate 101 266
Government guaranteed 102 48
Aircraft (124) -
Residential real estate 38 26
Indirect installment loans 716 620
Home equity 286 33
Other consumer 318 294
Total $1,494 $1,330
12/31/03 9/30/03
Net charge-offs (recoveries) to
average loans and leases
(annualized):
Commercial 0.12% 0.08%
Commercial real estate 0.06% 0.17%
Government guaranteed 0.65% 0.33%
Aircraft -0.37% 0.00%
Residential real estate 0.03% 0.02%
Indirect installment loans 2.20% 1.77%
Home equity 0.38% 0.05%
Other consumer 3.07% 2.53%
Total 0.31% 0.27%
DATASOURCE: Unizan Financial Corp.
CONTACT: Investors, Roger L. Mann, President and Chief Executive
Officer, +1-330-438-1118, or +1-866-235-7203, or , or
Media, Sandy K. Upperman, Vice President, Corporate Communications,
+1-330-438-4858, or , both of Unizan Financial Corp.
Web site: http://www.unizan.com/
Company News On-Call: http://www.prnewswire.com/comp/127633.html